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Radical changes on the cards for investment in oil and gas sector
Mon, 12 Jan 2009 22:34
TradeInvestNigeria Staff


Nigeria's oil and gas sector is set to undergo significant changes if the federal government's plan to transform oil joint ventures into limited liability companies goes ahead.

According to a report in Business Day, the new arrangement will see government ceasing to use money from the federation account to finance ventures; while private partners will have to invest the amount equivalent to their share in the venture.

The new oil and gas bill, structured by the Oil and Gas Sector Reforms Implementation Committee (OGIC) is currently at the National Assembly and aims to improve the sector and close loopholes in the system.

ThisDay newspaper reports that the bill also proposes various other changes that will improve the efficiency of Nigeria's oil and gas industry. These include:

  • The establishment of the Nigerian Petroleum Directorate which shall function as the secretariat of the Minister and shall take over all functions previously undertaken by the Ministry of Petroleum Resources.

  • The establishment of the National Petroleum Assests Management Agency which shall monitor and apporve costs of ventures in which Nigeria has an interest.

    • According to reports, one of the major reasons idea behind the reform bill is to seperate the oil and gas industry from politics.

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