afrol News, 11 May - The Nigeria Federal government has accused major oil companies of bribing legislators and labour unions to shoot down the proposed reforms in the gas and oil industry.

The Special Adviser on Petroleum to President Umaru Yar’Adua, Dr Emmanuel Egbogah accused the oil companies of mounting campaigns and bribing legislators to reject planned reforms in the gas and oil industry.

The proposed reforms currently debated by the two chambers of the National Assembly on the Petroleum Industry Bill, include that all companies involved in oil exploration and production in Nigeria must form Incorporated Joint Ventures with the Nigerian National Petroleum Company Limited.

Local media reports quoted Mr Egbogah saying the Federal Government would not bow down to the oil companies' continued blackmail and intimidation to reject reforms in the gas and oil industry, saying the rejection was anticipated.

He said oil companies have been reaping the country’s riches for more than five decades, saying the reforms will ensure better rewards for all the Nigerians.

Mr Egbogah said the oil companies had made a presentation before the Oil and Gas Sector Reforms Implementation Committee where they claimed that the reforms would reduce their profits.

The new reforms will also lead to the establishment of the National Petroleum Assets Management Agency which will be charged with the duty to compare the cost of oil production claimed by the incorporated joint ventures. The agency will also be empowered to reject or shut down any company seen to be inflating or running its production costs at exorbitant rates.

“Reform or no reform, we are at a point where we are going to renegotiate some of the clauses because some of these agreements were made in the past and the terms and conditions must change because a new environment has arisen,” he said.

The Nigerian government has also directed the oil companies to set aside some percentage of the gas produced in their operations for the domestic market, further asking the oil companies to prioritise domestic gas supply over export projects.

Earlier this year, the Nigerian government called for the deregulation of petroleum products, a move widely contested by both producers and consumers, also prompting a strike by some union workers.

By staff writer

© afrol News

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