The Petroleum Industry Bill has been passed by the National Assembly after it was considered for the third time.
The Bill contains 318 clauses, grants 5% of actual annual operating expenditure to host communities for development.
Both the Senate and the House of Representatives commenced deliberations on the passage of the Petroleum industry Billon Thursday.
In the passed bill, thirty percent profit accrued from the Nigeran National Petroleum Corporation has been earmarked for the search and exploration of crude oil in the northern part of the country.
This is part of recommendations captured in the Petroleum Industry Bill presented on Thursday’s plenary by Chairman of the 54-member Joint Committee on Petroleum Downstream, Upstream and Gas, Mohammed Sabo.
Earlier, Senator Sabo explained that that the 30% was necessary to enable the country take advantage of threats to funding of fossil fuel projects as the world shifts from fossil fuel to alternative energy sources.
The Petroleum Industry bill will help to strengthen accountability and transparency in activities of the NNPC, as well as attract capital investment inflows to the sector.
The Deputy President of the Senate, Senator Ovie Omo-Agege, on his part appealed that Niger Delta communities be given up to 10 percent equity shares.
He also requested that money paid as penalty for gas flaring be used to rehabilitate impacted communities rather than invest it on gas infrastructure as provided for in the bill.
As at the time of this report, the upper chamber had gone into closed door session to be briefed by the NNPC GMD, Mele Kyari with the Minister of State, Petroleum Resources, Timipre Silva in attendance.
