The CEO of Oando, Mr. Wale Tinubu, has stated that the Petroleum Industry Bill may not pass into law by the end of 2013.
“It’s going to take a long while to truly negotiate,” Wale Tinubu, chief executive officer of Lagos-based exploration and production company Oando Plc, said Tuesday in Abuja at the 2013 edition of the Nigerian Oil and Gas Conference and Exhibition.
He added, “There’s quite a number of things to discuss, and I find it very difficult to see how we would end up with a Petroleum Industry Bill by the end of this year.”
Oil corporations are unhappy with provisions in the law that increase government share of revenue from 61% to 73%. They believe that proposed tax increases will make oil exploration in the country uneconomical.
The bill has been tossed around for several years and an updated version was submitted to lawmakers last July.
Other factors delaying the passage of the bill are derivation, and other political and economic considerations.