L
LequteMan
Guest
First female chief executive officer of #Total Upstream in #Nigeria Mrs. Elizabeth Proust, in an interview with #Leadership says there will be imminent crash of revenue if the federal government of #Nigeria fails to consider major oil companies input in the petroleum industry bill (PIB).
She says contrary to public opinions, International Oil Companies (IOCs) aren't playing politics with the PIB as it's the role of the government to make laws.
"But it is difficult for us to understand why we should not be aware of what is going to happen especially as we are investing billions of dollars in this sector under agreed terms which may change without any consultation.
"Total has taken the risk to launch projects because we believe that the conditions will remain the same but with improvement through the PIB.
"Among the major things we seek in the PIB, apart from stable fiscal conditions that promote investment, is reduced bureaucracy. Today, getting approvals is very complex.
"This is one of the areas we expected that the PIB will address. The other is on gas terms. The PIB should address both fiscal and non-fiscal policy that will accelerate the development of gas. And this is our expectation of the PIB.
"What we understand could be in the actual PIB draft is a big worry for Total. This is because we have started all these deep offshore projects on the economics of existing terms and condition of our production sharing contracts or PSCs we signed with NNPC and the government.
"We took the risk in accordance with the terms of the PSCs, which many people don’t realise meant that we make all the investment with the government paying nothing. If we didn’t find oil, then we lost everything without compensation or any recovery from the government. We took the risk but on the other hand when you take a risk you want your reward and the real reward is to be able to maintain our investment in Nigeria and our commensurate returns in line with the contracts.
She predicts mass exodus of investors and low investment if the bill doesn't suit the companies.
"There was a South American country that suddenly made big changes to existing fiscal terms and conditions. Many IOCs left the country.
"Total is still working in this country but at a very low level and we have been unable do any new project in that country because of the change in its fiscal policies.
"Government revenues dropped dramatically and the government is currently reviewing its policies to bring back investments. We sincerely hope that it is not going to be the case in Nigeria.
She added that the issue of oil theft is a major concern for everybody.
She says contrary to public opinions, International Oil Companies (IOCs) aren't playing politics with the PIB as it's the role of the government to make laws.
"But it is difficult for us to understand why we should not be aware of what is going to happen especially as we are investing billions of dollars in this sector under agreed terms which may change without any consultation.
"Total has taken the risk to launch projects because we believe that the conditions will remain the same but with improvement through the PIB.
"Among the major things we seek in the PIB, apart from stable fiscal conditions that promote investment, is reduced bureaucracy. Today, getting approvals is very complex.
"This is one of the areas we expected that the PIB will address. The other is on gas terms. The PIB should address both fiscal and non-fiscal policy that will accelerate the development of gas. And this is our expectation of the PIB.
"What we understand could be in the actual PIB draft is a big worry for Total. This is because we have started all these deep offshore projects on the economics of existing terms and condition of our production sharing contracts or PSCs we signed with NNPC and the government.
"We took the risk in accordance with the terms of the PSCs, which many people don’t realise meant that we make all the investment with the government paying nothing. If we didn’t find oil, then we lost everything without compensation or any recovery from the government. We took the risk but on the other hand when you take a risk you want your reward and the real reward is to be able to maintain our investment in Nigeria and our commensurate returns in line with the contracts.
She predicts mass exodus of investors and low investment if the bill doesn't suit the companies.
"There was a South American country that suddenly made big changes to existing fiscal terms and conditions. Many IOCs left the country.
"Total is still working in this country but at a very low level and we have been unable do any new project in that country because of the change in its fiscal policies.
"Government revenues dropped dramatically and the government is currently reviewing its policies to bring back investments. We sincerely hope that it is not going to be the case in Nigeria.
She added that the issue of oil theft is a major concern for everybody.
