“It is likely to be passed by the year end,” Egbogah told Reuters in New Delhi, where he is attending an energy conference.
Egbogah said once the legislation was approved, Nigeria would begin its next oil exploration licensing round in the first half of 2011.
The Federal Government said the bill would make state oil firm, the Nigerian National Petroleum Corporation, more transparent, encourage investment, promote local oil companies’ involvement in the industry and increase gas supplies to the dilapidated domestic power sector.
But international oil companies like Royal Dutch Shell, Exxon Mobil, Total and Chevron, which have dominated the nation’s oil and gas sector for decades, are worried that the bill will impose higher taxes and royalties, while failing to address key issues of under-funding, corruption and security.
The bill has been repeatedly delayed by revisions and disagreement.
But on Monday, Egbogah said all the terms relating to the bills have been finalised.
He also said, “Nigeria is currently producing 2.6-2.7 million barrels of oil per day versus an output capacity of 3.6 million bpd.”
Crude oil supplies from OPEC countries, which together produce over a third of global oil supplies, rose in October because of higher supply from Angola and smaller increases from other members, reducing adherence to agreed output targets, a Reuters survey showed on Friday.
When asked about China‘s bid to lock in oil reserves in Nigeria, Egbogah said “discussions have not progressed.”
China had offered to invest $50bn to acquire six billion barrels of Nigerian oil reserves in proposal made in June 2009.
Source: http://www.punchng.com/Articl.aspx?theartic=Art201011023535215
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