Civil Society Legislative Advocacy Centre (CISLAC) in conjunction with OXFAM, Tuesday, decried the huge loss in crude oil production in Nigeria.
They called for the metering of oil pumped in order to stop the loss.
In a communiqué issued at the end of a one day policy dialogue on promotion of reforms in the extractive sectors held in Uyo, Akwa Ibom state capital, the groups lamented that the actual quantity of oil produced daily has remained unknown as the country still relied on estimated values.
Mrs. Iboro Adam-Etuk – Willing & Caring Hands, Sammy Okoroukpong Mfon Gabriel Policy – Alert said host communities should get equity participation at the level of granting Oil Mining License (OML) and Oil Prospecting Licenses (OPL) to oil companies.
The communiqué added that host communities should also be given license to own modular refineries as beneficial owners to refine oil.
On the proposed PIB 2020, the communiqué maintained that the bill should be thoroughly interrogated to ensure it aligns with the specific needs of Host and Impacted communities (HICs) which would guarantee access to benefits from the up-, mid- and down-stream segments by the HICs.
It added that annual contributions by oil companies to the host community trust fund as encapsulated in the proposed PIB 2020 should be 10% and nothing less.
It further added that derivation formula should be provided for in the PIB 2020 to ensure fines paid by extractive companies for gas flaring are shared between the government and the host community where gas is flared.
The communique reads in part: “Oil pumped must be metered to stop the huge loss incurred daily on crude oil production, as the actual quantity produced daily is not known.
“At the level of granting Oil Mining License (OML) and Oil Prospecting Licenses (OPL) to oil companies, it should be made possible for host communities to get an equity participation in the granting of these licenses.
“Host communities could pool resources to get licenses for marginal fields towards taking significant ownership of extractive resources within their jurisdictions.
“Annual contributions by oil companies to the host community trust fund as encapsulated in the proposed PIB 2020 should be 10% and no less.
“Derivation formula should be provided for in the PIB 2020 to ensure fines paid by extractive companies for gas flaring are shared between the government and the host community where gas is flared.”
