By Abdullahi M. Gulloma
Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, yesterday revealed that Nigeria lost $21 billion on oil Production Sharing Contact (PSC) in the last 20 years.
According to him, previous governments failed to explore the opportunity offered by Deep Offshore Act that made provision for premium element to be shared once the price of crude exceeds $20 per barrel.
In view of this loss, the minister said the Federal Executive Council (FEC) has approved steps to amend section 15 of the PSC of the Deep Offshore Act.
The minister made the revelations while briefing State House correspondents after the FEC meeting, chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
“The first and most substantial thing for me is the decision to work with the Attorney General of the Federation to amend section 15 of the Production Sharing Contract (PSC) of the deep offshore act.
“Under the deep offshore act, there was a provision in 1993 that once the price of crude exceeds $20 a barrel, the government will take steps to ensure that that premium element is then distributed at an agreed premium level for the federal government so that we get more for our oil.
“But over the last 20 years, nothing really was done. From 1993 to now, cumulatively, we have lost a total of $21 billion just because government did not act. We did not exercise it.
“In 2013 there was a notice to oil companies that we were going to do this but we didn’t follow through in terms of going to Council to get approval
“One of the things we’ve worked on very hard over the last one year is to get that amendment because once we do, the net effect for us is close to $2 billion extra revenue for the federation,” Kachikwu explained.
On the current fuel scarcity, the minister insisted that government has no plan to increase pump price of fuel in the country.
Also in attendance at the briefing were; his transportation counterpart, Rotimi Amaechi, that of Niger Delta Affairs, Usani Uguru Usani, as well as the Senior Special Assistant on Media and Publicity to the President, Garba Shehu.
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