By Teddy Nwanunobi
The Minister of State for Petroleum Resources, Chief Timipre Sylva, on Tuesday, hinted that many international oil companies (IoCs) are currently contemplating leaving their onshore operations in Nigeria, as a result of litigations.
Sylva, who spoke in Abuja, at the 2021 National Oil and Gas Workshop for Honourable Justices and Judges, recalled that, on the assumption of office, he realised that the industry had the penchant of suing the oil firms in court.
“We must start from the judiciary, because I can tell you that this is one of the weakest links in the oil and gas industry”
He stated that the practice was impeding the growth of the nation’s oil and gas industry.
He said this has made a workshop on the activities of the oil and gas industry apt, especially as the implementation of the Petroleum Industry Act (PIA) would provoke more court cases.
He described litigation as one of the major factors retarding the onshore operations of the country.
“We must start from the judiciary, because I can tell you that this is one of the weakest links in the oil and gas industry.
“When I first came in as Minister of State, someone told me. What he discussed was quite disturbing. He said that he had a lot of cases in the court.
“He wanted us to support him to win the cases. What I realised was that was what was happening in the oil industry.
“The industry was taking oil companies to court. He said he had over 200 cases in court. And unfortunately, it has impeded the growth of the industry.
“Today, I can tell you that a lot of oil companies are are contemplating leaving the onshore of Nigeria.
“And one of the biggest problems we have onshore in Nigeria is incessant court cases that revibrate across the industry,” he said.
Sylva said that the PIA came at the time that the industry was facing challenges arising, not only from the domestic environment, but also from the wider international environment.
He noted that, apart from the current COVID-19 crisis, which caused the strongest recession experienced globally since 1929, the industry faces other critical challenges.
Sylva added that several nations have announced the intent to comply with the Paris Agreement 2016, and have adopted the climate change policies, with a target of being carbon neutral by 2050 or 2060.
Valuechain reports that the theme of the workshop was: ‘Petroleum Industry Act New Legal and Fiscal Regime in the Nigerian Oil and Gas Industry’.