PIB: Jonathan, Diezani should not award oil blocs—El-Rufai

*As NEITI seeks transparency in award of licences
BY EMMA OVUAKPORIE
ABUJA—FORMER Federal Capital Territory ,FCT, Minister, Malam Nasir
Ahmed El-Rufai, yesterday, said the powers of the President and
Minister of Petroleum to award oil blocs should be curtailed.
El-Rufai, who spoke at the final public hearing on the Petroleum
Industry Bill,PIB, organised by the House ad hoc Committee on the PIB,
said Nigerians should be given the opportunity to freely bid for
available oil blocs, instead of arbitrarily awarding same toselect
individuals by the President.
He said: "Today, Nigeria has a track record of attracting a billion
dollars in fees from frequency spectrum. If we can sell something,
which is scarce, like the spectrum for that kind of money, why can't
we bid out oil blocs? I think you should put in the PIB a requirement
that every oil bloc in Nigeria, whether onshore or offshore, be
publicly advertised, and everywhere in the world, Nigerians and
foreigners, be given the opportunity to bid for it, and whoever bids
the highest price should win, even if you have some provisions that
Nigerians can win, if they bid 10 or 20 percent lower. But no one, not
even the President should have the discretion to allocate oil blocs
without rules".
El-Rufai argued that there should be a government framework that
encouraged independence of the regulators in the sector, insisting
that the regulators should not be made to report to the Minister of
Petroleum.
He said: "I think that as you are doing this legislation, we must have
independent regulators. Independent regulators mean that they don't
reportto the minister. They are independent of the minister. The
minister focuses on policy, the regulators have freedomto regulate
independently without any control of the minister, which means, for
instance, that we should not live in a country in which the oil bloc
can be allocated based on discretion."
Speaking as a director of the Centre forAfrica's Progress and
Prosperity, CAPP, El-Rufai suggested that the joint ventures should be
incorporated and put on the stock exchange, so Nigerians could buy
shares in the JVC's.The former FCT helmsman also advisedthat more
Nigerians be encouraged to participate in the petroleum industry. On
oil host communities' fund (PHCF), he applauded the initiative,
saying it was assailable but, however, called for a governance
framework.
Executive Secretary of NEITI, Mrs ZainabAhmed, said to ensure
transparency in the industry, the PIB should provide for an allocation
process that was clear and transparent, and openned to the general
public.
She maintained that there should be a clear description of the process
for transferring or awarding oil licence.