The Co-founder and Executive Director, Commercial Operations, Falcon Corporation Limited, Audrey Joe-Ezigbo in an interview with The Punch, has called for a review of joint venture arrangements in the nation’s oil and gas industry as well as the need for the federal government to embrace a willing buyer-willing seller gas pricing model .
With regard to the issue of pricing, she said what exists currently in the Nigerian gas sector is almost like an artificial pricing mechanism and that what needs to be done is to shift the entire market to a willing buyer-willing seller model. She also added that the Petroleum Industry Bill should be broken down into smaller bills and quickly passed as investors would be unwilling to invest in the gas sector if they are uncertain about revenues.
She also said it was important to revisit the structure of the current JV arrangement because it is also part of the challenge in getting the International Oil Companies to make more investments in the gas side of the business. She said it would be advantageous to the nation if they could be opened up more to the private sector.
She however, lauded the NNPC’s recent changes and the impact of the Gas Master Plan specifically with regard to the domestic supply obligation and the level of compliance by the producers, reduction in the level of flaring and the movement towards achieving a strong commercial and more cost-reflective pricing framework.