Nbotee:
Imagine giving 30% of exploration costs to basin frontiers from money generated from host communities.. And who are those basin frontiers? Ur guess is as gud as mine

you got it wrong, is 30% of profit made by NNPC not exploration cost. 3% of NNPC expenses goes to the host communities. Now assuming NNPC expended $20 billion in its operation 3% of $20 billion which is ($600, 000,000 / six hundred million dollars) goes to the host community. Now let say after spending the $20 billion (capital) in its operation NNPC made $1000,000,000 billion / one billion dollars) as profit 30% of the profit which is ($300,000,000) goes to the frontier states . But where I don't support this aspect of the bill is if NNPC spend $20 billion in its operations and make a good profit of say $4 billion for that year which is very possible it means that the frontier states will get $1,200,000,000 far more than what the host communities will get. It depends on the amount of profit to be made by NNPC

jumper524:
So I finally took my time to read and research fully on this pub bill to know what the controversies is all about.
Here's 2 thing causing controversy.

Frontier Exploration Fund: 30 per cent of NNPC Limited profit×
They are asking of 30% of the funds to NNPC limited profit which is about $15billion yearly to explore other basin where oil is being discovered. Chad, benue, Niger and zamfara basin.
If you ask me, I'll say it's too much.

Host communities to get 3% of NNPC profit for community develop
development
that's about $1.9 billion to be shared amongst communities annually..
That's small if you ask me.

Now the real controversies is that the presidency is proposing 30% Frontier Exploration while the national assembly us proposing 10%. Seems like the president won on this.

Also for host communities southern senators are proposing 5% while northern senators are proposing 3%.
Innitially the bill suggested a 2.5%.

You got a very wrong submission from your research. $15billion NNPC profit? Where did you see that? NNPC has never made profit in the 44years of its existence until this week when it declared N287bn. That is about $500m. Frontier basin will get 30% of that profit which is about N70bn.

Host communities on the other hand will get 3% of operating cost of all oil exploration. Of which, NNPC alone has operating cost of $16bn. 3% of $16bn equals $500m(N200bn) from NNPC alone and I think they’d get 3% from other oil exploration companies in the communities as well.

Anyone that sincerely wants to know what the PIA is all about should read this thread by Jarus on twitter

https://twitter.com/Jarushub/status/1428148802347847680?s=20

LibertyRep:
They'll just be churning out figures to confuse everyone and obfuscate clear issues.

If I may ask, who's sharing the proceed of sales of cows with the herders? Shouldn't they also pay the host communities including every communities they graze through?

Who's Zamfara sharing the proceed of her gold with?

You're correct

1000angstroms:
What concerns them with any percentage in the first place, didn't the oil explorers use their own money to explore for oil, so why using our oil money to go waste on a cursed barren land.

Private explorers use their own funds bt they will only risk that in places they have a high certainty about or already confirmed places with oil carbon deposits.

Bt this is a purely government led exploration so they have to use government funds from oil mostly likely to look for oil reserves in places that have basically none for political reasons.

When it comes to God you can get [/color]100%
[color=#000000]
From Enugu, south east Nigeria God is distributing blessings without discrimination to where you are a host community or not.
5pm from today till Tuesday

Flairoqy:

Did they literally did all that to you? Or you’re simply exaggerating and blowing everything out of proportion? There have never been a time south were enslaved by the north so far as my history taught me, so be specific.
In other words, if a region is marginalized by the lower IQ counterparts in all ramifications of the system, what is the best approach in such situation? Fight for your country? Systematically sabotage and take over the government? Protest? Your decisions define your ideology.
I’ve said it repeatedly power will never go to the south on a platter of gold, do your findings of other similar situations in other countries.

I just discovered you are one of them! Tell your people we won't have it. You can sit on the iron throne you call presidency, but don't dictate who get what from my backyard. Now suh!

Really

sparko1:


I just discovered YOU ARE ONE OF THEM! Tell your people we won't have it. You can sit on the iron throne you call presidency, but don't dictate who get what from my backyard. Now suh!

I am my own distinct being, whatever you define me as is your own perception.

southpole:
you got it wrong, is 30% of profit made by NNPC not exploration cost. 3% of NNPC expenses goes to the host communities. Now assuming NNPC expended $20 billion in its operation 3% of $20 billion which is ($600, 000,000 / six hundred million dollars) goes to the host community. Now let say after spending the $20 billion (capital) in its operation NNPC made $1000,000,000 billion / one billion dollars) as profit 30% of the profit which is ($300,000,000) goes to the frontier states . But where I don't support this aspect of the bill is if NNPC spend $20 billion in its operations and make a good profit of say $4 billion for that year which is very possible it means that the frontier states will get $1,200,000,000 far more than what the host communities will get. It depends on the amount of profit to be made by NNPC

30% of profit from nnpc, goes to oil exploration in frontier basins. It does not to frontier states.

What that means that if oil is found in those basins after exploration, the company that invest in that area will give 3% of their profit for community development to the state government. Also nnpc will recover their cost by making more money from partnerships.

And who was the incumbent Minister of State for Petroleum Resources
when the bill was passed into law?

Ex- Gov Timipre Sylva of Bayelsa State.

Sirjamo:
Majority of those against the PIA have not read a single section of the act. They should answer these questions first:


1. If the 30% of NNPC running cost is to be used at the frontier basins, how much is the NNPC running cost and what is 30% of it?



2. Host communities will get their 3% from the oil exploration companies running costs, how many Companies do we have their and what is 3% of their running cost.



3. Critics say the 30% was a ploy to develop the north:


a. Are all the frontier basins in the north?


b. Can searching for oil be described as "Development"? ( Potential development might be correct).



c. If oil is discovered in the north, will the proceeds not increase the funds accrued to the federation account, to be shared by all states and FCT?

To hide stuff from Nigerian, put it in a book at article. Rather than read it, most people will argue on the basis of wrong hearsay. Having said that, your point no1 is wrong. It’s 30% of NNPC profit oil and not running costs.

1. The law say 30% of NNPC Ltd ‘profit oil’. Profit oil is a term that relates exclusively to the Production Sharing Contracts (PSC’s), which govern deep water oil production. Almost all land production is done by way of Joint Ventures (JV’s). Currently roughly 50% of national oil production is from psc’s and jv’s .If NNPC follows the term properly then it means that the 30% of profit is coming from only NNPC LTD and only with respect to something that makes up 50% of the industry.

2. Host communities get 3% of previous year operating cost of all companies operating in the oil and gas sector, including NNPC Ltd itself. For the big JV’s and PSC’s operated by IOC’s, their annual open will be roughly $1bln to $1.5bln. Let me name the big JV,s and PSC’s, operating.

NNPC Ltd
Shell JV
Shell PSC - Bonga
Mobil JV
Mobil psc - Erha
Chevron jv
Chevron psc - Agbami
Naoc JV
Total JV
Total psc - Egina
Seplat JV
Aiteo jv
Erotic jv
MD Western JV
Neconde JV
Heirs Holding JV
Panocean JV
Equinox JV
Sterling Oil jv
Addax jv
And many more smalller ones

If you add the opex of all these companies, I’m sure you are getting close to $30bln. 3% of that is $900mln. Trust me, I doubt if NNPC Ltd Profit Oil can be as much as $3bln, because I doubt any IOC operating a psc makes up to $1bln profit annually and we have only about 4 major PSC’s as seen above. Note that royalties, opex and I believe taxes are all deducted as cost and tax oil, before arriving at profit oil, so while govt would have made money from royalties and taxes first of all, profit oil will still be much smaller.

jumper524:
So I finally took my time to read and research fully on this pub bill to know what the controversies is all about.
Here's 2 thing causing controversy.

Frontier Exploration Fund: 30 per cent of NNPC Limited profit×
They are asking of 30% of the funds to NNPC limited profit which is about $15billion yearly to explore other basin where oil is being discovered. Chad, benue, Niger and zamfara basin.
If you ask me, I'll say it's too much.

Host communities to get 3% of NNPC profit for community develop
development
that's about $1.9 billion to be shared amongst communities annually..
That's small if you ask me.

Now the real controversies is that the presidency is proposing 30% Frontier Exploration while the national assembly us proposing 10%. Seems like the president won on this.

Also for host communities southern senators are proposing 5% while northern senators are proposing 3%.
Innitially the bill suggested a 2.5%.

Where did you see NNPC profit of $15bln?.?.

COMPAQ:


To hide stuff from Nigerian, put it in a book at article. Rather than read it, most people will argue on the basis of wrong hearsay. Having said that, your point no1 is wrong. It’s 30% of NNPC profit oil and not running costs.

1. The law say 30% of NNPC Ltd ‘profit oil’. Profit oil is a term that relates exclusively to the Production Sharing Contracts (PSC’s), which govern deep water oil production. Almost all land production is done by way of Joint Ventures (JV’s). Currently roughly 50% of national oil production is from psc’s and jv’s .If NNPC follows the term properly then it means that the 30% of profit is coming from only NNPC LTD and only with respect to something that makes up 50% of the industry.

2. Host communities get 3% of previous year operating cost of all companies operating in the oil and gas sector, including NNPC Ltd itself. For the big JV’s and PSC’s operated by IOC’s, their annual open will be roughly $1bln to $1.5bln. Let me name the big JV,s and PSC’s, operating.

NNPC Ltd
Shell JV
Shell PSC - Bonga
Mobil JV
Mobil psc - Erha
Chevron jv
Chevron psc - Agbami
Naoc JV
Total JV
Total psc - Egina
Seplat JV
Aiteo jv
Erotic jv
MD Western JV
Neconde JV
Heirs Holding JV
Panocean JV
Equinox JV
Sterling Oil jv
Addax jv
And many more smalller ones

If you add the opex of all these companies, I’m sure you are getting close to $30bln. 3% of that is $900mln. Trust me, I doubt if NNPC Ltd Profit Oil can be as much as $3bln, because I doubt any IOC operating a psc makes up to $1bln profit annually and we have only about 4 major PSC’s as seen above. Note that royalties, opex and I believe taxes are all deducted as cost and tax oil, before arriving at profit oil, so while govt would have made money from royalties and taxes first of all, profit oil will still be much smaller.

Thanks, this pretty much summarizes everything that's there to know

Johnrake69:
Robbery. Why waste so much money searching for oil when you haven't been able to add value to the oil readily available to us at the moment.

the same oil that is becoming moribund and outdated. Our leaders just don't think. In d next 15yrs, oil will not be as relevant as it's today, why dissipate resources in oil expansion and exploration rather than divest such fund into futuristic businesses. Agriculture is there, our leaders ain't thinking towards dat. Too bad!

Tzar:
The North has NEVER been the problem of the South. Infact, Southern founding fathers begged the North into this useless 'independent' contraption, when the North insisted they were not ready for independence in the 50s. Instead of going their way, they literally begged the North!
Southerners are weak, greedy and stupid. Northerners know all they need to do is 'bribe' a few Southern politicians to get what they want. The Southern politicians know they only need to throw a few crumbs at a few Southern elders, youths and thugs to achieve the Northern agenda.
Sadly, this has been the fomula for Northern dominance in Nigeria. It will not end anytime soon, unless Southerners unite and face their real enemy... THE SOUTHERN GREEDY BETRAYERS!
HOW DO YOU EXPLAIN THE FACT THAT NIGER DELTAN LEGISLATORS AND EXECUTIVE MEMBERS SAT TO SEE THI ACT PASSED! No protest, lobbying, litigation, etc?!!! It is sad that the South is the South's problem!

you are a good student of Nigeria's historiography. Kudos.

Omobada:


I bet you didn't read before commenting

You think so?

obailala:

"Take 3% for mining and give us 30% for host community"

This your above suggestion can best be described as the disastrous consequence of ignorance. You obviously havent read the report or just lack the capacity to understand it... This was how the white men of old cheated some of our illiterate African forefathers, who would always dive at 30% thinking it was bigger than 3%; they simply didnt have the wisdom to ask the valid question '30% of what?'

3% for host communities may be small, and 30% for frontier development may be too much; but definitely, when placing the outcome of both percentages side by side, 3% of the operating cost of oil companies has clearly always been larger than 30% of NNPC's profits. Hopefully you now see why your above suggestion will be a disaster?

cc: sunnnnyuu

See you momo like you, without reading what I wrote you come up trying to abuse me, go back and read comprehensively before replying me.

sunnnnyuu:

See you momo like you, without reading what I wrote you come up trying to abuse me, go back and read comprehensively before replying me.

Lol... This your advice is best suited for you.... Who was abusing you?