The Managing Director of Nigeria’s leading deep-water oil and gas company, Shell Nigeria Exploration and Production Company, Elohor Aiboni, has urged the Nigerian government to replicate the Petroleum Industry Act’s good fiscal terms for onshore oil projects and put in place positive fiscal terms for gas projects that are not associated with oil projects.
The SNEPCO MD made the request in Abuja at a panel session at the Nigeria Oil and Gas Conference and Exhibition.
Aiboni said: “The PIA has provided better terms for onshore oil reducing tax and royalties, but action was still required to enact terms for gas that is not associated with oil drilling.
“It is critical to put in place fiscal terms that will attract investments in Nigeria’s oil and gas industry.
“Capital has no emotions at all; it will flow to where it will get the highest returns. It will then begin to bear fruits, lots of fruits and that’s certainly what any investor is looking for.
“Favourable fiscal terms will also boost investors’ confidence, encouraging them to implement projects in the industry.
“There are factors that will drive oil and gas projects and first is around the fiscals which is very critical, so there must be right and clear fiscal terms to support the execution of projects.”