The minister of state for petroleum resources, Mr. Timipre Sylva has said that many international oil companies (IOCs) were contemplating to leave their offshore operations in Nigeria because of numerous law suits.
The minister stated this on Tuesday at the ‘2021 National Oil and Gas Workshop for justices and judges’ held in Abuja under the theme ‘Petroleum Industry Act: New legal and fiscal regime in the Nigerian oil and gas industry.”
He recalled that when he became minister, he realised that the industry had a penchant for suing the oil firms in court.
The practice, according to him, impedes the growth of the industry.
He said this 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 he had a lot of cases in the court.
“He wanted us to support him to win the cases. What I realized 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 companies are contemplating leaving the onshore of Nigeria.
“And one of the biggest problems we have onshore in Nigeria is incessant court cases that reverberate across the industry.”
Sylva said the PIA came at the time the industry faces challenges arising, not only from the domestic scene, but also from the wider international environment.
