October 05, (THEWILL) – The Minister of State for Petroleum Resources, Chief Timipre Sylva, says many international oil companies (IoCs) are mulling the idea of leaving their onshore operations in Nigeria because of incessant litigations.
Sylva, who spoke on Tuesday in Abuja, at the 2021 National Oil and Gas Workshop for Hon. Justices and Judges, described litigation as one of the major factors retarding onshore operations in the country.
The theme of the workshop is “Petroleum Industry Act New Legal and Fiscal Regime in the Nigerian Oil and Gas Industry.”
Lamenting how legal actions against oil companies have retarded the growth of the industry in Nigeria, the minister said, “We must start from the judiciary because I can tell you that this is one of the weakest link in the oil and gas industry.
“When I first came in as Minister of State, someone told me what was quite disturbing; he said he had a lot of cases in the court.
“He wanted us to support him to win the cases. When I realized 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 contemplating leaving the onshore of Nigeria.
“And one of the biggest problems we have onshore in Nigeria is incessant court cases that revibrate across the industry.”
The Minister said the PIA came at a time the industry is facing challenges arising from the wider international environment.
He noted that the industry is having to deal with these challenges alongside those caused by the COVID-19 crisis, which caused the strongest recession experienced globally since 1929.
