Stakeholder management seminar the petroleum industry bill as focus


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Effective Stakeholder Management is essential for sucess in policy and legislative environments. This Seminar looks at the dynamics of Stakeholder Relationship which can aid the passage of one of Nigeria's most sought-after piece of legislation - the Petroleum Industry Bill.

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Stakeholder management seminar the petroleum industry bill as focus

  1. 1. Stakeholder Management Seminar The Petroleum Industry Bill as Focus. Bolaji Okusaga
  2. 2. Let’s Think About the 5 Steps for Managing Stakeholders Step 1 – Identify Stakeholders Step 2 – Prioritise Stakeholders Step 4 – Engage stakeholders: building the relationship Step 3 – Visualise the stakeholder community Step 5 – Monitor the communication
  3. 3. Let’s Use the PIB The Nigerian Petroleum Industry Bill. • Starting with the need to review current legislative and policy regimes in the Oil and Gas sector • A policy document was drafted under the Obasanjo regime led by policy champions like Riliwanu Lukman • A PIB 2008 Bill was sent to the house during the 6th Assembly but was not passed. • The Bill was reviewed and resent to the 7th Assembly as PIB 2012 but has not been passed.
  4. 4. Key Targets of the Nigerian Oil and Gas Industry – in the last Decade 2007 2008 2010 36 billion barrel Reserves and 4 million b/d production Develop domestic market and end flaring • Maximising sector value and fair share for Nigeria • Improving Nigerian capacity and Content • Capture economic value and generate as much revenue from gas as from oil 40 billion barrel reserves and 4.5 million b/d production by 2010 • Emphasize local content • Bouy the Cabotage Act and move for passage of the PIB
  5. 5. Current Market Overview and Industry Dynamics Market Overview • Upstream Market is Oligopolistic with Shell, Exxon Mobil, Chevron as leaders in an industry that has a lot of marginal hybrid and local players Industry Dynamics • Move to strengthen cabotage Act in order to ease the rise of local players in the shipping of Nigeria’s Crude Push for stronger local content and technology transfer The ongoing debate on the Petroleum Industry Bill with resistance from Multinational Oil Corporations Issues of Bunkering and Oil Theft and attendant loss of revenue accruable to government
  6. 6. Engagement Platform: Policy POLICY ENTERPRISE AGENCIES GOVERNMENT PRESIDENCY LEGISLATURE Senate & House Committees MINISTRIES AND PARASTATALS JUDICIARY Nigeria policies and reform initiatives Promotion Council NNPC, NAPIMS, D PR NIGER-DELTA AMNESTY PROGRAMME State Governments NSE SEC •Enterprise Agencies are very critical stakeholders who determine policy direction and implementation 6
  7. 7. Engagement Platform: Partnership PARTNERSHIP Shipping Companies and Oil Trading Concerns Industry Groups OPTS, Business Chambers COUNTER-PARTIES SUPPLIERS •This Group aids business success •Bespoke communication for this group will be essential.
  8. 8. Engagement Platform: Pressure PRESSURE COMMUNITIES / NGO’S Amnesty International MEDIA NEWS / POLITICS OIL & GAS Host Communities ERA / Friends of the Earth BUSINESS & ECONOMY ENVIRONMENT •Media, NGO’s and Community Based Organisations are key influencers who help shape public opinion. 8
  9. 9. Target Audience - Expectations Stakeholder Group What Petroleum Industry Policy Champions expects from them What stakeholder s expect from Petroleum Industry Policy Champions Government Empathy with the industry’s challenges. Fair hearing in all disagreements with host communities. Consistent business opportunities, higher profit margins. Quality products to end users at fair market value. Commitment to socio-economic development of Nigeria in general and host communities in particular. Local Communities Identification with Petroleum Industry Policy Champions and an understanding of its contribution and value to the local community and economy at large. Support in lobbying government and setting agenda within the industry. Understanding that dialogue is the best way to resolve disputes Socio economic development, employment opportunities, environmental protection 9
  10. 10. Target Audience - Expectations Stakeholder Group What Petroleum Industry Policy Champions expects from stakeholders What stakeholders expect from Petroleum Industry Policy Champions Partners Thorough understanding of the business and the company and commitment to moving Petroleum Industry Policy Champions forward to meet objectives. Loyalty and empathy. Good corporate governance, consistent business opportunities and higher profit margins The Media and its institutions Positive news angles, wide coverage and prominence, understanding of company values, invitation to comment on industry and general business news. Consistency in message content, accessibility, transparency, business patronage, respect, recognition and an understanding of news values. Capacity development and value creation Regulators Provide incentives, an enabling environment, and a voice in the formulation of legislation affecting the organisation. Entrenchment of sensible legislation that balances diverse interests. Demonstrate good citizenship by living the business principles, demonstrate responsibility and be actively engaged in capacity building and be supportive of economic reform 10
  11. 11. …Journey to the 2012 Petroleum Industry Bill(PIB) Special PIB Task Force led by Senator Udo Udoma was set in January 2012 to work with relevant government bodies to produce a new version of the PIB for presentation to the National Assembly. The PIB Technical Committee was headed by the Director of DPR Osten Oloronsola. The Task Force was directed to consult with key stakeholders and to liaise with the National Assembly to ensure the quick passage of the 2012 PIB The Special Task Force on PIB submitted its report in June 2012 to the Presidency Federal Executive Council of Nigeria approved the PIB on 11 July 2012 The Presidency upon the approval of the Federal Executive Council (FEC)forwarded the 2012 PIB to the National Assembly on 18th July 2012 The bill is now before the National Assembly
  12. 12. Overview of the 2012 PIB Is a 223 page document ;comprises 363 sections divided into 9 parts with 5 schedules. Provides for the legal, fiscal and regulatory framework for the oil and gas industry. Note that some sections of the PIB were not correctly numbered. E.g. no section 119 Create two regulatory entities. The Upstream Petroleum Inspectorate and the Downstream Petroleum Regulatory Agency Provides for Host Community Fund ; Upholds in its entirety the Nigerian Oil and Gas Industry Content Development Act 2010 Split the NNPC into three entities; two incorporated, one not. Introduces new fiscal framework for the oil and gas industry; NHC, CIT and Royalties No mention of refining or refining operations other than in Section 220 (2)(b) which mentions that regulations may be made for these operations. Meanwhile there is a refinery Bill in the senate. Its outcome will determine the future of the Nigerian oil and gas industry , as well as the Nigerian workers. Most influential and important legislation after the Nigerian constitution
  13. 13. Group One – Group Discussion • Identify Stakeholders • Introduction to the PIB case study • Stakeholder Identification • Exercise 1: Identify stakeholders needed for the passage of the PIB 2012 • Explain the role of each Stakeholder • Discussion
  14. 14. Group Two – Group Discussion • Prioritise Stakeholders • Stakeholder Prioritisation – Prioritise the Stakeholders needed to pass the PIB 2012 • Exercise 2: The most important stakeholders based on their roles and impact • Discussion
  15. 15. Group Three – Group Discussion • Engage stakeholders: building the relationship • Stakeholder engagement towards the passage of the PIB 2012 • Exercise 3: Define stakeholder support and receptiveness
  16. 16. Let’s get to work.