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A statement by Kenna Partners quoted Otobo as saying, “The commission has granted 42 licenses for deep offshore development over 30 years but only six have been developed so far.”

He cited funding constraints and technology as the major impediments to deep offshore development, noting that the commission has, therefore, streamlined the tax regime, removed the bottlenecks, and provided clarity to potential investors to encourage investments.

The taxes, he noted, had been streamlined by the Petroleum Industry Act, to just the Hydrocarbon Tax and Royalties, effectively doing away with the Petroleum Profit Tax and reducing the tax burden on operators.

He reiterated the commitment of the commission to creating an enabling regulatory environment that fosters divestment and re-investment in the industry.

“The first step to divesting interest in an asset awarded by the Federal Government is to send a notification of divestment, following which the company sends an application stating how they intend to divest. The commission then conducts its due diligence to ensure the assets are without encumbrances and free of any potential transfer of liabilities.

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