Several planned deepwater projects in the country have been repeatedly pushed back because of regulatory uncertainty caused by the delay in passing of the Petroleum Industry Bill (PIB), The Punch reports.

The Energy Information Administration, the statistical arm of the US Energy Department, said as a result of the uncertainty, international oil companies in Nigeria had sanctioned (reached a final investment decision) on only one of eight planned deepwater oil projects.

“Both sanctioned and unsanctioned deepwater oil projects have the potential to bring online almost 1.1 million barrels per day of new production over the next five or more years. However, only 200,000 bpd has reached the critical development milestone,” it said.

“Regulatory uncertainty has resulted in fewer investments in new oil and natural gas projects, and no licensing round has occurred since 2007. The amount of money that Nigeria loses every year from not passing the PIB is estimated to be as high as $15bn,” the EIA said.

The PIB, which was initially proposed in 2008, is expected to change the organisational structure and fiscal terms governing the oil and natural gas industry, if it becomes law. The first part of the bill, Petroleum Industry Governance Bill, has been passed by the Senate and the House of Representatives, and is awaiting the President’s assent.

Â