International Oil Companies (IOCs) operating in Nigeria are scrambling to renew their oil licences ahead of the passage of the Petroleum Industry Bill, (PIB) that could boost tax and royalty rates. The Wall Street Journal reported yesterday that oil companies operating in the country\'s oil and gas industry are eager to get renewal discussions over and sign deals because the PIB that would change the scope of new oil-related joint ventures, increasing tax and royalty rates paid by foreign companies will soon be passed into law by the National Assembly.

The report revealed that several big players in Nigeria are expected to recommit to community-development programmes and local infrastructure projects. Royal Dutch Shell Plc, the report said, has agreed to offer business training to former gun-toting militants in the oil-rich Niger Delta, following the Federal Government’s amnesty programme. The Federal Government last Friday renewed three shallow water oil licences jointly operated by the Nigerian National Petroleum Corporation and ExxonMobil, granting the U.S. energy firm leases of a further 20 years with the option to renew again. The company became the first to have its licences renewed.

The Minister of State for Petroleum, Mr. Odein Ajumogobia, confirmed that the ministry has commenced negotiation with Angola Dutch Shell on five of its Oil Mining Leases, after the company’s decision to withdraw the law suit it instituted against the Federal Government last November over FG’s decision to renew the leases under new terms. Government sources stated that the oil majors were rattled by recent Federal Government’s pronouncement that it had received an expression of interest from Chinese company to buy the rights to the expiring licences. The government disclosed last September that China’s state-owned Cnooc Ltd was interested in more than 20 oil blocks, including non-expiring blocks currently operated by Western companies.

The report said Shell Chief Executive, Peter Voser, met President Umaru Musa Yar\'Adua last October to discuss renewal of Shell\'s licences. “At the meeting, Shell officials argued they had been long-term investors in Nigeria and shouldn\'t be forced out of the country\'s oil fields now,” the report quoted an unnamed official who attended the meeting as saying. \"We talked about us building the foundation, us building the house, us living in the house and others knocking on the door\" the official said, referring to the Chinese offer.