ABUJA, March 13 (Reuters) - Nigeria's legislative committeeon its oil bill officially opened on Wednesday, bringingAfrica's top energy producer a step closer to ending uncertaintyholding up billions of dollars of investment by foreign oilmajors.
Lawmakers on the panel must thrash out proposed amendmentsto the Petroleum Industry Bill (PIB), a leviathan piece oflegislation aiming to reform everything from fiscal terms to thestate oil firm.
It has been years in the making and previous versions failedto pass through parliament. When the committee has finished, thebill goes back to parliament for more discussion before a vote.
Speaker of the lower house Aminu Tambuwal urged thecommittee to ensure the bill "addresses comprehensively thehiccups that have encumbered Nigeria's oil sector andconstrained optimal operations and returns," during a speech toinaugurate the committee.
He listed these as "environmental degradation, generaloperational inefficiency, outright fraud, as well as insecurityof investment and infrastructure."
Some clauses are controversial and will be fiercely debated.
Most members of the national assembly are unhappy aboutsweeping new powers granted to Oil Minister Alison DiezaniAlison-Madueke, including powers to grant leases on oil blocksunconditionally.
Northern lawmakers are also disputing proposals for a 10percent wealth fund for southeastern communities living aroundoil fields, arguing that governors of oil producing statesalready get an extra 13 percent of the national cake.
Oil companies are concerned about what they say are too hightaxes and royalties on offshore production. Shell saidlast month it would invest $30 billion in offshore projects ifclarity over contract terms came out of the PIB.