SPIEF: NNPC Expects Tighter Drilling Rules In Niger Delta

By Jacob Gronholt-Pedersen Of DOW JONES NEWSWIRES ST PETERSBURG (Dow Jones)--The oil spill in the Gulf of Mexico will most likely lead to tighter rules for drilling in the Niger Delta, but stronger regulation won't pose a threat to the attractiveness of foreign investments in the region, an executive at state-run Nigerian National Petroleum Corp., or NNPC, said Saturday. A proposal to tighten rules for drilling in the Niger Delta is more likely to be adopted by the Nigerian national assembly in the wake of BP PLC's (BP, BP.LN) oil spill in the Gulf of Mexico, said David Ige, group general manager at state-run NNPC. "This oil spill has brought the gravity of pollution to everybody's attention," Ige said. "If it does become law, [we will see] the establishment of stronger regulatory bodies and stronger policies, that will address the issues peculiar to the Niger Delta," Ige said. "But this shouldn't be a disincentive to investment," he added. "More than anything it will bring the standards of operations in line with global standards." The Niger Delta has seen many cases of pollution from oil spills similar to the one in the Gulf of Mexico, but on a smaller scale, which has destroyed many rivers, Ige said. -By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 232 9198; alexander.kolyandr@dowjones.com (END) Dow Jones Newswires June 19, 2010 08:48 ET (12:48 GMT)