Balancing stakeholder interests in the OIl and Gas sector

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Balancing Stakeholder Interests Balancing Stakeholder Interests in Oil Producing in Oil Producing AreasAreas

byby

Kayode Adebiyi, FCA Kayode Adebiyi, FCA Finance Division Finance Division (NAPIMS – a division of NNPC)(NAPIMS – a division of NNPC)

at the at the

Mandatory Continuing Professional Education (MCPE) Mandatory Continuing Professional Education (MCPE)

Organized byOrganized by

INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA

July 2008July 2008

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The Mystery called Oil (1)The Mystery called Oil (1) Neither the first nor the only primary Neither the first nor the only primary

source of energy source of energy Hidden underground where it can do no Hidden underground where it can do no

one any goodone any good ””Treasures of darkness and hidden Treasures of darkness and hidden

riches in secret places” riches in secret places” Nobody wishes for oil and finds it; only Nobody wishes for oil and finds it; only

those who drill for it have any chance of those who drill for it have any chance of getting it getting it

Unevenly distributed around the globe Unevenly distributed around the globe

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The Mystery called Oil (2)The Mystery called Oil (2) Vital economic and political tool, Vital economic and political tool,

important enough to shake political important enough to shake political events events

Wars are fought for and on behalf of oil Wars are fought for and on behalf of oil Alliances are struck and associations Alliances are struck and associations

formed, just to protect oil interestsformed, just to protect oil interests The humbling factor is its impermanence; The humbling factor is its impermanence;

resources are simply non-renewable resources are simply non-renewable Almost unlimited potentials as a raw Almost unlimited potentials as a raw

material; a useless mixture of useful material; a useless mixture of useful productsproducts

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The Mystery called Oil (3)The Mystery called Oil (3) Mostly found in the underdeveloped Mostly found in the underdeveloped

and developing countries of the and developing countries of the world; compels interdependence world; compels interdependence among nationsamong nations

Perceived as public goodPerceived as public good

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Oil OperationsOil Operations Oil explorations are risky, uncertain and Oil explorations are risky, uncertain and

capital intensive – “Expensive Patience capital intensive – “Expensive Patience Inc”Inc”

Long lead-time between initial Long lead-time between initial exploration and production of oil – time, exploration and production of oil – time, risk and uncertainty tanglerisk and uncertainty tangle

Capital intensive, labour slim; an Capital intensive, labour slim; an enclaveenclave

Capital costs are high, operating costs Capital costs are high, operating costs tend to be lowtend to be low

Gulps large amounts in hard currencyGulps large amounts in hard currency

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Oil Operations (2)Oil Operations (2) Technologically complexTechnologically complex Long, difficult roadLong, difficult road

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Oil Industry (1)Oil Industry (1) Subject to a wide regulatory frameworkSubject to a wide regulatory framework Various forms of conveyances, creative Various forms of conveyances, creative

alliances and multiplicity of interestsalliances and multiplicity of interests ““Better to own half of a cow than the Better to own half of a cow than the

whole of a rat.” whole of a rat.” Negotiations, agreements and Negotiations, agreements and

disagreements, never endingdisagreements, never ending A knowledge society A knowledge society Highly regulatedHighly regulated Relatively small margin on huge Relatively small margin on huge

volumesvolumes

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Oil Industry (2)Oil Industry (2) Most dominant industry in the world - in Most dominant industry in the world - in

social, economic and political influencesocial, economic and political influence Internationalized, operational factors are Internationalized, operational factors are

globalizedglobalized Comes big. Large size and wide scope of Comes big. Large size and wide scope of

operationsoperations Divided into different functions but fully Divided into different functions but fully

integratedintegrated Relatively small margin on huge Relatively small margin on huge

volumesvolumes Global competition is highGlobal competition is high

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Major Players in the Oil IndustryMajor Players in the Oil Industry

Integrated (multinational) and Integrated (multinational) and independent oil companiesindependent oil companies

Multinational oil companies and host Multinational oil companies and host governmentsgovernments

Service and supply companiesService and supply companies OPEC - Organization of Petroleum OPEC - Organization of Petroleum

Exporting Countries. Exporting Countries.

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The Stakeholders (1)The Stakeholders (1) Oil and gas business involves Oil and gas business involves

partnerships. This may create partnerships. This may create challenges in managing stakeholder challenges in managing stakeholder issues and there is inevitably the need issues and there is inevitably the need to negotiate and find common ground. to negotiate and find common ground. The stakeholders are:The stakeholders are:

Multinational Oil Companies (MNOCs)Multinational Oil Companies (MNOCs) Operated oil and gas companies of Operated oil and gas companies of

foreign governmentsforeign governments Home Country GovernmentsHome Country Governments Foreign governmentsForeign governments

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The stakeholders (2)The stakeholders (2) PartnersPartners ContractorsContractors Lending agenciesLending agencies Host Country GovernmentsHost Country Governments State-owned oil and gas companiesState-owned oil and gas companies Government regulatory agencies Government regulatory agencies Local communities Local communities Indigenous and native people’s Indigenous and native people’s

authorities authorities Non-governmental organizations (NGOs) Non-governmental organizations (NGOs)

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Balancing Stakeholder InterestsBalancing Stakeholder Interests Identifying, collecting, assessing and Identifying, collecting, assessing and

monitoring, as appropriate, monitoring, as appropriate, information related to the key information related to the key stakeholder interests that may arise stakeholder interests that may arise during the venture. during the venture.

Communicating partnership in the Communicating partnership in the exploitation of natural resourcesexploitation of natural resources

Relationship building becomes Relationship building becomes important in the appropriation, important in the appropriation, preservation and conservation of preservation and conservation of resourcesresources

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Benchmarks (1)Benchmarks (1)

Overall treatment of balancing Overall treatment of balancing stakeholder interests is shaped in stakeholder interests is shaped in response to:response to:

National and/or country-specific National and/or country-specific regulations and standards where a regulations and standards where a project is being developed,project is being developed,

Declarations made by international Declarations made by international organizations such as the United organizations such as the United Nations (UN) and International Nations (UN) and International Labour Organization (ILO)Labour Organization (ILO)

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Benchmarks (2)Benchmarks (2)

Requirements and standards set by Requirements and standards set by lenders and insurers, andlenders and insurers, and

Company-specific policies and Company-specific policies and procedures.procedures.

The need for this information may The need for this information may arise as a result of doing business arise as a result of doing business and/or to comply with regulatory and/or to comply with regulatory requirements. requirements.

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Why Balancing? (1) Why Balancing? (1)

Without a strategy, tragedy is inevitableWithout a strategy, tragedy is inevitable Without collective ownership, even the Without collective ownership, even the

clearest strategies will failclearest strategies will fail People make or break strategiesPeople make or break strategies To be part is to belong. To be involved is To be part is to belong. To be involved is

to be committedto be committed As interests change, balancing strategies As interests change, balancing strategies

must be renewed as hot winds and cold must be renewed as hot winds and cold winds blow at the same time. In a winds blow at the same time. In a multiplicity of interests, static strategy is a multiplicity of interests, static strategy is a must-losemust-lose but renewable strategy is a but renewable strategy is a must-win.must-win.

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Why Balancing? (2) Why Balancing? (2)

Increases the likelihood of venture Increases the likelihood of venture success, obtaining and maintaining a success, obtaining and maintaining a licence to operate and reducing risks licence to operate and reducing risks and uncertaintiesand uncertainties

Balancing issues are linked with Balancing issues are linked with reputation. Business strategies focus reputation. Business strategies focus on the bottom line (profit). on the bottom line (profit).

In the long run, the up-line determines In the long run, the up-line determines survival and staying power and survival and staying power and ultimately the bottom line! ultimately the bottom line!

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Balancing Strategies (1)Balancing Strategies (1) Emphasis on early and continuing Emphasis on early and continuing

consultation consultation Consultation is the principal method Consultation is the principal method

to engage stakeholders, form to engage stakeholders, form partnerships, and develop trust and partnerships, and develop trust and respect in the stakeholders respect in the stakeholders throughout company operationthroughout company operation

Building and communicating Building and communicating partnershipspartnerships

Integrating stakeholder concerns into Integrating stakeholder concerns into the overall business strategythe overall business strategy

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Balancing Strategies (2)Balancing Strategies (2) As stakeholders and company As stakeholders and company

policies change, so do interactions, policies change, so do interactions, and mutually reinforcing changing and mutually reinforcing changing relationships is critical for success.relationships is critical for success.

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Typical E&P Firm’s goalsTypical E&P Firm’s goals Primary traditional goal of a firm is to Primary traditional goal of a firm is to

maximize the present value of profitmaximize the present value of profit Other goals, however may include:Other goals, however may include:

Retaining credit worthinessRetaining credit worthiness Market share or growth of the firmMarket share or growth of the firm Share holders wealth or valueShare holders wealth or value Risk avoidanceRisk avoidance Stability in businessStability in business

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Typical E&P Firm’s goalsTypical E&P Firm’s goals Profit is essential if an E & P business is Profit is essential if an E & P business is

to stay in business and discharge its to stay in business and discharge its responsibility to shareholdersresponsibility to shareholders

It is a necessary condition for the proper It is a necessary condition for the proper allocation of limited company resources allocation of limited company resources and the required continuing investment and the required continuing investment to replace produced and consumed to replace produced and consumed resourcesresources

The decision to invest is The decision to invest is primarilyprimarily driven by economics but may be subject driven by economics but may be subject to social, environmental and security of to social, environmental and security of investmentsinvestments

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Partners (1)Partners (1) ““To find a friend, close one eye; to To find a friend, close one eye; to

keep him, close the two; to lose him, keep him, close the two; to lose him, open the two eyes wide”open the two eyes wide”

Oil and gas business involves a Oil and gas business involves a partnership of multiple entities. This partnership of multiple entities. This may create challenges associated with may create challenges associated with the management of interests.the management of interests.

In partnerships among multiple In partnerships among multiple entities, there is inevitably the need to entities, there is inevitably the need to negotiate and find common ground negotiate and find common ground related to implementation of issues. related to implementation of issues.

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Partners (2)Partners (2)Issues to be considered include:Issues to be considered include: Alignment of partner policies and plansAlignment of partner policies and plans Approaches to resolving differences in Approaches to resolving differences in

applicability/types of commitmentsapplicability/types of commitments Historical and/or cultural Historical and/or cultural

approaches/actionsapproaches/actions Human resources and capabilities of Human resources and capabilities of

participating partners/governmentsparticipating partners/governments Risks associated with assignment of Risks associated with assignment of

operatorship to partnersoperatorship to partners

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Contractors (1)Contractors (1) Contractors have an important role to Contractors have an important role to

play and contractor actions must play and contractor actions must conform to company/project social conform to company/project social policies and commitments policies and commitments

Companies can face reputational and Companies can face reputational and other issues resulting from contractor other issues resulting from contractor performance performance

Selection of any contractor may include Selection of any contractor may include a consideration of a contractor’s a consideration of a contractor’s understanding of project operation, understanding of project operation, lender requirements and previous labour lender requirements and previous labour management issuesmanagement issues

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Contractors (2)Contractors (2) This is because, in any major project, This is because, in any major project,

contractors are responsible for:contractors are responsible for: employing the most peopleemploying the most people managing any labour unrestmanaging any labour unrest providing housing, food and health providing housing, food and health

carecare engaging in most local purchasingengaging in most local purchasing developing local businessesdeveloping local businesses

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Lending agenciesLending agencies

Lending agencies may participate Lending agencies may participate with governments and/or companies with governments and/or companies in projects and will have their own in projects and will have their own objectives and requirements relating objectives and requirements relating to the assessment and management to the assessment and management of issues of issues

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Host Country Governments (1)Host Country Governments (1)Why Governments are InterestedWhy Governments are Interested Energy securityEnergy security Economy and balance of paymentsEconomy and balance of payments EnvironmentEnvironment Protection of natural resourcesProtection of natural resources Economic rentEconomic rent

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Host Country Governments (2)Host Country Governments (2)Factors underlying HG objectivesFactors underlying HG objectives Access to technology, skilled Access to technology, skilled

manpower, entrepreneurship and manpower, entrepreneurship and specialized E&P industry equipmentspecialized E&P industry equipment

Access to investment funds for E&P Access to investment funds for E&P activityactivity

Access to the global oil market Access to the global oil market outlets for exportsoutlets for exports

Sustainable economic growthSustainable economic growth Local contentLocal content

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Host Country Governments (3)Host Country Governments (3) The primary objective of the HG is to The primary objective of the HG is to

ensure maximum economic benefits ensure maximum economic benefits to the countryto the country

There is a tendency to interpret this There is a tendency to interpret this objective to mean:objective to mean:

Control over E & P terms and conditionsControl over E & P terms and conditions Control over pricesControl over prices Control over production and investmentsControl over production and investments

Other objectives:Other objectives: Efficient resource developmentEfficient resource development Manpower development and training of Manpower development and training of

nationalsnationals

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Host Country Governments (4)Host Country Governments (4) Oil industry is a knowledge societyOil industry is a knowledge society In a knowledge society, you don’t get In a knowledge society, you don’t get

what you deserve; you get what you what you deserve; you get what you negotiatenegotiate

Host country governments lose their Host country governments lose their sovereignty not with arms but sovereignty not with arms but through negligence!through negligence!

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Harmonizing MNOC and NOC RoleHarmonizing MNOC and NOC Role What role should the government take in What role should the government take in

promoting development and what role promoting development and what role should be left to markets?should be left to markets?

Is the IOC role different from NOC role in Is the IOC role different from NOC role in the promotion of development?the promotion of development?

How important is the link between How important is the link between technological ‘strangeness’ and ‘local’ technological ‘strangeness’ and ‘local’ content?content?

How can spending by companies and How can spending by companies and governments best promote development?governments best promote development?

How effective are local content policies?How effective are local content policies?

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Government Review and Government Review and Oversight (1) Oversight (1)

Most projects involve some type of Most projects involve some type of governmental regulatory review and governmental regulatory review and oversight. The nature of this oversight. The nature of this interaction will vary considerably interaction will vary considerably depending on the type of project and depending on the type of project and applicable regulatory framework. applicable regulatory framework. There is a substantial difference There is a substantial difference between the regulatory requirements between the regulatory requirements relating to consultation, social, and relating to consultation, social, and economic impacts of projects in economic impacts of projects in different countries due to differences different countries due to differences in the:in the:

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Government Review and Government Review and Oversight (2)Oversight (2)

legal basislegal basis implementing regulationsimplementing regulations existence of oversight entitiesexistence of oversight entities enforcement standardsenforcement standards land ownership and acquisitionland ownership and acquisition International oil and gas projects must International oil and gas projects must

consider applicable laws and consider applicable laws and regulations of both the host and home regulations of both the host and home countries. It is important to understand countries. It is important to understand host country laws and regulations host country laws and regulations during the early planningduring the early planning

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Government Review and Government Review and Oversight (3)Oversight (3)

process because they may have importantprocess because they may have important

cost implications.cost implications. Sometimes, policies and practices of Sometimes, policies and practices of

national and local governments are not national and local governments are not aligned.aligned.

Legal and other agreements: As a result, Legal and other agreements: As a result, it is important that company legal and it is important that company legal and operations staff understand the potential operations staff understand the potential ramifications of agreements negotiated ramifications of agreements negotiated as well as relevant applicable host as well as relevant applicable host country laws and regulations.country laws and regulations.

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Local Communities (1)Local Communities (1) Local communities may be affected either Local communities may be affected either

directly or indirectly by project activities directly or indirectly by project activities and may have a particular interest in and may have a particular interest in project planning and implementation. project planning and implementation.

In some cases, regulations may determine In some cases, regulations may determine how the company will interact with local how the company will interact with local communities communities

Early and continuing interaction with Early and continuing interaction with communities is important to identify and communities is important to identify and address their concerns and needs and address their concerns and needs and manage expectations and project commitments manage expectations and project commitments

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Local Communities (2)Local Communities (2) Communities in the project area may Communities in the project area may

have differing characteristics, have differing characteristics, objectives and requirements that objectives and requirements that need to be considered. need to be considered.

Community support is critical to Community support is critical to success. Typically, it is important for success. Typically, it is important for communities to be able to give free communities to be able to give free and informed consentand informed consent

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Indigenous and Native Peoples Indigenous and Native Peoples AuthoritiesAuthorities

Many companies are now developing Many companies are now developing projects in areas where they have projects in areas where they have not worked before. As a result, there not worked before. As a result, there is a need to plan for understanding is a need to plan for understanding the social environment of the project the social environment of the project and a need to create transparent and a need to create transparent consultation in order to align various consultation in order to align various interests.interests.

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Non-governmental Non-governmental organizationsorganizations

Directly or indirectly, non-governmental Directly or indirectly, non-governmental organizations (NGOs) may seek to organizations (NGOs) may seek to influence project development through influence project development through public information campaigns and direct public information campaigns and direct interactions with policy makers, other interactions with policy makers, other stakeholders and companies. stakeholders and companies.

There is a range of NGOs some with There is a range of NGOs some with expertise in identifying, evaluating and expertise in identifying, evaluating and addressing social issues. addressing social issues.

Therefore, there are many opportunities Therefore, there are many opportunities for positive interactions and partnerships for positive interactions and partnerships between companies and NGOs.between companies and NGOs.

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Sustainable Development is the Sustainable Development is the Answer (1)Answer (1)

Sustainable Development: Sustainable Development: Meeting the needs of the present Meeting the needs of the present without compromising the ability of without compromising the ability of future generations to meet their own future generations to meet their own needsneeds

Three pillars of sustainable Three pillars of sustainable developmentdevelopment

EconomicEconomic EnvironmentalEnvironmental SocialSocial

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Sustainable Development (1)Sustainable Development (1) Sustainable Development: Sustainable Development:

Meeting the needs of the present Meeting the needs of the present without compromising the ability of without compromising the ability of future generations to meet their own future generations to meet their own needsneeds

Three pillars of sustainable Three pillars of sustainable developmentdevelopment

EconomicEconomic EnvironmentalEnvironmental SocialSocial

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Sustainable Development (2)Sustainable Development (2) This has broadened analysis from a This has broadened analysis from a

focus on the economy but still ignores focus on the economy but still ignores the political, legal, human health, the political, legal, human health, demographic, educational, and demographic, educational, and technical dimensions, and obscures the technical dimensions, and obscures the link between themlink between them

A broader, more people oriented A broader, more people oriented definition of sustainable development definition of sustainable development would include the following as its would include the following as its objectives: progress (improving quality objectives: progress (improving quality of life); justice; durability; and of life); justice; durability; and stability/resilience. stability/resilience.

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Sustainable Development (3)Sustainable Development (3)The following principles should guide it:The following principles should guide it: An emphasis on adaptability through An emphasis on adaptability through

learninglearning Recognition of the strength of Recognition of the strength of

mutuality and collective action at all mutuality and collective action at all levels from local to globallevels from local to global

Acknowledgement of the right of Acknowledgement of the right of future generations to have their own future generations to have their own goals and contribute to progress; andgoals and contribute to progress; and

Respect for social and cultural Respect for social and cultural diversitydiversity

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The Missing Link (1)The Missing Link (1)

Social issues cover the range of Social issues cover the range of impacts (both positive and negative) impacts (both positive and negative) a project may have on the social a project may have on the social environment and vice versa.environment and vice versa.

The social environment encompasses The social environment encompasses local peoples (including their norms, local peoples (including their norms, values, beliefs and the way in which values, beliefs and the way in which they live and interact with each they live and interact with each other), their communities, their other), their communities, their environment and their economyenvironment and their economy

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Addressing social issues may also, Addressing social issues may also, directly and indirectly, generate benefits directly and indirectly, generate benefits to both the project and societyto both the project and society

Need to promote awareness of Corporate Need to promote awareness of Corporate Social Responsibility (CSR) issues, Social Responsibility (CSR) issues, understand social issues relevant to the understand social issues relevant to the industry, and know how to address them industry, and know how to address them in an efficient, timely and proactive in an efficient, timely and proactive manner manner

Managing social issues successfully Managing social issues successfully requires both leadership and commitment requires both leadership and commitment by managementby management

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Safety and securitySafety and security CompensationCompensation ResettlementResettlement Cultural resourcesCultural resources Employment and labour actionsEmployment and labour actions Local economic development, Local economic development,

housing and community impactshousing and community impacts National infrastructure and National infrastructure and

utilitiesutilities HealthHealth

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Government Role in Government Role in Sustainable DevelopmentSustainable Development

Revenue Management: transparency Revenue Management: transparency and accountabilityand accountability

Oil revenue monitoringOil revenue monitoring Oil revenue reporting systemOil revenue reporting system

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Transform Oil Riches to Oil Wealth (1)Transform Oil Riches to Oil Wealth (1)

Seven key drivers of petroleum wealthSeven key drivers of petroleum wealth A country’s existing reserves and their ability A country’s existing reserves and their ability

when produced to generate positive cash flow when produced to generate positive cash flow Its willingness and ability to invest in finding, Its willingness and ability to invest in finding,

acquiring and producing oil and gas reservesacquiring and producing oil and gas reserves Its Its peoplepeople and their ability to find, develop and and their ability to find, develop and

produce oil and gas reservesproduce oil and gas reserves The investment capacity of the country in the The investment capacity of the country in the

downstream sector and the ability to transform downstream sector and the ability to transform crude oil to usable products at a profitcrude oil to usable products at a profit

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Transform Oil Riches to Oil Wealth (2)Transform Oil Riches to Oil Wealth (2)

Its recognition of oil and gas reserves as a Its recognition of oil and gas reserves as a nonrenewable resource; its ability to design, nonrenewable resource; its ability to design, implement and follow-through a thoughtful implement and follow-through a thoughtful depletion policy, fix appropriate prices based on depletion policy, fix appropriate prices based on “user cost” and replace reserves produced“user cost” and replace reserves produced

The ability of its people to translate oil revenues to The ability of its people to translate oil revenues to productive capital thereby converting a productive capital thereby converting a nonrenewable resource into a renewable onenonrenewable resource into a renewable one

The totality of the economic environment, systems The totality of the economic environment, systems and procedures in place to obtain, retain, sustain, and procedures in place to obtain, retain, sustain, increase and multiply petroleum wealth increase and multiply petroleum wealth

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Transform Oil Riches to Oil Transform Oil Riches to Oil Wealth (3)Wealth (3)

Nature determined, Money determines, Nature determined, Money determines, MenMen decidedecide

As age does not translate a spinster to As age does not translate a spinster to a married woman, riches do not a married woman, riches do not automatically translate to wealth automatically translate to wealth

Riches are received but wealth is Riches are received but wealth is acquired acquired

Poverty needs no planning, but wealth Poverty needs no planning, but wealth cannot be acquired without a scheme. cannot be acquired without a scheme.

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III . III . Consultation and Consultation and Information Disclosure (1)Information Disclosure (1)

Public consultation has been defined by Public consultation has been defined by the International Finance Corporation the International Finance Corporation (IFC) as follows:(IFC) as follows:

““Public consultation…is a tool for Public consultation…is a tool for managing two-way communication managing two-way communication between the project sponsor and the between the project sponsor and the public. Its goal is to improve decision-public. Its goal is to improve decision-making and build understanding by making and build understanding by activity involving individuals, groups and activity involving individuals, groups and organizations with a stake in the project. organizations with a stake in the project.

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This involvement will increase a This involvement will increase a project’s long-term viability and project’s long-term viability and enhance its benefits to locally affected enhance its benefits to locally affected people and other stakeholders.people and other stakeholders.

Public consultation is an important Public consultation is an important component throughout the life cycle of component throughout the life cycle of a project. The scope and focus of a a project. The scope and focus of a consultation effort will vary, largely consultation effort will vary, largely due to issues such as the:due to issues such as the:

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education level of the general populace andeducation level of the general populace and

the range of topics that are generally raisedthe range of topics that are generally raised

by potential stakeholders.by potential stakeholders.

Companies interact with stakeholders:Companies interact with stakeholders: through the process of public consultation through the process of public consultation

and participatory interactions;and participatory interactions; directly during the process of land directly during the process of land

acquisition and compensation; andacquisition and compensation; and through provision of employment and through provision of employment and

other opportunities.other opportunities.

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IV. Petroleum Fiscal Systems IV. Petroleum Fiscal Systems

PFS basically describes all of the PFS basically describes all of the legislative, tax, contractual and fiscal legislative, tax, contractual and fiscal elements under which petroleum elements under which petroleum operations are conducted in a operations are conducted in a petroleum province, region or nationpetroleum province, region or nation

Governments must design fiscal Governments must design fiscal systems that give prominence to systems that give prominence to environment and social dimension of environment and social dimension of the oil businessthe oil business

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When will the Imbalance end? When will the Imbalance end?

When did the imbalance begin?When did the imbalance begin? There will always be balancing, never There will always be balancing, never

a balance. The differences among a balance. The differences among stakeholders are so real and stakeholders are so real and fundamental that try, as they may, fundamental that try, as they may, they can only they can only hold hold together, never together, never glue glue together.together.

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Quotable Quotes Quotable Quotes

Dwight David Eisenhower – Dwight David Eisenhower – American 34American 34thth president (1953-61). 1890-1969president (1953-61). 1890-1969

““Though force can protect in emergency, only Though force can protect in emergency, only justice, fairness, consideration and cooperation justice, fairness, consideration and cooperation can finally lead men to the dawn of eternal peace”can finally lead men to the dawn of eternal peace”

““Dollars and guns are no substitutes for brains Dollars and guns are no substitutes for brains and willpower”and willpower”

““I like to believe that people in the long run are I like to believe that people in the long run are going to do more to promote peace than our going to do more to promote peace than our governments. Indeed, I think that people want governments. Indeed, I think that people want peace so much that one of these days, peace so much that one of these days, governments had better get out of the way and let governments had better get out of the way and let them have it”them have it”

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Thank You! Thank You!

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ContactsContacts

Kayode AdebiyiKayode Adebiyi

Tax Admin. Dept.Tax Admin. Dept.

NAPIMS (a division of NNPC)NAPIMS (a division of NNPC)

8-10 Bayo Kuku Road8-10 Bayo Kuku Road

Ikoyi. Ikoyi.

Tel: Tel: 08033181225, 07027752058, 08033181225, 07027752058, 0808718337508087183375

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References References

The management of international oil operations by The management of international oil operations by Richard BarryRichard Barry

Nigerian Petroleum business - a handbook edited by Nigerian Petroleum business - a handbook edited by Victor E. EromoseleVictor E. Eromosele

The Nigerian oil industry: the Babangida Era The Nigerian oil industry: the Babangida Era produced for Nigerian National Petroleum produced for Nigerian National Petroleum Corporation by Tanus Communications Ltd, LagosCorporation by Tanus Communications Ltd, Lagos

Oil and gas dictionary edited by Paul StevensOil and gas dictionary edited by Paul Stevens Petroleum Accounting and Taxation in Nigeria – 2Petroleum Accounting and Taxation in Nigeria – 2ndnd

edition – by Dr. R. U. Uche and Mr. K. A. Adebiyiedition – by Dr. R. U. Uche and Mr. K. A. Adebiyi

Balancing stakeholder interests in the OIl and Gas sector

Business

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