Lagos:  The Nigerian Oil and Gas Conference has now become the largest and strategic industry summit for Nigeria's oil industry which reveals government plans and updates from the major industry players. The recently concluded event in Abuja had turned to a perfect ground for controversial statements from the international oil companies and government officials on the proposed reforms in the country.

The much talk about conference came and passed with many issues unresolved between the government and the oil giants. Some of the issues that dominate the conference include petroleum reforms, proposed under the Petroleum Industry Bill and the deregulation of the downstream oil sector.   The reforms came under serious attacks long before the conference but the oil majors have used the summit to raise more dust on the reform template. On one side, the government officials were busy defending the reforms.

The oil companies are threatening that up to $50 billion of investment could be undermined if the reforms go ahead.  The international oil companies accused government of sidelining them in the implementation oil the reforms by rushing the proposed law to the parliaments without much input from their own side.

Despite this, the acting President Goodluck Jonathan said at the summit that he remains committed to overhauling the oil industry so that it better serves the country's national interest.  "Oil must be an agent for good and development not violence, war and impoverishment, Our goal is to ensure that the benefits of petroleum be enjoyed and seen to be enjoyed by all Nigerians." Jonathan told the gathering.

He added: "I want to reassure Nigerians and our foreign partners of our unwavering commitment to pursuing the reform in this sector with an eye on our national interest primarily and also in meeting the market demand for energy security".

Minister of state for Petroleum Resources, Odien Ajumogobia also said during the conference that the PIB is a piece of legislation that is still before the national assembly it's a profound document in term of what it seek to do which is transforming the governance's arrangement in the industry, strengthening the institutions, creating a more transparent industry, by and large to create a new legal framework and a robust successful industry in Nigeria.

He said part of the solution to the inefficiency of the downstream oil sector is the implementation of the deregulation which is at the final stage now.  He said the transformation of the NNPC or the national oil company is at the heart of the reforms at the moment. There is the lack of clarity in term of role between the Ministry, the NNPC, and the regulatory agencies. "There is a lot of controversy", he said.

"The new reform seeks to make the NNPC profit oriented and commercial entity to compete with other IOCs and to make decision on the economics of the projects and to be accountable to its shareholders.

Shell made a shocking remark at the conference through a presentation made by the Ann Pickard, Shell's out-going Executive Vice President for sub-Saharan Africa.  Pickard argued that oil industry reforms embarked by the government could drive away a whopping $50 billion of investment. "The PIB threatens to make a bad situation worse ... If passed in its current form it will take years to correct its mistakes".

Pickard argued that Nigeria's position as the continent's premier oil and gas region was under threat. Indeed Angola surpassed Nigeria as sub-Saharan Africa's leading oil producer last year.  "Nigeria's position in global oil and gas markets cannot be taken for granted," said Pickard.

Chevron gave a heavy blow to the reforms in a presentation made by its managing director in Nigeria, Andrew Fawthrop. He warned the government: "We have to work closely together or billions of dollars will end up going elsewhere."

Analysts believe that Shell and Chevron are key in the Nigeria's oil industry but despite the challenges about to be posed by the new reform, their presence in the country is certain because even if they pull out investment another company - either Nigerian or Chinese - will take their place.

One noticeable factor is the large presence of Chinese firms at the exhibition ground, signifying a strategic entrance into the Nigerian oil industry by the Chinese investors.