Oil
16 Days Crude Sales Enough to Build a Refinery – PENGASSAN
LAGOS — Oil workers, under the aegis of Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, have expressed concern over the inability of the Federal Government to build additional refineries over the years, saying Nigeria’s crude output for 16 days is capable of building a refinery.
“To build a refinery today is about US$4 billion (N640 billion). We produce not less than 2.4 million barrel of crude oil on a daily basis and we sell at $108, which is the price all over the world. Going by that calculation, we are making about N41.2 billion daily,” Mr. Folorunsho Ogini, Chairman, PENGASSAN, Lagos Zone, said in an interview with Vanguard.
Delay in passage of PIB
He lamented the delay in the passage of the Petroleum Industry Bill, saying that the Bill, if passed, will address a number of challenges currently confronting Nigeria’s oil and gas sector.
He said: “The question is; why is the PIB not signed into law? Who is afraid of the PIB? These people know quite well that if PIB is signed into law, all these problems confronting the nation’s oil and gas sector have been addressed by the bill.
“These refineries we are talking about, they were built pre-1989 and those who built the refineries recently declared that the technologies used in those refineries had been phased out. What is stopping us from building more refineries?
“The next question you will ask is, where is this money going? When you look at our roads, it is nothing to write home about. In the issue of Education, you are living witnesses to when lecturers went on strike for over five months. Electricity; we do not have and infrastructure generally, in every ramification, you cannot equate us with ordinary Ghana.
“The question that is begging for an answer is, if you are making over N41 billion daily, why is poverty still ravaging the country? We have the capacity to produce more than 2.4 million barrels per day, but because of the ceiling by the Organisation of Petroleum Export Countries, OPEC, which we are a member.
The Singapore experience
“Singapore is a country that does not have crude oil, they import, yet they have about 62 refineries. They buy the crude, refine and make huge profit. Why is that Nigeria, that has the crude and the manpower is wasting because we cannot build refineries.”
Kicks against sale of refineries
Ogini disclosed that PENGASSAN’s decision to kick against the sale of the refineries was based on its realisation that the PIB has already taken into consideration all that is needed for our refineries to work and the fact that a Turn Around Maintenance, TAM, has already been scheduled.
He said: “What many people do not know is that, the PIB has already taken into consideration all that is needed for our refineries to work and be a success story. Do you know what, we discovered that government wanted to rush the sale of the refineries because all the spare parts for the TAM are already in the ship coming to Nigeria and will arrive at any moment?
“That was why some people were pressuring government to sell the refineries as scraps so that when the spare parts come, they would take the spare parts to do the TAM and tell Nigerians that they have done the magic and that the refineries are now working.
Turn Around Maintenance
“We have been talking about TAM for more than 10 years. Late General Sani Abacha awarded the contract twice for the TAM, but nobody did anything in spite the fact that the contract sum was paid. Till today, government has not apprehended anybody.
“We insisted that no, you cannot sell the refineries, you must wait for the spare parts to come, do the TAM and let us see what would happen next. Because they are people that want to rip off the nation from the sale, they were pressuring the government.”
– VANGUARD
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.