Oil
56 UK, Nigerian companies explore opportunities in Shell-sponsored business summit
By Yemie ADEOYE
LAGOS-A total of 100 delegates representing 56 companies from Nigeria and the United Kingdom explored opportunities for collaboration at the annual Nigeria-UK Supplier Engagement programme organised by Shell Nigeria Exploration Company Ltd (SNEPCo) in conjunction with the United Kingdom Trade and Investment (UKTI). The event which held in Lagos on 30th July brought together companies engaged in a wide variety of activities in the oil and gas industry including engineering, maintenance, fabrication and subsea support services. The UK delegation, which included Nigerian experts in the diaspora who SNEPCo had reached in previous bus+iness summits in Aberdeen and London, first met with Shell Companies in Nigeria companies on areas of need and technical gaps.
Osagie Okunbor, Chairman, Shell Companies in Nigeria and Managing Director of the Shell Petroleum Development Company of Nigeria Limited (SPDC.) observed: “The striking feature of this year’s business summit is the presence of Nigerians in the diaspora in the UK delegation. It shows that, our engagements with Nigerians to take up opportunities back home in the oil and gas industry, is being well received, and this is good news for everybody.”
The UK delegation also held networking meetings with their Nigerian counterparts which included several members of the Petroleum Technology Association of Nigeria (PETAN). “Shell has a long-term and continuing commitment to Nigeria, its people and the economy,” said Chiedu Oba, General Manager, Nigerian Content Development, Shell Nigeria in a welcome address. “One of the most significant ways we have delivered on that commitment is by increasing the participation of Nigerian companies and individuals in our supply chain and operations – to ensure that as many Nigerians as possible benefit from our activities and business.”
The General Manager Production PSC in the National Petroleum Investment and Management Services (NAPIMS) enjoined the participating companies to work towards taking advantage of upcoming opportunities in the Nigerian oil and gas industry. He reiterated the importance of local content in the growth of the Nigerian oil and gas industry. UKTI Director Chris Maskell thanked Shell for the continued support on the Nigeria-UK Supplier Engagement programme.
Also speaking at a reception organised by UKTI for the suppliers, the Executive Secretary of the Nigerian Contend Development and Monitoring Board (NCDMB), Denzil Kentebe lauded the Shell initiative to foster partnerships that will help local vendors strengthen their technical capability.
SNEPCo initiated the Nigeria-UK Supplier Engagement programme in 2009, and has this led to some 27 partnerships between Nigerian and UK companies with another 43 partnership discussions progressing well. Shell Companies in Nigeria are major contributors to the national economy, not only through the energy they produce and the revenues generated, but also via achievements in supply chain, local content and social investment.
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.