Connect with us

Oil

South Sudan to resume oil export, Friday

Published

on

SOUTH SUDAN – South Sudan will ship its first oil from its largest fields in Upper Nile state to export facilities in Sudan this Friday, May 10, according Sudan’s Oil Ministry.

This will be coming 16 months after the landlocked South Sudan shut down its production of up to 350,000 barrels per day in January last year over failure to agree with Sudan on oil fees.

In March, the two African neighbouring countries agreed to resume cross-border oil flows.

South Sudan seceded from Sudan in July 2011, becoming the world’s youngest nation. It needs to export its oil through Sudan.

Oil tankerSudan’s Oil Ministry, said first oil from the Palouge field in South Sudan’s Upper Nile state will be sent to Sudan on 10 May, oil ministry undersecretary Awad Abdel-Fattah told state news agency SUNA after a phone call with the head of oil consortium Dar Petroleum, which runs the fields.

The country’s biggest oilfield, Palouge is expected to reach production of up to 180,000 bpd within a month of starting at 125,000 bpd, Dar Petroleum stated on Sunday.

“Within a month, we should be reaching 165,000 to 180,000 and we would expect to reach the level where we were before the shutdown by early next year,” Biztellers quoted Dar Petroleum President Joseph Podtung as saying during the ceremony to resume output at Palouge.

In the coming days, South Sudan plans to reopen its fields in Upper Nile state, which produce Dar Blend – a heavy, sour crude.

Last month, South Sudan resumed oil production at the Jath Thar oilfield in Unity State but damage caused by cross-border skirmishes a year ago meant the output was only gradually rising. The Unity State fields produce Nile Blend – a light, sweet, waxy crude.

According to Biztellers, industry experts said Dar Blend production would start at around 50,000 bpd, and quickly rise to at least 150,000 bpd, while Nile Blend was likely to remain in the range of 30,000 to 40,000 bpd for at least six months.

The first oil cargo was expected to reach Port Sudan by 20 May, coinciding with South Sudan President Salva Kiir’s plans to visit Sudan, Oil Minister Stephen Dhieu Dau said.

According to Biztellers, Finance Minister Kosti Manibe said it would take until June until South Sudan would be paid for the oil exports.

Both countries, which came close to returning to war a year ago, depend heavily on crude exports for state revenues and use the foreign currency to import food and fuel.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

Published

on

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.

 

Continue Reading

Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

Published

on

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.

Continue Reading

Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

Published

on

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.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.