Oil
Govt yet to approve Chevron’s plan to sell OML 83, 85
ABUJA – A fresh controversy may have hit plans by Chevron to auction its stake in Oil Mining Leases (OMLs) 83 and 85 offshore Nigeria, as indications emerged that Nigerian National Petroleum Corporation (NNPC) was yet to approve the scheme.
A top source in NNPC, who spoke on condition of anonymity, said recently that Chevron was yet to officially notify them of their plan to relinquish its interest in the oil field.
But when Biztellers contacted Chevron’s General Manager, Policy, Government and Public Affair, Deji Haastrup, he said that the company was following due process in its plans to sell off the assets.
Haastrup said: “Everything is being done transparently and as required by regulation.”
He said that the move was part of the company’s continuous evaluation of opportunities and the need to prioritize its portfolio.
He assured that the multinational oil firm would implement the divestment in line with the local content law, as indigenous investors are considered the preferred.
Chevron acquired OML 83 (Anyala field) and OML 85 (Madu field) after its acquisition of Texaco. The oil fields are situated in shallow water offshore Bayelsa State in the Niger Delta and have reserves of about 250 million barrels of oil and 14.1billion cubic metres of gas.
The company said in its 2013 Fact Sheet released recently that in 2012, its net daily production in Nigeria averaged 238,000 barrels of crude oil, 165 million cubic feet of natural gas and 4,000 barrels of Liquefied Petroleum Gas.
It said that through its principal subsidiary in Nigeria, it has been able to operate and hold a 40 per cent interest in 13 concessions under a joint-venture arrangement with the Nigerian National Petroleum Corporation (NNPC).
Chevron stated: “In 2012, our net daily production in Nigeria averaged 238,000 barrels of crude oil, 4.6mn cubic metres of natural gas and 4,000 barrels of LPG.
“Our move is the latest in the pool of divestment by the oil multinationals in recent times. The sale follows the divestment by Shell, Total and ENI of their joint venture onshore interests in the country.”
It disclosed that it was involved in natural gas projects in the western Niger Delta and Escravos areas, including the expansion of the Escravos Gas Plant (EGP), construction of the Escravos Gas-to-Liquids (EGTL) facility, the Sonam Field development and the Agura Independent Power Plant.
Chevron operates and holds a 40 per cent interest in the EGP development.
It said that project was focused on eliminating routine flaring of natural gas associated with crude oil production.
“The project includes installation of 74 miles (119 km) of subsea pipelines and modifications to the production platforms. The $2.4 billion project is expected to be completed in 2016.
“Chevron and the NNPC are developing the EGTL facility, a $9.5 billion 33,000-barrel-per-day gas-to-liquids project designed to process 325 million cubic feet per day of natural gas from the EGP expansion. Chevron is the operator and has a 75 per cent interest in the plant, which is scheduled for startup in late 2013.
“The $1.7 billion Sonam Field development is designed to use the EGP facilities to deliver 215 million cubic feet of natural gas per day to the domestic gas market and produce a total of 30,000 barrels of liquids per day. First production at the 40 per cent-owned and operated project is expected in 2016.”
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.
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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.”
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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.