Oil
AU inaugurates 3-man committee over pipeline shutdown in Sudan Oil crisis
ADDIS ABABA– The AU in Addis Ababa on Monday inaugurated a three-man Ad Hoc Investigative Mechanism, AIM, into the allegations by the Republic of The Sudan against South Sudan of supporting armed groups against Khartoum.
The committee is chaired by Angola’s Brig.-Gen. Luis InacioMuxito and Security Advisor to the AU Commission’s Chairperson, with Nigeria’s retired Maj.-Gen. Julius Oshanpin and Brig.-Gen. Jean Baptiste from Senegal as members.
The committee has six weeks to submit its report. The committee was inaugurated ahead of The Sudan’s July 31 deadline to shut down its pipeline used for transporting South Sudan’s oil.
The AU established the committee in response to a proposal by the Chairperson of AU High-Level Implementation Panel on The Sudan and South Sudan with former South African President, Mr Thabo Mbeki, to address the persistent allegations of supporting rebel groups by the two neighbours.
“The mistrust caused by such allegations has jeopardized the implementation of the Addis Ababa agreements signed on Sept. 27, 2013 as well as of relations between the two states,” Tedros Adhanom said.
Adhanom ,the Chairman of the AU Executive Council and Ethiopia’s Foreign Minister, made the statement while inaugurating the committee.
He said the committee would also proffer solution to the crises and address the security challenges between the two countries, including the AU border programme.
It will also address the safe Demilitrised Border Zone between The Sudan and South Sudan to facilitate the full operationalisation of the zone, Adhanom said.
He urged the two countries to respect all aspects of the security agreements and deploy their forces out of the border zones.
“The AU and the regional body, Intergovernmental Authority on Development (IGAD), further urge that Sudan and South Sudan refrain from any action to shut down the oil pipeline used to transport South Sudan oil to Port of Sudan,” the minister said.
Meanwhile, South Sudan’s Minister of Commerce and Industry, Stephen Dau, has announced plans to sell 6.4 million barrels of the country’s oil worth 300 million dollars before July 31.
Sudan’s President Umar Al-Bashir had insisted that Sudan’s pipelines would be shut down within 60 days beginning on Aug. 7 to curtail South Sudan from the alleged support for rebels.
South Sudan had, however, continued to deny the allegations.
– NAN
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.