Oil
Nigeria Laments Insecurity in Gulf of Guinea
…lists activities threatening Oil and Gas operations
LAGOS – Nigeria’s Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke has bemoaned the rising episodes of insecurity in the Gulf of Guinea resulting in ceaseless cases of hijacking, unauthorized vessel boarding and kidnapping in the region.
She stated this at the First Nigerian Navy Offshore Patrol Vessel Africa Conference (OPV) which was held in Lagos.
Describing the situation as unacceptable, the Petroleum Resources Minister who was represented by the Group Managing Director of the Nigerian National Petroleum Corporation, Engr. Andrew Yakubu, noted that crude oil theft and illegal oil bunkering in the Gulf of Guinea has become a major source of concern to the Federal Government.
According to the US Naval Intelligence Report, the region in the first half of 2013 witnessed nine hijacking incidents in addition to 55 incidents of unauthorized vessel boarding, vessels fired upon and kidnappings this year, Alison-Madueke revealed.
The Minister emphasized that maritime security is not only essential to maintaining the flow of revenue from oil and gas but also impacts greatly on the region’s broader economic development adding that maritime resources such as fish, aquaculture and an intact ecosystem directly contribute to the livelihood of many Africans.
Providing a breakdown of oil and gas operations in the region, Mrs. Alison-Madueke noted that the Gulf of Guinea consists of 15 countries with oil production exceeding 5.4 million barrels per day in 2012 stressing that oil supply from the Gulf of Guinea region in 2011 was equivalent to 27 percent of EU consumption and 29% of total US petroleum consumption in the same year.
The Minister stated that Nigeria and Angola account for 47% and 34% of total Gulf of Guinea oil supply respectively. Mrs. Alison-Madueke said it is extremely important that Gulf of Guinea Countries and their allies collaborate to police the sea lanes of the Gulf of Guinea, noting that disruptions in crude oil supply not only affect countries such as Nigeria but ultimately have an impact on the global economy.
While calling for increased domestic efforts in addressing the menace, the Petroleum Resources Minister noted that addressing illegal crude oil bunkering is multidimensional and requires multilateralism. Mrs. Alison-Madueke added that resurrecting the Gulf of Guinea security protocol and collaboration with Nigeria and other Gulf of Guinea countries will go a long way in addressing the maritime security issues.
In his opening remarks, the Chairman of the occasion Retired Rear Admiral Alison Madueke said the increasing spate of maritime insecurity in the Gulf of Guinea has led to the loss of several billions of dollars in revenue to the national economy.
The Three Day conference with the theme: Delivering Maritime Security to Africa was attended by Navy formations from the Gulf of Guinea countries with presentations from local and international resource persons.
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.