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U.S.$3.8 Billion Egina FPSO Project Under Threat

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LAGOS – The contract awarded to Samsung Heavy Industry and Lagos Deep Offshore Logistics by Total for the development of fabrication and integration yards for Egina and future projects is generating furore, bad blood and intrigue, and if not addressed could jeopardise the take off of the project. The matter may become subject of litigation as LADOL is alleging an underhand dealing by some powerful Nigerians to deprive it of its due share of the project.

But the major contractor, Samsung Heavy Industry, has said that it is acting on the briefs it got and the fact that the latter does not have the needed facility to carry out the project as planned.

Financial Vanguard investigation has shown that a memo from the State House Abuja dated 20th January, 2014 signed by the Senior Special Assistant to the President to the Minister of Transport and copied the Chief of Staff to the President, approved paragraph 2 i-iv of the prayers of an earlier letter sent to the President from the ministry.

The Ministry of Transport had asked the permission of the President thus, “that the FPSO project can be located at Agge, Bayelsa State, when the facilities to handle such operations are developed. In addition, the FPSO can be conveniently located at any dedicated oil and gas terminal.

“All Oil and Gas related cargoes must be handled only at the designated terminals as in the letter from BPE. Operators are, however, free to choose ports of discharge of their cargoes within the designated terminals at Onne, Warri and Calabar ports. Vessels coming to Nigeria with cargoes particularly oil and gas related cargoes, except petroleum products, must first go to the appropriate NPA/Concessioned terminals to be cleared by Customs and other relevant authorities, terminal operators, shipping lines etc and to pay necessary dues/charges. In order to maintain transparency and promote healthy competition in the sector, all port development facilities under the jurisdiction of the Federal Ministry of Transport/NPA should be carried out in accordance with extant public procurement and infrastructure development laws and policies.”

Financial Vanguard investigation showed that on the 16th of September 2013, “The Managing Director (MD), LADOL, through a letter dated 16th September 2013, which was received at the Presidency on the 25th of November, informed the president that it had finalised its joint venture with Samsung Heavy Industries Limited to build Africa’s only fabrication and integration facility.

– VANGUARD

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Oil

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

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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.

 

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

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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.

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Oil

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

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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.

 

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