Oil
Turkey to seek Baghdad’s consent for Iraqi Kurdish oil
…Both sides say Baghdad’s consent needed for oil exports
…Turkey seeks oil from Iraq’s Kurdish northern region
…Baghdad says deals between Turkey and Iraqi Kurds illegal (Recasts with joint news conference)
BAGHDAD – Oil exports from anywhere in Iraq to Turkey need the central government’s approval, Baghdad and Ankara said on Sunday after a bi-lateral meeting aimed at diffusing a row over energy exports from Iraq’s autonomous Kurdish region.
Turkey, hungry for energy and dependent on imports for almost all of its needs, wants Iraqi Kurdistan’s oil to help diversify its energy supplies and reduce its ballooning $60 billion annual energy bill.
But Turkey’s courtship of the Kurdistan Regional Government (KRG) has infuriated the central government in Baghdad, which says it has sole authority to manage Iraqi energy resources.
“We agree that any exports must be with the approval of the Iraqi government and we will discuss the mechanism,” Iraq’s deputy prime minister for energy Hussain al-Shahristani told a news conference with Turkey’s Energy Minister Taner Yildiz in the Iraqi capital.
Yildiz said Turkey would seek Baghdad’s approval for the commercial export of oil from Iraqi Kurdistan.
“We aim to win Iraq central government’s consent for oil trade from the KRG to Turkey and to start a cooperation plan to serve the interests of all three parties,” a joint declaration from the ministers said.
Turkey and Iraqi Kurdistan signed a multi-billion-dollar energy package last week, sources close to the deal said on Friday, that will help transform the Iraqi region into an oil and gas powerhouse.
The Turkish foreign ministry has since said the deals had not been finalised and that it would seek Baghdad’s cooperation.
Yildiz said the two sides had also discussed an existing plan to extend a pipeline to take crude oil from Iraq’s southern Basra oil fields to Turkey.
It was Yildiz’s first visit to Iraq since his plane was denied permission to land by Baghdad late last year when he tried to attend an annual energy conference in Arbil, Iraqi Kurdistan, amid the long-running oil dispute.
Yildiz will travel on to Arbil for the same conference, which starts on Monday.
Baghdad says Kurdish efforts towards oil independence could lead to the breakup of the country and the dispute has also raised concern in Washington.
Shahristani said on Thursday any energy deal with Arbil would be “an encroachment on the sovereignty of Iraq”.
Autonomous since 1991, Iraqi Kurdistan has often chafed against the central government and even threatened to secede, but still relies on Baghdad for a slice of the OPEC producer’s $100-billion-plus budget.
It is already trucking its oil to world markets through Turkey and it plans to open a new export pipeline by the end of the year, angering Baghdad further.
– REUTERS
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.