Oil
Chevron plans $39.8bn spend in 2014
NEW YORK – US supermajor Chevron plans to spend nearly $40 billion in 2014 as it closes in on start-ups major liquefied natural gas projects in Australia and continues to explore areas in North America and Africa.
About 90% of that sum, or $35.8 billion, will go towards upstream oil and gas exploration and production, with just 8% set aside for downstream businesses.
Chevron’s international upstream business will command about $27.9 billion in investments while about $7.9 billion will be dedicated to upstream activities in the US.
About 30% of the upstream capital will go towards “highly profitable development wells and other projects associated with current producing assets”. The base programme also includes an increase in activity across several producing regions of North America, as well as in Thailand and Indonesia.
The spending plan is about $2 billion less than the $42 billion the company splashed this year. Investments in 2013 included about $4 billion on major resource acquisitions that were not included in the company’s original budget.
Chief executive John Watson said 2013 would likely be a “relative peak for investments”.
However, 2014 will be the “peak year” for spending on the Gorgon and Wheatstone LNG projects in Australia, Watson said.
Gorgon, which has been under construction for four years, is nearly 75% complete. Chevron estimates the ultimate cost of the project to come in at around, with first gas planned for the middle of 2015.
“Gorgon project economics are attractive,” said vice chairman George Kirkland. “We continue to make steady progress against key project milestones and are applying lessons learnt to our Wheatstone development which is almost 25% complete.”
Gorgon and Wheatstone, two of Chevron’s “most important future legacy assets”, will account for about 400,000 barrels per day of net production at full capacity.
In the US, and elsewhere, development of unconventional resources also figures heavily into Chevron’s plans for 2014. Major capital investments are planned in the Permian basin of west Texas, in Canada’s Duvernay shale and in the Vaca Muerta shale in Argentina.
Chevron is “steadily increasing activity levels” in all of those plays, Kirkland said.
“We are very pleased with our global unconventional acreage position,” he added.
In the Gulf of Mexico, Chevron is eyeing start-up of the Jack/St Malo development in 2014.
The company also confirmed previous reports by Upstream that start-up at the Big Foot tension-leg platform development would be delayed from an expected start-up of 2014.
Tow-away from Kiewit Offshore’s yard in Ingleside, Texas, is expected to occur in the third quarter of 2014, with start-up at the project now set for the second quarter of 2015, Chevron said.
Chevron will spend $3.2 billion on global exploration, including initial appraisals of new acreage acquired in places like Australia, the Kurdistan region of Iraq and Morocco.
“The program also supports continued exploration and appraisal activity in Western Australia, the Gulf of Mexico, West Africa, and in several shale gas regions around the world,” Chevron said.
The supermajor is also planning further development of the Usan and Agbami deep-water fields in Nigeria, the Mafumeira Sul field in Angola and Moho Nord in the Republic of the Congo.
– UPSTREAM
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.