Oil
FG calls for more intensive oil exploration in Nigeria
….laments drop in production and reserves
ABUJA – The federal Governmnet trough the Oil industry regulator, the Department of Petroleum Resources, DPR, has called for intensive oil and gas exploration to grow the nations dwindling production as well as its reserves if Nigia is to maintain its role as Africa’s foremost producer.
George Osahon, Director, DPR made the call earlier today when he addressed a cross section of stakeholders in oil Industry as well as delegates to the on-going Nigeria Oil and Gas Conference 2014 in Abuja.
According to him 35 billion In reserves from 37 billion shows a huge drop in and the huge drop in production as well shows there should be more intensive oil exploration.
DPR is currently reviewing several initiatives that will boost exploration activities and reserves.
The Group Managing Director of the NNPC Mr. Andrew Yakubu in his address however noted that the greatest challenge facing the industry now is crude oil theft which recorded loses over 300,000 bopd in 2013 which has in turn elicited the attention of government, and the feral Government has in turn set aside 15 billion Naira to stem the tide of oil theft in the Niger Delta.
“These includes provision of air surveillance and strategic patrol of our inland waterways and so on. It has become imperative in view of the enormity of the shut-ins as a result of vandalism on the pipes connected to three major export terminals namely forcados, Brass and Bonny to continue to maintain and protect these lines.”
“Nigeria should continue to maintain the leading position in Africa in view of new oil and gas prospects and reserves”
TheGMD further stated that the Deep water sector in Nigeria is facing rapid development and huge investments, hence it would account for half of the nations output in the next decade in view of the huge investments that are currently being made in deep water.
“Significant production increases is assured with the implementation of these outlined objectives and Nigeria shouldn’t do less than 3 million bopd by 2020 taking into cognizance OPEC quota and funding.”
Also speaking the Vice President Nigeria and Gabon, Shell, Mr. Markus Droll
Also emphasized on a number of problems and challenges hindering theoil sector growth in Nigeria.
Top on the list from him was again crude oil theft which he says accounted for about 300 interruptions through illegal oil tapping connections on infrastructure in the year 2013.
According to him oil theft has become huge in Nigeria and would require a sustained , multi-stakeholder measures on a number of fronts to arrest and ultimately reverse it.
He also noted that security has become an issue as lack of a conducive and peaceful operating atmosphere has led to immense costs that could have gone into development and operating costs.
Aside from this he also touched on funding, as he campaigned for more funding for the country to fulfill its oil and gas potentials.
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.