Oil
NNPC Saves Over $3bn from Arbitrations-Kyari
ABUJA– THE Nigerian National Petroleum Corporation (NNPC) has saved over $3billion from arbitrations, the Corporation’s Group Managing Director, Mallam Mele Kyari, has disclosed.
Mallam Kyari dropped the hint Tuesday in Abuja when he engaged staff of the corporation in a Town Hall meeting that also involved the participation of the corporation’s outstation-staff.
The NNPC GMD gave kudos to the Management of the corporation’s Legal Division for the save, saying its due diligence accounted for the feat.
Speaking further at the Town Hall engagement, Mallam Kyari urged the corporation’s workforce to redouble their efforts to ensure that the nation reaps bountifully from its vast hydrocarbon resources which the National Oil Company has the mandate to superintend.
He charged that it was imperative for the corporation to increase its level of efficiency, reduce cost and increase revenue across value chain of its businesses within the shortest possible period.
The GMD seized the opportunity of the event to update members of staff on the recent NNPC Top Management retreat which prescribed a five-step approach for the corporation to attain global excellence via the TAPE agenda (Transparency, Accountability and Performance Excellence).
He listed the steps to include: Well defined processes benchmarked to World-class Oil & Gas company requirements, Right cost structure that guarantees value realization and profitability, Goals, priorities and performance guarantee, Suitable governance structure for strategic business units and Entrenching team work and collaboration with all key stakeholders.
The NNPC GMD took stock of his tenure, noting that some remarkable successes had been recorded within the period.
The achievements, he explained, included: attainment of over 2billion litres of Premium Motor Spirit reserve, completion of Phase1 of Port Harcourt Refinery Rehabilitation exercise, Discovery of Oil in Kolmani River-II Well and the Re-opening of OML 25 flow station after two years of inactivity as a result of community issues between the host community/Belema Oil and Shell Petroleum Development Company.
The achievement, he noted, also included; Signing of novation agreement with Nigerian Agip Oil Company (NAOC) to formalize the transfer of OMLs 60, 61 and 63 to the Nigerian Petroleum Development Company (NPDC), Execution of a funding, technical services agreement and alternative financing deal worth USD 3.15billion for OML 13 and USD876million for OML 65.
Others are; Signing of USD2.5billion prepayment agreement with Nigerian Liquefied Natural Gas Limited (NLNG) for Upstream gas supply for trains 1-6, Finalization of the 2018 audit of the NNPC Group and improved engagement with key stakeholders, notably, the National Assembly.
Kyari commended the NNPC workforce for dedication and constructive feedbacks which, he said, had gone a long way in shaping the successes recorded thus far.
During the event, the GMD also launched the banners of the corporation’s Downstream company, the NNPC Retail Limited, with a view to positioning the company as a market leader in the products distribution subsector in the Country
Comrade Mathew Duru, the NNPC Group Chairman of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) pledged the commitment of staff members to the aspirations of the NNPC Management.
Similar sentiment was expressed by Comrade Paul Idache, NNPC Group Chairman of the National Union of Petroleum and Natural Gas Workers (NUPENG).
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.