Oil
NNPC unveils $16bn gas infrastructure investment opportunity
…To commence site clearing of Ogidinbge gas industrial park
ABUJA – The Nigerian National Petroleum Corporation, NNPC has outlined a comprehensive gas infrastructure development programme projected to attract an industry wide investment outlay of over $16billion within the next four years.
Providing details of the gas infrastructure development drive in a presentation at the recently concluded Offshore Technology Conference in Houston, Texas, Dr. David Ige, Group Executive Director, Gas and Power of the NNPC, said the aspiration for gas development is anchored on the three point strategic focus of the Gas Master Plan.
Under the strategic themes of the GMP, it is envisaged that the plan will deliver gas to power for at least threefold increase in generation capacity by 2015, achieve reasonable level of gas based industrialization by positioning Nigeria as the undisputed regional hub for gas based industries such as fertilizer, petrochemicals and methanol by 2014. This item is the corner stone of the President’s Gas Revolution Agenda. The GMP is also focused on achieving high value export via LNG and regional export drives.
Dr. Ige said the ongoing work to consolidate the agenda has thrown up investment opportunities in the gas sector to the tune of $16billion.
“Opportunities for investments exist in the areas of Financial Services, Gas Transmission Pipelines, Pipe Milling and Fabrication Yards, Upstream Gas Development, LNG and LPG Plants and Gas Processing Facility/Gas Based Manufacturing Industries,’’ he said.
On the proposed Ogidingbe Gas based Industrial Park, the NNPC GED said that investment opportunities are available in the areas of Free Trade Zone Infrastructure, Port Infrastructure and Real Estate Development.
He stated that that the park which is designed to emerge as Africa’s largest Gas City ultimately aims to create the largest gas industrial park Sub-Saharan Africa with Fertilizer, Methanol and Power projects.
Dr. Ige explained that after initial choice of Koko as site for the project, Ogidingbe emerged as the new site due to the potential high cost of dredging the 90km Koko access route to the Ocean.
“Ogidingbe has some natural features which made it the choice location based on technical consideration. It has the desirable location by the sea hence better draught than Koko, it is also located by the Escravos River for inland access, it has proximity to existing gas infrastructure via the Escravos Lagos Pipeline System thus enabling relatively easy gas access with less pipeline infrastructure development cost,’’ he said.
On the disposition of the Delta State Government and the Host Community to the project, Dr. Ige described their outlook as supportive.
“The people of the area are excited about the project, His Royal Majesty, the Olu of Warri has been supportive and the State Governor has encouraged us in every step of the way, the Governor has already approved and issued the Cof O for the 2,700 hectare site.’’ He said.
The GED informed that phased work on the project with massive job creation and service opportunities would commence later this month with clearing of the access site in Ogidingbe, Warri South West Local Government Area of Delta State.
“Potential services required at this stage include: equipment rentals like bulldozers, chain saws etc; Labour services which includes catering, procurement services; Timber Processing and Marketing as well as hospitality services among many others.’’
Providing a timeline of activities for the project, he said it is envisaged that work would commence on the Ogidingbe FTZ full infrastructure development and Pre-Front End Engineering Design of the Central processing Facilities also known as CPFs in June this year while the Final Investment Decision for the CPFs is slated for June 2014.
In January 2015 construction work on the CPFs would begin and in March same year work begins on real estate development of the Ogidinbge area to service the industrial park while the construction work of the petrochemical complex tees-off in 2016/2017.
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.
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.
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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