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Nigeria’s oil Refining capacity to hit 90% by 2014 – Alison-Madueke

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By Joseph BAMIDELE

ABUJA-The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has unveiled a new plan to increase the local refining capacity of the nation’s three refineries to 90% of installed capacity by 2014.
The Minister who made this revelation at a meeting convened by the Senate Committee on Petroleum (Downstream) to find solutions to the shortage of petroleum products in some parts of the country caused by distribution challenges, explained that the planned Turn-Around Maintenance and upgrade of the three refineries could not hold as earlier scheduled because of the negative travel advisory given by the Japanese authorities to JGC, the original builders of the Port Harcourt Refinery which stopped them from coming for the upgrade and maintenance of the refinery.
“With that hurdle surmounted, we have put in place a new plan complete with new schedules and timelines to bring the refineries back to life and get them to run at higher capacity. The maintenance and upgrade work will start with the Port Harcourt Refinery which has stayed the longest period without a turn-around maintenance,” she explained.
Alison-Madueke further stated that the contract for the project will soon be signed and that rehabilitation and upgrade work will move from the Port Harcourt Refinery to the Kaduna and Warri Refineries in that order until the last one “comes on stream by the beginning of the last quarter of 2014”.
Asked by the Chairman of the Committee, Senator Magnus Abe, to shed light on the cost implication of the project and the expected production figure at the end of the rehabilitation work, the Minister put the cost of the maintenance and upgrade of the three refineries at $1.6bn, adding that the refineries would produce at 90% installed capacity.
On the fuel supply challenges, she explained that a mixture of factors ranging from unsettled subsidy claims which hamstrung some private product marketers from importing products and the breakage of the System 2B Pipeline at Arepo have made supply and distribution of products across the country difficult in spite of intervention through supplies from the strategic reserve.
She said the Department of Petroleum Resources (DPR) which is charged with the responsibility of monitoring and enforcement has been going round the country to ensure that marketers sell products at the approved price of N97 per litre and has closed 75 stations caught selling above the approved price across the country.
On actions being taken to resolve the supply and distribution hitches, the Managing Director of the Pipelines and Products Marketing Company (a subsidiary of NNPC), Mr. Haruna Momoh, explained that distribution of products in a country as big as Nigeria can only be done effectively through the pipeline and called on community leaders, state governments and other stakeholders to collaborate with PPMC on ways to safeguard the pipelines to ensure free flow of products.
Haruna said over 774 breaks have been discovered on the nation’s network of pipelines spanning about 5,100km rendering most of the 21 depots across the country redundant .
Chairman of the Senate Committee on Petroleum (Downstream), Senator Magnus Abe, urged the Minister, the management of the NNPC and the other stakeholders not to see the intervention of his committee as unnecessary stress but a call to deliver excellent service to the Nigerian people.
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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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