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Aiteo led consortium acquires OML 29, Nembe pipeline for $2.7bn

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Nembe Pipeline

Nembe Pipeline

LAGOS-The Aiteo Group-led consortium has acquired Shell’s equity shares in oil mining lease (OML) 29 for $2.7 billion which the company has just divested from.

The group is now the majority stakeholder in the acquisition deal with an 85 percent equity stake.

A breakdown of the share holding of the group indicates that Aiteo Energy Resources Limited has a total volume of 2.294 billion shares, Tempo holding 270 million shares with its 10 percent equity, and Taleveras holding 135 million shares. All these put together shows that the consortium has a total number of 2.7 billion units of shares.

Shell Petroleum Development Company (SPDC), which operates the lease, has sold its 30 percent equity in both the field and the Nembe pipeline just as it partners, Total and Italy’s Eni S.P.A., also sold off their 10 percent and five percent equity, respectively, to the consortium.

The Nigerian National Petroleum Corporation (NNPC) retains the asset balance of 55 percent under a joint operating agreement.

Oseyemi Oluwatuyi of the communications department of the group, while confirming the real cost of the oil block, put the total cost of acquisition at $2.7 billion, stating that while $2.562 billion was the actual cost for the acquisition of the oil block and Nembe pipeline, additional funds have also been earmarked as working capital.

According to her, contrary to erroneous reports, the Aiteo Group-led consortium – not Taleveras Group – is the majority stakeholder in the deal with an 85 percent equity stake.

She said: “Therefore, it is total misinformation in the local and international media that it is the ‘Taleveras-led consortium’ that acquired OML 29 divested by Shell.”
Oluwatuyi further noted that it had become necessary to correct the mislead ing media reports about the acquisition of OML 29, the most prolific of the oil blocks sold off by Shell, after noting the discrepancy reported on numerous occasions.

It has been estimated that OML 29 has a proven and probable reserves (P1+P2) that is in the region of about 2.2 billion barrels of oil equivalent, while its hydrocarbon fields could deliver as much as 160,000 barrels of oil per day and 300 million standard cubic feet of gas per day (mmsc/d) at peak output.

The group is a vertically integrated energy company, expanding its global footprint and scope from oil & gas and power into fully diversified conglomerate with investments across key economic sectors including mining, agriculture, financial services, real estate and infrastructure.

While the Aiteo Group consortium beat out several indigenous and international companies as the preferred bidder for OML 29 and the Nembe pipeline, not everyone walked away empty-handed in the sale of onshore oil blocks.

BUSINESSDAY-

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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.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

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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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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