Oil
Alison-Madueke conspicuously missing at OTC 2013
HOUSTON, TEXAS – Even as the Offshore Technology Conference, OTC, kicked off yesterday in the city of Houston, Texas in the United States of America, one thing that could not be missed by thousands of Nigerian attendees and exhibitors was the conspicuous absence of Nigeria’s Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke at the event.
This will mark the first time ever since Nigeria began attending the global oil and gas forum that a sitting minister of petroleum in the country would fail to attend.
What is even more remarkable about the Minister’s absence at the global annual petroleum conference which is hailed as, arguably the biggest forum for oil and gas operators and investors in the world, is that she was reported to have accompanied President Goodluck Jonathan on a trip to South Africa, while typically neglecting the more relevant platform of the OTC to rationalize the woes bedeviling the nation’s oil and gas sector.
However, the Group Managing Director of the Nigerian National petroleum Corporation, NNPC, Mr. Andy Yakubu, who was left with the awkward mission of representing the Minister and who declared the Nigerian Pavilion open, said the exploits by local marketers, operators and service providers in the sector has vindicated government’s drive for indigenous participation in the industry.
Yakubu added that government was further motivated to push for more robust reform through the Petroleum Industry Bill, PIB, which will transform the nation’s oil and gas sector for the benefit of the Nigerian economy.
According to him, “The progress that we have seen in the Nigerian oil and gas industry over the years is not only predicated by the number of pavilions exhibiting here today, but over the last 12 months since we were here, we have seen so much progress in the sector, the sort of creativity from our own indigenous operators and service providers that really encourages us at the leadership level to continue expanding our own frontier, to continue to given robust support to our indigenous operators and service providers.”
The Minister also acknowledged the “financial wherewithal and technological expertise and partnership that multinational companies and foreign companies operating in the Nigerian oil and gas industry, and we expect that they will continue with us for a very long time to come.”
He added that, since the passage of the Nigerian Content Act, there has been remarkable progress by industry operators and government to ensure the involvement of Nigerian companies in the offshore sector.
“It is really remarkable to see the tremendous progress that Nigerian operators and service providers have made over the past couple of years. I can only imagine what will happen in the oil and gas industry over the next three years if we continue to do what we are doing, and if we continue to move the frontiers that we are moving at this time.
“I can assure you as government representative in this industry, we will continue to aggressively and robustly support marketers, operators and service providers in the Nigerian oil and gas industry to the best of our ability as we go forward,” Yakubu stated.
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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