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Alison-Madueke, Shell Fingered in Shady U.S.$380 Billion OML Deal

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ABUJA: Nigeria’s petroleum minister, Diezani Alison-Madueke oil giant, Shell Petroleum Development Company Ltd (SPDC) have been fingered in the shady sale of four oil blocks worth $380 billion (N58.9trillion), a petition to the Speaker, House of Representatives, Aminu Waziri Tambuwal disclosed, yesterday.

The petition also alleged that two days before President Goodluck Jonathan dissolved the Federal Executive Council in 2011, officials of Shell and Alison-Madueke secretly transferred production rights in four large oil blocks, Oil Mining Licences (OMLs) 26, 30, 34 and 42, to Mr. Jide Omokore’s Atlantic Energy Drilling Concept Limited, a company that neither tendered nor bidded for the blocks.

Alison-Madueke, Shell Fingered in Shady U.S.$380 Billion OML DealThe petition was delivered by representatives of protesting Delta State oil producing communities comprising Itsekiri, Urhobo, Ijaw, Isoko and Ndokwa who yesterday morning stormed and occupied the National Assembly for hours. The communities called on the National Assembly to commence immediate probe into the contentious sale.

The protesters lamented what they described as a deliberate exclusion of indigenous rights of first refusal and the absence of transparent and open competitive bidding of Oil Mining Licences (OMLs) 26, 30, 34 and 42 respectively.

Chief Ayiri Emami who led the protesters threatened to shut down the wells if the relevant arms of government failed to respond to the yearnings of the people within 14 days.

The groups prayed the National Assembly to, besides investigating the allegations; suspend the handing over of the OMLs 4, 26, 30, 34, 38, 41 and 42 to Atlantic Energy and Septa Energy pending the determination of the issues raised in the petition.

“By this deal, 60 per cent of NPDC’s 55 per cent stake of these assets is about five billion barrels, which when calculated with the 2013 Crude Oil benchmark comes to $380billion or N58.9 trillion. This figure is exclusive of the 4trillion cubic feet of gas asset in the blocks valued at $15.72trillion.

“The ‘game’ behind this deal is brought sharply into focus by noting the fact that, on OML 26, 30, 34, and 42, Mrs. Diezani Alison-Madueke’s no-bid approach via the so-called ‘Strategic Alliance Agreement,’ fetched the Federation Account an upfront cash payment of little more than $50million as initial entrance fee from Atlantic Energy, while SPDC’s open and competitive bidding process, though excluding indigenes of the area on the other hand, got $1.3billion from Heritage Oil Plc. For its 45 per cent Joint Venture beneficial stake of the same block,” they claimed.

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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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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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