Oil
Atlantic Energy Co-CEO predicts indigenous companies to account for over 30% of oil and gas production in Nigeria within 5 years
CAPE-TOWN – Atlantic Energy Co-CEO, Scott Aitken made a presentation at the African Oil Week, one of the largest oil and gas conferences held on the African continent held in Cape Town, South Africa 25th – 29th November 2013.
In his presentation titled: “Onshore Niger-Delta – A changing Landscape”, Mr. Aitken explained there are 100’s of underdeveloped discoveries onshore Nigeria and with the recent divestments of onshore assets by International Oil Companies operating in Nigeria, this would increase the opportunities & access of Nigerian indigenous oil and gas companies to 8 Billion barrels of crude oil and 46 Trillion cubic feet of natural Gas Gross Reserves.
Mr. Aitken discussed the challenges to the development of existing assets and increasing production including ageing infrastructure some of which have not been replaced or maintained properly further to which he suggested a detailed evaluation and phased infrastructure replacement/upgrade. He also noted Host Community/ stakeholder relationships & expectations were having a negative impact on production levels and suggested improved community engagement and update needs assessment.
Mr. Aitken made an example of Atlantic Energy’s Strategic Alliance with the exploration arm of the Nigerian National Petroleum Corporation (NNPC), Nigerian Petroleum Development Company (NPDC) wherein Atlantic Energy provides funding, technical and project management assistance to NPDC for designated assets.
He also reported that Atlantic Energy has made significant achievements through an increase in the reserves of the assets covered by the Strategic Alliance as well as new field development programmes. He noted that Atlantic Energy has invested over $500 million further to the Strategic Alliance Agreement with NPDC and also noted that NPDC and its Joint Venture partner have commenced a 60, 000 barrel of oil per day flow line and flow station reinstatement.
At the end of the presentation, Atlantic Energy’s 2 Co-CEOs; Kola Aluko and Scott Aitken took questions where Mr. Aluko affirmed his colleague’s presentation by stating, “Nigerian companies like Atlantic Energy have pushed for increased local participation in the upstream sector. As recent as 5 years ago, 6-7 international oil companies were producing over 97% of Nigeria’s oil and gas, now Nigerian companies are producing close to 10% and I believe we can have 30% of Nigeria’s oil and gas production being produced by Nigerian companies within 5 years. The time is now for companies like Atlantic Energy and other indigenous companies to step up to the plate.”
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
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.