Oil
Chevron boosts donation to Nigerian social projects
LONDON – Chevron Corp plans to nearly double its donation to Nigerian social projects over the next five years, part of a choreographed plan to improve the local economy and bolster the company’s supply chain in the African country, its second-largest source of crude oil.
Chevron is donating $40 million to the Niger Delta Partnership Initiative (NDPI), a nonprofit it helped form in 2010 with $50 million in seed money. The second round of funding will make NDPI the largest recipient of Chevron donations in the company’s history, executives said.
The NDPI works with local organizations in the Niger River Delta to help cull HIV transmission rates, teach cassava farmers marketing techniques and connect catfish breeders with feed suppliers, among other projects.
The militant group Boko Haram, which is trying to create an Islamic state in northern Nigeria and recently kidnapped more than 200 girls, has had little effect on southern Nigeria and the Delta, executives and analysts said.
Still, criminal gangs have stolen oil and kidnapped residents for more than a decade in the Delta, risks that Chevron and Royal Dutch Shell, the largest foreign oil company in Nigeria, have had to address.
“Our objective is for peace in the Delta. And the best way we can contribute to peace, in our view, is the way we’re participating in NDPI,” said Rhonda Zygocki, Chevron’s executive vice president of policy and planning.
Chevron has pumped oil in Nigeria, Africa’s largest energy producer, for more than 40 years.
In 2013, the company pumped more crude oil in Nigeria than any other country in which it operates besides the United States, the second year in a row the country has held such import for the company.
Chevron’s production, part of a partnership with Nigeria’s state-controlled oil company, has more than doubled in the past seven years to 268,000 barrels of oil equivalent per day, according to regulatory filings.
The NDPI operates in nine Nigerian states along the Gulf of Guinea, though it is headquartered in the capital of Abuja, in the country’s geographic center.
Using the Chevron donation, NDPI finds small charities on the ground and partners with them on various issues.
For example, the nonprofit gave $59,978 to Forward Africa in 2011 for a project designed to help residents of Nigeria’s Imo and Abia states get more involved in local government. Forward Africa contributed $5,672 of its funds for the project.
While NPDI works with local banks to obtain financing for some Nigerian projects, it tries to encourage local markets to thrive without Chevron’s influence, said Dennis Flemming, NDPI’s director
“We try not to distort a market when we do something here,” Flemming said.
Chevron and foundation staff acknowledged that donations to communities in areas where the company operates are expected, though they said it is not part of a quid pro quo arrangement to obtain access to energy reserves.
– REUTERS
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.
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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.
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.”
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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.