Oil
Chevron explains restructuring, disengagement
ABUJA – Chevron Nigeria Limited, CNL, has said that the recent voluntary disengagement embarked by some of its staff, is on account of a recent restructuring programme concluded by the oil major. The exercise re-echoes a similar one engaged by the Shell Companies in Nigeria a couple of years ago as part of its portfolio management programme, leading to the exit of scores of workers.
The Chevron exercise has generated some controversies, with workers alleging forceful disengagement, allegedly leading to hundreds being laid off.
But in a text message response to Vanguard’s enquiry, CNL’s General Manager, Government, Policy, and Public Affairs, Mr. Deji Haastrup, denied that workers had been sacked.
He explained: “It is not true. Not one person has been sacked. As part of a continuous process of business optimisation, CNL has reviewed its organisational structure and business processes.
“This has resulted in a leaner organisation with fewer positions. Employees for whom positions are not available in the new organisation have been offered voluntary separation packages.”
Haastrup insisted that the figure is not as high as over 400 as being touted, as the exercise is an ongoing one, and as such the figures have not been collated.
He added that as part of the review of its service structure, “CNL continues to evaluate its business operation to enhance efficiency and reduce operating cost. This is being done by streamlining our shared services and improving service delivery and overall performance at all levels.”
He equally noted that every employees, who have been offered the voluntary severance are also offered the “opportunity to decide accept or reject the package since it is voluntary.”
To confirm this state of affairs, company sources told Vanguard that some categories of workers who wanted to take advantage of the huge severance package to move on, are being turned down due to the huge cost implication for the company. Vanguard also gathered that some workers who can no longer fit into the new structure, but refused to accept the voluntary severance have the responsibility to upgrade their skills to fit into the new structure.
“Of course, this means that they will no longer be doing what they used to do before,” the source said, adding that “the essence of the whole exercise is to reduce layers of reporting to save cost and time.”
Cash strap, lean ventures
Vanguard gathered that the Chevron exercise might be a prelude to a series of other fall-outs on account of cash strap occasioned by huge slash in joint venture budgets. Other venture partners are quietly tightening the noose by adopting a number of measures including the disengagement of some workers to be able to meet some of their obligations planned for the year.
A recent decision by the National Petroleum Investment Management Services, NAPIMS, the investment arm of the Nigerian National Petroleum Corporation, NNPC, to wield the big stick to control rising industry costs is forcing oil majors and venture partners to reassess their industry spends.
The development has forced all the venture partners to cut down not only on their projects planned for the year, but also on other expences including travels, partnerships and sponsorships.
Already, all the venture partners are struggling to complete some of their major projects for the year, seeing as the NAPIMS’ hammer fell in the last quarter of the year, leaving them groping.
“The shock of having our budget cut in October, the last quarter of the year is coming down very hard on our operations. A whole lot of things are happening now – crude oil theft, non-passage of the PIB and the uncertainties in the system are going to impact negatively on the industry,” some of the operators confided in Vanguard.
– VANGUARD
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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