Oil
Crude theft in N/Delta reducing – Shell
LAGOS – Nigerian unit of Anglo-Dutch oil giant, Shell, has admitted that the spate of crude oil theft from its facilities in the Niger Delta was reducing, a development the company attributed to the surveillance of the Joint Task Force, JTF, set up by the Nigerian Government to check the menace.
Shell had constantly complained about the high incidence of pipeline vandalism and crude oil theft, resulting in revenue losses estimated at over $10 billion annually.
The company had, in fact, recently threatened to shut down its operations if nothing was done to urgently contain it.
The firm had declared more force majeure, since the year began, than any other oil major operating in Nigeria, a legal clause that absolves it from contractual obligations for failure to meet supply agreements.
“I see improvement”
Speaking on the sideline of the Offshore Technology Conference, OTC, 2013, in Houston Texas, USA, the Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu said: “Certainly, it was on the increase a few months ago.
“But I can also tell you, I have seen increased attention by the government security agencies, JTF, Navy, really moving in to stem the tide. So I wouldn’t say I am happy, but I can see improvement in the responsiveness of the government security agencies.”
The Shell boss refused to quantify, as he regularly did in the past, how much oil had been saved since JTF swung into action.
He said: “I will be in a position to tell you when our Nembe Creek trunk line is back up. But right now, that line is down. Like I said, we are removing the bunkering points from that line.
“Once all those bunkering points are removed and the line is up and running, we will then be in a position to judge how much oil we are still losing. But right now, whatever figure I give you is really going to be artificial.”
For him, what is most important is the fact that JTF is getting more and more effective.
Lauds Armed Forces
“We are having almost a daily discussion with them and they do give us good reports on their efforts so far. I have been in discussion personally with the Chief of Naval Staff and the Chief of Army Staff and they have all given their commitments to work with oil companies to stem the tide.
“We are seeing progress. But like I told you, this is a very big operation. So I am not expecting solution over night.
“But what I am expecting is that government security agencies will really keep at what they are doing now. If they keep at it for a while, I am sure we will begin to see a significant reduction.
“Almost on a daily basis, they are foiling attempts, arresting vessels and destroying illegal refineries. In a place like Bodo, a week or two ago, they foiled over 30 different attempts by crude oil thieves wanting to attach additional tapping points to our line.”
“We see all these successes everyday, but we just need to keep at it, because you cannot afford to take your eyes off the ball.”
As far as the force majeure is concerned, Sunmonu noted that this will keep up for a while until “we fully recover because even with all the efforts that government security agencies are putting in, there are some steps we need to take together jointly in order to make sure the effects are not continuing.
“So the force majeure that you have seen declared is for us to remove some of the very bad bunkering points that have been put on the line, because if we don’t remove them, even if you have the whole Nigerian Army in the creek, you still continue to see crude being stolen. So our initial attempt is to remove those bunkering points to complement what the security agencies are doing,” he ethused.
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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