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Declining oil reserves: Urgent assessment of shale, coal, bitumen imperative- Experts

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By Kunle Kalejaye 
 
PORTHARCOURT– Experts in Nigeria’s Energy sector including technocrats and academia have urged the federal government as a matter of urgency to commence assessment of the nation’s shale oil and gas potential and coal deposits within the Anambra basin to address her declining crude oil reserves. 
 
‎They also urged government to commence assessment of hydrocarbon potential of parallic shale sequences within the Agbada and Akata shale formations.
 
‎The call was made during a two days forum held recently in Port Harcourt on Nigeria’s petroleum and power sector policy organised by Emerald Energy  Institute, EE, University of Port Harcourt, in collaboration with the Nigerian Association for Energy Economics, NAEE; the Centre for Petroleum, Energy Economics and Law, University of Ibadan, CPEEL; and the International Institute for Petroleum, Energy Law and Policy, IIPELP. 
 
They argued that these steps must be taken by the present administration in order to make the country more competitive in Africa and boost petroleum contribution to the country Gross Domestic Product, GDP.
 
During the panel discussion segment, participants noted that ‎government should as a matter of priority‎ incentivise oil and gas exploration and production to encourage companies, and to invest in power generation, as this will aid gas production for power generation, and consequently, transmission to the national grid.
At the end of the forum, in a two page communique, it was also agreed that government should decentralise off-grid electrification based on standardisation system, in other to provide electricity for remote rural households not covered by the national grid.
According to communique, the panellist noted that government should “incentivise the mix of renewable energy sources with fossil fuel back up, in other to provide affordable power capacity to homes and industries on demand.
“Government should involve or encourage private sector participation in provision of investment capital needed for electricity infrastructure development; develop market for electricity infrastructure and adequate policy framework to encourage private investment in the power sector.
“They should institute market-based energy sector reforms including pricing policies to provide the necessary incentives for consumers and producers to use and produce energy efficiently; enable institutional support that will encourage the culture of sound energy management in the industrial sector.
“There should be well-focused government intervention to support efficient utilization of abundant domestic renewable energy sources by the private sector.
Review and implement the Petroleum Industry Bill (PIB).
“NNPC should, as stipulated in the PIB, operate as an incorporated joint venture, thus, they should source for capital from the financial markets.
“They should begin to explore her non-conventional hydrocarbon sources, as there is currently no commercial production of unconventional gas; as evidences abounds which confirms the presence of unconventional hydrocarbon resources within the Agbada formation.
“More so, there are existing geological, geo-chemical, petro-physical and basin modeling data that can be systematically integrated to identify and interpret locations of these resources in Nigeria.
Emphasize greater prudence in management of our petroleum and energy resources to guarantee sustainability. This can be achieved through instituting “
 
The forum had  in attendance, Prof. Joseph AJienka (Vice Chancellor, University of Port Harcourt); Dr. Osten O. Olorunsola (Former DPR Director), Dr. Jude Amaefule (Vice Chairman/CEO, Emerald Energy Resources Ltd); Prof. Yinka Omorogbe, Prof. Wumi Iledare (Director, EEI), Prof. Adeola Adenikinju (Director, CPEEL), Prof. Chijioke Nwaozuzu (Deputy Director, EEI), Prof. Adewale Dosunmu (Dean, Graduate School of Advanced Engineering Technology, University of Port Harcourt) and other panel discussants. 

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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Business

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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Oil

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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