Oil
Forte oil projects N 3bn profit after tax in 2013
By Joseph BAMIDELE
LAGOS – Forte Oil formally known as African Petroleum, AP has revealed that company has projected N3billion Profit After Tax in the first quarter of 2013The Group Chief Executive Officer of Forte Oil Plc, formally African Petroleum, Akin Akinfemiwa made this known in a media briefing with newsmen in Lagos.
He said that the present administration had been able to improve the financial base of the company from N20billion lost in 2011 to N 1 billion profits after tax in 2012.
The company boss said that the company which use to have a negative liquidity from its operations, had suddenly improved significantly.
According to him, “as we speak today we have move from N 4 billion negative to N 2 billion negative. Our shareholders fund which is the most essential part of our operations have move from N 5 billion when we took over to present N 8 billion when we came on board,” he said.
Akinfemiwa said that 2012 marked the beginning of the company’s three year transformation plan to a lean, talent-based and technology-driven organisation.
“As we move into 2013 and beyond, we are positive that we shall consolidate on the gains of 2012 to achieve exceptional performance as we move towards our vision of becoming Africa’s No 1 energy solutions provider”
“You may recall that forte oil plc in 2011 carried out a complete restructure of her business with the objective of transforming it into a clean, talent- based and technology-driven organisation that will be more responsive to the needs of its customers.
As part of its now improved operational efficiency, Akinfemiwa explained that effective control has improved across the company business lines while stronger corporate governance is implemented at all levels of operation.
The Forte oil chief said that positive results from its stock exchange operation indicate bright prospects that the company has finally turned the corner towards full recovery.
“Forte Oil plc believes its efforts will in no time translate into strong market dominance and thereon strong and sustainable profitability and robust returns to our shareholders
“When the present administration took over in 2012 forte oil shares at the floor of stock exchange ranges between N7 to N8 but presently it has been moved to N 15. 94.
He reiterated that the company is currently implementing it blue print, adding that “we have moved from a lost position to profit position.”
“As we are today, we are very confidence that have brighter future because we can see growth, increase market share compared to when we inherit the company.
“Today, the company has moved from number sixth position to third position in a short while, in the next 18-months we plan to turn the company around and take it to a greater height,’’ Akinfemiwa added.
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.