Oil
France Oil Giant Is Expected to Seek Shale Gas in Britain
LONDON — The French oil giant Total is on the verge of becoming the first major oil company to explore for natural gas and oil in shale rock in Britain.
Under the deal, which may be announced as soon as Monday, Total would commit about $50 million for a roughly 40 percent stake in licenses held by a group of companies in Lincolnshire in the East Midlands, according to three people familiar with the matter who spoke on condition of anonymity because the agreement has not yet been signed.
Total’s participation would be a vote of confidence in the government of Prime Minister David Cameron, which has been trying to promote shale gas as an alternative to declining production of oil and gas in the North Sea, despite opposition from local communities and environmental groups. Total, a major offshore oil and gas producer in Britain, apparently wants to expand its role.
Surging production of oil and gas from shale rock has sharply lowered energy prices in the United States and helped make its industry more competitive, though it has also brought criticism from environmental advocates. Britain, however, is the lone country in Western Europe that has encouraged the exploration of shale gas, which is produced through hydraulic fracturing, or fracking, which uses a high-pressure mix of water, sand and chemicals.
Analysts say that if shale gas production is successful in Britain, countries like France and Germany, which are thought to have considerable shale gas potential, might reassess their thinking.
So far, shale gas exploration in Britain has been led by a handful of small companies.
Other large European oil companies, including BP and Royal Dutch Shell, have taken a cautious approach to British shale gas. Shell’s chief financial officer, Simon Henry, has said that the company was wary of attracting the protests and news media attention that accompanied some onshore drilling efforts in Britain.
Total has already attracting some of that attention, even before an official announcement.
“Total, a French company who can’t frack in their own country because the French government has stopped the French countryside being ripped up, have now turned their sights on the U.K. countryside, where the U.K. government seems happy to allow the industrialization of our green and pleasant land,” the environmental group Greenpeace said in a statement on Saturday.
Britain is thought to have substantial shale gas resources. The area where Total is planning to drill is part of a wide region in central England that the British Geological Survey, a research organization, said last year might contain 1,300 trillion cubic feet of gas. If 10 percent of that gas could be produced, it would be enough for about 45 years of British gas consumption at current rates.
But too few wells have been drilled and tested to know whether the resources can be exploited commercially. John Browne, a former chief executive of BP who is the chairman of Cuadrilla Resources, a company exploring for shale gas in Britain, said in late November that the industry needed to drill 10 to 12 wells to determine whether British shale gas was viable.
The Gainsborough Trough, the geological formation where Total plans to explore, has not been investigated for shale gas and oil, but Igas Energy, a British company, has conventional oil and gas production in the vicinity.
Igas, eCorp International of Houston and Dart Energy are among the holders of the land where Total is planning to invest and are likely to become the French company’s partners.
– NY TIMES
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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