Oil
Fuel scarcity would end in days- NUPENG
…requests further reduction in pump price
By Yemie ADEOYE
LAGOS-THE National Union of Petroleum and Natural Gas Workers on Monday says that petrol would soon be available in filling stations across the country.
Mr Tokunbo Korodo, the South-West Chairman of the union, told the News Agency of Nigeria (NAN) in Lagos there had been improvement on loading of petroleum at the depots in Lagos.
He observed that Nigerians would appreciate the present regime if it could reduce the price of petroleum.
It was earlier reported that the Minister of State for Petroleum, Dr. Ibe Kachikwu, had earlier said that a price modulation in petrol would begin by January 2016.
Kachikwu disclosed this during his inspection of the Port Harcourt Refinery Company (PHRC) on Christmas day.
The NUPENG chairman said that the government meant well for all and sundry, in spite of the few greedy that worked to frustrate genuine intentions.
The Minister of State for Petroleum, Dr. Ibe Kachikwu, had on Sunday said the Nigerian government has suspended the subsidy on petroleum products as at December 27, as a result of the current low price of crude in the international market.
Kachikwu said the non-payment of subsidy would remain the same, as long as market trends allow.
He told reporters on Sunday in Kaduna that if crude prices increase, there would be a review which would be tackled under the newly introduced price modulation in the sector.
The price modulation, according to the Minister, is not an outright removal of petrol subsidy.
On December 17, the Minister said that the government was not interested in the removal of subsidy on petroleum products, but rather a price modulation that would reduce its involvement in pricing starting 2016.
He explained that a periodical review of the Petroleum Pricing Template and a flexible management of the pricing system would be considered.
The price modulation, the government stressed, would be predicated on a 97 Naira per litre projection, which would be a cap on the price of fuel with a gradual increment between the band of the current price of 87 Naira and 97 Naira until a fair price is reached in the pricing review.
Few days after he announced plans for a price modulation, he told reporters that the Nigerian National Petroleum Corporation would announce a pump price of 85 Naira per litre of petrol in January 2016.
Dr. Kachikwu said that the new pump price was according to a PPPRA template which he signed off on Wednesday which would be the first reflection of the price modulation that will kick off fully in the petroleum sector by January 2016.
Following his inspection of the refinery in Kaduna State on Sunday, two days after a tour of the Port Harcourt Refinery, the Minister told reporters that a combined daily production of up to 10 million litres of petrol is expected from the four Nigerian refineries by January 2016; a production that is aimed at cushioning the current scarcity of petrol across the oil rich nation.
The production is only 50 per cent of their maximum production capacity of 20 million litres daily, but the minister says more locally refines petrol should be expected as the year unwinds.
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.