Oil
Future Of Petroleum Sector Bleak Without PIB – NNPC
ABUJA – The Group Executive Director (E&P) of the Nigerian National Petroleum Corporation (NNPC), Mr. Abiye Membere, has declared that the issued in context by a section of the political bloc in the Petroleum Industry Bill (PIB) which has delayed its passage would further jeopardise activities in the sector.
Membere said the argument with regards to proposition for setting aside some percentage of oil earnings for host communities may not be in the overall interest of the nation as the quantum of loss on the other hand, over-stretched what was recommended for them.
He told journalists that Nigeria has been struggling to produce between 2.0 and 2.1millon barrels of oil per day (Bbp) since the beginning of the year even while it has possessed the capacity to do 2.5million barrels per day.
He asked: “Which is better between releasing more funds to the oil communities or to continue to lose over 400,000 bpd to activities of thieves?” pointing that it would rather be better for Nigeria to use certain proportion of the barrels of crude oil being lost as fund to support the petroleum host community.
Speaking further, he noted:“It will be better to deal with challenges of host communities differently because the PIB team did not ring the issue of host community fund from the moon. The fund is one of the promises made by late President Umaru Yar’Adua, in far away South Africa where the commitment was made.”
Membere explained that the, Minerals Act also supported the roles of host communities before a firm is allowed to do business.
“It is not far away from what the PIB has proposed. This was also supported by the Nigeria Extractive Industries Transparency Initiative (NEITI), the bottom-line is the issue of whether to continue to suffer low production versus the revenue proposed in the 2013 budget or we do something to ensure that in the medium to long- term, Nigeria will continue to have stability in oil production,” he said.
According to him, there was nowhere in the world where a bill put together would satisfy everybody, stressing that what the government was looking at as priority, was for the nation’s interest to be at the forefront.
If we are able to do that, the bill will not stay long before it will be passed. It is in the best interest of the people and country so that Nigeria will be able to achieve the energy sustainability we are talking about for this country.
He stated that “If the International Oil Companies (IOCs) can go to Zimbabwe without infrastructure, it shows that they are in the country to maximise profit whereas the PIB is to optimise profit so that the oil sector will be a win-win deal for both the government and operators in the private sector”. .
He expressed the fears that Nigeria will continue to lose significant proportion of crude oil production to thieves over the opposition of Petroleum Host Community Fund by leaders from the North and international oil companies (IOCs) operating in the nation’s upstream sector of the oil and gas industry.
It will be recalled that the Minister of Finance and Coordinating Minister for the Economy, Dr (Mrs) Ngozi Okonjo-Iweala, had announced the continuous loss of over 400,000 barrels per day (bpd) through theft and vandalism of pipelines and production facilities. The National Assembly also approved 2.48 million barrels per day (mbpd) with a price benchmark of $79 per barrel in the 2013 budget approval.
However, the average crude oil production figure of Nigeria for the first quarter of the year according to Organisation of Petroleum Exporting Countries (OPEC) posted on its website and obtained from secondary sources was 1.988 (mbpd) compared with 2.073mbpd for the first quarter of 2012 and 2.111mbpd for the first quarter of 2011 April, May and June 2013.
The production output figures for Nigeria suffered further decline with an average of 1,951mbpd in April, 1,930mbpd in May and 1,861mbpd in June, 2013. According to Platts Survey, dips in the production output of the OPEC came from Algeria, Angola and Nigeria, which resulted in the decline of the cartel’s production level by 120,000bpd at the end of June 2013.
The survey showed that 1.88mbpd estimate for Nigeria was the lowest since September 2009, when production was pegged at 1.85mbpd as a result of frequent sabotage of oil installations and pipelines. For instance, Bonny Light crude has been under force majeure since mid–April, when Shell shut in 150,000bp of production to repair a major pipeline reported to be damaged by thieves, and while production of Total’s offshore Usan crude restarted in late June, almost a month after it was stopped for unspecified reasons, the grade remains under force majeure.
Industry experts noted that the production figure for crude oil would continue to suffer setback in Nigeria as a result of the increasing number of oil theft cases, slow process of prosecution of pipeline vandals, absence of appropriate sanction for alleged vandals and poor remuneration for vigilante guiding the oil installations.
They suggested that vandalism of oil installations would be curbed if the National Assembly could sustain the inclusion of Petroleum Host Community Fund in the PIB being processed for legislators’ approval. – LEADERSHIP
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.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
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.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
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.
NWFL Backs Edo Queens’ Historic Quest @ 2024 CAF Women’s Champions League
NNPC Ltd, SPDC Comfort Borno Flood Victims With US$1m
Dep Speaker Demands Report On Nigerians Displaced By Natural Disasters
Nigerian Investors Gain N217bn In Positive Trading On NGX
Lawmaker Begins Araromi Road Repairs After 28 Years
Gov Fintiri Signs Water, Sanitation Law In Adamawa
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
