Oil
Gulf states get first $113m from oil spill fines
WASHINGTON – The five states that border the Gulf of Mexico are getting $113 million to improve the environment, the first small chunk of $2.5 billion that BP and Transocean were fined as a result of criminal pleas last year following the 2010 Gulf oil spill.
The grants were announced Thursday by the National Fish and Wildlife Foundation. Louisiana is getting $67.9 million, Florida $15.7 million, Alabama $12.6 million, Texas $8.8 million and Mississippi $8.2 million.
Over the next five years, the foundation’s Gulf Environmental Benefit Fund will receive about $1.3 billion for barrier island and river diversion projects in Louisiana, $356 million each for natural resource projects in Alabama, Florida, and Mississippi, and $203 million for similar projects in Texas.
Thursday’s announcement spent only part of the first $158 million that the companies paid earlier this year. Another $353 million will be paid by February, but the largest payments will come in later years, said Thomas Kelsch, who leads the Gulf Environmental Benefit Fund for the foundation.
Foundation officials said states would seek further public input before proposing future projects.
Louisiana will use its coastal restoration plan as a guide, foundation officials said.
“There’s not a requirement that the funds go directly to the habitats that were affected by the spill,” Kelsch said.
In Louisiana, the money will go for planning and engineering to restore coastal islands and divert Mississippi River water and sediment into vanishing marshlands, part of the state’s fight to stop its coastline’s erosion.
“The work performed with these funds will help to address uncertainties in critical projects related to reconnecting the Mississippi River system with our coast and re-establishing the land building process in south Louisiana,” said Garret Graves, chair of the Louisiana Coastal Protection and Restoration Authority Board.
Environmental advocates applauded the $40.4 million for a diversion from the west bank of Mississippi south of New Orleans to the Barataria estuary. That diversion is supposed to be a pilot project that will guide the design of others in the future.
“The Barataria Basin has one of the highest rates of land loss in the world, and this large-scale wetland restoration project is crucial to reversing that trend,” the Environmental Defense Fund, National Audubon Society, National Wildlife Federation, Coalition to Restore Coastal Louisiana and the Lake Pontchartrain Basin Foundation said in a joint statement.
Money in other states will generally go to improve natural areas and create better habitats for animals. For example, Mississippi will use $3.3 million to uproot invasive land and wetland plant species in its 26 coastal preserves, replanting with native species.
Alabama will use $6.78 million to try to stop sedimentation caused by suburban development that’s making Mobile Bay muddier and killing sea grass beds that are important nurseries for fish, crabs and shrimp.
“There is a long list of projects that remain in need of funding, but this is a major movement forward,” Mobile Baykeeper Executive Director Casi Callaway said of Alabama’s projects.
In Florida and Texas, foundation officials said they tried to choose projects closest to the spill zone. Projects were generally in Florida’s western Panhandle and on the eastern part of Texas’ coast.
In Florida, $4.19 million will go to restore oyster beds in Apalachicola Bay, which have been hard hit after drought.
“This is a big step in helping industries that have been particularly hard hit by the oil spill and the economy,” said U.S. Sen Bill Nelson, D-Fla.
– SWEETCRUDE REPORTS
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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