Oil
Houston now exports more crude than it imports- EIA
Yemie ADEOYE with Agency report
HOUSTON TX -Earlier this week, the U.S. Energy Information Administration (EIA) declared that the port district of Houston-Galveston has for the first time ever begun exporting more crude oil than it ever imported. The district includes the Port of Houston as well as other Texas Gulf Coast ports from Galveston to Corpus Christi.
One company helping the port district to build its net-exporter profile is SemGroup Corp., whose HFOTCO subsidiary this week received the first ship at its recently completed deep-water dock along the Houston Ship Channel. In a written statement sent to Rigzone late Thursday, SemGroup noted that its new “Ship Dock 5” – completed this summer along with the addition of 1.45 million barrels of new crude storage – can handle up to Suezmax-size vessels with 45-foot drafts.
“Our unique position on the Houston Ship Channel provides us vast connectivity from virtually all U.S. production basins to the Gulf Coast refining corridor and the growing export market,” according to Shaun Revere, CEO of HFOTCO. “The completion of Ship Dock 5 demonstrates our long-term commitment to expand with the Port of Houston and the Houston Ship Channel. Our parent company, SemGroup, purchased HFOTCO in 2017 as part of its strategy to diversify its business and capture the tremendous opportunities this waterfront property has to offer. We are glad to be part of a company that shares our vision for this area and will continue to invest in infrastructure to better serve our customers.”
According to SemGroup, HFOTCO constructed the dock from December 2016 to June of this year. The parent company stated that the project entailed installing pipelines linking the HFOTCO storage area to the new dock to facilitate product loading and offloading. In addition, SemGroup noted that HFOTCO’s crude oil capacity and connectivity has more than doubled in the last five years in addition to adding crude oil export capabilities.
HFOTCO owns and operates four other ship docks – each of which also can handle up to Suezmax-size vessels with 45-foot drafts. Moreover, the SemGroup subsidiary owns and operates seven barge docks and approximately 18.25 million barrels of storage capacity on its 330-acre waterfront site on Port Houston property. Recent expansions have also given HFOTCO the ability to handle refined products such as naphtha, jet fuel and other distillate products, SemGroup stated.
“The completion of this dock on the Houston Ship Channel by HFOTCO is a positive development,” Roger Guenther, executive director of the Port of Houston Authority, said in the SemGroup announcement. “This partnership between the Port Authority and the company allows us to optimize our real estate assets and meet our strategic growth plan objective to grow and diversify our business base. It also allows HFOTCO to meet its objectives.”
In its August 20 announcement, EIA stated that crude oil exports from Houston-Galveston exceeded imports by 15,000 barrels per day (bpd) in April 2018. The following month, the difference from Houston-Galveston jumped to 470,000 bpd – nearly one-quarter of the total 2 million barrels per day in U.S. crude exports during the period.
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.