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India replaces US as largest importer of Nigeria’s crude

Asia is important and in that respect we have regards for all markets; the important thing is to make sure that you are selling the products that you have and you do not ignore any market”.

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By Joseph BAMIDELE

MOSCOW-INDIA has replaced the United States of America as the largest importer of Nigeria’s crude with China and Malaysia following closely.

The US which had traditionally taken the bulk of Nigeria’s crude has in recent months drastically reduced its demand which now stands at about 250,000barrels per day. India however now purchases some 30 percent of Nigeria’s daily crude production which currently hovers around 2.5million barrels.

Speaking in Moscow, Russia at the on-going 21st World Petroleum Congress, Coordinator Corporate Planning and Strategy, Nigerian National Petroleum Corporation, Dr. Tim Okon told newsmen that the Asian countries have since replaced the US.

Dr. Okon who also doubles as the Director of Transformation of the NNPC explained that Nigeria would not ignore any market in its quest to remain competitive in the global oil and gas industry.

“Asia is important and in that respect we have regards for all markets; the important thing is to make sure that you are selling the products that you have and you do not ignore any market”.

He noted that Nigeria is participating in the congress to access global business opportunities in the petroleum industry especially in the gas sub-sector to enable it to position itself as a major competitor in the hydrocarbon market.

He said as a natural resource rich country, Nigeria is working hard to do a better job in developing such resources and translating them to the wider economy.

While stressing that the country does not have preference markets for its products, he however admitted that the Petroleum Industry Bill currently before the National Assembly needs to be passed into law to enable the country to maximize its potentials in the oil and gas industry.

“I cannot talk about future incentives if the principal law that would give birth to it has not been passed but I want to say that the general intention is that Nigeria must compete in the market place and our fiscal systems are designed to be competitive that would lead to good outcomes for the country,” observed Dr. Okon.

“It is always helpful to do things in a timely manner and that is an important point to stress. Many of the countries that were trying to get new legislations passed like Ghana, Brazil, Mozambique and even Uganda have passed their legislation. So I think timeliness is of the essence,” the Coordinator noted.

Roundly regarded as the global oil and gas industry equivalent of the Olympics, the World Petroleum Congress is the biggest congregation of oil and gas experts on the global stage. The Congress essentiality consists of an exhibition and conference.

Nigeria’s participation at the 2014 WPC is anchored on the theme `Harnessing Nigeria’s Gas Resources for Sustainable National and Regional Development’.

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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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