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Iran deal: Nigeria will struggle to export crude in 2016

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Major upstream development projects in Nigeria accruing to billions of naira may have been stalled as a result of the lingering delay in the passage of the Petroleum Industry Bill (PIB), even as the situation has necesitated the reduction of manpower by 80 percent.
By Kunle Kalejaye with Agency Report
Nigeria may struggle to export her crude oil into Europe and Asia market in mid 2016 sequel to the nuclear deal between Iran and six world powers which could trigger an increase fresh oil glut.
Nigeria’s oil export dilemma is said to be self inflicting due to acute absent in exploration activities for more than a decade couple with increase regional competition from countries like Angola, Ghana, Libya among others.
Offshore Oil rig

Offshore Oil rig

Oil Multinationals has currently lamenting the absent of founding to execute new Joint Venture, JV projects in the country while existing ones are on hold.

Industry experts opined that Nigeria can only drill for more oil if current fiscal polices are reviewed and are replaced with stronger ones backed up by adequate incentive for operators stressing that oil production is done daily but without exploration to replenished what has been extracted.
The historic agreement on Iran’s nuclear program would see them commence crude oil export into an already competitive market from its from aging fields where it has either suppressed or stopped the flow of oil for lack of buyers.
Iranian Oil Minister Bijan Namdar Zanganeh said the country can manage to bring an additional 500,000 barrels online right after sanctions are removed from idle wells but the deputy Oil Minister said that the country is targeting oil exports at 2.3 mb/d day, up from 1.2 mb/d currently.
Recall that 2012, the U.S. and European Union imposed sanctions on Iran’s energy and financial sectors, and the country’s oil exports have been cut nearly in half as a result. Before the sanction, Iran’s average oil production was pegged at 6 million barrels a day at the end of 2011.
However, Iran is expected to meets the requirements of the deal and satisfies some countries and United Nation before the sanction can be removed.
Some Western officials have said that the sanction won’t likely be removed until the end of 2015 and could be early 2016.
Nigeria’s oil export dilemma is said to be self inflicting because acute absent in exploration for new crude reserves for more than a decade couple with increase regional competition from countries like Angola, Ghana, Libya among others.
Oil m Multinationals has currently lament the absent of founding to execute Joint Venture, JV projects in the country

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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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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