Oil
Iraq battle rebels Refinery
BAGHDAD – Iraqi government forces battled Sunni rebels for control of the country’s biggest refinery on Thursday as Prime Minister Nuri al-Maliki waited for a U.S. response to an appeal for air strikes to beat back the threat to Baghdad.
The sprawling Baiji refinery, 200 km (130 miles) north of the capital near Tikrit, was a battlefield as troops loyal to the Shi’ite-led government held off insurgents from the Islamic State of Iraq and the Levant and its allies who had stormed the perimeter a day earlier, threatening national energy supplies.
A government spokesman said around noon (0900 GMT) that its forces were in “complete control” but a witness in Baiji said fighting was continuing and ISIL militants were still present.
A day after the government publicly appealed for U.S. air power, there were indications Washington is sceptical of whether that would be effective, given the risk of civilian deaths that could further enrage Iraq’s once dominant Sunni minority.
Regional U.S. allies seemed keen to discourage air strikes.
Turkish Prime Minister Tayyip Erdogan, a NATO ally, said the United States “does not view such attacks positively”, given the risk to civilians – a view some U.S. officials have also expressed. A Saudi source said that Western powers agreed with Riyadh, the main Sunni power in the region, that what was needed was political change, not outside intervention, to heal sectarian division that has widened under Maliki.
Video aired by Al-Arabiya television showed smoke billowing from the plant and the black flag used by ISIL flying from a building. Workers who had been inside the complex, which spreads for miles close to the Tigris river, said Sunni militants seemed to hold most of the compound in early morning and that security forces were concentrated around the refinery’s control room.
The 250-300 remaining staff were evacuated early on Thursday, one of those workers said by telephone. Military helicopters had attacked militant positions overnight, he added.
CAPTURED TERRITORY
Baiji, 40 km (25 miles) north of Saddam Hussein’s home city of Tikrit, lies squarely in territory captured in the past week by an array of armed Sunni groups, spearheaded by ISIL, which is seeking a new Islamic caliphate in Iraq and Syria. On Tuesday, staff shut down the plant, which makes much of the fuel Iraqis in the north need for both transport and generating electricity.
ISIL, which considers Iraq’s Shi’ite Muslim majority as heretics in league with neighbouring, Shi’ite Iran, has led a Sunni charge across northern Iraq after capturing the major city of Mosul last week as Maliki’s U.S.-armed forces collapsed.
The group’s advance has only been slowed by a regrouped military, Shi’ite militias and other volunteers. But on Tuesday, Sunni fighters took the small town of Mutasim, south of Samarra, giving them the prospect of encircling the city which houses a major Shi’ite shrine. A local police source said security forces withdrew without a fight when dozens of vehicles carrying insurgents converged on Mutasim from three directions.
ISIL, whose leader broke with al Qaeda after accusing the global jihadist movement of being too cautious, has now secured cities and territory in Iraq and Syria, in effect putting it well on the path to establishing its own well-armed enclave that Western countries fear could become a centre for terrorism.
The Iraqi government made public on Wednesday its request for U.S. air strikes, two and half years after U.S. forces ended the nine-year occupation that began by toppling Saddam in 2003.
U.S. RESPONSE
Washington has given no indication it will agree to attack and some politicians have urged President Barack Obama to insist that Maliki goes as a condition for further U.S. help.
General Martin Dempsey, the chairman of the Joint Chiefs of Staff, avoided a direct answer when asked by senators whether Washington would accede to the Iraq request.
U.S. officials, speaking on condition of anonymity, said the Iraqi request had included drone strikes and increased surveillance by U.S. drones, which have been flying over Iraq. However, they said, targets for air strikes could be hard to distinguish from civilians among whom ISIL’s men were operating.
Turkish premier Erdogan said: “America, with its current stance and the statements it has made, does not view such attacks positively … Such an operation could result in a serious number of deaths among civilians.”
The Saudi source told Reuters: “No outside interference will be of any benefit,” adding that Washington, France and Britain all agreed with Riyadh that “dialogue and a political solution is the way forward in Iraq”.
There is political pressure in Washington for Maliki to quit, although Obama has not made such a demand public. Several leading figures in Congress have spoken out against the premier, whom Obama has urged to do more to overcome sectarian rifts.
“The Maliki government, candidly, has got to go if you want any reconciliation,” said Dianne Feinstein, one of Obama’s fellow Democrats, who chairs the Senate Intelligence Committee.
Republican senator John McCain urged Obama to “make it make very clear to Maliki that his time is up”.
OIL INDUSTRY
If the Baiji refinery falls, ISIL and its allies will have access to a large supply of fuel to add to the weaponry and economic resources seized in Mosul and across the north.
An oil ministry official said the loss of Baiji would cause shortages in the north, including the autonomous Kurdish area, but that the impact on Baghdad would be limited – at around 20 percent of supplies – since it was served by other refineries.
Some international oil companies have pulled out foreign workers.
Washington and other Western capitals are trying to save Iraq as a united country by leaning hard on Maliki to reach out to Sunnis, many of whom feel excluded by the Shi’ite parties that have dominated elections since the Sunni Saddam was ousted.
In a televised address on Wednesday, Maliki appealed to tribes, a significant force in Sunni areas, to renounce “those who are killers and criminals who represent foreign agendas”.
But so far Maliki’s government has relied almost entirely on his fellow Shi’ites for support, with officials denouncing Sunni political leaders as traitors. Shi’ite militia – some of which have funding and backing from Iran – have mobilised to halt the Sunni advance, as Baghdad’s million-strong army, built by the United States at a cost of $25 billion, crumbles.
Like the civil war in Syria next door, the new fighting threatens to draw in regional neighbours.
REGIONAL CONFLICT
Iranian President Hassan Rouhani made the clearest declaration yet on Wednesday that the Middle East’s main Shi’ite power, which fought a war against Saddam that killed a million people in the 1980s, was prepared to intervene to protect Iraq’s great shrines, visited by millions of Shi’ite pilgrims annually.
A Twitter account regarded as carrying the views of Iran’s Supreme Leader, Ayatollah Ali Khamenei, posted a comment on Thursday accusing Sunni militants, abetted by Western powers, of trying to “create a war in Muslim world” and appealing to Sunnis and Shi’ites to resist falling into mutual mistrust.
Iraqi troops are holding off Sunni fighters outside Samarra. The fighters have vowed to carry their offensive south to Najaf and Kerbala, seats of Shi’ite Islam since the Middle Ages.
– REUTERS
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.