Oil
Ivory Coast sees oil output rivaling Ghana by 2019
ABIDJAN – Ivory Coast Prime Minister Daniel Kablan Duncan said his nation will boost oil production within five years to 200,000 barrels a day, rivaling neighboring Ghana as stability returns to a country racked by a decade of turmoil.
The West African nation wants oil companies to increase exploration and drilling offshore after output more than halved to about 30,000 barrels a day because of technical problems, he said in an interview Jan. 6, reports Bloomberg.
Ghana pumps about 100,000 barrels a day and wants to more than double output to 250,000 by 2021. Ghana is West Africa’s fourth-largest producer, after Nigeria, Equatorial Guinea and Gabon.
“We have about 50 oil blocks of which half have been awarded,” Duncan said in the commercial capital, Abidjan. “We expect to add at least five wells a year.”
President Alassane Ouattara has pledged to spur economic growth by investing in energy and infrastructure to sustain growth near 10 percent annually. The economy of the world’s largest cocoa producer has expanded at a faster pace than sub-Saharan African nations since gross domestic product contracted in 2011 following post-election violence that left more than 3,000 dead.
The government will sell Eurobonds in the first half of the year, the first since a 2011 default, to fund the projects and is turning to China for additional financing. The economy will expand 10 percent this year, from 9 percent in 2013, Duncan said.
Yields on Ivory Coast’s $2.5 billion of dollar bonds due 2032 fell 1 basis point, or 0.01 percentage point, to 7.48 percent at 9:13 a.m. in London, where the debt is listed. The government will seek to sell $800 million to $1 billion in the new Eurobond offer this year, Duncan said.
Foreign donors have pledged $8.6 billion to fund $19 billion of projects in the Ivory Coast in the next two years. Chinese agencies and banks, including the Export-Import Bank of China, plan to lend $10 billion to fund infrastructure projects in the next six years at below market rates, Planning Minister Albert Mabri Toikeusse said in July. The Chinese have offered Ivory coast 20- to 25-year loans with interest rates between 2 percent and 3 percent, Duncan said.
Ivory Coast missed out on soaring oil prices in the past few years as output dropped to 30,000 barrels a day last year from about 60,000 barrels a day in 2008. Total SA, U.K.-based Tullow Oil Plc. and Anadarko Petroleum Corp. operate in Ivory Coast. Ghana and the Ivory Coast ended a dispute over the delineation of a maritime boundary in which an oilfield is located.
The government is also reviewing its mining regulations to as it plans to receive increased revenue from an expanding mining industry, Duncan said. “The state has begun to impose order in the sector,” he said.
Ivory Coast contains reserves of gold, diamonds, nickel, manganese and iron ore. Parliament is set to endorse a new mining code while a minimum investment level for prospect licenses was set last year.
– BUSINESS DAY
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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