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Japaul Oil working on N50bn fresh funds injection— Jegede

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… To declare dividend to shareholders

LAGOS – Japaul Oil & Maritime Services Plc is planning to raise about N50 billion fresh fund to boost its business, just as it has expressed intention to declare dividend to shareholders in the financial year ended December 31, 2013.

The Group Managing Director, Japaul Oil & Maritime Services Plc, Mr. Biodun Paul Jegede, who disclosed this in Lagos to Vanguard said “ We are going to pay dividend to our shareholders this year but it is not going to be fantastic because we are still investing for the future.

By the time we finish paying our debt to the banks and inject fresh money not by bank loans, then we would be declaring higher dividend to our shareholders.”

He advised shareholders to be patient with the company, stressing that the company’s future is bright and promising.

Japaul Oil working on N50bn fresh funds injection— JegedeWhile commenting on the proposed fresh fund, he said “ We would be raising additional money in excess of N50 billion. We want to coin out a company where foreign partner will invest and after five years will exit. If this happens the company will be sitting on N80 billion assets. It is after this exercise that the company can start paying higher dividend to shareholders.”

He urged shareholders to be patient with the company as plans are in place to make them reap the fruit of their investment. It will be recalled that the company was unable to pay dividend to shareholders in the 2012 financial year.

The company’s management had explained that its performance was affected by the adjustments made for depreciation and newly-introduced policies for preparations of statutory financial reports which was responsible for the drastic decline in the profit of the company in 2012.

Also, narrating the challenges Japaul had gone through since its Initial Public Offering (IPO) in 2007, Jegede said “ We have learnt in a very bad way. We have made our mistake in the past by buying old vessels because of insufficient fund.

The money we raised in 2007 IPO was insufficient to give us the number of vessels we wanted, so we ended up buying old vessels that did not withstand the test of time. All we could have done then was to use the little money to buy fewer vessels. But all these things are now lesson to us.

Further, he said “ The initial challenge we had was that at the point we finished raising the money, you know the capital market was booming, the oil sector was at the peak everything was fine. Just in 2009 , at that time, that was when we bought some of the vessels we promised our investors that we are going to buy, but that money giving the capital requirement, the capital intensive nature of our business, we could not buy new vessels but eventually bought some old vessels.

So we were using it and making money and it is part of the input of year 2009. So when the 2009 crash came, everything crash, the price of everything crash, including stock exchange was in bad shape and it happened all over the world . It was really a melt down situation.”

– VANGUARD

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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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Business

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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