Connect with us

Oil

Kachikwu makes case for a private sector driven downstream petroleum industry

Published

on

….Laments over 27,000 incidents of pipeline vandalism
By Yemie ADEOYE
LAGOS-THE Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has once again advocated for a private sector model that would re-invigorate the efficient supply and distribution of petroleum products especially in the area of pipeline assets.  This is coming on the heels of his expression of readiness to work closely with the National Assembly in order to ensure the speedy growth and development of the Nigerian Oil and Gas sector for the benefit of Nigerians and the entire country.
Dr. Ibe Kachikwu

Dr. Ibe Kachikwu

Dr. Kachikwu made this disclosure during an interactive session with members of the National Assembly in Abuja earlier in the week.

In a presentation titled: ‘The Roadmap for Nigeria’s Oil and Gas Sector,’ Dr. Kachikwu noted that the average national oil production as at July 2015 stood at 2.1 million barrels per day and the Nigerian Petroleum Development Company (NPDC) equity production is 99,000 barrels per day.
                              
He said the declining Joint Venture reserves were due to inadequate and low investment in the oil assets, stressing that the issue of funding constraints must be addressed going forward with the collaboration of private and international investors.
The Minister of State for Petroleum Resources informed that the average gas to power generation is about 3,000 megawatts and domestic gas supply of one billion standard cubic feet (scf) with the contribution of 600 million standard cubic feet from NPDC.
                              
On the current state of the refineries, Dr. Kachikwu stated that from the available reports before him, two of the refineries may be re-streamed before the end of December, 2015 adding that efforts are on to engage private investors to build new refineries within the old ones to enable the refineries share power, pipelines and other resources.
He stressed that the new agenda for the Oil and Gas Industry is centered on having the right people, doing the right things, at the right time, for the right purpose to yield the right results.
Dr. Kachikwu stated that the Petroleum Sector under his watch would ensure that the Nigeria Content policy would transform the Oil and Gas industry into the economic engine for job creation and national growth.
                              
Dr. Kachikwu said he was obliged to cancel the Offshore Processing Agreements (OPAs), crude-for-products-exchange arrangement (popularly known swap) and other unprofitable product and crude arrangements all in a bid to avoid rent seekers and add value to the Nigerian hydrocarbon resources.
                              
On the downstream sector, Dr. Kachikwu advocates for the introduction of a private sector model that would reinvigorate the efficient supply and distribution of petroleum products especially in the area of pipeline assets.
                                                                              
Dr. Kachikwu said the menace of pipeline vandalism has led to huge losses of crude and petroleum products adding that 27, 967 incidents of pipeline vandalism were recorded in the last few years. He noted that unutilized pipelines and poor pipeline integrity also led to high cost of trucking and impact on the roads.
Speaking on the current fuel situation, the House Committee Chairman on Petroleum Downstream, Honourable Joseph Akinlaja urged the Minister and his team to ensure a seamless flow of premium motor spirit otherwise known as petrol during the yuletide.
                                               
On his part, the House Committee Chairman on Gas Resources, Hon. Agbedi Frederick thanked the Minister for his presentation and assured him of the readiness of the National Assembly to support the Federal Government in its drive to transform the Oil and Gas Sector.

Oil

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

Published

on

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.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

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.

 

Continue Reading

Business

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

Published

on

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.

Continue Reading

Oil

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

Published

on

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.”

Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy

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.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.