Oil
N27.7bn Chad basin oil exploration suffers setback
ABUJA – The Federal Government’s desire to achieve commercial oil production in the Chad Basin this year may not come to fruition, due to insecurity caused mostly by Islamic insurgency under the code name, Boko Haram.
Vanguard learnt that the various technical personnel who provided support services for exploration activities have left the region from fear of being killed, while geologists in the Nigerian National Petroleum Corporation (NNPC), also shunned the volatile Basin in Borno State for fear of losing their lives.
With this insecurity situation, the over N27.7 billion investments may not be realised as scheduled. Vice President Namadi Sambo said last year that oil prospecting in the Chad Basin was yielding promising results, and may lead to commercial exploration of oil and gas this year.
The Vice President, who visited the region, disclosed that the project had gulped about $75 million (about N11.9 billion) in 2012, while another $100 million (or N15.8 billion) was earmarked for it in 2013.
“I want to inform you that government is committed to the oil and gas search in the Lake Chad basin,” he said at the palace of the Shehu of Borno, Abubakar Ibn Garbai.
Sambo also said three blocks have been identified in the area after series of research.
“These blocks have great potential for oil and gas exploration. Our plan is that by the fourth quarter of 2013, or first quarter of 2014, commercial oil and gas exploration will commence in the basin,” he added.
But the raging Boko Haram insurgency has however punctured government’s optimism. The Government had in a bid to douse the insurgency deployed soldiers to the site, while a state of emergency had since been declared in Borno State.
But industry sources argued that these measures are not enough to guarantee security of lives and property.
“The Joint Task Force (JTF) is having a clamp down on the Boko Haram terrorists, while those terrorists too have retreated to launch guerrilla warfare on the military. In all of these, do you think as a geologist one will be able to think straight?
“Even those on site are not finding it funny. It is true that some of us do not want to be anywhere near that place. Do not forget that we lost three of our staff to the insurgency in 2012,” one of the workers deployed to the region said.
Oil workers under the auspices of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), had late last year warned of possible abandonment of the northern region on account of the increasing activities of the sect.
In a statement entitled: “The Road to Yugoslavia,” PENGASSAN said, “the Boko Haram insurgency represents a dangerous descent into anomie, reminiscent of the horrific inter-ethnic and religious war that marked the violent break-up of the former Yugoslavia.”
The association reiterated that it would not hesitate to call out its members, starting from its Kaduna zone, if government did not arrest the violence against innocent Nigerians in the northern part of the country.
In the statement signed by its National Publicity Secretary, Deji Kolawole, PENGASSAN said: “Nigeria cannot afford to take this road to self-destruction, for when the rich makes war, it is the poor that suffers. We, therefore, appeal to Nigerians to exercise great restraint in the face of the constant provocation and violence perpetrated on other innocent Nigerians by terrorists under the hood of religionists whose aim is, obviously, to precipitate an ethnic cum religious war in the country. We must note that an eye for an eye would only make us all blind.
“PENGASSAN expresses grave concern on the deteriorating security situation in the country resulting in the loss of innocent lives and which has led, lately, to the declaration of a 24-hour curfew in two states — Kaduna and Yobe — with the attendant impact on the socio-economic lives of the citizens of those states and other neighbouring states.
“We further call on the Federal Government of Nigeria, which has all the coercive powers of state to wake up to its primary responsibility, i.e. the security and welfare of the people as enunciated in section 14 of the 1999 Constitution.
“We, and indeed all Nigerians, are tired of the President’s usual swan song of expressing heartfelt condolences, condemning the dastardly act and promising to bring perpetrators to book whenever attacks like these happen.”
– VANGUARD
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.
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.”
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.
Nigeria Army Breaks Silence on Detention of Fisayo Soyombo
French Band Performs P-Square’s Hit “Taste the Money” Tinubu [VIDEO]
Osun Ratifies Prince Tunde’s Appointment As Olujodu Of Ido-Osun
I Felt Like I Was Dying’ – Omotola Jalade Reveals Health Struggles
Four Nigerian Football Stars Shortlisted For 2024 FIFA Best Awards
JUST IN: Ngozi Okonjo-Iweala Reappointed WTO DG For Second Term
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
