Oil
NETCO awarded DED of Chevron’s Utonana Facilities…to expend 14,423 man-hours
By Joseph BAMIDELE
LAGOS-National Engineering and Technical Company Limited (NETCO), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) has won the Detailed Engineering Design (DED) for the upgrade of Chevron Nigeria’s Utonana facilities, even as the company is positioned to expend a minimum of 14,423 manhours on the project with 100 percent Nigerian content.
This is coming on the heels of the company’s successful completion of its Environmental Management System’s (EMS) audit in order to ensure compliance and conformity to international standards of operation.
In a statement by the DED project Manager Mr. Lukman Ayinde Biztellers gathered that Chevron’s intent is to carry out refurbishment and replacement works on Utonana Oil Production Facilities in order to restore the integrity of the flow station.
The main objective is to enhance production through the fields economic life and the project would be carried out by NETCO for a period of 4 months.
According to him the success metrics includes safe completion, accurate projects deliverables, completion on schedule, strict adherence to approved cost and man-hours.
A project Technical Kick-Off meeting was held in order to align the NETCO project team with the clients expectations and also finalise the Master Derivable Register (MDR), review and freeze scope of work, the importance of Incident and injury free amidst other important factors.
Chevron’s facilities engineering manager in his brief emphasized on CNL’s expectation for NETCO to deliver the project safely, timely and within budget.
He equally emphasized that site-visit is key on this project so as to avoid rework, he however noted that a zero re-work is attainable even as he emphasizes on the importance of training of personnel viz-a-viz meeting NCDMB training requirements.
NETCO Management appreciated Chevron’s support by awarding the project even as he emphasized on the importance of having a lesson-learnt session at the beginning of the project. He also assured on his company’s readiness to meet Chevron’s expectations.
In order to achieve the project objectives a field assessment will be carried out to confirm the state of the facility and proposed modifications, to identify and confirm additional equipment changes withing the scope of Utonana Facilities Project. The purpose of the field assessment also includes data gathering as well as the verification of facility as built status.
Approved recommendations from the survey findings are intended to be incorporated into the DED deliverable as appropriate within the DED scope of works. Any findings outside the DED scope would be noticed by Chevron for future considerations.
At peak the manpower is planned for 31 Nigerian personnel, mostly engineers while 14,423 manhours are expected to be expended in the execution of the project. The Nigerian content during the performance of the work is 100 percent . The execution of the project is in line with the federal Governments policy 100 percent of all engineering activities in-country.
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.