Oil
Nigeria LNG lifts force Majeure, restores normal operations
LAGOS – Nigeria LNG Limited announced today that it has lifted the force majeure declaration made to its buyers and gas suppliers, after it lost all its product export capability due to the blockade of terminal by the Nigerian Maritime Administration and Safety Agency (NIMASA), an agency of the Federal Government of Nigeria responsible for maritime safety and security, on Friday, 21st June 2013.
All incoming and outgoing cargo vessels to the NLNG Bonny Terminal (for LNG and NGL vessels), were stopped, forcing NLNG, as a prudent operator, to significantly reduce production in order to be able to manage the LNG and NGL inventories in the available tankage safely and in an environmentally responsible manner.
The June 21st blockade was the second this year. The first was on May 3 which was lifted upon government’s intervention following which NLNG was directed to pay NIMASA about US$159m in settlement of levies allegedly owed it from October 2009 – May 2013, and to continue paying the NIMASA levies, going forward.
Dissatisfied, NLNG paid US$20m under protest and filed a suit at Federal High Court for determination of the legality of Government’s directive, as well as NIMASA’s claims. The court granted NLNG an interim injunction against the Federal Government and all its agencies (including NIMASA) from charging or collecting the NIMASA levies, or blocking access to NLNG facilities or detaining its vessels, until the determination of the Motion on Notice for interlocutory injunction already filed in the case. NIMASA however proceeded against the court orders with a blockade of the Bonny Channel, denying entry or exit of ships from the NLNG Terminal. When all efforts to have NIMASA obey the court order proved unsuccessful, the court varied the injunction to enable NLNG pay NIMASA, still under protest, on the 12th of July 2013, without prejudice to the continuation of the substantive suit. NLNG thereafter made payment, and NIMASA eventually removed the physical blockade by mid day of 13th July 2013.
The substantive suit was adjourned to Thursday 19th September 2013. NLNG as a law abiding corporate citizen will be guided by the outcome of the judicial process and expects that other parties will do same.
Following the removal of the blockade, NLNG immediately commenced activities to restore normal operations, and has since been increasing the production levels, in a gradual manner as necessitated by plant design and safe operating procedures.
As at today, the 6-Train NLNG Bonny complex finally reached its normal operating capacity such that export operations can be declared as being fully normalized. Consequently, the company has declared the current FM lifted to both buyers and gas suppliers. – SWEETCRUDE
Nigeria LNG Limited, a major exporter of liquefied natural gas and natural gas liquids, is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell (25.6%), Total LNG Nigeria Limited (15%) and ENI International (N.A.) S.a.r.l (10.4%).
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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