Oil
Nigeria rallies African oil producers towards maximizing region’s oil deposits
Jonathan BONNY
ABUJA-THE Federal Government has rallied African Countries Oil producers in a move geared towards ensuring that the continent benefits maximally from hydrocarbon deposits locked in its shelves.
The strategic move by Nigeria was spearheaded by the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva, who, in a one fell swoop, peregrinated three nations of Angola, Gabon and South Sudan over the weekend.
Sylva, who doubles as President of the African Petroleum Producers Organisation (APPO), had toured the African oil producing nations that are also signatories to the Organization of the Petroleum Exporting Countries (OPEC’s) Declaration of Cooperation (DoC) Agreement to discuss compliance ahead of the next Joint Ministerial Meeting Committee (JMMC) of OPEC and non-OPEC countries in Vienna, Austria in December.
He stated that as a member of international energy groups such as the OPEC and APPO, Nigeria needed to further deepen its collaboration with fellow African nations so as to grow the continent’s oil industry.
Sylva, who was accompanied by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari and Nigeria’s OPEC Governor, Dr. Omar Farouk Ibrahim, explained that African oil producers needed to work together to judiciously utilize their abundant hydrocarbon resources for the benefit of their respective citizens.
Speaking shortly after meeting the Gabonese Minister of Oil, Gas and Hydrocarbons, Mr. Noel Mboumba in Libreville, Sylva described his meeting with his counterpart on APPO and OPEC as “very fruitful”, saying that both countries had reached meaningful conclusions that would benefit their countries’ oil industry.
“We believe that we can work together, which in the long run, will be good for our respective nations. Our interest in Nigeria is to further deepen our relationship with Gabon going forward,” Sylva told journalists at the Headquarters of the Gabonese Oil Ministry during the meeting.
On his part, Mboumba commended Sylva for the visit, noting that Gabon has a lot to benefit from Nigeria’s experience in the Oil and Gas Industry and leadership at APPO.
While meeting the Angolan Minister of Mineral Resources and Petroleum, Mr. Diamantino Pedro Azevedo in Luanda, Sylva observed that Nigeria was committed to deepening its relationship with the Southern African nation even beyond the oil and gas business.
“You will see a greater and deeper understanding between Nigeria and Angola going forward. We are the two biggest producers in Africa and therefore we need to stand together. If we don’t stand together, other producing African nations cannot come together,” Sylva added.
Earlier on, Azevedo, lauded Sylva for the visit, noting that it was important for Nigeria and Angola to exchange views and share experiences so as to further strengthen their relations dating back to decades.
During his visit to Juba in South Sudan, Sylva called on African Oil Producers to balance the lure of increasing crude oil production alongside the price of the black gold in the market, because “it is better for our economies if the price is fair and reasonable.”
Responding, the South Sudanese Minister of Petroleum, Mr. Awow Daniel Chuang, assured Nigeria – and by extension OPEC and non-OPEC countries in the DoC Agreement – of its commitment to fully comply with the Agreement which he said was voluntarily entered into.
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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