Oil
Nigeria suspends plans to sell refineries
… Says no plan to hike pump price of Petrol
By Joseph BAMIDELE
ABUJA – The Federal Government has said that there are no plans to increase pump price of fuel now or in the near future and called on marketers to collaborate with it to eradicate the fuel queues from filling stations across the country.
The Minister of Petroleum Resources and Chairman of the Board of the Nigerian National Petroleum Corporation, Mrs. Diezani Alison-Madueke stated this Tuesday after the Ministry’s budget appraisal for 2013 and budget defence for 2014 before the Senate and House of Representatives Joint Committees on Petroleum Upstream, Downstream and Gas in Abuja.
Mrs. Alison-Madueke informed that already the situation is coming under control and steps are being taken to flood the market with petrol in the next few weeks.
“There seems to be some sorts of rumours that we intended to increase the pump price of petroleum products and I have said categorically and severally that the Federal government has no intention of increasing the pump price of PMS (premium motor spirit) or petroleum products now or in the near future. That is for certain,” Mrs. Alison-Madueke reaffirmed.
She argued that the tightness in the petroleum products supply chain is as a result of hoarding and diversion of the products by marketers stressing that those that are found diverting or hoarding will be made to face the full wrath of the law.
Mrs. Alison-Madueke said that based on the actual funds released to the Ministry in 2013, the budget performance stood at 89.6% adding that the capital release recorded 50.2% while recurrent recorded 100%.
She revealed that over N60bn is projected for the 2014 budget in line with the Medium Term Expenditure Framework while assuring that the Ministry would complete some of the ongoing projects that were started in the previous financial year.
The Minister said the Liquefied Petroleum Gas Framework in the 2014 budget is geared towards having a robust LPG development in the country stressing that the Ministry is collaborating with NNPC Retail to ensure that the LPG project receives full implementation.
Answering a question on the status of the planned privatization of the refineries, Mrs. Alison-Madueke averred that the Federal Government stood down the privatization policy of the state owned refineries because of the agreement reached with the labour unions and added that the best way forward is privatization.
Commenting on the frontier exploration activities, Mrs. Alison-Madueke posited that the Chad exploratory activities were still ongoing stressing that in 2013 because of the heightened insecurity in the area not much was done.
In his remarks, the Senate Joint Committee Chairman, Senator Emmanuel Paulker said the budget performance of the Ministry in 2013 was based on the funds released to them and urged the Ministry of Petroleum Resources to find a lasting solution to the delays recorded in the procurement processes to fast track the capital projects in the oil and gas sector.
Similarly, the House of Representatives Joint Committee Chairman, Hon. Muraina Ajibola called on the Minister to perform the magic of restoring normalcy to the supply of petroleum products in order to reduce the pains being witnessed by Nigerians across the 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.