Oil
Nigerian companies showcase oil & gas potentials at SNEPCo exhibition
LAGOS-NEARLY 40 Nigerian companies showcased their potential for offshore materials and services in the oil and gas industry at an exhibition organised in Lagos by the deep-water subsidiary of Shell in Nigeria, Shell Nigeria Exploration and production Company Limited (SNEPCo.)
The exhibitio
L-R: Managing Director, Shell Nigeria Exploration and Production Company Ltd (SNEPCo), Mr. Bayo Ojulari; Manager, Monitoring, Nigerian Content Development and Monitoring Board (NCDMB), Mr. William Arikekpar; and SNEPCo’s Finance Director, Ralph Wetzels, at the 2015 SNEPCo Nigerian Content Exhibition in Lagos recently.
n, the 4th in the series aimed to raise the level of awareness in critical offshore oil and gas categories where local investment opportunities exist, and where Nigerian businesses are currently under-represented. Among the exhibitors at the 2015 edition were two companies, the Nigeria Machine Tools, and Kay Global, whose products are now being used in the oil and gas industry in Nigeria.
“The annual Nigerian content exhibition has helped Nigerian companies to keep pace with the fast-evolving local market for offshore materials and services,” said Bayo Ojulari, SNEPCo Managing Director in his opening remarks. “Looking back on the three editions, I’m happy to say that the event has provided a platform for the alignment of offshore industry demands with local capabilities, which has in turn promoted exchange of ideas and best practices among the indigenous service providers, SNEPCo and other stakeholders.”
Manager, Monitoring at the Nigerian Content Development and Monitoring Board (NCDMB), Mr. William Arikekpar commended SNEPCo for sustaining the exhibition since the first edition in 2012. He urged Nigerian companies to take advantage of the opportunity to demonstrate their capabilities in offshore oil and gas operations. SNEPCo’s Finance Director, Ralph Welzels, said he was happy to see many Nigerian companies exhibiting at the event, saying they must sustain the drive for excellence by improving processes and benchmarking against global standards.
The Nigeria Machine Tools attended the Nigerian Content Exhibition on November 11 having just successfully introduced some of its products, such as stud bolts and nuts, for use in offshore oil and gas exploration and production, after SNEPCo supported them with testing and certification. Also, Kay Global achieved a breakthrough when the backing of Shell led to the acceptance of the company’s locally manufactured personal protective equipment for use in the oil and gas industry in Nigeria.
General Manager, Nigerian Content Development, Shell companies in Nigeria, Mr. Chiedu Oba, said: “Shell companies in Nigeria will continue to support local manufacturers and vendors to bring them up to international standards. In doing this, we’re looking to see manufacturer suppliers who will make their mark on the international scene.”
SNEPCo helped to create the first generation of Nigerian deep-water oil and gas engineers and service providers when it commenced production at Bonga field in 2005, Nigeria’s first oil and gas project in more than 1,000 metres of water. Today, 90% of Bonga’s core offshore staff are Nigerian. SNEPCo has also led the way in providing financial empowerment and facilitating the transfer of knowledge and competences from global offshore service providers to local firms in exploration and production activities.
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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