Oil
Nigerian Content: PETAN partners Agip to create 20,000 jobs
LAGOS– IN furtherance of Nigerian content development, the Petroleum Technology Association of Nigeria (PETAN) signed a Memorandum of Understanding with Nigeria Agip Exploration (NAE) to foster collaboration, develop in- country capacity and create specialised jobs for 20,000 skilled workmen and engineers in the industry.
Nigeria’s foremost Petroleum Technology Association, PETAN and the Nigeria Agip Exploration, NAE recently signed a Memorandum of Understanding bearing commitment to create jobs, close vendor gaps and promote the domiciliation of technology and skill transfer.
With an exhibition from 130 selected companies and a gathering of key stakeholders in the industry comprising the government, vendors, banks, contractors and sub-contractors, Original Equipment manufacturers and investors, the engagement is the first between PETAN and NAE with promises for robust opportunities and better days ahead for the economy at large.
Among other things, the engagement sought to: • Open up opportunities on anticipated projects in the deep offshore for vendors to identify and to position themselves appropriately; • Address hitches faced by contractors and sub-contractors through the entire process of tendering, and the eventual delivery of services to the IOC; • Make room for tenderers to demonstrate capacity through presentations that they can carry out specific, highly technical jobs in-country; • Help sub-contractors and contractors form new allies and to connect during networking sessions; • Encourage the participation of Original Equipment Manufacturers; • Have government witness another milestone achievement in the growth of the NOGICD Act; • Give answers to some funding issues as there was ample opportunity for bankers to meet vendors and to find a common ground; and to • Sign the binding Memorandum of Understanding.
A multiplier value addition is expected across other sectors of the economy as a result of this initiative. The agricultural industry, aviation, information technology and telecoms would inadvertently witness a positive rippling effect.
Through a similar initiative, PETAN companies across the country have flung its doors wide open to train young Nigerians via the recently launched PETAN/ SHELL internship program with NCDMB participation.The scheme provides a head start for inexperienced graduates of
industry-related courses. These engaged ‘green horns’ currently receiving specialised trainings could have remained un-employed were it not for the initiative of PETAN.
PETAN is reputed for organising Nigerian companies and delegates to attend Local and international conferences and exhibitions. These are avenues to showcase the best of Nigerian technologies already domesticated in-country. New technical partnerships are formed as a result of the exposures, additional skills are learnt, and vents are created for more advanced technologies transfer.
PETAN was formed in 1990 by a group of indigenous technical oilfield service companies with expertise in various upstream and downstream technologies ranging from well services and delivery, marine, sub-sea services, platform support, detailed engineering, fabrication and construction etc. Its main ethos is the acquisition of technologies in the oil and gas industry with an intent to improve the standard of service delivery, level of participation and to impact positively on the economy at large. 
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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