Oil
Nigerian Govt explains authenticity of the new PIB
The Federal Government of Nigeria has explained the authenticity of the new Petroleum Industry Bill and why it cannot be duplicated like the previous ones sent to the National Assembly (the country’s legislative arm).
Nigeria’s minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, threw more light into the draft Petroleum Industry Bill (PIB) that has just been transmitted to the National Assembly and the features that make it different from other fake versions reportedly making the rounds, while adding that the new Bill is tamper proof.
The Minister made the clarifications while receiving a delegation of the United States of American government led by Mr. Michael Froman, a Deputy Assistant to the President of the United States and Deputy National Security Adviser for International Economic Affairs.
Alison-Madueke said besides the watermarks bearing her own handwriting on every page, the draft Bill is locked in with a code such that no one can add to or remove anything from it without the code, explaining that she took the pain to secure the document to avoid the type of duplication that led to the emergence of fake versions of the old PIB which created confusion in the National Assembly.
Mrs. Alison-Madueke said the new PIB was drafted with equity in mind and that the concerns of the international oil companies were taken into consideration so as to engender a win-win situation for Nigeria as well as stakeholders in the oil and gas industry.
She listed some of the new provisions in the Bill to include those creating the Asset Management Company which will take over the management of the Joint Ventures from the NNPC which will be unbundled to make way for the establishment of a new company, the National Oil Company which will be competitive and profit-driven.
The Minister also briefed the US delegates on the worrisome trend of professional and foreign involvement in crude oil theft, adding that with the establishment of a Special Task Force made up of senior military officers, more arrests are being made and that the President has directed the Attorney General of the Federation to ensure diligent prosecution of any oil thief arrested.
Mrs. Alison-Madueke said effort was being made to introduce a number of measures such as electronic bill of laden, DNA tracking of and certification of Nigerian crude oil to make it less attractive for it to be stolen.
On gas development, the Minister explained that when the new PIB is passed into law, “it is expected that gas will be the next area of explosion for the country and it will take over from crude oil because Nigeria is actually a gas nation considering the enormous gas reserves we have”.
“There is a robust plan for the commercialization of gas resources to serve as feed stock for industry and not just gas for power generation; in this connection, we have an arrangement with Nagarjuna of India and Xenel of Saudi Arabia to establish fertilizer and petrochemical plants and a central processing plant to make gas the fulcrum of industrial development,” Alison-Madueke stated.
The Group Managing Director of the Nigerian National Petroleum Corporation, Engr. Andrew Yakubu, corroborated the Minister’s presentation on efforts being made to commercialize gas, saying that gas infrastructure were being aggressively developed to get gas to end users as well as to align gas supply with demand.
Speaking on behalf of the delegation, Mr. Froman, commended the Minister for taking the pain to ensure the authentication of the PIB, urging her to remain open to on-going dialogue over the bill.
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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