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Nigerian refineries remain idle as Govt 90-day deadline approaches

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By Femi ASU

LAGOS-NONE of the nation’s four refineries of 445,000 barrels per day combined capacity has come back on stream few days to the end of the 90-day fast-track ultimatum given for their revival.

Three of the refineries in Warri, Kaduna and the 150,000 bpd Port Harcourt plant had resumed production of refined petroleum products in July after undergoing rehabilitation, but two were shut down in August, while the Port Harcourt refinery stopped operation in September.

Dr.Ibe KACHIKWU

Dr.Ibe KACHIKWU

The Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, Mr. Ohi Alegbe, told our correspondent in a telephone interview on Monday that the 90-day deadline given by the Minister of State for Petroleum Resources, who is also the Group Managing Director of the NNPC, Dr. Ibe Kachikwu, was meant to bring the refineries back to shape, ruling out the possibility that any of them would be sold at the expiration of the deadline.

He explained, “Two of them are ready to go; what they just need now is crude and that is why we try to get the pipelines working. Kaduna, for instance, is ready to go. Port Harcourt is ready to go and the other ones are still being worked upon.

“Nobody talked about selling. There has not been any time anybody said anything about selling.”

Alegbe said as a result of the frequent vandalism of the pipelines, the NNPC had decided to involve the Army corps of engineers to secure them, adding that the Warri-Kaduna pipeline and the Bonny-Port Harcourt pipeline had some issues.

He said the problem with the Port Harcourt refinery had been resolved and “it should be back on stream this week.”

Kachikwu had on Sunday said that in the next 24 months, Nigerians would see a positive dramatic turn in the refinery model in the country.

The NNPC had in August cancelled the contract for the delivery of crude oil to the nation’s refineries due to exorbitant costs and inappropriate process of engagement.

The corporation noted that as a stop-gap measure, NIDAS Marine Limited, a subsidiary of the NNPC, had been engaged to provide crude delivery service on negotiated industry standard rates pending the establishment of a substantive contract.

Responding to Kachikwu’s 90-day ultimatum in October, the Acting Managing Director, Warri Refining and Petrochemicals Company, Mr. Solomon Ladenegan, had pledged that measures had been put in place to ensure that the plant was back in full operation by early November in good time for the ultimatum.

Kachikwu, had during a facility tour of the refinery in Kaduna, given the assurance that the corporation would provide all the necessary enablers to make the Kaduna Refining Petrochemical Company to operate commercially and optimally.

PUNCH-

 

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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