Oil
Nigeria’s crude oil Production now steady at 2.3mbpd- NNPC
Yemie ADEOYE
ABUJA-THE Nigerian National Petroleum Corp, NNPC has stated that Nigeria’s crude oil prodcution output is now officially steady at 2.3 million barrels per day. The Group Managing Director of the Corporation, Dr. Maikanti Baru stated this during a visit by the national leadership of the Nigerian Union of Journalist,NUJ, led by its President, Mr. Chris Isiguzo, to the NNPC Towers in Abuja on Tuesday, even as he called on members of the NUJ to join the Corporation in naming and shaming cross-border smugglers of petroleum products.
The GMD said the activities of cross-border petroleum products smugglers had cause much hardship for Nigerians and robbed the nation of huge sums of money and should not be allowed to continue.
He also urged the NUJ to support the NNPC in educating and discouraging people from indulging in illegal refining of petroleum products as it pollutes the air with soot, destroys aquatic lives and the entire ecosystem.
“We are open to collaboration with the journalists because you are everywhere to enable us execute our national mandate in terms gas to power, diesel, kerosene and aviation fuel. Today, PMS is everywhere and I am a fulfilled man,” Baru enthused.
Speaking on the achievements of his management, the GMD disclosed that Nigeria’s current crude oil production was 2.3million barrels per day including condensates, adding that production as at the end of 2018 was 2.1mbpd.
Baru stated that the corporation in compliance with the Economic Recovery and Growth Plan (ERGP) of President Muhammadu Buhari, had reduced the cost of crude oil production per barrel from $27 to $22, with a commitment to drive it further down.
He noted that the Corporation was working round the clock to rid the Federal Government of the huge financial burden of Cash-Call commitment by developing workable alternative funding arrangements.
“The NNPC is increasing crude oil production through its flagship Upstream Company, Nigerian Petroleum Development Company (NPDC). The NPDC in 2016 was producing just 65,000 barrels per day equity but as at today, the company is producing 166,000 barrels per day equity but overall production of the company is about 300,000 bpd,” Baru informed.
He said the NPDC was the main supplier of gas to the power sector, stressing that the Corporation was currently producing 1.5million standard cubic feet of gas making NNPC the largest supplier of gas to power.
The NNPC helmsman noted that the Corporation had recorded enormous saving of $1.2bn through its Direct Sale Direct Purchase (DSDP) scheme adopted for petroleum products imports.
He added that through the DSDP scheme, the Corporation had succeeded in ensuring steady supply and distribution of petroleum products across every nook and cranny of the country, adding that as at today he was a happy man because every nook and cranny of the country was well supplied with Premium Motor Spirit (PMS) otherwise known as petrol, kerosene, diesel and aviation fuel.
On transparency, Baru said the Corporation’s drive for openness in its financial operations have yielded much fruits leading to the attraction of Foreign Direct Investment (FDI) which have bolstered the national economy.
According to him, the Corporation has instituted a regime of transparent contracting and bidding processes in all its major projects with the full participation of Nigeria Extractive Industry Transparency Initiative (NEITI), Nigerian Content Monitoring and Development Board (NCDMB), Bureau of Public Enterprises and a host of other civil society organisations interested in transparency.
Dr. Baru stated that the NNPC has devised sustainable teamwork between the Oil and Gas Industry and the numerous host communities in the Niger Delta to curb security challenges that had dipped crude oil production some years back.
He disclosed that the rehabilitation of the Port Harcourt Refining and Petrochemical Company (PHRC) had commenced, adding that the Corporation would ensure full rehabilitation of all the state- owned refineries through private financing.
Earlier, President of NUJ, Mr. Isiguzo, congratulated Baru on his 2019 NUJ Distinguished Friend of the Media Award, saying the award was given to him on the basis of his support for the media and freedom of the press.
He lauded the GMD for the stability in national crude oil production, noting that the gesture had repositioned NNPC to become globally competitive.
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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