Oil
Nigeria’s daily crude production rises to 4 million barrels by 2020…as NNPC exceeds Gas-to-Power target
By Joseph BAMIDELE
NIGERIA’s daily crude oil production is expected to rise by another 1.4 million barrels from its current 2.6 million bpd by the year 2020, just as crude oil reserves is also expected to grow to 40 billion barrels from its present 36 billion barrels.
Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Engr. Andrew Yakubu made this disclosure during the 42nd Annual General Meeting, Conference and Exhibition of the Nigerian Society of Chemical Engineers, NSChE, with the theme: “Harnessing Water Resources for National Development,” in Abuja.
According to him The NNPC has exceeded its target for Gas-to-Power aspirations and is taking steps to grow the nation’s crude oil reserves to 40 billion barrels and daily crude oil production to 4 million barrels per day by 2020 in order to ensure that a solid platform is laid for the rapid economic growth and development of the country.
The NNPC GMD further noted that the strategic focus of the management under his watch was to ensure that between 70 to 80 percent of gas produced in the country is channeled to power generation to achieve the robust ambition of stabilizing electricity supply to Nigerians and to industries operating in the country.
“One of the strategic focuses we had when we came on board was to ensure that gas availability to power was met and I am glad to tell you that as at today, we are in surplus of gas availability to power in line with the Federal Government’s power initiative,” Engr. Yakubu informed.
He noted that in the gas value chain, going forward, NNPC would consolidate on gas to power and industry to boost economic activities in the country stressing that the aggressive commercial framework put in place by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke has added impetus to the current arrangement.
Engr. Yakubu stated that the gas aggregator and the other key commercial initiatives have gone a long way in stimulating investment in the oil and gas sector of the economy.
On gas flaring, the NNPC GMD revealed that a lot of investments have been put in place to ensure gas flare down noting that as at today gas flare down in the country has reduced to about 15 percent. He stated that export initiatives on gas have been stepped up and plans are under way to achieve zero flare down in the country.
Engr. Yakubu commended the Nigerian Society of Chemical Engineers, NSCHE, for the capacity growth contributions to the NNPC workforce and the Nigerian society adding that their impact on the petroleum sector of the country is far reaching.
He described the theme of this year’s NSCHE conference: “Harnessing Water Resources for National Development,” as apt and necessary noting that there is a global paradigm shift from the use of fossil fuel to renewable energy.
In his welcome address, the National President of NSCHE, Dr. John Erinne, said the Chemical Engineering principles are at the center of techniques and technologies for the treatment of water for a wide spectrum of applications and purposes including oil field-produced water and industrial waste.
He averred that water, which ordinarily should be a resource to support human existence and national development, is ravaging the country as experienced during the unprecedented floods that ravaged the country in the last two months.
He assured that the conference will examine strategies for dealing with floods and other water related disasters.
Petroleum Minister Diezani Alison-Madueke
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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