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NIMASA, air force move to battle oil thieves, pirates

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LAGOS – The Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Air Force have signed a Memorandum of Understanding (MoU) to battle oil thieves and pirates on Nigerian waters.

The MoU will afford both agencies the opportunity to address the issue of sea robbery and oil theft that has been taking its toll on the nation’s economy using constant air surveillance to safeguard the maritime domain.

Nigeria is said to have lost as much as $1.2 billion from crude theft in a single month in the first quarter of 2013 following incidences of illegal bunkering and sea piracy.

Oil bunkeryThe trade in oil theft led to a 17 percent fall in official oil sales in the first quarter of 2013, estimated at 400,000 barrels per day, Kingsley Kuku, special adviser to the president on Niger Delta, was cited as saying.

Recent reports have indicated Nigeria loses about $6 billion in annual revenue due to oil thieves tapping pipelines to sell crude on the lucrative black market, with the $1.2 billion loss cited in the statement calculated on the basis of a $121 per-barrel oil price in the first quarter.

The International Energy Agency recently blamed Nigerian oil theft for damage to pipeline infrastructure as well as cutting OPEC’s output volumes.

Activities of pirates in the Gulf of Guinea as captured by a recent study of an advocacy group in June 2013 cost the world economy between $740 million and $950 million last year, with indication of a possible rise this year, if proper measures were not taken to check excesses of pirates in the region.

While signing the MoU at the defence headquarters in Abuja on Monday, Ziakede Patrick Akpobolokemi, director general of NIMASA, said that the MoU, which was provided for in the NIMASA Act, will send a clear message of difficult times to those involved in the act of illegal bunkering, oil theft and piracy.

According to him, the MoU will enable NIMASA to make use of the facilities owned by the Nigerian Air Force without having to waste resources buying new equipment like aircraft for area surveillance.

“All we need to do is provide the air force with the necessary logistics support to carryout search and rescue as well as area surveillance”, he said.

“When there is a danger in the waterways, we need the search and rescue effort of the Nigerian Air Force. And with this support, we will be able to bring down crime in our maritime domain to a very low rate or even eliminate it”, the director general said.

The NIMASA boss assured that bureaucracy in the civil service will not be allowed to hinder the speed of action on providing the needed logistics to further the MoU.

– BUSINESS DAY

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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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