Oil
NNPC GMD Sues for Concerted Effort in Domestic Gas Utilization
By Joseph BAMIDELE
ABUJA-The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Engineer Andrew Yakubu, has urged members of the National Association of Petroleum Explorationist, NAPE, to collaborate with the Corporation in enhancing domestic gas utilization in tandem with the gas revolution programme of the Federal Government.
In a remark at the 30th Annual International Conference & Exhibitions of NAPE held in Lagos, on Monday, the GMD implored members of NAPE to use the conference to address the new ways of replacing the depleting petroleum resources, the high cost of doing business in the industry, and the impact of the Petroleum Industry Bill, PIB, in the Nigerian petroleum sector.
“Despite challenges being faced by the industry in recent times, it has remained vibrant with significant increase in exploration activities in the past years. There are more than seven exploration rigs that are actively engaged in different locations in the acreages. The preliminary reports from most of the exploration activities have indicated positive potentials with great promises of enhancing the reserve potentials of the country,” Engr. Yakubu said.
The GMD assured members of NAPE that NNPC, as the industry leader, will sustain the recent initiatives in the oil industry to ensure that the country maintains the tempo in the drive not only to replenish our produced oil and gas but also to achieve the aspirations and targets of 40 billion barrels of oil reserve in the nearest future.
According to Engr. Yakubu, to achieve the nation’s aspiration in the sector, NNPC has re-positioned its subsidiaries, particularly the IDSL to take advantage of the opportunities presented by the National hydrocarbon reserve growth targets. The data acquisition, storage and processing capacities of IDSL have been greatly enhanced to achieve these objectives. Building on the success of the 100 percent Nigeria seismic-crew, the process of building IDSL capacity has started to venture into marine data acquisition.
He informed that in furtherance of the desire to increase Nigeria’s oil reserve base, more efforts and resources will be geared towards exploration activities, particularly on New Frontiers and the deep and ultra-deep offshore basins adding that currently, the NNPC through its frontier exploration services, NFES, is engaged in exploration programmes in seven inland basins of Anambra, Bida, Sokoto, Chad, Benue trough, Dahomey, Gongola/Yola in Nigeria.
The NNPC helmsman stated that the geological reports from some of the basins indicate that more potentials may lay abound in the basins stressing that though security challenges have slowed down progress of work in some of these areas, NNPC will continue to forge ahead in the quest to deliver value to stakeholders in the industry.
He called on all stakeholders in the Oil and Gas industry to pursue aggressive deep-water exploration in offshore Lagos, taking on board lessons learnt from the jubilee field discovery in Ghana – Dahomey Basin, encourage utilization of novel technology for other inland basins to increase the nations hydrocarbons potentials, intensify planned exploration and exploitation of the vast gas resources in support of domestic and export gas market, explore and adopt new technology which is aimed at increasing the hydrocarbon reserves base to meet our aspiration and continually address security issues as they affect our operations.
In her remark, the Honourable Minister of Petroleum Resources, Diezani Allison-Madueke, applauded NAPE for supporting the Federal Government’s Transformation Agenda and urged the stakeholders in the industry to come up with integrated solutions to address some of the teething problems of the industry.
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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