Oil
NNPC, legislators, industry operators rally for PIB at OTC 2013
…Host community fund will reduce pipeline vandalism, crude theft – Yakubu
…This PIB must be passed – Senator Paulker
…We are passionate about this Bill- Hon. Osagie, House Minority Whip
HOUSTON, TEXAS – A ground swell of support for the proposed Nigerian Oil Industry reform legislation designed to position the industry on the path of growth and sustainable development appeared on the horizon at the ongoing Offshore Technology Conference, OTC in Houston, Texas yesterday as key stakeholders harped on the importance of the Bill.
The event was the Petroleum Exploration Technology Association of Nigeria, PETAN, OTC seminar which has come to become an integral part of Nigeria’s participation in the annual global oil and gas conference.
Group Managing Director of the Nigerian National Petroleum Corporation, Andrew Yakubu teed-off the session with a presentation titled: Post PIB Challenges, Prospect and Opportunities- to herald what turned out a well rounded discussion.
Describing the PIB as an essential tool for the sustainable development of the industry in Nigeria, Engr. Yakubu emphasized that the proposed law presents multi-dimensional approach to the nation’s Oil and Gas resource management that will ensure greater active contribution by players and stakeholders under prudent government structure of the industry.
“It also stipulates guidelines for operations in the upstream and downstream sectors which can be viewed in terms of the following thematic areas: policy, legal and regulatory dimensions, economic dimensions including participation and ownership, knowledge based human and institutional capabilities, environmental stewardship as well as governance structure for sustainable resource development,” the GMD said.
Commenting on the introduction of the Petroleum Host Community Fund, Yakubu informed that the proposed Fund incorporates lessons learnt from the Niger Delta on all new frontiers.
“The Fund is a mechanism to formally recognize host communities as important stakeholders by assigning oil and gas infrastructure security to the Host Communities and minimizing environmental degradation due to vandalism and crude oil theft,” he said.
Mr. Yakubu stated that the Fund also incorporates penalties to host communities in the event of vandalism in their localities. “The proposed legislation includes modalities for using regulations to increase flexibility in managing host community issues,” he said.
In his contribution, Senator Emmanuel Paulker, Chairman Senate Committee on Petroleum Upstream reiterated the readiness of the Senate to work with the executive in ensuring the smooth passage of the bill.
“I cannot commit to any particular date but I know that this PIB must be passed.” he said.
The Senator thanked the executive for ensuring that, this time around there was no issue of duplication or circulation of different versions of the draft bill.
House Minority Whip and Chairman House Committee on PIB, Honourable Samson Osagie also restated the commitment of the National Assembly in ensuring the passage of the Bill.
“The position of the National Assembly on the Petroleum Industry Bill is that we are passionate about passing this bill into law because it consolidates about 16 legislation in the sector and for the first time the Nigerian Government is coming out to say that this industry needs to be re-organised and reformed so that the eventual benefit will get to the government and people of Nigeria,” he said.
Hon. Osagie stated that as a body the National Assembly is determined to strike the delicate balance that will not comprise the interest of the nation or chase away potential investors. He however debunked claims by some International Oil Companies that the proposed fiscal regime in the PIB is one of the toughest in the global oil and gas industry.
“I don’t think that in all its entirety the fiscal regime as contemplated by the PIB remain the harshest in the industry worldwide but I believe that there are some sections that we may need to look out especially in the area of gas exploration. We may need to work had to ensure that we attract the right investment,” he said.
Earlier, Mark Ward, Managing Director of ExxonMobil, speaking on behalf of the IOCs expressed the readiness of the industry operators to work with relevant stakeholders and the National Assembly to ensure the passage of a balanced oil reform law.
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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