Oil
NNPC, security agencies meet over oil theft
ABUJA-THE Nigerian National Petroleum Corporation has begun consultation with security agencies on how to use drones to monitor the movement of oil bearing vessels across the nation’s territorial waters.
It was learnt that the corporation would partner with the Nigerian military, navy, police and the Nigeria Security Civil Defence Corps for the purpose and would soon commence the deployment of drones in a bid to meet its target of halting oil theft in the next eight months.
NNPC Towers, Abuja
Sources at the Federal Ministry of Petroleum Resources and the corporation told our correspondent on Sunday that the NNPC had commenced talks with the relevant security agencies, less than one week after the national oil firm’s boss announced the plan.
“The NNPC boss announced last week and the corporation has started meeting the necessary security agencies on the matter. In fact, the drone deployment will be done soon because the target of the corporation is to stop oil theft in the next eight months,” a senior official at the petroleum ministry, who pleaded not to be named as he was not authorised to speak on the matter, said.
Last Tuesday, the Group Managing Director, NNPC, Dr. Ibe Kachikwu, announced that the corporation was working towards the deployment of drones across the nation’s territorial waters to monitor the movement of oil bearing vessels.
He expressed worry over the nation’s colossal loss to oil theft and pipeline vandalism.
For instance, Kachikwu said Nigeria recorded between 3,400 and 4,000 attacks on its various pipelines between June 2014 and June 2015, losing over $7bn (about N1.4tn) in the process.
The NNPC boss had said, “Oil theft is a major issue for us. We lose on average about 50,000 barrels of oil. We lose about $3-$4bn of revenue and that is just in terms of crude oil itself. The effect is a shut-in of about 250,000 barrels a day, and when you calculate that, you have a net loss of over $7bn.
“We are launching an armada of approaches, which will include the incorporation of drones to check the movement of vessels within Nigeria’s territorial waters.”
When contacted on the planned meeting with the security agencies, the Group General Manager, Group Public Affairs Division, NNPC, Mr. Ohi Alegbe, confirmed to our correspondent that the firm was strengthening arrangements with the various security agencies on the matter.
In a text message response to an enquiry on the subject, Alegbe said, “We’d keep you posted on developments once we firm up arrangements with the relevant security agencies.”
He had during a previous telephone conversation with our correspondent explained how the corporation was protecting the country’s crude oil pipelines in the interim since the cancellation of various protection contracts with its contractors, stressing that the NNPC had engaged security agents in the different communities where the facilities run through.
“We have the police, the military and we also engage with community-based groups. And it is not as if the pipelines were left unprotected. We have the military, the civil defence and the police, and some leaders of communities that are bordering some of these pipelines have been involved in the protection process,” Alegbe had said.
PUNCH-
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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