Oil
NNPC Silent On Planned Sale of Refineries
ABUJA — The Nigerian National Petroleum Corporation (NNPC) has declined to offer transaction details on the planned sale of Nigeria’s three major refineries which have operated sub-optimally for over a decade and has compelled Nigeria to import petroleum products to meet its energy needs.
Following recent disclosure in an interview by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, that the refineries comprising the Kaduna, Warri and Portharcourt refineries with a combined installed capacity of 445,000 barrels per day (bpd) would be privatised.
All efforts to glean accurate information as regards the planned sale from the Group Managing Director of NNPC, Andrew Yakubu, yesterday yielded no result.
Yakubu, who in Abuja inaugurated a state-of-the-art hydraulic fire and rescue engine acquired by NNPC to foster its Health, Safety and Environment (HSE) compliance obligation in the oil and gas industry, refused to respond to reporters’ questions on the privatisation.
When asked to provide clarifications on the sale, Yakubu simply turned and walked away from reporters, thus, forestalling further opportunities for such clarification from him. He had, however, earlier launched the rescue machine which, he said, was necessary given the high risk environment in which the corporation undertakes its operations.
Speaking during the unveiling and demonstration of the fire rescue engine, Yakubu stated that with technology advancing by the day and the corporation building sophisticated structures to carry out its oil and gas exploration activities, the need to prioritise its HSE efforts cannot be overemphasised. He said: “It is our commitment to ensure the best HSE practice which includes human capacity, state of the art equipment such as this, to ensure that we are combat ready at any time to handle emergency because we are working in a high risk environment.”
The event, which was part of the corporation’s 2013 HSE week with the theme: “Overcoming HSE Challenges in NNPC,” also saw the presentation of awards to the best HSE compliant staff and bank within the NNPC.
Yakubu informed that the facility which was capable of rescuing emergency victims from over 11 storey building, would not be limited to the NNPC alone.
“We do not pray for emergency, but when it comes, of course we are available to support the fire service to combat the emergency situation as part of our corporate social responsibility,” he said.
He also spoke on the availability of petroleum products in the country especially with consideration to the upcoming Christmas season, stating that NNPC was adequately prepared to make sure that product supplies to the market and consumers were not hindered.
“We are very prepared, we have more than enough stock, as we speak we have over 35 days stock and between now and Christmas even if we do not bring at all, we have more than enough to go round the country. Let me seize this opportunity to call on all Nigerians not to panic,” Yakubu noted.
He further explained that HSE has become a powerful tool and vital driver towards business sustainability, higher productivity, risk mitigation and control as well as hazard minimisation that promote sustainable development of future generation, adding that the corporation is committed to investing in worthy HSE initiatives.
“As the nation’s dominant player in the oil and gas industry, NNPC must continue to focus on HSE compliance to safeguard our human and material assets.
“The theme of this year’s HSE week is a call for us to reflect on our HSE performance, identify the gaps and develop clear cut strategy towards continuous improvement and sustainable development,” Yakubu said.
– THIS DAY
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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