Oil
NNPC, South African Investors Pledge to Rehabilitate Petroleum Infrastructure
Joseph BAMIDELE
ABUJA-Sequel to the visit by the South African High Commissioner, Kingsley Mamabolo
GMD, NNPC
seeking for economic ties with the Nigerian National Petroleum Corporation, NNPC, in the oil and gas sector, a business delegation from the Country has expressed its readiness to collaborate with the Corporation to bring on board cutting edge technology to help rehabilitate the oil and gas pipelines in the country.
Speaking recently during a working visit to the NNPC Towers, Abuja, the leader of the business delegation, Mr. Stephan Mcburger said the visit was to explore the abundant potentials in the Nigerian petroleum sector by the various business investors from South Africa.
“We are here to introduce cutting edge technology that will help in rehabilitating the NNPC oil and gas pipelines that cut across the country and this will also create job opportunities for the army of youths in the country,” Mr. Mcburger revealed.
According to him, the various business investors from South Africa will also help in training Nigerians on the job that will help in sustaining their numerous investments in Nigeria.
Earlier, the Group Managing Director of the Corporation, Engr. Andrew Yakubu stated that the NNPC is ready to collaborate with investors willing to develop the oil and gas sector of the economy stressing that the draft Petroleum Industry Bill forwarded to the National Assembly by the Federal Government for consideration and passage into law would create the enabling environment for investors and bolster investment in the Oil and Gas Industry in Nigeria.
Represented by the Group Executive Director Corporate Services, Dr. Peter S. Nmadu, the GMD averred that the PIB when passed into law would provide a veritable platform for investors from different parts of the globe to invest in the upstream, midstream and downstream sectors of the petroleum industry in the country.
“Certainly at a time like this when critics are expressing uncertainties about the Petroleum Industry Bill, what we are witnessing today is a huge endorsement of the Nigeria Oil Industry. We have a huge delegation of investors from South Africa to discuss with NNPC on potentials of investment in the oil and gas sector. I think this is a positive development because it is a clear testimony to the fact that the PIB is not an impediment to investors as is being touted but a real catalyst for investors,” the GMD informed.
Other members of the delegation include Mr. Lucas Ndala, CEO Royal Bafokeng Holdings; Mr. Mlu Majola, Executive Director of the Company; Mr. Errol Gregor, CEO Mining, Oil and Gas Services and Mr. Arthur Mcwilliams Smith of Uhambo Private Equity Fund. Others include Mr. Zweli Nkosi, non-Executive Chairman, Uhambo Private Equity Fund; Mr. Zam Nkosi; Mr. Ugo Ikemba; and Mr. Miles Oates, all director of Buildit Africa.
It would be recalled that the corporation has been involved in several partnerships in the past even if much has not been heard of some of such partnerships afterwards. While Austen Oniwon was running the affairs of the corporation the NNPC announced a partnership initiative with LNG Japan Corporation, preliminary discussion on strategic collaboration on the Brass Liquefied Natural Gas to provide the world’s most competitive Finance and LNG marketing opportunity in Asia was announced, while subsequent discussion and commencement of the joint operations expected from the pact were kept in the mute.
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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