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Nobody needs to call me to get crude allocation-Kachikwu, as 278 Firms openly bid for Nigerian crude oil grades

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By Yemie ADEOYE
 
ABUJA-THE new wave of openness and transparency pervading the operations of the Nigerian National Petroleum Corporation (NNPC) received fresh impetus on Tuesday with the public harvesting of 278 bids submitted by indigenous and foreign firms seeking to secure contract for the sale and purchase of the 26 Nigerian crude oil grades on offer.
Kachikwu

Dr. Ibe Kachikwu, GMD NNPC taking questions from Newsmen

This is coming just as the NNPC has assured the world of its decision to eliminate hawking of Nigerian crude oil, a trend which has grown tremendously and almost become a norm.

 
The bid process which was covered live by all major Television networks in the country had in attendance representatives of the bidding companies with officials of the Bureau of Public Procurement, BPP, Department of Petroleum Resources, DPR, Nigerian Extractive Industry Transparency Initiative, NEITI, Nigerian Content Development and Monitoring Board, NDCMB as well as members of the civil society attending as independent assessors.
 
Speaking at the flag-off of the event, Group Managing Director of the NNPC, Dr. Ibe Kachikwu stated that the essence of the public opening of bid is to consolidate on the new promise of setting a new agenda for the Corporation anchored on the tenets of transparency, efficiency in line with President Muhammadu Buhari’s agenda for the oil and gas industry.
 
“The essence is to ensure that nobody needs to call me personally as Ibe Kachikwu for him to get crude allocation. So, you can imagine the burden it takes off my shoulders. It means a good amount of my time will now go into other relevant areas of operation where the country needs me most, ’’ Kachikwu said. 
 
Throwing more light on the process, Mallam Mele Kyari, Group General Manager, Crude Oil Marketing Division of the NNPC, informed that with the new measure put in place, the incidence of brief case companies and hawking of Nigerian crude would become a thing of the past.
 
“The idea is to select companies that are credible, capable with track record and would not go to hawk our crude. We are going to get as close as possible to the end users of our crude. What this means is that we are going to eliminate all those transactions that are not necessary,’’ Mallam Kyari stated.   
Mrs. Folashade Odunuga representative of the DPR commended NNPC for the transparent manner it conducted the bid process noting that as the regulator of the industry, the DPR is impressed with the new wave of transparency sweeping across the value chain of the Corporation.
 
The contract for the engagement of qualified and reputable companies for the sale and purchase of Nigerian Crude Oil grades is conducted in consonance and in pursuance of the provisions of the Public Procurement Act 2007 and the BPP guidelines.
 
As part of the pre-qualification requirements, interested companies are expected to demonstrate the possession of minimum annual turnover of USD 750 million and net worth of at least USD 300 million, ability to establish an irrevocable Letter of Credit for the payment of any allocated Crude Oil subject to the contract terms as well as the ability to pay an initial deposit of USD 2.5million representing the first lifting deposit upon signing of the contract agreement among other requirements.
 
The 26 grade of Nigerian Crude Oil on offer include: Bonny Light, Forcados Blend, EA Blend, Bonga, Qua Iboe Light, Yoho Blend, Erha and Escravos Light. Others are;  Pennington Light, Agbami, Brass Blend, Abo, Oyo, Okono Blend, Amenam Blend, Akpo Condensate and Usan. The rest include: Atam Blend, Okwori, Okoro, Ima, Ukpokiti, Obe, Okwuibome, Ebok and Asaratoru.
 
 
 
 
 
 

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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