Oil
Northern Governors Meet to Revive Oil Exploration
MINNA — Governors of the 13 northern states which fall within the region’s sedimentary base collectively known as the Association of Petroleum Inland Basin States of Northern Nigeria (APIBONN) are expected to meet in Minna, Niger State today to explore avenues of beginning oil and gas exploration activities in the area referred to as inland basin states.
Niger State Governor Mua’zu Babangida Aliyu who is also the chairman of the Northern States Governors Forum (NSGF) is expected to declare the meeting open, according to his Chief Press Secretary, Danladi Ndayebo.
Governor Aliyu in his capacity as the chairman of the forum has already invited his counterparts whose states fall within the sedimentary basin to direct their relevant commissioners to attend a meeting of the association in Minna to enable them brainstorm on the modalities and action plan to kick-start and sustain oil and gas exploration activities in the North.
The meeting, according to Aliyu’s Chief Press Secretary, will “fashion out strategies to harness the resources in the Sokoto Basin, Chad Basin, Bida Basin and Benue Trough whose hydrocarbon contents are yet to be properly developed and estimated.”
The forum, Ndayebo said, expressed support for ongoing efforts by the federal government to explore oil in the sedimentary basin of northern Nigeria. The Inland Basin states comprise of Adamawa, Bauchi, Benue, Gombe, Kogi, kebbi, Niger and Sokoto States. Others are Zamfara, Kwara, Nasarawa, Taraba, Yobe and Plateau.
Daily Trust exclusively reported last week that the plan for joint oil exploration in the North had run into trouble as a result of shortage of funds, unfavourable regulatory policies, insecurity and ineffective foreign technical partnership.
The New Nigerian Development Company (NNDC) which is owned by the 19 states of the North, has been handling the oil search in the Chad Basin and the Benue Trough since 2005 when it won four oil blocks in a federal government bidding process.
But work has stalled because of non-conversion of the production sharing contract, lack of adequate seismic data, certain policies by regulatory agencies as well as security concerns.
In 2005, the Olusegun Obasanjo administration included the northern sedimentary basins into the oil round bidding process, and NNDC won four oil blocks there. The company was granted licence by the Department of Petroleum Resources (DPR) to operate OPLs 809 and 810 in the Benue Trough and OPLs 722 and 733 in the Chad Basin.
– DAILY TRUST
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.