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NPDC announces boost in Nigeria’s Crude Oil Production …Ramps up Gas Supply by 65mm scfd

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 By Joseph BAMIDELE
ABUJA: In keeping with its target to grow production to 250,000 barrels per day by 2015, the Nigerian Petroleum Development Company (the Exploration and Production subsidiary of the NNPC) has commenced aggressive drilling on some of its Oil Mining Leases leading to increased production which in effect boosts the nation’s 2.6 million barrels.
The latest development is the successful drilling of Okono 6 and 7 oil wells in its OML 119 which are currently yielding 12,000 barrels per day.
The Managing Director of NPDC, Mr. Victor Briggs, explained that Okono 6 and 7 wells are significant not just because they represent the company’s independent efforts at growing production but also because of the prolific nature of the wells which are producing at an average of 6,000 barrels per day as against the older wells which are producing at an average of 3,000 barrels per day.
“From 2010 till date our production rose from 65,000 to 130,000 barrels per day, a bulk of the increase consists of assets handed over to us upon divestment by some of our JV partners; but we realize that for us to meet the target of 250,000 barrels per day by 2015 we need to build on this by exploring further afield and drilling more wells. Okono 6 and 7 wells represent our success story in this direction,” Briggs was quoted to have said.
He said NPDC plans to drill more wells as from next year and would deploy two more rigs in addition to the two it currently has on site, adding that the target is to drill 40 wells in the next five years as part of its growth projection.
He said the company has also made tremendous progress in the area of gas supply in keeping with the directive of the Minister of Petroleum Resources, Mrs.  Diezani Alison-Madueke ,  to step up gas production and supply to meet the national power generation aspiration.
“We have commenced gas production from our Oredo Gas Plant since November and we currently produce 65mmscf per day. By the end of the first quarter of next year when we shall complete the second phase of this project, we will have additional 100mmscf per day and 4,000 metric tons of Liquefied Petroleum Gas (LPG),” Mr. Briggs said.
He explained that the Oredo Gas Plant with gas feedstock from NPDC’s OML 111 was originally designed to supply gas to the Ihovbor Power Plant in Edo State and that since the power plant is not ready the gas is being supplied to the Nigerian Gas Company (NGC) for onward transmission into the national gas grid for power generation.
Briggs commended President Goodluck Jonathan and the Minister of Petroleum Resources for their courage in halting the trend of asset stripping that had hobbled NPDC over the years, adding that without their support in assigning acreages to the company the modest achievements recorded in crude oil and gas production would not have been possible.
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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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