Oil
Oil importation: PPPRA demands 80% compliance before payment advice
ABUJA – The Petroleum Products Pricing and Regulatory Agency (PPPRA) has warned Oil marketers operating under the PSF Scheme to adhere strictly to the Agency’s Truck-Out directive or forfeit the Sovereign Debt Statement (SDS), the payment advice issued to Marketers by the PPPRA.
Speaking to executives of Nigeria’s oil marketing companies at a Stakeholders’ meeting in Abuja, the Executive Secretary of PPPRA, Mr. Reginald Stanley directed that henceforth, at least 80% truck-out compliance is now a condition precedent for processing the SDS under the PSF Scheme.
To facilitate robust operation, which would further consolidate upon the gains of 2012 policy intervention in the Downstream, Reginald Stanley reiterated that the PPPRA would take all necessary steps to ensure that oil marketers provide unhindered access to Inspectors nominated by the Agency, in addition to providing access for Inspectors to undertake opening and closing tanks dips, as well as opening and closing meter readings at the depots.
According to him, this is in order to further curb incidents of sharp practices by some Marketers.
While reviewing the operational activities of the downstream regulatory Agency in 2012, Reginald Stanley noted that, “Operationally, the year 2012 went well despite the challenges of subsidy removal announced on January 1, 2012, as well as the several appearances at the various investigations and Committee hearings on Subsidy regimes.”
The Executive Secretary stressed that those challenges, rather being inhibitions, actually helped to strengthen both the operations and structure of PPPRA, making it emerge as one of the most productive and result-oriented MDAs in the country.
He however identified a major challenge of 2012 as “the inability to redeem SDS, immediately after the stipulated 45 days, thus impairing Marketers’ capacity to import.”
While announcing that the Agency has successfully conducted a nation-wide stock-taking exercise on January 1, 2013, he warned Marketers that, “The practice of discharging and trucking simultaneously is against established industry practice and henceforth shall attract appropriate sanctions except, where such is required to create ullage in which case conditions for floating operations are met.
He further announced that tracking of IMO number of vessels by Inspectors and the Agency represents additional tool being introduced to check malpractices in the subsector.
The PPPRA’s helmsman also noted the dangers associated with product adulteration, especially as it relates to ATK and condemned such in very strong terms.
He added that the PPPRA shall “henceforth conduct periodic checks on active Tank Farms to ensure that facilities used for back-loading are demobilized at all times, in addition to ensuring Marketers compliance to set guidelines.”
Stanley called on Inspectors to ensure that Marketers are not hoarding products in their tank farm by refusing to truck-out and such should be reported to the Agency for appropriate sanctions.
The Executive Secretary further tasked the petroleum marketers to be proactive and discharge their responsibilities to the nation with total commitment and ensure honesty and transparency, as there will be no space for non performers in the year 2013.
He also commended the efforts of Marketers for the increase in their asset base and improved facilities in the sector.
According to the PPPRA boss, the functionality or otherwise of any Marketer in the year 2013 depends on the assets without which they will not function optimally.
He reminded the Marketers that he ‘foresees more facilities coming up this year and more players coming on board’. He therefore assured them that operational activities in this year would be participatory; noting that any issues that comes up would be attended to promptly.
As part of effort for openness and transparency which the Agency has adopted as its buzz-word, he reeled out the names of Marketing firms that performed above 5o% based on the Agency’s records, while Marketers that performed below the benchmark were given up till February 15, 2013 to deliver their volumes, or stand the risk of being heavily sanctioned. The Executive Secretary reiterated that, the year 2013 would witness zero-tolerant for non-performers.
On the issue of Laycans, Marketers were advised to strictly adhere to allocated Laycans.
The PPPRA explained that, “The whole idea of Laycans is to spread delivery along allowable windows, in order to avoid clogging the system with products, while helping the Agency to situate them”.
He noted that Laycans “is operational and if for any reason any Marketer has issue with the allocated Laycan and feels otherwise, such should always inform the Agency,” he concluded.
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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