Oil
Petroleum Industry Bill Takes Centre Stage
………As Alison-Madueke Leads Nigeria’s Contingent to OTC 2013
ABUJA: The proposed oil industry reform law currently before the National Assembly for legislative action would form the focal point of global discourse at the forth coming Offshore Technology Conference, OTC 2013 billed for Houston, Texas, United States from 6-9 May, 2013.
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke is billed to deliver the Keynote Address at the global oil meet described as the oil and gas industry equivalent of the Olympics.
Receiving a delegation of Top Management of ExxonMobil Nigeria led by its Managing Director/Chairman Mark Ward, Mrs. Alison-Madueke noted that apart from offering a platform for the propagation of the central objective of the PIB, the OTC serves as a ready platform for indigenous operators to up the ante on technology trends in the industry.
“ The OTC being one of the world’s foremost gatherings in technology as far as the oil and gas industry is concerned, clearly sets the pace in what happens on the technology front and this is a highly technology driven industry. So participation in the OTC gives us a lot of understanding, provide platform for knowledge transfer and above all exposure for our indigenous operators,’’ the Minister said.
Mrs. Alison-Madueke stated that the experience garnered over the years has impacted positively on the productivity and general output of indigenous operators and service providers.
Presenting the Minister with the mantle to deliver the Keynote address, Mr. Ward showered encomiums on Mrs. Alison-Madueke for her sterling leadership of the industry in Nigeria. This Year’s OTC Keynote Address is being sponsored by ExxonMobil.
“We are here to formally present the Honorable Minister with the Keynote Address at the Offshore Technology Conference. The OTC is one of the most renowned conferences in the World. As a Company we are looking for who can describe some of the opportunities that exist in the World especially in the African Continent. We landed on the Honourable Minister as the most qualified and the most valuable voice in that discussion,’’ Ward said.
Founded in 1969, the OTC is held annually in Houston’s Reliant Center and it is the offshore oil and gas industry’s foremost event for the development of hydrocarbon resources in the areas of drilling, environmental protection, exploration, production development, innovation and technology.
The OTC’s daily technical programme of presentations and the innovative breakfast and lunch sessions provide a dynamic forum for discussing the technical challenges facing the offshore oil and gas industry.
Areas of Interest for Offshore Technology 2013 include: Exploration and Production, Field Development Concepts, Floater and Mooring Systems, Geotechnical Sampling and Survey, Marine Geoscience and Geohazards, Materials Technology, Ocean Engineering Resources, Offshore Pipelines, Riser Systems and Subsea Production and Processing Systems
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.