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PIB dead with‎ 7th assembly- Oil Experts

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L- R. Eloghosa Iyamu, a student of the University of Benin, former Adviser to the President on Petroleum, Dr Emmanuel Egbogah inspecting a car built by students of the institution for the Shell Eco-marathon competition at the 2015 conference and exhibition of the Society of Engineers in Lagos.

L- R. Eloghosa Iyamu, a student of the University of Benin, former Adviser to the President on Petroleum, Dr Emmanuel Egbogah inspecting a car built by students of the institution for the Shell Eco-marathon competition at the 2015 conference and exhibition of the Society of Engineers in Lagos.

….As Seplat targets 500m scf in 2017

By Kunle Kalejaye 
LAGOS-Nigeria’s controversial Petroleum Industry Bill, PIB which when passed into law will unlock the full potential of the country’s petroleum industry is said to be dead with 7th National Assembly according to industry experts.
Some industry experts who spoke during a Marginal Field Workshop section organised by Society of Petroleum Engineers‎, SPE 2015 in Lagos argued that the 7th NASS failure to pass the bill is a re-occurring development that has characterised passed assemblies which have failed pass the bill since it was introduced in 2008.
They maintained that none passage of the bill will only increase the current challenges operators especially in the upstream sector, are confronted with
However, Dr. Emmanuel Egboga urged the 8th NASS to revisit the bill, strike unclear terms and expedite its passage.
Regardless of the none passage of PIB, the Chief Executive Officer of Seplat Petroleum Mr. Austin Avuru said his company is poised to increased their gas dome‎stic supply from 300 million Standard Cubic Feet to 500 million scf by the end of 2017.
 According to him, in 2010 when his company inherited assets from Shell, the installed gas processing capacity was 120 million standard cubic feet (SCF) per day, while actually delivery was only 60 million standard cubic feet per day.
“We came in, inherited these facilities and set out to expand these facilities because we saw a future in gas three years ago, before people saw it. Today, we have revamped the existing 120million – 130 million standard cubic feet per day and have built new 150 million standard cubic feet per day.
” Today, our total processing capacity is 300 million standard cubic feet of gas per day but we are actually delivering between 240 million and 280 million SCF per day into the domestic market,” he said.
“There will be a second phase in our gas project, where we are going to install additional 225 million SCF processing capacity in addition to what we have. So, that is why I say that by the end 2017 we will have a capacity to process 500 million SCF of gas per day,” Avuru added.
Avuru stressed the need for increased exploration for more gas reserves adding than if an updated audit of Nigeria’s gas reserve is done, it will put the nation’s gas reserves at 120 trillion cubic feet (tcf) instead of the 170 tcf being touted for over a decade now.
He noted that if Nigeria achieves 1.2 million barrels per day crude oil refining capacity in addition to a natural gas production of about 7.3 billion cubic feet per day of gas, that will translate to about 32,000 megawatts of power that would enable the country “become a massive exporter of cement, fertilizer, and petrochemical products.”
According to him, these developments will turn the oil and gas sector into an enabler of massive industrial development instead of just being a mere source of revenue that contributes less than 15 percent to the country’s GDP”.
Avuru called on the Nigerian National Petroleum Corporation (NNPC)  to sell all its four refineries instead of doing perpetual Turn Around Maintenance (TAM).
 “Nigeria can easily achieve a refining capacity of 1.2 million barrels of oil per day (bpd) if Dangote’s 600,000 bpd refinery comes online in addition to the 445,000 bpd nameplate of all the NNPC refineries which if sold to competent hands would achieve its optimum production capacity,” Avuru said.

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.

Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones

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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