Connect with us

Oil

PIB: Nigerian Govt explains increased Take in PSC Blocks….Says Proposed Fiscal Regime will Support Gas Master Plan

Published

on

By Joseph BAMIDELE
ABUJA: FOLLOWING several controversies trailing the recently submitted version of the Petroleum Industry Bill The Minister of Petroleum Resources and Chairperson of the Board of the Nigerian National Petroleum Corporation (NNPC), Mrs. Diezani Alison-Madueke, has thrown more light on why the Federal Government is proposing a review of the fiscal terms in the Production Sharing Contracts for deep water fields in the draft Petroleum Industry Bill currently before the National Assembly for consideration.
Speaking at the 3rd Nigeria Investment Summit held in New York under the auspices of the African Business Roundtable, Mrs. Alison-Madueke noted that the increase in government take in the Deep Offshore blocks from the current level of 61 percent to a new figure of 73 per cent was necessitated by prevailing realities in the global oil and gas industry.
 “I like to state once again that the proposed increase of Government take to about 73 percent is not only competitive but considerate when we look at the scale of other entities around the world like Norway, Indonesia and even Angola with even higher Government take,” the Minister explained.Mrs. Alison-Madueke added that based on prevailing realities in the global oil industry it was only natural to review the terms of the PSC to reflect the current trend.
The novel 1993 PSC agreement was based on $20 per barrel price for crude oil real time but records indicate that since the start of production in the PSC field’s crude prices have been on the upward swing thus the consensus to have a review of the terms.
The Petroleum Minister also stated that the new PIB provides for a refreshing fiscal regime which has strong incentives for enhanced exploration of new frontiers especially in the Inland Sedimentary Basins as well as providing strong support base for the complete activation of the Gas Master Plan. Under the new arrangement, fiscal regime is anchored on royalty and tax which is now predicated on production as opposed to terrain and investment as was previously done.
Royalty by production, as outlined in the bill, is designed to capture the output of company as opposed to its location, while creating a fair balance between small and big operators doing business in the same terrain thus giving operators the opportunity to make fair returns during field decline. It also proposes lower rates on condensate from large fields as well as ultra-deep water fields. Mrs. Alison-Madueke called on investors across the world to embrace the various business opportunities which the Nigerian oil reform law has on offer.
The high level investment roundtable with theme: Nigeria-Africa’s Frontier in the Global Economy was declared open by President Goodluck Jonathan with former British Prime Minister, Tony Blair, and erstwhile US Secretary of State, Dr. Condoleezza Rice, as special guests.
Also present were Mrs. Ngozi Okonjo-Iweala, Minister of Finance and Coordinating Minister of the Economy; Dr. Olusegun Aganga, Minister of Trade and Investment; Governor Godswill Akpabio of Akwa Ibom State; Governor Gabriel Suswan of Benue State; Alhaji Aliko Dangote and Jim Ovia among other dignitaries as well as some prominent Nigerians in the Diaspora. Earlier in his presentation, Mr. Blair commended the Federal Government for the recent initiatives embarked upon to ensure that the Nigerian economy is open to sustainable growth and effective foreign participation. This view was also echoed by Dr. Rice who called on Nigerians all over the World to support the transformational strides of the current administration.
The Shell Group has recently declared that the draft Petroleum Industry Bill, PIB, before the National Assembly, is not only lopsided, but will also frustrate current investments in Nigeria’s oil and gas industry and impede on the ability to meet set targets on power generation.
Shell’s declaration contradicts widely held belief that the PIB is tilted very much in favour of the international oil companies, IOCs, who, for decades have dictated the tone of the industry operations.
The Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu, made the declaration at the Nigerian Extractive Industry Transparency Initiative, NEITI, PIB Stakeholders Forum which held recently in Lagos.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

Published

on

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.

 

Continue Reading

Business

Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

Published

on

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.

Continue Reading

Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

Published

on

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.”

Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy

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.

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.