Oil
PTDF revokes contracts over abandonment on NIPPS project
The PTDF boss further disclosed that the Fund has so far spent about N17 billion in the educational, organizational and infrastructural upgrade of the Petroleum Training Institute, Effurun, Warri for enhanced training of middle-level manpower for the industry.
The Executive Secretary of the Petroleum Technology Development Fund, PTDF, Engr. Muttaqua Rabe Darma has ordered the revocation of contracts of two contractors for abandoning their jobs at the site of the National Institute of Petroleum Policy and Strategy.
Darma gave the order after an inspection visit on Thursday to the site of the project and meeting with some of the contractors on the project site located on over 100 hectare of land in Kaduna, Kaduna State.
Speaking to journalists at the end of the meeting, Darma stated that the two contractors, Dekit Construction Nigeria Ltd and Messrs Garcos Nigeria Ltd, had brought so much embarrassment to the Fund by failing to meet their obligations to construct roads and residential accommodation within the Institute even after collecting reasonable advance payments on the over N10.4 billion project.
He said, “This project has been behind schedule for more than a year, and some of the contractors are not showing commitment to its completion. In fact, these two have outrightly abandoned the site after collection of their advance payment.
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“We have analysed the commitment of the contractors and found out that more than 80 percent of the contractors on site were not committed to achieving the project. They just collected their advance payment and disappeared into thin air.”
Darma noted that PTDF was not under any obligation to give advance payment, but went on to do so to ensure that the work is done professionally and on time.
“One of the sub-contractors working with Dekit Construction has invited taken the matter to the Independent Corrupt and other Related Practices Commission (ICPC), and it has caused us so much embarrassment,” he stated.
He added that the Fund was would pursue legal determination as well as accounting determination of the revoked contracts, according to the contract management procedure.
He further disclosed that the Fund has issued letter of warnings to more than half of the contractors, indicating its displeasure with the pace of work and demanding more commitment otherwise they would be dropped.
Darma noted that the contractors have given numerous reasons for the delay in the completion of the project including the beginning of the rainy season, the post-election violence in parts of the North, and threats by some of the land owners over compensation issues.
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“We have listened to their worries and have received their assurance that they would give more time and resources towards the achievement of the first phase of the project by the beginning of next year. In fact, we have told them that the first phase of the project must be completed on or before March 31, 2012, preparatory for commissioning between April and June of next year,” he added.
The Federal Executive Council had in 2009 approved about N15 billion for the upgrade of the 16-year old National College of Petroleum Studies, in Kaduna, Kaduna State, which has been renamed National Institute for Petroleum Policy and Strategy.
Darma explained that the project when completed will become the flagship institution for training senior management personnel in the industry to become general management staff.
He said, “This institute would represent to the industry what the National Institute for Policy and Strategic Studies is to the public service and the National Defence College to the military.”
Darma further disclosed that the upgrade of the college, originally established by the Nigerian National Petroleum Corporation (NNPC) in 1992, would involve equipping it with relevant facilities, including a world-class laboratory for analytical work and research in oil as gas.
PTDF had set a target of 97 weeks from July 1, 2009 for the completion and commissioning of the project to upgrade the National College of Petroleum Studies.
Darma noted at the signing of consultancy agreements for the supervision of the project by selected consultants, that the deadline was derived from the work plan submitted by the contractors considered for the award of contracts for the project.
He urged the contractors and consultants to apply professional skills to ensure that the project is delivered on time and in good quality.
Darma gave assurance that the Fund would not delay in paying contractors as and when certificates are raised having regard to the provisions of the Public Procurement Act.
The PTDF boss further disclosed that the Fund has so far spent about N17 billion in the educational, organizational and infrastructural upgrade of the Petroleum Training Institute, Effurun, Warri for enhanced training of middle-level manpower for the 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.
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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