Oil
Serbia leader calls Gazprom pipeline vital
BELGRADE — Gazprom’s South Stream pipeline, which will bypass Ukraine to transport Russian natural gas to Europe, is vital for Serbia because it will provide jobs and boost the Balkan country’s regional position, the prime minister said Sunday, insisting that traditionally close ties with Russia will not affect his nation’s bid to join the European Union.
In an interview with the Associated Press at the formal start of the pipeline construction work in Serbia on Sunday, Ivica Dacic said that Russia, which has supported Serbia politically in a dispute with the West over Kosovo, does not object to the country’s effort at EU membership. He also suggested that Western powers have in fact pushed Serbia closer to Russia.
“Those (in the West) who criticize Serbia for its closeness to Russia and for our partnership with Russia, should ask themselves why they haven’t offered such relations to Serbia?” Dacic said. “I keep telling the West: Serbia needs a strategic partner in the West too … But, they are not interested at all.”
Dacic also dismissed allegations by Serbia’s pro-Western opposition parties that the 2008 energy deal, under which Serbia sold 51 percent of its oil and gas monopoly to Gazprom as part of the South Stream agreement, paved the way for Russian economic and political dominance of the country. He said that critics “are afraid of Russia’s presence in this part of the world.”
The trans-European pipeline is expected to start operating in December 2015. It is expected to ship up to 63 billion cubic meters (2 trillion cubic feet) of gas annually to Bulgaria, Serbia, Hungary, Slovenia, Austria and Italy in one leg and Croatia, Macedonia, Greece and Turkey in a second.
The pipeline’s route bypasses transit nation Ukraine. Pricing disputes between Russian and Ukraine have caused major disruptions in recent years, cutting gas for millions of customers.
Serbia’s state television on Sunday aired live the pipeline inauguration ceremony, attended by top officials and Gazprom chief Alexey Miller. President Tomislav Nikolic formally gave the go-ahead in a video broadcast from the capital, Belgrade.
Dacic said the stretch of pipeline in Serbia will cost about 2 billion euros ($2.7 billion). It will be financed by Gazprom, while Serbia will pay back its share later through pipeline transit taxes, he added. About 20,000 people will work on construction and other jobs around the pipeline, including building gas storage and gas energy plants, Dacic said.
“This is vital for Serbia’s energy safety … Serbia will become an energy hub,” Dacic insisted. “We will be part of a pan-European project; this is not just a Russian project.”
Dacic said that Serbia is willing for one of the pipeline branches go to Kosovo, its former province, which declared independence in 2008. Serbia has refused to recognize the split, but it has moved to normalize relations to move closer to EU membership — Belgrade and Pristina signed an EU-brokered agreement in April.
Russia has backed Serbia’s claim over Kosovo, while the United States and most EU nations have recognized Kosovo’s independence. Russia has been Serbia’s key ally in preventing Kosovo from gaining full statehood in the United Nations.
Dacic described Serbia’s ties with Russia as “friendly and relations of strategic partnership in economic and political issues.”
“We wish to unite our two strategic goals: partner relations with the Russian federation and EU membership,” he said, adding that Serbia would also want closer relations with Washington.
“But, it takes two for a partnership,” he said.
– BLOOMBERG
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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