Oil
SHELL collaborates with PETAN, foreign manufacturers on Nigerian content
By Yemie ADEOYE
LAGOS-THE development of indigenous manpower for the oil and gas industry received a boost last Friday as 40 engineering and geosciences graduates passed out from a one-year internship programme organised by the Shell Petroleum Development Company of Nigeria (SPDC) operated Joint Venture and Petroleum Technology Association of Nigeria (PETAN), a group of indigenous oilfield service companies.
The milestone occurred on the same day that SPDC JV performed the ground-breaking ceremony of its Original Equipment Manufacturers (OEM) domestication initiative, whereby the manufacturers and their Nigerian partners have been allocated land to set up local assembly plants and service centres at the Shell Industrial Area in Port Harcourt.
A cross section of the 2014/2015 beneficiaries of the Shell Petroleum Development Company of Nigeria Limited JV Internship programme at their graduation on Friday, October 30, 2015. The Annual Programme is sponsored by the SPDC JV in collaboration with the Petroleum Technology Association of Nigeria, PETAN, to build capacity of Nigerian Geology and Engineering graduates.
The internship programme introduced by SPDC JV in 2014 to support manpower development in critical disciplines equips graduates with vital industry experience for employment and continues with another batch of 40 graduates who are now attached to 20 PETAN companies.
In an address at the ceremony, Managing Director of the SPDC and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, said: “I’m pleased at the successful completion of the programme by the first batch of 40 graduates who worked with 12 PETAN member companies. I’m even more pleased that, as envisaged, a number of them have been employed by the partner companies and others.” The MD was represented by SPDC’s General Manager, Projects, Toyin Olagunju.
Guy Kent, Senior Procurement Manager, Shell Upstream Nigeria said: “We are committed to developing Nigerian capability not because it feels good, but because it also makes good business sense. The partnership with PETAN is about giving the right people the chance to learn and actually start to contribute to the industry. It is the first rung of the ladder of development.”
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) represented by the Deputy Manager Human Capital Development, Mrs Michele Aiyegbusi, commended the SPDC JV for the internship initiative. She said: ‘What we see here today is the sort of thing that NCDMB will want to see in the industry—the collaboration between the operators and the service providers. NCDMB also runs an internship programme specifically in the earth sciences.”
Meanwhile, three foreign equipment manufacturers and their Nigerian partners participated in the ground-breaking ceremony. In 2012, SPDC entered into an agreement with the original equipment manufacturers and their Nigerian partners. Subsequently, land was allocated to them at the Shell Industrial Area in Port Harcourt. The ground-breaking ceremony marks site readiness and construction of the first three assembly and service facilities for valves, low voltage electrical panels, switch gears and instrumentation equipment.
“The ground-breaking ceremony is a significant head start towards the development of mini industrial parks,” said Mr. Okunbor at the ceremony. “It is a major milestone in our aspiration to domesticate our sources of supply as part of our Nigerian content journey to keep them closer to our operations and benefit from the shorter supply chain.”
The Executive Secretary, NCDMB, Mr. Denzil Kentebe, said: “SPDC was one of the first stakeholders to obtain approved from the Board for the OEM domestication programme. The vision ties into a similar plan by NCDMB to establish industrial packs in Yenagoa, Owerri and Calabar.”
The General Manager, Nigerian Content Development of SPDC, Mr. Chiedu Oba, in his remarks described the internship and the OEM domestication initiatives as a demonstration of “the long term commitment of Shell Companies in Nigeria to Nigerian content development. It is a key sourcing principle that is woven into the fabric of our business”.
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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