Oil
Shell: Group set to appeal judgment on Niger Delta oil spills
PORT HARCOURT – Friends of the Earth, an NGO, said on Wednesday that it would appeal against the judgment of a High Court at The Hague which absolved Shell of responsibility in the 2004, 2005 and 2008 oil spills in two Niger Delta communities.
Four farmers from the Niger Delta region had sued Shell at The Hague, Switzerland, for oil spills which destroyed their farmlands and fish ponds during the period under review.
Joined in the suit as plaintiffs were Elder Friday Apkan from Ikot Ada Udo, Ikot Abasi Local government of Akwa Ibom , Chief Fidelis Oguru and Mr Alali Efanga, from Oruma in Bayelsa and Chief Benson Barizaa Tete-Dooh from Goi,Gokan Local Government Area of Rivers.
Mr Chima Williams, the group’s Head of Legal Department, however, told the News Agency of Nigeria, NAN, on Wednesday in Port Harcourt that the organisation was satisfied with a section of the judgment with regard to the Ikot Ada Udo oil spill in Akwa Ibom.
NAN recalls that the court at The Hague had ruled that Shell was liable for negligence in the spill which occurred in Ikot Ada Udo Local Government but that the spills in Oruma community in Bayelsa and Goi in Rivers were due to sabotage.
Chima said, however, that the judgment which favoured Ikot Udo community in Akwa Ibom was an indication that the multinational oil corporations could be held liable for their conducts in host communities.
“We are happy with the judgment as it affects Ikot AdaUdo community. We know that it has set a new global standard in terms of corporate accountability and a new legal regime for the conduct of multinational corporations in their host communities.
“By this judgment, they (multinationals) can be held liable in their home countries for their conduct in host communities.”
Williams said the group would soon file an appeal against the judgment as it affects the Oruma and Goi communities before a higher court in Netherlands.
Said he: “We are still equally in a way happy with the totality of the judgment because we have already won the greatest victory which is moral victory.
“The case in itself has put the plight of Nigerian communities in the hands of multinational corporations in the global spotlight.
“Before now, many people were not aware of the happening in the Niger Delta communities as a result of oil extractive activities.
“But today, it is known all over the world. So, that is already a great victory for us.
“Secondly, a global standard, in terms of jurisdictional question have been set that communities or citizens from poor countries or less advanced countries or even advanced countries where multinational companies are operating , can challenge the conduct of such companies in their home countries.”
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas 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.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
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.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
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.