Oil
Shell sells Forties at higher level; Vitol offers Qua Iboe crude
LONDON – Royal Dutch Shell Plc sold North Sea Forties crude at a higher level than the last trade on Nov. 19. There were no bids or offers for Russian Urals, while Vitol Group didn’t manage to sell Nigerian Qua Iboe in the Platts pricing window.
Loadings of three Forties crude cargoes were advanced by one to five days, according to two people with knowledge of the loading program, asking not to be identified because the information is confidential.pix paul lewis; shell petrol station
North Sea
Shell sold to BP Plc Forties for loading Dec. 16 to Dec. 18 at a 55-cent a barrel premium to Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts window. That’s 45 cents more than the Nov. 19 trade between Shell and Total SA.
Shell also offered the U.K. grade for Dec. 10 to Dec. 12 at Dated Brent plus 20 cents, while withdrawing an offer for Dec. 13 to Dec. 15 at a premium of 30 cents.
Petroineos, a joint venture between PetroChina Co. and Ineos Group AG, offered Dec. 9 to Dec. 11 Forties at 30 cents more than the benchmark.
There were no bids or offers for Oseberg, Ekofisk or Brent in the Platts window.
Brent for January settlement traded at $110.77 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $110.71 in the previous session. The February contract was at $110.31, a discount of 46 cents to January.
Forties F1214 and F1216 will now load one day earlier on Dec. 20 to Dec. 22 and Dec. 23 to Dec. 25, respectively. Lot F1215 is scheduled for Dec. 17 to Dec. 19, five days ahead of the original shipping plan.
The U.K.’s Huntington field is to return to maximum capacity of about 30,000 barrels of oil equivalent a day by the end of the year, stakeholder Norwegian Energy Co. said in its third quarter results today. Production was restricted to about 12,500 barrels since Sept. 9 and gradually increased since the beginning of this month. The field’s output is currently about 23,000 barrels a day, Noreco said.
Urals/Mediterranean
OAO Surgutneftegas is offering three Urals crude cargoes in a tender closing tomorrow. The company is offering two 100,000-ton cargoes for loading Dec. 22 to Dec. 23 from Primorsk and Dec. 24 to Dec. 25 from Ust-Luga, according to two people who received the tender document, asking not to be identified because the information is confidential.
The company is also offering 140,000 tons of Urals for loading from Novorossiysk on Dec. 27 to Dec. 28. The position was unallocated in the final loading program released yesterday.
West Africa
Vitol failed to sell 950,000 barrels of Qua Iboe for loading Dec. 19 to Dec. 20 from Nigeria at $1.95 a barrel premium to Dated Brent, the survey showed.
Refiner Indian Oil Corp. bought 1 million barrels each of Bonny Light and EA grade from Shell via a tender, according to two people who participate in the market, asking not to be identified because the information is confidential. The company has bought a total of 9 million barrels of Nigerian crudes for loading in January.
– BLOOMBERG
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.