Oil
Shell Tells Nigeria of Interest in Buying Some Chevron Oil Blocks
LONDON -Royal Dutch Shell PLC has notified the Nigerian government that it is interested in buying some of U.S. firm Chevron Corp.’s Nigeria oil licenses, said a senior Nigerian government official Thursday.
The move would be a rare acquisition by an international energy company in Nigeria, where oil companies have in recent years generally exited acreage amid mounting security risks. It could also herald Shell’s exit from long-dormant oil assets in the Ogoniland region, where strident local opposition to its presence has prevented the company from producing oil since the 1990s.
“Shell has signalled it wants to sell some blocks,” the government official said. “Shell is also interested in Chevron blocks in the swamps.”
Shell said Thursday that it is carrying out a “strategic portfolio review” that could lead it to sell leases in the eastern Niger Delta that currently give the company between 80,000 and 100,000 barrels a day of oil equivalent.
Shell Chief Executive Peter Voser said that while Shell would reduce its presence in some parts of the Delta, particularly the east where “sabotage is clearly a great concern to us,” it would still invest in others.
“We will not leave the onshore completely,” said Mr. Voser. “In the more pure oil play, in the eastern part, we will be less represented over time, but it doesn’t mean we go out of onshore.”
The Anglo-Dutch oil company has put four of its own Niger Delta oil blocks up for sale, including two oil blocks in Ogoniland, two people close to the sale process said.
“Shell has informed potentially interested local players that the blocks OML 13, 16, 71 and 72 are for sale,” said one of the people, adding that the sales could fetch between $1 billion and $1.5 billion in total.
Buying Chevron’s blocks would effectively allow Shell to reduce its presence in the more challenging areas while retaining enough assets to feed Shell’s existing pipelines. Blocks OML 13 and 16 lie in Ogoniland, where opposition following Nigeria’s execution of local environment campaigner Ken Saro-Wiwa in 1995 has played a large part in preventing the company from resuming production.
Shell has already sold off other assets in the Niger Delta, where it has maintained the longest presence of any foreign oil company. Last year, Shell agreed to sell its most prolific oil block to a local consortium backed by U.K. explorer Heritage Oil HOIL.LN -1.20% PLC (HOIL.LN) for $850 million.
Shell’s local joint venture doesn’t want to leave the Delta region, however, said a person familiar with Shell’s thinking.
The Shell-led joint venture, Shell Petroleum Development Company of Nigeria, could put Chevron’s assets in the region to good use, he said.
“Chevron’s fields are better secured and still have plenty of oil in them,” the person said.
Shell is the operator of SPDC’s assets and owns 30% of the joint venture. Its partners include the state-owned Nigerian National Petroleum Corp. with a 55% stake, France’s Total SA (TOT) with 10% and Italian firm Eni with 5%.
Chevron and Total declined to comment, and Eni wasn’t immediately available for comment.
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.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
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.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
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.
BREAKING: Hundeyin Surrenders To Ribadu
Massive Blaze Razes Shops In Anambra Market, Millions Lost
Isanlu-Fulani Crisis: Gov Ododo Holds Emergency Security Meeting
American Woman Shares Her Experience With Nigerian Romance Scams
DHL Cargo Plane Crashes Near Vilnius Airport, Killing One Crew Member
Why Oyedepo’s Jet Can’t Leave Private Airstrip Without Govt’s Clearance – Keyamo
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
