Oil
Shell to Complete Cleanup of Oil Spills in March
ABUJA: Shell Petroleum Development Company (SPDC) has stated that the completion of the initial clean-up of areas impacted by the various incidents of oil pills recorded so far in January 2013 by the company had been scheduled for March 2013.
In its January 2013 Monthly Spill Incident Data, which was released recently, the company said it had recorded four incidents of oil spill across the Niger Delta this month.
The four incidents, according to the company report, were caused by acts of vandalism and crude oil thieves.
Shell also disclosed that the first two oil spills occurred on swampy terrain, while the last two happened on land.
The first incident of oil spill this year occurred on January 2, 2013 when vandals ruptured the company’s 10-inch Diebu Creek – Nun River Pipeline at Onyoma and spilled nearly 100 barrels of crude oil.
The company commenced the recovery of spilled volume on January 6, 2013 and like in all other cases, initial cleanup of residual impacted area is planned for completion in March.
On January 7, the company recorded another incident on the 24-inch Nkpoku – Bomu Pipeline at Sime and completed the recovery of spilled volume on January 12.
Shell also suffered sabotage spill on January 9, along the 24-inch Bomu – Bonny Pipeline at Mogho and commenced recovery of spilled volume on January 10.
The fourth spill recorded so far this month, occurred on January 14 on the 18-inch Isimiri Pipeline at Uzuakwu and the company completed the recovery of spilled volume on January 15.
Shell said in the spill report that to provide transparency with respect to the cause and consequence of the spill, a team including relevant government agencies and SPDC was accompanied by representatives of impacted communities when they visited the sites, as quickly as possible after the leak occurs.
According to the company, the Joint Inspection Visit (JIV) “determines the spread, the volume and the cause of the spill”.
The government agencies include the Department of Petroleum Resources (DPR), the National Oil Spill Detection and Response Agency (NOSDRA), the relevant State Ministry of the Environment and the Police.
“After the cleanup, there can still be residual oil that has soaked into the soil, or oil that is sticking to vegetation. A post cleanup inspection, involving representatives from the same parties listed for JIVs, assesses whether the site needs further remediation to comply with international standards. If remediation is not required, then the spill site can be certified clean and the incident closed out,” said the report.
Remediation is a longer term process aimed at returning the site to its previous state.
According to the company, there are several ways to achieve international standards of restoration depending on whether the spill is on land or swampy terrain.
“Three methods of remediation are in use on land – Remediation by Enhanced Natural Attenuation (RENA), Remediation by Stabilisation / Solidification and Low Temperature Thermal Desorption. The RENA technique is the predominant method in use and may be applied in-situ (treating the soil on site) or ex-situ – removing the soil to be cleaned elsewhere and returned to site,” the report added.
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.