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SWAP: Aiteo ends oil deal with NNPC’s Duke Oil

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By Kunle KALEJAYE
 
The Board of AITEO Group has taken the decision to wind down the Duke Oil SWAP and Offshore Processing Agreement, OPA contract promptly and bring its business relationship with Duke Oil to a closure.
 
The company’s decision to end the deal is sequel to reports making rounds alleging that they (Aiteo) apparently gulped down the sum of $150 million in the deal which according to Aiteo is not only baseless but also aimed to slur the name of the company.
 
According to a statement signed ‎Aiteo’s spokesperson, Ms Aiki Odiawa said as a corporate entity whose success has been as a result of dynamism, foresightedness and fortitude, it is pertinent that clarification is made to the general public on the position of the company in the SWAP deal. 
 
She said in the statement that her company (Aiteo) in collaboration with Duke Oil participated in both the SWAP crude oil-for-refined-products-exchange programme and Offshore Processing Agreement (OPA), which are both governed by robust legally binding agreements with provisions for strict commercial considerations backed by the necessary financial instruments to mitigate and manage potential risks of transactions of this nature. 
 
Aiteo Oil Tank Farm

Aiteo Oil Tank Farm

The statement reads:” AITEO’s participation in the programmes was premised upon AITEO having fulfilled all requirements precedent to being nominated and gaining the objective confidence of the Management of NNPC on its strong competence and ability to deliver on the said contracts as and when due.

“Never at any point has AITEO unfairly exploited its commercial relationship with Nigerian National Petroleum Corporation, NNPC under the SWAP or OPA contracts.”
Odiawa also explained that further allegations by the online media is that by late March,2015, AITEO was more than 20 cargoes in arrears on the new deal which she described as “completely false.”
“In fulfilment of our outstanding obligation on the Duke Oil SWAP and contracts, we have decided to nominate two cargo deliveries to fully liquidate any outstanding deliveries due to Pipeline and Products Marketing Company, PPMC.
“However, Should there still exist a deficit after reconciling positions, where there is an over delivery, PPMC will issue a credit note in favour of AITEO and if AITEO should have any outstanding, this will either be deducted from on-going cash calls due AITEO from AITEO/NNPC joint venture or an outright remittance as the case may be.
“The Board of AITEO has taken the decision to wind down this Duke Oil SWAP and OPA contract promptly and bring its business relationship with Duke Oil to a closure,” Odiawa said.
Commenting further, Aiteo spokesperson said “it should be noted that AITEO’s OPA with NNPC requires a reconciliation meeting to take place between the parties on a quarterly basis for all crude oil loaded and refined products delivered.
“In a letter dated 9th June 2015, NNPC advised AITEO to schedule a reconciliation meeting with PPMC during which it intends to reconcile the full OPA position to determine over-deliveries and under-deliveries as it relates to each party. In light of this development, the fully reconciled position should be determined soon.”
Odiawa therefore noted that allegations by the online media that AITEO “apparently gulped down $150million” are not only baseless but also aimed to slur the name of the company.
She added that Aiteo promptly obliged to the request of Department of State Security, DSS and Economic and Financial Crimes Commission, EFFC to submit relevant documents and invitation for clarification regarding their participation in OPA and SWAP programmes.
‎Odiawa  however said the company (Aiteo) is  surprised that a matter of fact-find within the purview of the investigative agencies has now been sensationalized by various parties beyond proportion and largely out of context to mislead the public stressing tha none of the company’s Directors or Executive Management has been charged of any offence in any court of law and nor has any restraint order been issued to curtail international travel of any company official.
“AITEO finds it libelous that Sahara Reporters accused the company of having “completely cooked their records”. AITEO’s accounts are audited by PWC, one of the foremost global accounting and audit firms in the world. At all times AITEO has complied with its statutory obligations and kept complete and up-to-date accounting records.
“Allegations by Sahara Reporters of AITEO being a front for politicians are not only unfounded but also outrageous. AITEO GROUP emerged by share corporate and entrepreneurial organic evolution from a small Nigerian Oil & Gas player with a clear vision and growth trajectory to deepen its service range, product mix, geographical spread and people dynamics under a well defined strategy from the outset in 1999.
“At no time has the company, directly or indirectly represented the interests of President Goodluck Jonathan or Diezani Allison-Mudueke the former Nigerian Petroleum Resources Minister.
“Whilst we view any adverse publication of AITEO’s participation in the SWAP and OPA programmes as malicious and scandalous with the sole objective of maligning both our company and the person of one of our founders, AITEO will use its private sector leadership capacity to positively contribute to Nigerian economic transformation and African prosperity.
“AITEO has engaged its Nigerian Solicitors and global legal counsel to examine all publications against the company with a view of determining appropriate legal action,” Aiki Odiawa stated.

Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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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.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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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.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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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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