Oil
Sylva performs groundbreaking of Atlantic Energy 2000bpd modular refinery
Precious ADELOLA
ABUJA-THE Minister of State for Petroleum Resources, Chief Timipre Sylva on Saturday performed the groundbreaking ceremony of an Energy Infrastructure Park being developed by Atlantic International Refinery and Petrochemical Limited in partnership with the Nigerian Content Development and Monitoring Board (NCDMB) at Okpoama, Brass Local Government Area, Bayelsa State.
The Minister also commissioned three corporate social responsibility (CSR) projects executed by the Atlantic International Refinery for the people of the Okpoama Kingdom. The projects included the Okpoama Cottage Hospital, Iseleama Health Centre and Okpoama Community Water Works.
Speaking at the event, the Minister hinted that one of the best strategies to curb restiveness in the Niger Delta region is to create jobs and opportunities for youths. He added that part of his mandate is to collaborate with players in the private sector to establish oil and gas facilities, including modular refineries, which would ensure value addition to the crude oil, products sufficiency, create jobs in-country and curb pipeline vandalism.
He charged the people of Okpoama Kingdom and other parts of the Niger Delta to create an investment friendly environment that would attract other oil and gas and manufacturing facilities to the region.
The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote in his remarks, listed the various elements of the Energy Park project to include a 2000 barrels per day modular refinery, power plant, and jetty. He added that the project will serve as catalysts for infrastructural development and spur of economic activities in Bayelsa State.
He explained that the Board decided to partner with Atlantic International Refinery and Petrochemical Ltd to develop the Energy Park in line with its mandate of catalyzing oil and gas activities.
He confirmed that the Atlantic modular refinery is the fourth in the series of the Board’s partnerships to contribute to the implementation of the Modular Refinery aspect of the Federal Government’s Refining Roadmap.
The previous partnership included the Waltersmith 5000 barrels per day modular refinery at Ibigwe, Imo State, the 12,000 barrels per day Hydroskimming modular refinery being constructed by Azikel Petroleum Limited at Obunagha, Gbarain, Bayelsa State and the 2,500bpd modular refinery being developed by Duport Midstream Company as part of its Energy Park in Egbokor, Edo State.
According to the Executive Secretary, “with the recent commissioning of the Waltersmith Refinery, we have proven that the concept is doable with the right dedication and partnership models. Our focus now is to ensure the completion of the remaining three modular refineries under construction”.
Acknowledging that the location of the Atlantic Modular refinery was challenging, the Executive Secretary said “we believe that with the capability of our partner, and especially the support of our stakeholders in the Community, the State, and the nation at large, we will come back next year to commission the project”.
Also speaking, Chairman/CEO of Atlantic International Refinery and Petrochemicals Limited, Dr. Akintoye Akindele stated that the company is building the first integrated energy park, comprising a scalable and environmental friendly modular refinery, power generation and distribution plant and a world class jetty services in Brass, Bayelsa state.
He added that the park will not only transform the economic activity in Brass but will also act as a commercial hub for logistics in Niger Delta, unlocking significant developmental in Brass community and its environs.
He thanked His Royal Majesty, the Amanyanabo of Okpoama Kingdom, King Ebitimi E. Banigo (OFR) for his royal blessings and hosting the project in his Kingdom. He also thanked the Honourable Minister of State for Petroleum Resources and the Executive Secretary, NCDMB, for their unwavering support towards the actualization of the project.
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.