Oil
Tanzania to open oil, gas bids next year
DODOMA, TANZANIA – Schedules-Offshore-Licencing-Round-for-September20 May 2013, Dodoma – Tanzania’s Energy and Minerals Minister, Prof Sospeter Muhongo, says the government will open bids for oil and gas exploratory licences on May 9, 2014, by which time the country would have had in place a national gas policy and legislation.
Muhongo disclosed this to members of Parliament during a seminar on the oil and gas sector that the bids would be ready after Parliament would have approved both policy and legislation.
The minister spoke in the backdrop of alleged announcement last week by the Tanzania Petroleum Development Corporation, TPDC, that Tanzania plans to offer seven deep offshore blocks and one onshore block in October at a time there was no policy and legislation to oversee the sector.
Muhongo said it was important to advertise for blocks as Tanzania was in competition for investors with other countries like Mozambique, adding that the vision was that oil production will reduce significantly during the next 50 to 70 years.
According to him, it was for this reason major energy firms globally have shifted attention to natural gas, conducting exploratory activities in various countries.
“If we say we should not advertise our exploratory blocks today, we will only invite them at a time when they have had enough of it somewhere else,” said Prof Muhongo.
He said Tanzania has fasttracked the process because several companies in the US were currently exploring for Shale gas – natural gas that is found trapped within shale formations.
“This also raises the need for Tanzania to develop its natural gas before the US finds enough Shale gas because the world’s largest economy is also one of the major markets for the hydrocarbon substance, in fact, the global fear now is that the USA may soon stop importing natural gas,” he said.
Permanent Secretary in the Ministry of Energy and Minerals, Mr Eliakim Maswi, said Nigeria had some 180 trillion cubic feet, tcf, of natural gas until 2012. However, but added that the latest data show that Mozambique now has 200 tcf while Tanzania has some 42 tcf.
“What people should know is that most of Mozambique’s gas has been found along the Ruvuma Coast to the border with Tanzania. It is a technical suicide to say we have to delay the process,” said Prof Muhongo as he assured the MPs that no poor contract would ever be signed during his time in charge of the energy and minerals ministry.
Kenya, according to him, is yet another reason for Tanzania to speed up its pace, as he said East Africa’s largest economy is currently prospecting for natural gas and that it has found some two tcf.
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.