Oil
Total Announces Load-Out of Ofon Phase 2 process platform
By Joseph BAMIDELE
LAGOS – The Ofon Phase 2 process platform (OFP2) is on its way to the Ofon field located in the Oil Mining Lease (OML) 102, 50km off the coast of Nigeria in 40m water depth. The field is owned by Total E&P Nigeria Limited (TEPNG) 40% in partnership with the Nigerian National Petroleum Corporation (NNPC) 60%.
This was contained in a statement issued by the company and signed by Charles Ogan, Deputy General Manager, Policy, Media & Coordination a copy of which was made available to Biztellers in Lagos.
The statement reads in part that the sail-away ceremony for the OFP2 was performed at the Hyundai Heavy Industries (HHI) yard in Ulsan, South Korea on Friday November 22, 2013 by the Deputy Head of Mission of the Nigerian Embassy in Korea, Ambassador Salihu Ahmed and his wife Michelle, Deputy Managing Director, TEPNG Port Harcourt District, Mr. Nicolas Brunet, Executive Director, TEPNG Port Harcourt District, Mr. Patrick NGENE, TEPNG OFON 2 Project General Manager, Mr. Emmanuel Hyest, TEPNG OFON 2 Company Representative in Ulsan, Mr. Jean-Marc Pecquois and the Senior Executive vice President and Chief Operating Officer, HHI, Mr. J.D Kim. The impressive ceremony was also witnessed by other officials from Total, NAPIMS, DPR and HHI.
Commenting on the development, Ambassador Ahmed said “The successful completion of this platform is a further demonstration of the excellent relationship between Nigeria and the Republic of Korea.
TEPNG’s Deputy Managing Director, Mr. Nicolas Brunet who led the Total delegation congratulated the project team for“achieving five million man-hours without loss time injury (LTI)” and expressed Total’s appreciation to NNPC/NAPIMS and the DPR for the supportive roles they played in the actualization of the project.
In a welcome address Mr. J.D Kim remarked that the contract for the 4-levels platform with weight of 16,000 metric tons was awarded to HHI in 2007 and noted with admiration that there was no Loss Time Injury (LTI) from start to finish of the construction. He reaffirmed the resolve of the company to complete the remaining works including hook-up without any LTI.
The main objectives of the OFP 2 project are to “stop flaring, monetize the gas to NLNG plant at Bonny via Amenam (another TEPNG facility), develop additional reserves while producing the remaining reserves in Ofon phase 1 and perform water injection to re-pressurize the different reservoirs” Mr. Patrick NGENE explained in a vote of thanks later at the commemorative lunch.
The Ofon Phase 2 Process Platform (OFP2) project was initially sanctioned in December 2006 and two contracts awarded in 2007: the EPCC1 to Hyundai Heavy Industries (HHI) of Korea for the construction of the OFP2 deck, and T&17 to Technip for the deck’s transportation and installation. In September 2011, the remaining five EPC contracts were awarded to Niger dock (EPC2: Wellhead Platforms), Subsea-7/Globestar (EPC3: Sealines), Eiffage (EPC4: Living Quarters), Ponticelli (EPC5: Tie-ins to existing platform) and Saipem (EPC8: OFP2 jacket).
Under the OFP 2 project, the following new facilities are to be added to the existing Ofon Phase 1 facilities:
• OFP2 production platform bridge linked to OFP1, The OFQ, or Living Quarters, linked to OFP2 via a bridge, with accommodation for 124 people, 2 Wellhead platforms: the OFD3 wellhead platform, with 12 slots, and the OFD5 wellhead platform with 15 slots
• A 12” gas-export line to AMP2 (70km) and in-field lines and cables (40km) linking the wellheads to the central complex, 24 new wells: 16 producer and 8 injectors
“In line with Total’s commitments, the Ofon phase 2 project will significantly contribute to Nigeria’s local content policy, in terms of not only construction works (with five EPCs located in Nigeria) but also of training for Nigerian personnel, especially engineers and technicians. Gas flare-out and First Oil from Ofon Phase 2 Project are planned for 2014.”.
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.