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Total refutes claims on Egina Project

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By Joseph BAMIDELE

ABUJA: TOTAL Upstream Nigeria Limited, second largest operator in Nigeria’s upstream oil sector has debunked claims of seeming lack of transparency in the award of its Egina oil Field located 150km off the coast of Nigeria.

The field which is being developed by Total Upstream Nigeria 24 percent in partnership with NNPC 10 percent, CNOOC 45 percent, Sapetro 5 percent and Petrobras 16 percent, is the third deep offshore development of Total in Nigeria. The field is currently under development and the production is scheduled to begin by 2014/2015.
 The Company in a statement issued in Abuja and made available to biztellers.com said that the contracting process of the Egina project is not what it wishes to discuss in the pages of Newspapers.
“Our attention has been drawn to recent publications in the press attributing certain statements to Total Upstream Nigeria Ltd in respect of the contracting processes on the Egina Project.
Total Upstream Nigeria Limited would like to state for the record that as a responsible operator, we do not comment on contracting processes in the pages of newspapers.
We therefore completely dissociate ourselves from the publications” it enthused.
The Federal Government had called for transparency and an effective system that increases international investors’ confidence as Total was set to open tender covering various packages on its deep-water Egina project in Nigeria.
Industry sources had opined that bid documents will be issued to short-listed contenders for a new-build floating production, storage and offloading, FPSO vessel, subsea umbilicals, risers and flowlines as well as a subsea production system.
President Goodluck Jonathan, who recently visited South Korea during the Nuclear Energy Summit, had used the visit to woo foreign investors from South Korea to Nigeria.
Besides, the government had been wooing investments from other climes. But, according to industry sources, the government is not going to gloss over issues of transparency and the strict adherence to the local content laws.
It is believed that the delay in the award of the Egina contracts, which started some years ago, must be as a result of government’s efforts to ensure transparency not just by Nigerians, but by the international community.
Market sources calculated that local content requirements could drive up the cost of the 2,000,000 barrel-per-day FPSO by about $500 million, so investors are keen to ensure work exists beyond Egina to sustain their investments and allow for a fair return on capital.
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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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