Oil
Total’s New Boss Says Europe Must Fight US Oil Export Ban
Total’s new President, Patrick Pouyanne stressing a ponit
LAGOS– The new head of French energy major Total challenged Europe to fight Washington over the U.S. oil export ban, in his first public appearance since his predecessor Christophe de Margerie was killed in a Moscow plane crash last week.
Patrick Pouyanne said on Thursday the export ban flouts free-trade agreements and puts European and Asian refiners at a disadvantage, making a bold appeal to European politicians.
“We need to fight and put this topic on the table,” Pouyanne said during a sometimes emotional appearance at London’s annual Oil & Money conference, where de Margerie had been a popular speaker over the years.
“I hope the European Commission raises this issue … the refiners in Europe and Asia are suffering from one rule. That is the U.S. cannot export oil.”
Painted by some as a quieter figure to lead Total by comparison with de Margerie – who was known as ‘The Big Moustache’ for his charisma, risk-taking, and elaborate facial hair – former refining head Pouyanne said he would keep the company on the course set by his predecessor.
But his pointed comments on U.S. policy, made during a near-45 minute long question and answer session that was met with a rare standing ovation, suggested he has inherited some of his flamboyant mentor’s talent for controversy.
De Margerie was an outspoken critic of U.S. and European sanctions against countries like Russia and Iran, arguing business relations forge deeper ties between countries and increase understanding.
He was also not afraid of making bold statements at odds with many in the often conservative industry, saying oil production would peak and struggle to keep up with rising demand back in 2008 as prices raced to a record high near $150 a barrel.
A minute of silence was held for de Margerie on Wednesday during the traditional black-tie Oil & Money dinner and award ceremony. The organisers placed a glass of Lagavulin whiskey, de Margerie’s favourite, next to an empty seat where the Frenchmen sat last year.
Pouyanne said he agreed with de Margerie’s stance on opposing sanctions against Russia.
“My priority is to continue … as if he were still alive,” he told reporters in French after the session.
US Oil Ban
The U.S. government is not expected to relax the crude oil export ban in the near future, despite a shale oil revolution that has put the country on course to become the world’s largest producer for the first time in decades.
“We are not negotiating crude oil exports with any countries at this moment,” Cathy Novelli, Under Secretary for Economic Growth, Energy and the Environment told reporters at a trade conference in Washington.
The Commerce Department notified two companies earlier this year they could export minimally processed light oil, which many U.S. refiners are not particularly well suited to processing. But since the summer the department has put a hold on similar applications from more than 20 companies.
Since early 2011 U.S. crude oil has fallen to a large discount to international benchmark North Sea Brent, as bottlenecks of oil have formed in the Midwest of the country.
The lower U.S. oil price has benefited many refiners in the country, while plants in Europe and Asia have struggled with overcapacity, weak demand and low margins. Some plants have closed or sought government help, including some of Total’s.
While the United States bans the export of crude oil – a legacy of the Arab oil embargoes in the 1970s – it does allow the export of refined products like gasoline and diesel, adding to pressure on plants in other regions.
Big Tanker
Before his death de Margerie had been looking at a possible big merger or acquisition, the first under his leadership of the company that was created by a merger of TotalFina and Elf in 1999.
Pouyanne did not comment on any merger plans during the session, but said Total was best placed of the oil majors to weather the near 25 percent drop in oil prices since June, with a number of projects coming onstream in the next 24 months.
He said he would continue plans to reduce operating costs and capital expenditure to return more cash to shareholders, but said it was important to keep investing in future production.
Comparing the firm to a large oil tanker that cannot change direction quickly, Pouyanne said the firm would always think long term, and sought to reassure shareholders they were in safe hands after the turmoil of the past nine days.
“The big tanker is strong and solid,” he said.
Reuters-
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.
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.
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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