Oil
UK, US to assist Nigeria on crude oil theft – Alison-Madueke
LONDON – The UK and US have pledged to assist Nigeria curb the menace of crude oil theft which President Goodluck Jonathan has described as “blood oil”.
Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, made the announcement at a lecture entitled “The Future of African Energy in a Changing Worl”, delivered on Sunday at St. Anthony’s College in Oxford University, England.
“I must say that both the British and US Governments have been in discussions with us and are keen to join hands with us to fight this menace.
“The global community is on track and already geared up and we are working to put in place a strategic platform that will involve us all and enable us track and fingerprint stolen crude,” Alison-Madueke said.
She said that crude oil theft and vandalism were being executed on a professional scale beyond petty stealing, adding: “It is, therefore, clear that this crude is being taken to refineries outside the shores of West Africa.”
According to her, proceeds from stolen crude, are being passed through fiscal institutions beyond the African continent and the monies are laundered by fiscal entities.
“It has therefore, become necessary to tackle the issue globally as it is carried out by powerful cabals and experts,” she said.
The minister said that governments in the Niger Delta were collaborating with service chiefs to sensitize the affected communities on the dangers of illegal refineries on the environment.
She said that illegal refineries, popularly known as “firewood distilleries,” had severe impact on the environment and human beings, especially because of the risk of disabilities in new born babies.
Other issues addressed by Alison-Madueke include the Petroleum Industry Bill, PIB, and global politics of oil where she stressed the need to give emerging economies more support.
“It is better to invest in these economies, import their gas and oil rather than give out charity and donations to them.
“Basically if Africa itself is not stable and if it’s teeming youth population are not gainfully employed, then they obviously pose an inherent threat to global security and stability in the world,” she said.
Mrs Cherie Blair, wife of UK’s former Prime Minister Tony Blair in an interview with Biztellers, commended Alison-Madueke for her detailed lecture on the oil sector in Nigeria.
Blair said the PIB as explained by the minister, when passed into law, would be beneficial to companies with investments in the sector and crucial to Nigerians.
The lecture attracted experts from the oil and gas sector, including a former Ghanaian President, Mr John Kufuor.
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.