Oil
W/Africa’s 1st Offshore simulation center opens in Lagos
By Leo ATABE
LAGOS – Nigerian Content implementation recorded another milestone on Monday in Lagos as an indigenous oil servicing company, PEM Offshore Limited began to test runits Offshore Simulation and Innovation Center (POSAIC), said to be the first of its kind in West Africa.
The first phase has been set up and when other facilities are put in place, the center will have a full suite of Offshore Anchor Handling Simulation Equipment, Dynamic Positioning, Power Management and Crane Simulation Systems and support the training of local and foreign offshore personnel involved in the oil and gas operations. It will also meet the growing demand for highly competent and qualified personnel for the highly sophisticated and safety driven industry.
Speaking at the opening of the center, Senior Vice President, PEM Offshore Group, Mr. Philips Eze Matthew commended the Nigerian Content Development and Monitoring Board (NCDMB) for stimulating investment in marine crew training facilities through the marine vessel utilization scheme. He also acknowledged the financing arrangement put in place by the Board under the Nigerian Content Development Fund (NCDF) model which provides 30 per cent guarantee on loans accessed and 50 percent interest rate rebate and elongated tenure for loan facilities. All these interventions by the Board made it possible for the company to come to this level, he confirmed.
Shedding more light on the operations of POSAIC, Matthew explained that the company entered into an agreement with Kongsberg Maritime-the original equipment manufacturer for the supply and technical support of the simulation center.
He stated that “PEM Offshore has secured a 5-year commitment from Chevron Nigeria Limited (CNL) and Agip Energy to utilize POSAIC facility in actualizing CNL and Agip annual scholarship award programme to train Nigerian seafarers.
“The CNL and Agip programme is expected to commit an annual sum of $200,000 that will amount to $1,000,000 within the first five years.”
The Senior Vice President divulged that the company was also in talks with several other international operating oil companies, drilling firms and the Nigerian Navy and was confident that they would patronize the company to reduce capital flight, sustain the local training facility and stimulate more investment in establishment of training centers of excellence
In his remarks, the Executive Secretary, Engr. Ernest Nwapalauded PEM Offshore for bringing the project to fruition despitethe challenges it experienced while accessing funding from Nigerian financial institutions.
He noted that such investments by Nigerian companies removedoubts about the capacity of Nigerians to own and operate key assets in the oil and gas industry.
Nwapa maintained that indigenous ownership of key assets is the best guarantee that the implementation of the Nigerian Content policy will endure, adding that when Nigerians own assets, they would insist that provisions of the Act must be implemented with regards to domiciliation of industry work.“It will also be easier to enforce manning of such assets by Nigerians with the requisite skills,” he said.
He promised that the Board would protect Nigerians that invest in such facilities by galvanizing the industry to put work in such facilities.
Nwapa also credited the successes recorded so far in implementing the Nigerian Content Act to the courage and leadership provided by the Minister of Petroleum Resources, Mrs. Diezani Alison Madueke and the support of President Goodluck Jonathan to the Nigerian Content agenda.
On his part, the General Manager, Nigerian Content, Chevron Nigeria Limited, Mr. Raymond Wilcox posited that Chevron supported the initiative from the onset because of its total commitment to Nigerian Content agenda as implemented by NCDMB. He assured that Chevron will rally round other international operating companies in ensuring that the facility operates optimally as the preferred center for training seafarers.
Raymond further thanked NCDMB for showing the way and encouraging Chevron to invest in critical capacity development initiatives that will deepen capabilities of the local supply chain.
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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