Oil
WAPCo may record $2.4bn loss to unrepaired pipeline
LAGOS – The West African Gas Pipeline Company (WAPCo) may record a gross loss of $2.4 billion (N384 billion) within four months if the vandalized sub-regional pipeline remains unrepaired by the end of this month.
This was disclosed by the Managing Director of the company, Charles Adeniji, who told journalists during a media briefing on the damaged pipeline, that the incident had resulted in a daily loss of between $500,000 to $600,000 to the company.
WAPCo’s gas pipeline was breached in August, truncating supplies to Ghana’s power plants, a development in which the company is uncertain when it would resume flow of gas from Nigeria to neigbouring African countries.
The pipeline suffered a set-back in October when it experienced a fatal accident during the re-commissioning of the Takoradi Regulating and Metering Station in Ghana.
The pipeline was shut down in August last year after experiencing a loss of pressure around the Lome segment of the facility.
General Manager, Corporate Affairs of WAPCo, Harriet Wereko-Brobby, had said in a press statement that the accident, which resulted to two fatalities, derailed the re-commissioning exercise.
WAPCo has faced serious challenge trying to fix the pipeline, which resulted power outages in some parts of Ghana due to the shortage of gas to many power plants.
Ghanaian President, John Dramane Mahama, during his visit to Nigeria recently, appealed to President Goodluck Jonathan to expedite action on the resuscitation of the West Africa gas pipeline to enable Ghana enjoy regular power supply.
WAPCO resumed flows of Nigerian natural gas to Ghana two years ago, following a one-year outage caused by vandalism and fuel quality problems.
The volume of gas flowing was approximately 30 million standard cubic feet per day, which was enough to generate 110 megawatts of electricity
The resumption of flows on the line on March 20, 2011, allowed power plants in Ghana’s western port city of Takoradi to switch from the costlier light crude they had been using, to produce electricity since the shutdown last May.
Also, another major challenge facing the multi-million dollar gas project was the issue of encroachment on its by Right of Way (RoW) miners.
The company has asked the Federal Government to declare as illegal, mining activities on the company’s RoW as frequent encroachment on it poses a serious threat to the recently completed pipeline.
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.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
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.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
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.