Oil
“We are moving for the privatization of the refineries in Q1, 2014” – Diezani Alison-Madueke
ABUJA – Minister of Petroleum Resources, Diezani Alison-Madueke, has broken her silence on the reported privatization of the nation’s comatose refineries, explaining that government plans to rehabilitate them before selling to private sector investors.
Mrs. Madueke who spoke to newsmen in Abuja on Thursday, stated that government wants to rehabilitate the refineries to ensure that it got some commercial value from the sales.
“We are moving for the privatization of the refineries in the first quarter of 2014. At this point in time the negotiation round for the turnaround maintenance of the Port Harcourt Refinery is now completed.
“We started with the TAM with the original contractors who built the Port Harcourt refinery and this was with the intention of ensuring that the right people carried out this TAM once and for all.
“Unfortunately, the actual negotiations have extremely been a long drawn out one because of the prices they came in with. It has taken a number of months of very aggressive robust negotiation to get to the point with Port Harcourt Refinery where we can actually begin to implement the work. Port Harcourt is now on the move in terms of TAM and once that is close to completion Kaduna and then Warri will continue,” she said.
Alison-Madueke added that “the intention was to ensure that government does not sell the refineries when we privatize in the worst possible state to ensure that we get some commercial value for these refineries which are still, I think, in very decent shape but need a lot of refurbishments and a lot of update in terms the core technology they use.
“That is the situation right now but we will kick off the privatization round in 2014. We will have all the due discussions and negotiations with the unions in that period of time as well ensure that we are all working together to make this happen and ensure that it is a win-win situation for all parties.
“But it goes without saying that over the last 20 years government has not done too well at handling major infrastructure and government should not be in the business of handling major infrastructure. So let the private sector come in and let us be little more competitive in the handling of these major entities for the good of all the people of our country and our economy.”
Announcing the commencement of the process of the marginal fields for the second marginal field licensing round with 31 on-shore and off-shore fields on offer, she said government was also determined to rehabilitate the four national refineries prior to their sales to the private sector next year.
Alison-Madueke said the bid process would be completed in the next four months.
The minister, who encouraged local companies to form consortia to increase their capacity to win the fields, noted that Nigerian firms, which have been operating marginal fields licensed in 2001 have done very well.
According to her, “Over the next two weeks, the Department of Petroleum Resources (DPR) will undertake a road show to different parts of the country about the programme. This will be followed by a three and half months of competitive bidding process in line with the Federal Government’s commitment to openness and transparency in the conduct of business activities in the country.
“In carrying out the exercise, government is determined to ensure that proper technical and financial due diligence is done on companies indicating interest in these assets. In this regard, government encourages companies, where possible, to bid in consortia to enable the parties leverage upon each other’s strengths.
“It is now therefore my honour and privilege to flag-off the second marginal field licensing round with 31 fields on offer; 16 of which are located on-shore, while the remaining 15 are in the continental shelf,” she declared.
She explained that government’s decision to hold the bid rounds was geared towards opening up the oil and gas sector of the industry to a wider participation with a view to creating a robust and virile industry that would positively impact on the lives and living standards of Nigerians.
– SUN NEWS ONLINE
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.
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.”
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.
JUST IN: NNPC Ltd Disclaims Video Of Adulterated Fuel Sold in Bottles, Jerrycans
New Terrorist Group Emerges In Northwest Nigeria – DHQ
Osun Declares Three-Day Mourning For COAS, Lagbaja
Shallipopi Splits From Record Label, Dapper Music
Lagos Gov’t Launches Bid For 500MW Gas Power Hubs Amid Energy Crisis
BP, Trafigura, Vitol Lead Global Offtake Of Dangote’s Refined Products
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
