Oil
We’ll expand frontiers of engagement with NASS for quick passage of Oil industry Bills – Mele Kyari
Modupe ASUDO
ABUJA-THE Nigerian National Petroleum Corporation is set for a new era of robust engagement with the National Assembly to ensure speedy passage of laws related to the Oil and Gas Industry for enhanced performance.
A press release by the NNPC Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, stated that the new Group Managing Director of NNPC, Mallam Mele Kolo Kyari, made the commitment yesterday during a visit to the Senate President, Senator Ahmed Lawan, at the National Assembly in Abuja.
NNPC GMD, Engr. Mele Kyari
The GMD who was accompanied on the visit by his predecessor, Dr. Maikanti Baru, said the corporation would give maximum support and cooperation to the legislative arm of government to ensure the emplacement of an enabling legal framework for the growth of the Oil and Gas sector.
Speaking at the occasion, the immediate past GMD of NNPC, Dr. Maikanti Baru, explained that a visit to the Senate President was part of the programmes planned for the period of transition from him to his successor which was not possible due to certain exigencies, stressing that he considered it necessary to still visit even after the formal handover to personally say farewell considering the good relations he enjoyed with the Senate President.
Dr. Baru stated that beyond introducing his successor, the visit was meant to canvass the Senate’s support for the quick passage of the Deep Offshore Amendment Bill which has the potential of boosting the Federal Government’s revenue by about $5bn per annum.
Shedding light on the significance of the bill, he explained that the nation had been virtually losing revenue running into billions of dollars due to delay in the review of the extant Deep Offshore Act which stipulates that the fiscal terms could be reviewed when the price of crude oil had surpassed the $20 barrel mark and production had gone on in those acreages consistently for 15 years.
He said the amendment bill proposes to raise the royalty paid on deep offshore production in order to ensure a higher revenue take for government, adding that no operator could oppose such a move as it was fair going by current market realities.
On the Petroleum Industry Bill (PIB), Dr. Baru stated that though the 8th National Assembly broke the bill into segments for easy passage, it still didn’t see the light of day; adding that there was the need to revert to the original intent of warehousing the various petroleum laws under one omnibus PIB.
He urged Mallam Kyari to work closely with the executive to re-submit the proposed law as a single bill.
On his part, the Senate President disclosed that the 9th Senate had resolved to work closely with government agencies to make Nigeria better, adding that oversight functions will be carried out responsibly without rancor or hostility.
He said in the 8th Senate, he took personal interest in the Deep Offshore Amendment Bill and discovered that the delay in coming up with the bill was caused by some people who did not do their job, stressing that the 9th National Assembly would do its work and get the bill passed as soon as possible.
On the PIB, Senator Lawan traced the tortuous journey of the bill in the National Assembly and submitted that though the bill appeared jinxed, he would galvanise the National Assembly to break the impasse.
He, however, urged the new GMD to ensure that the legislative arm is carried along in the development of the bill from onset for everyone to be on the same page and avoid disagreements that could lead to further delay in its passage.
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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