Mohammed Shosanya

The Federal Government has removed  diesel,Liquefied Petroleum Gas (LNG),also known as cooking gas, Compressed Natural Gas (CNG), and electric vehicles, among others from value added tax (VAT).

Mohammed Manga, Director, Information and Public Relations in the Federal Ministry of Finance disclosed this in a statement on Wednesday.

According to him,the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun unveiled two major fiscal incentives aimed at revitalizing Nigeria’s oil and gas sector.

He added:“The VAT Modification Order 2024 introduces exemptions on a range of key 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.

“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources”.

He explained that the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.

He stated that this initiative aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.

According to him,these reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Ahmed Tinubu, in line with Policy Directives 40-42.

He said:”They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.

“These bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market, adding that these fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians”.

Mohammed Shosanya

 The Society of Energy Editors (SEE), has predicted that uncertainty will characterise Nigeria’s oil production in this fourth quarter (Q4) of the year due to ongoing challenges in the oil and gas industry.

The group made the projection in its 2024 Fourth Quarter Outlook for the Nigerian Energy Sector released in Lagos, adding that the country’s oil production had been on a decline, and that the trend would likely continue unless there were significant reforms in the sector.

The Society stated in the Outlook that while investments, and oil and gas exploration and production were at an all-time low, shortcomings on the part of the Nigerian National Petroleum Company Limited (NNPC) and the Ministry of Petroleum Resources would negatively impact the success of projects.

“Investments are at an all-time low and this may remain unchanged in the fourth quarter. Oil and gas exploration and production (E&P) are at an all-time low and may remain that way in Q4. The NNPC Ltd is not able to take decisions on moving projects along and indications are that this will remain so in Q4.

“Similarly, the NNPC Ltd is not able to ensure that the divestment programme of the International Oil Companies (IOCs) doesn’t negatively impact Joint Venture operations, and this may remain so in Q4.

“The Ministry of Petroleum Resources is also unable to move stalled projects along and this may remain so in Q4,” the Outlook projected.

It indicated that Nigeria currently has 14 oil rigs operating, according to the latest data from August 2024, and stated that the number had remained unchanged from the previous period and would likely remain so in Q4. Putting this into perspective, it revealed that the country’s oil rig count averaged 10.75 from 1995 until 2024, with a record high of 23 in February 2020 and a low of 3 in January 2000.

Commenting on domestic refining of crude oil and fuel imports, the Society of Energy Editors maintained that the commencement of petroleum refining at the Dangote Refinery is expected to boost domestic refining capacity and reduce fuel imports.

It added that “indications are that the refinery’s operations may be impacted by the disputes between its management and NNPC Ltd regarding crude oil supply, petroleum products off-take, and pricing.”

“This will have a significant impact on fuel supply stability in Q4,” the Outlook projected.

It also asserted that the revamp and commissioning of the NNPC Ltd-owned refineries might remain a mirage in Q4 and that similarly, there was no indication that the 21 petroleum depots and over five thousand kilometres of petroleum distribution pipelines across the country will be revamped in Q4 2024.

On the African continent, the Society estimated refining capacity at 3.6 million barrels per day (mb/d), maintaining that this reflected domestic demand growth.

It said: “On the African continent, refining capacity is estimated at 3.6 million barrels per day (mb/d), a reflection of domestic demand growth. In West Africa, new refining capacities will largely use local crude oil supplies, augmented by imports. The revamp of existing refineries, construction of new ones, as well as the resolution of financing and technical issues, remain a challenge on the continent.”

Mohammed Shosanya

The Nigerian Content Development and Monitoring Board (NCDMB),has signed a Memorandum of Understanding (MoU) with the Petroleum Commission, Ghana (PCG) towards developing and deepening local content regulations in Ghana’s upstream petroleum sector.

The signing ceremony took place on Wednesday at the sidelines of the 2024 Annual Local Content Conference and Exhibition held at Takoradi, Ghana,a statement said.

The MoU is valid for three years and it is centred on the desire to build synergies through information sharing and transfer of skills of mutual interest and benefits.

According to the statement,under the MoU, NCDMB will offer PCG strategic advice and guidance in the areas of laws, frameworks, knowledge exchange, procedures for baseline study, data collection on capacities that exist in Ghana, design of strategic plan for local content implementation in Ghana and other capacity development initiatives.

It added that the MoU would also foster collaboration, provide opportunity for global experience, and facilitate advancement of knowledge, leading to local content development in the upstream petroleum sector.

Besides,NCDMB will offer technical support in the development of the framework in the formulation of regulations and policies for PCG Local Content laws.

NCDMB was established in 2010 by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, and is mandated to monitor, guide, develop, and promote local content practice in the Nigerian oil and gas sector and linkage sectors.

On the other hand, the PCG was established by the Petroleum Commission Act, 2011 (Act 821) to regulate and manage the utilization of petroleum resources and coordinate the policies in the upstream petroleum sector under the laws of the Republic of Ghana.

On NCDMB’s side, the MoU was signed by the Executive Secretary, Engr. Felix Omatsola Ogbe, represented by Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu, and the Director Legal Services, Mr. Naboth Onyesoh, Esq, while the Executive Secretary/Chief Executive Officer of Petroleum Commission, Ghana, Mr. Egbert Fabille Jrn and the Acting General Counsel, Nana Akua Agyei signed on behalf of their organisation.

NCDMB had signed a similar agreement with the Technical Secretary of the National Content Monitoring Committee of Senegal (ST-CNSCL) in February 2022.

The ST-CNSCL is the agency responsible for the coordination and supervision of the development and implementation of the local content strategies in the Senegalese oil and gas sector.

Speaking earlier at the conference in Ghana, the Executive Secretary NCDMB urged African oil and gas service companies to collaborate among themselves and leverage their unique capabilities and capabilities.

This approach would grow African local content sustainably and help meet the aspirations of the African Continental Free Trade Area (AfCFTA), he noted.

He expressed delight at the collaborative spirit displayed by African countries, noting that “this event is a testament to our unwavering commitment to fostering strategic partnerships and driving sustainable growth within our sector.”

Commenting on the theme of the conference, which is “Attracting E&P Investments to Boost Local Content: New Pathways,” the Executive Secretary underscored the necessity for innovative approaches and collaborative efforts to unlock Africa’s hydrocarbon resources, estimated at over 125 billion barrels, accounting for about 10% of global reserves.

He reiterated the role of NCDMB as a business enabler, supporting the development of an efficient indigenous supply chain and delivering quality service competitively in the oil and gas industry.

Speaking on NCDMB’s achievements, Engr. Ogbe noted significant progress in local content development, with an increase from less than 5% in 2010 to 54% in 2023, attributing the growth to the robust NOGICD Act, strategic implementation by the Board and collaboration by industry stakeholders.

He further highlighted the importance of economies of scale in attracting new investments and optimizing capacity utilization in the Exploration and Production (E&P) value chain.

He also celebrated the establishment of the African Energy Bank by the African Petroleum Producers Organization (APPO) and the African Export–Import Bank.

The bank is expected to fund major oil and gas projects across the continent, mitigating the reluctance of western financial institutions to support new investments in the sector.

         Mohammed Shosanya

Chevron has celebrated Nigeria’s 64th Independence Anniversary,saying it’s proud of its partnerships and role in developing its natural resources.

In over six decades of operation, Chevron Nigeria has continued to make significant investments in the country that support social and economic development,the company said.

The Chairman and Managing Director of Chevron Nigeria and Mid-Africa Business Unit, Jim Swartz, explains Chevron Nigeria’s business perspective: “We strive to build lasting relationships to help enable human progress now and into the future.”

According to Swartz, Chevron is one of the largest suppliers of natural gas to the domestic market and is proud of its continued track record of supplying natural gas that meets the specifications required for the Nigerian domestic market.

He stated that in addition to the production of over 7.5 billion barrels of oil and gas equivalent by Chevron Nigeria Limited’s (CNL) Joint Venture with Nigeria National Petroleum Company Limited (NNPCL) in Nigeria, CNL has been successful in leading and investing in four major projects that have added significant economic value and reduced flared gas.

The ~700km West African Gas Pipeline (WAGP) led by Chevron in partnership with other private and state entities from the Economic Community of West African States, to supply gas to Benin, Togo, and Ghana to boost economic development in the sub-region.

The Deepwater Agbami Floating Production, Storage, Offloading (FPSO) project which has produced over 1 billion barrels of oil.

Chevron also owns nonproducing assets as well as partner with other companies for producing and non-producing fields.

The company commends the Federal Government’s efforts to reposition the oil and gas industry for growth through the Petroleum Industry Act (PIA).

CNL is committed to operationalizing the PIA and has achieved key milestones, including renewing critical deep-water leases for the next twenty years.  The NNPCL/CNL Joint Venture was among the first companies to convert their leases to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) in accordance with the provisions of the Petroleum Industry Act.

CNL believes that its business success in providing affordable, reliable, ever-cleaner energy is directly tied to the progress and prosperity of the people we work with and the communities where we operate. For this reason, the company continues to support the Federal Government’s Nigerian Content Development (NCD) policy aimed at building indigenous capacity in the nation’s oil and gas industry.

This policy is driven by the vision of being recognized as the energy company that works best to foster competence and competitiveness among Nigerian indigenous contractors and suppliers by adopting the participatory partnership model.

Olusoga Oduselu, CNL’s General Manager, Policy, Government, and Public Affairs, highlighted CNL’s focus on the development of communities in the Niger Delta through the Global Memorandum of Understanding (GMoU), a community-driven, participatory partnership model for community engagement it pioneered in 2005.

“Through the GMoU, we provided funds to execute hundreds of projects in the communities where we operate in the Niger Delta region. This has led to social investment projects benefitting over 600 communities in the Niger Delta area. We are leveraging our experience with the GMoU in the implementation of the Host Community Development Trust (HCDT) provisions of the PIA”, he stated.

“In 2010, Chevron established the Partnership Initiatives in the Niger Delta (PIND), a non-profit organization working with partners to complement the GMoU, to build peace and address macro socio-economic issues in the Niger Delta region.  PIND’s programs have continued to create social and economic impacts through the twin pillars of economic development and peacebuilding, leading to increased productivity, jobs, and reduced conflict,” Olusoga said.

Chevron Nigeria’s social investment footprints extend beyond its areas of operation. In the area of health, Chevron built and donated a DNA Molecular laboratory to the University of Lagos Teaching Hospital, a facility that supports medical research in Nigeria.  In the midst of the coronavirus (“COVID-19”) pandemic, Chevron donated a Polymerase Chain Reaction (PCR) laboratory to Warri Central Hospital to support the Delta State Government in the fight against the COVID-19 pandemic.

The company has also implemented health initiatives such as the Roll Back Malaria programs, Prevention of Mother-to-Child transmission of HIV/AIDS, and awareness programs on River blindness.

Star Deepwater Petroleum Company Limited (a Chevron company) and its parties in the Agbami field have been investing in fighting tuberculosis (TB) by building and equipping chest clinics to support the treatment and care of TB patients in Nigeria.

Currently, 28 chest clinics fully equipped with standard X-Ray machines, male and female wards, treatment rooms, laboratories and gene expert machines have been completed across the country to support the health system. The Agbami parties have also donated one medical diagnostics laboratory and nine mother-and-child health care centers in Nigeria.

Chevron Corporation has also sponsored global health-related initiatives that impact Nigeria. These efforts include the contribution to the Global Fund against HIV/AIDS, malaria, and TB, which has benefitted Nigeria by providing access to lifesaving antiretroviral therapy for people living with HIV and providing long-lasting insecticide-treated mosquito nets.

CNL continues to support the development of education in the Niger Delta region and across the country through the development of education infrastructure, capacity building, and scholarships.

Over 23,000 people have benefitted from the company’s scholarship programs, which include scholarships for postgraduates, the visually impaired, and medical and engineering students in Nigeria.

Chevron and its Agbami parties have continued to invest in education infrastructure, executing 39 Science laboratory complexes and 25 conventional and hybrid libraries nationwide.

They also encourage students to develop an interest in key subjects such as science, technology, engineering, and mathematics (STEM) and, ultimately, pursue STEM courses and careers.

The company continues to demonstrate its commitment to environmental stewardship through its lower carbon strategy, which is focused on lowering the carbon intensity of its operations by implementing methane detection and reduction capabilities.

This has enabled the company to reduce routine gas flaring by over 97% in its operations in the past 11 years, showing its environmental responsibility.

The company’s mangrove restoration program is another demonstration of its dedication to environmental stewardship and proactive approach to addressing the challenges of ecosystem restoration in the Niger Delta. Chevron Nigeria successfully restored approximately 18 hectares of land at different sites in its Western Area of operations, which suffered fire incidents due to third-party interference.

The mangrove restoration also enabled CNL to impact the community positively by training community women on identifying viable mangrove propagules, raising them in the nursery to transplant thousands of mangroves.”

Besides,Chevron Nigeria, with Chevron Corporation’s support, built and donated the Lekki Conservation Centre (LCC) to the Nigerian Conservation Foundation (NCF) in 1992.

The 78-hectare facility has become a center of excellence in environmental research and education, reserved as a sanctuary for the rich flora and fauna of the Lekki Peninsula, Lagos.