President Bola Tinubu,Wednesday, expressed optimism over the successful conclusion of the ExxonMobil and Eni asset sales to Seplat Energies and Oando Plc, respectively, in Nigeria.
Both ExxonMobil and Eni had already expressed interest in
selling their onshore and gas assets to Seplat and Oando Plc, respectively, and
are currently awaiting government approval.
However, in an interview with Vanguard at the ongoing
African Oil Week, AOW, in Cape Town, South Africa, the Special Adviser to
President Bola Tinubu on Energy, Mrs. Olu Verheijen, said: “The government is
not opposed to the selling of oil assets. What we are saying is that due
process must be followed. The oil companies, the regulator, and the Ministry
know what to do, and they are working to resolve issues.”
Earlier, in her presentation, the Special Adviser, who
represented President Tinubu at the event, said the government has already made
conscious efforts, including the stabilisation of the fiscal and regulatory
environment, the market-driven exchange rate, and streamlining of approval
processes to attract investors to Nigeria.
We are open for business, said President Tinubu
She said, “First, we recognise that when considering where
to deploy capital, investors consider the stability and predictability of the
prevailing fiscal and regulatory environment. President Bola Ahmed Tinubu
continues to send out the clear message that we are open for business.
“He took decisive steps to stabilise our fiscal environment
by removing a costly fuel subsidy and shifting towards a market-driven exchange
rate. In addition, we are making a concerted effort to streamline approval
processes and clarify the scope of regulators to reduce the extensive project
timelines and high cost premiums associated with operating in Nigeria.
“Second, we are taking decisive action to address security.
We have taken decisive steps to curtail asset vandalism and illegal activities.
These efforts have translated into a notable increase in our daily oil and
condensate production, which currently stands at 1.6 mbpd – a remarkable 12.4%
rise from the production volumes in 2022.
“The establishment of the 3% Petroleum Host Community Fund
is a significant stride toward fostering development in these host communities,
enhancing the security of our operations, and reducing the cost of doing
business. Third, we have an unalloyed commitment to charting an economic
development path that lifts millions of Nigerians out of poverty while avoiding
the high-carbon choices that were the hallmarks of the past.
“To achieve our net zero goals in the electricity sector, we
have identified several strategic interventions that will improve financial
liquidity, the performance of distribution companies, energy efficiency, and
the integration of renewable sources into our energy supply mix.
“The recent Nigeria Gas Flare Commercialisation Programme
(NGFCP) auction by the Nigerian Upstream Petroleum Regulatory Commission
(NUPRC) demonstrates our commitment to curb our emissions.”
He also said, “However, we will have no intention to curb
our ambitions. We remain a vocal and leading advocate for a prosperous Africa
fueled by all of its affordable low-carbon energy sources, and natural gas clearly
fits the bill. We will grow LNG exports and petrochemical exports and displace
diesel and PMS in various domestic end uses, as underscored by the recently
announced Presidential CNG initiative.
“We will achieve this by enabling a range of policies and
incentives. We will continue transitioning to market prices for gas and
electricity and evolve the fiscal regime to be one that catalyzes investments
rather than maximizes government takes. The Federal Government is also
deploying catalytic capital from the midstream and downstream gas
infrastructure fund of the Nigerian Midstream and Downstream Regulatory
Authority.
“In summary, our evolving oil and gas policy is shaped by
factors that include our economic development needs, dependence on oil and gas revenues,
resource size, and the protection of the environment. The reforms that we
embark on will reflect the way that these policy objectives are balanced.
“President Bola Ahmed has bold plans to reform key elements
of the industry that will position Nigeria to compete favorably for investment.
We also recognize that action by the government alone is insufficient. We need
the market and industry to reward us with firm and timely investment
commitments.
“Our commitment to bridging the gap between Nigeria’s
current and its potential is steadfast. The renewed focus on energy security
has changed the pace of the energy transition. We intend to fully exploit this
window of opportunity to the benefit of generations of Nigerians and Africans
to come.”
We are very optimistic
Similarly, referring to parties, especially ExxonMobil and
Eni, the Commission Chief Executive, Nigerian Upstream Regulatory Commission,
NUPRC, Engr. Gbenga Komolale, said: “We are very optimistic that parties to the
transaction will go back, look at the position of the regulator, and come back
by abiding by the provisions of Nigerian laws, and the right thing will be
done.”
Energy transition is a way of life.
Also speaking at the event, the President and CEO of Oando
Clean Energy Limited, OCEL, Dr. Ainojie Irune, harped on the need to boost
clean energy investment in Nigeria and other African nations.
He said, “Africa is a renewable energy powerhouse. We have
the resources, the capacity, and the population. We can no longer excuse
ourselves from getting involved in the energy transition.”
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