Latest news with #NUPRC
Yahoo
3 days ago
- Business
- Yahoo
Nigeria introduces oil tax relief for cost savings
Nigeria's president Bola Tinubu has signed an executive order designed to reduce costs and increase revenue from oil and gas projects. The new upstream petroleum operations cost efficiency incentives order, 2025, offers tax relief to companies demonstrating cost-cutting measures in their operations. The executive order aims to encourage cost reduction, stimulate investment and enhance revenue returns in Nigeria's oil and gas industry. President Tinubu described the initiative as a decisive step to foster efficiency and renew investor trust in the sector. The incentives are structured to reward operators that achieve cost savings against industry benchmarks established by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The benchmarks, which will be adjusted annually, will differ depending on operational terrain including onshore, shallow water and deep offshore locations. Operators who meet or surpass these benchmarks can retain up to 50% of the additional government revenue derived from their cost-efficiency efforts. However, to protect public finances, the tax credits offered will be limited to 20% of a company's yearly tax obligation. Tinubu stated: 'This is not about charity, it is about value. Nigeria must attract investment based on a credible promise of returns. This Order signals to the world that our oil and gas sector is being reformed to become efficient, competitive and beneficial to all Nigerians. Every barrel must count, for jobs, growth and our national future.' To ensure smooth and effective implementation, the president has tasked his Special Adviser on Energy, Olu Verheijen, with overseeing inter-agency coordination and driving alignment across key government institutions. Verheijen added: 'This reform is not just about slashing costs. It is a strategic effort to make Nigeria's upstream sector globally competitive and fiscally resilient. By incentivising efficiency, we are boosting investor confidence and ensuring greater value for the Nigerian people.' Senan Murray, from the Office of the Special Adviser to the President on Energy, stated that this executive order builds upon earlier reforms from 2024. These reforms improved fiscal conditions, expedited project timelines and harmonised local content demands with global standards, laying the groundwork for the current incentives. "Nigeria introduces oil tax relief for cost savings" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
22-05-2025
- Business
- Zawya
Ngeria: FG to oil firms, ramp up production to meet OPEC quota
The Minister of State for Petroleum Resources, Gas, Ekperenkpo Ekpo, has called on oil and gas stakeholders to collaborate to meet the quota approved by the Organisation of Petroleum Exporting Countries (OPEC) Ekpo gave the appeal on Wednesday during the ongoing 2025 Nigeria Oil and Gas Opportunities Fair (NOGOF) in Yenagoa. The minister, who was represented by the Permanent Secretary, Mr Emeka Obi, noted that the oil output of 1.4 million barrels per day as of the first quarter of 2025 fell short of the 1.8 million barrels quota approved by OPEC. He pointed out that with the nation's oil reserve and a commitment by industry players, there is an opportunity to meet the quota. The theme of this year's event is: 'Driving Investment and Production Growth: Shaping a sustainable Oil and Gas Industry through Indigenous Capacity Development'. The minister commended the Nigeria Content Development and Monitoring Board (NCDMB) for the fair showcasing opportunities for Nigerian companies. He said that the growth of Nigerian content from five per cent in 2010 and 56 per cent in 2024 was a laudable achievement. Some 1,000 companies are participating in the fair, where major oil producers showcase opportunities and projects. Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, in he s keynote address, pointed out that driving investment and production growth in Nigeria's oil and gas industry required a multifaceted approach. According to him, it would demand creating a favourable investment climate, developing indigenous capacity, and ensuring sustainability through environmental stewardship. 'By working together, we can shape a future where the oil and gas sector continues to be a pillar of our economy, contributing to national development and improving the quality of life for all Nigerians,' he said. Komolafe, who was represented by the Commission's Executive Commissioner, Health, Safety, Environment and Community, said that Nigeria's oil and gas industry has long been the mainstay of our economy, contributing significantly to the nation's foreign exchange earnings, providing substantial revenue for the nation's development. 'It is crucial to acknowledge the sector's role in our economic history while recognising the urgent need to adapt and transform it to meet future challenges and opportunities,' he said To achieve sustainable growth in the oil and gas sector, he pointed out that robust upstream investments are essential. According to him, attracting both local and foreign investment required concerted efforts to create an enabling environment characterised by stability, transparency, and regulatory certainty. He pointed out that investors must have confidence in the industry's legal and fiscal frameworks, confident that their investments are secured and will deliver profitable returns. 'Production growth, on the other hand, hinges on optimising our existing resources and exploring new frontiers. 'This involves adopting cutting-edge technologies and best practices to enhance efficiency and reduce operational costs. It also means investing in infrastructure development to support exploration, development and production activities,' he said By doing so, he said the nation can maximise its production capacity and ensure a steady crude oil and gas supply to meet both domestic and international demand. He reeled out the NUPRC's mission in promoting sustainable value creation from Nigeria's Petroleum Resources for shared prosperity, urging stakeholders not to lose sight of the need for sustainability and environmental stewardship as they focus on investment and production growth. 'The oil and gas industry has a significant environmental footprint, and it is our responsibility to mitigate its impact. This involves adopting cleaner technologies, reducing emissions, and ensuring responsible resource management. 'The NUPRC is positioned and has developed various initiatives that align with the national goals and the Petroleum Industry Act 2021. We recognise the connectivity between climate change and energy security, particularly within the context of upstream petroleum operations. 'We are committed to fostering a sustainable and resilient industry that minimises its environmental impact on our host communities, while optimising our hydrocarbon development for our collective benefit,' Komolafe said. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Yahoo
08-05-2025
- Business
- Yahoo
ExxonMobil to invest $1.5bn in Nigeria's deep-water oilfields
ExxonMobil has committed to a $1.5bn investment in Nigeria's deep-water oilfields, demonstrating a strong commitment to the country's oil and gas sector. The investment, spanning from the second quarter of 2025 (Q2 2025) to 2027, will focus on revitalising the Usan deep-water oilfield. The company has proposed a final investment decision (FID) by Q3 2025, contingent upon approval of the field development plan (FDP) and securing internal and partner funding. This investment also includes the accelerated development of the Owowo and Erha deep-water oilfields, among others. ExxonMobil's managing director in Nigeria, Shane Harris, revealed the investment plans during a visit to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). He emphasised ExxonMobil's confidence in Nigeria's upstream potential and its commitment to the sector's growth. Harris also expressed support for the NUPRC's Project 1 million Barrels initiative, aimed at boosting Nigeria's crude oil production to 2.4 million barrels per day. NUPRC's Commission chief executive, Engr. Gbenga Komolafe, welcomed ExxonMobil's investment, assuring regulatory support and emphasising the need for collaboration to achieve Nigeria's production and energy security objectives. He also called for compliance with the Domestic Crude Supply Obligation and transparent pricing within the sector. In a related development, ExxonMobil Australia and Woodside Energy have announced a $221m (A$343.93m) investment in the Turrum phase three gas project. This joint venture (JV) in the Gippsland Basin aims to drill five new wells, addressing potential gas shortages on Australia's east coast. Esso Australia Resources and Woodside Energy (Bass Strait) share the JV equally, with Esso Australia leading operations. "ExxonMobil to invest $1.5bn in Nigeria's deep-water oilfields" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
TimesLIVE
07-05-2025
- Business
- TimesLIVE
ExxonMobil plans $1.5bn investment in Nigerian deepwater oilfield
Energy giant ExxonMobil is set to inject $1.5bn (R27.43bn) into the development of its deepwater operations in Nigeria, the country's oil regulator said on Wednesday. The planned capital deployment, spanning from the second quarter of 2025 to 2027, will primarily focus on revitalising production at the Usan deepwater oilfield, located on the key offshore block OML 138 in the eastern Niger Delta, approximately 70km offshore. The Usan field, discovered in 2002 and granted development approval in 2008, commenced production in 2012 and currently comprises around 34 subsea production and injection wells connected to eight subsea manifolds. ExxonMobil anticipates reaching a final investment decision (FID) on the Usan project in late Q3 2025. This decision is contingent upon the approval of the Field Development Plan and the securing of necessary internal and partner funding. During a meeting on Tuesday with Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), ExxonMobil's managing director in Nigeria, Shane Harris, said this $1.5bn commitment is in addition to other planned investments aimed at developing further deepwater assets, including the Owowo and Erha fields. Komolafe welcomed the significant investment, noting that it aligns with the NUPRC's ambition to boost Nigeria's crude oil production to 2.4-million barrels per day by next year under its "Project 1-Million Barrels" initiative.
Reuters
07-05-2025
- Business
- Reuters
Exxon plans $1.5 billion investment in Nigerian oilfield
LAGOS, May 7 (Reuters) - Energy giant ExxonMobil (XOM.N), opens new tab is set to inject $1.5 billion into the development of its deepwater operations in Nigeria, the country's oil regulator said on Wednesday. The planned capital deployment, spanning from the second quarter of 2025 to 2027, will primarily focus on revitalising production at the Usan deepwater oilfield, located on the key offshore block OML 138 in the eastern Niger Delta, approximately 70 kilometres (43.5 miles) offshore. The Usan field, discovered in 2002 and granted development approval in 2008, commenced production in 2012 and currently comprises around 34 subsea production and injection wells connected to eight subsea manifolds. ExxonMobil anticipates reaching a final investment decision (FID) on the Usan project in late Q3 2025. This decision is contingent upon the approval of the Field Development Plan and the securing of necessary internal and partner funding. During a meeting on Tuesday with Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), ExxonMobil's Managing Director in Nigeria, Shane Harris, stated that this $1.5 billion commitment is in addition to other planned investments aimed at developing further deepwater assets, including the Owowo and Erha fields. Komolafe welcomed the significant investment, noting that it aligns with the NUPRC's ambition to boost Nigeria's crude oil production to 2.4 million barrels per day by next year under its "Project 1 Million Barrels" initiative.
