Tinubu to ExxonMobil Executives: Oil and Gas reforms will enhance Nigeria’s global competitiveness

Tinubu to ExxonMobil Executives: Oil and Gas reforms will enhance Nigeria’s global competitiveness

President Bola Tinubu stated on Tuesday in Abuja that the three Executive Orders he signed for oil and gas reforms will make Nigeria’s petroleum sector globally competitive.

In a statement Special Adviser to the President on Media and Publicity,  Chief Ajuri Ngelale said during a meeting with a delegation from ExxonMobil Upstream Company, led by its President, Liam Mallon, President Tinubu emphasized that these reforms will prevent undue challenges for oil companies in the country.

The Executive Orders, effective from February 28, 2024, include: the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; the Presidential Directive on Local Content Compliance Requirements, 2024; and the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines.

President Tinubu assured ExxonMobil that the government is committed to resolving the divestment issues between the company and Seplat Energy, which are currently under litigation. “We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this,” he said.

He commended ExxonMobil for its commitment to environmental protection and efforts to reduce gas flaring in Nigeria. “Nigeria is undergoing significant reforms, and we are carefully navigating these changes to achieve a win-win situation for all parties and attract more investments,” President Tinubu stated.

He described ExxonMobil as a vital partner in Nigeria’s development and urged the company to continue supporting his administration’s success. “We are close enough to be fair and blunt with you, and we are open to hearing your recommendations for the growth of the industry in Nigeria,” the President said.

The meeting, attended by Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), and Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), addressed issues including divestment, decommissioning, and abandonment. Lokpobiri noted that the ministry is addressing these matters in line with the Petroleum Industry Act (PIA) and global best practices. “The reforms driven by the three Executive Orders will ensure that companies operating in Nigeria have the best environment to continue their investments and that no company will seek to leave Nigeria,” he said.

Liam Mallon expressed appreciation for the support and reassurances provided by the Nigerian government and pledged ExxonMobil’s long-term commitment to the country’s energy sector. He commended President Tinubu for undertaking bold reforms within his first year in office.

Leave a Reply

Your email address will not be published. Required fields are marked *

Verified by MonsterInsights