Nigeria’s petroleum sector will become globally competitive as a result of the three executive orders on oil and gas reforms that President Bola Tinubu signed on Tuesday in Abuja.
A delegation from ExxonMobil Upstream Company, led by its president, Liam Mallon, met with the President, who made the affirmation.
He emphasized that these reforms will ensure that no oil company faces undue challenges in the country.
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 are the three Executive Orders that went into effect on February 28, 2024.
President Tinubu also assured the ExxonMobil delegation that the federal 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,” the president said.
The President commended the company for its show of commitment to environmental protection in Nigeria, noting its efforts to reduce gas flaring in the country.
“Nigeria is going through a lot of reforms, and we have been navigating the leadership quarters carefully to ensure that we achieve a win-win situation for all parties and attract more investments,” President Tinubu said.
The president described ExxonMobil as a worthy partner in Nigeria’s development over the decades and urged the company to remain committed to contributing to the success of his administration.
“We are close enough to be fair and blunt with you, and we are not afraid to hear from you on better options and recommendations for the growth of the industry in Nigeria,” the president said.
The meeting, also attended by Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), and Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), discussed issues such as divestment, decommissioning, and abandonment as regards the company.
“Mr. President has given a clear directive to the NNPC GCEO and I to resolve the issue of divestment, and we are doing whatever we can to achieve that,” Lokpobiri stated.
Lokpobiri stated that the ministry is handling decommissioning and abandonment in the oil industry in accordance with the Petroleum Industry Act (PIA) and international best practices.
“The reforms driven by the three executive orders will ensure that companies operating in Nigeria have the best environment to continue making their investments and that no company will seek to leave Nigeria,” stated the minister.
The president of the ExxonMobil Upstream Company, Liam Mallon, affirmed the company’s long-term commitment to Nigeria’s energy sector and conveyed gratitude for the government’s support and assurances.
Additionally, he expressed his admiration for President Tinubu’s guts and conviction in implementing significant changes during his first year in office.
