The three Executive Orders on oil and gas reforms, according to President Bola Tinubu, would increase Nigeria’s petroleum sector’s competitiveness internationally.
The president made these remarks on Tuesday in Abuja at a meeting with a group from ExxonMobil Upstream Company, which was led by Liam Mallon, the company’s president. He emphasized that these changes will guarantee that no oil firm in the nation encounters unwarranted difficulties.
The three Executive Orders, namely the Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024, went into force on February 28. The other two are the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines and the Residential Directive on Local Content Compliance Requirements, 2024.
Tinubu assured the delegation of the federal government’s commitment 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. Tinubu commended the company for its show of commitment to environmental protection in Nigeria, noting its efforts in reducing 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,” he said. The president described ExxonMobil as a worthy partner in Nigeria’s development over the decades and urged it 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, 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.
On decommissioning and abandonment in the oil industry, Lokpobiri noted that the ministry is addressing the matter 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 making their investments and that no company will seek to leave Nigeria,” the minister said.
Liam Mallon, the President of ExxonMobil Upstream Company, appreciated the support and reassurances provided by the Nigerian government and pledged the company’s long-term commitment to the country’s energy sector. He also commended the president for his courage and conviction to undertake bold reforms within his first year in office
