New Article on the Petroleum Industry Bill

Highlights of Aspects of the Petroleum Industry Bill - A Presentation to the Nigerian Association of Energy...

Tax Incentives for Mining Companies

The Minister of Mines and Steel Development, Mrs. Diezani Alison-Madueke, according to Thisday, has announced new incentives for mining companies including a 3 year tax holiday and the reduction of company income tax from 35% to 30%. It is not quite clear whether the tax holiday would fall under the existing "pioneer industry" scheme or whether it is a newly created scheme specifically for the mining industry. If it is the latter, new legislation would be required to bring this scheme into fruition. I am not aware of any proposed legislation before the National Assembly in this regard.

Information Minister gets lecture on managing oil wealth from Venezuelan Ambassador

The Venezuelan Ambassador to Nigeria has injected himself into the ongoing petroleum products deregulation debate by advising the Dora Akunyuli, the Information Minister that Nigerians currently pay significantly more for petroleum products than Venezuelans.

Nigeria Licenses First Solar Plant

The Nigerian Electricity Regulatory Commission ("NERC") recently licensed Wedotebary Nigeria Limited for the generation of 5 megawatts of electricity in Plateau State. Wedotebary plan to start supplying electricity by the first quarter of 2010. See Next for more details.

Dr Omonbude on Domestic Refining in Nigeria

Our Dr Omonbude has today published a paper on "Prospects for Domestic Petroleum Refining in Nigeria: A Note of Caution" in the Nigerian Energy Intelligence. The paper poses critical questions regarding the "robustness of plans for the establishment of domestic private petroleum refineries in Nigeria". The paper is well worth the read. I will post the link to the article once it becomes available.

Nigeria renews Exxon Mobil Leases

Thisdayonline reports that the Federal Government of Nigeria has renewed three shallow water oil licences jointly held by the Nigerian National Petroleum Corporation and Exxon Mobil for a further twenty years. Although it is reported that ExxonMobil paid US$600million as signature bonus for these leases, by not reserving a portion of the interest in these leases for indigenous oil companies, the Federal Government may have missed an opportunity to deepen indigenous ownership of oil and gas resources. The move does suggest that the proposed acquisition of expiring or expired oil and gas assets by CNOOC, the Chinese state oil company may not fully materialise.