President Bola Tinubu announced that the three Executive Orders he signed into law will make Nigeria’s petroleum sector globally competitive.
Tinubu during a meeting on Tuesday with a delegation from ExxonMobil Upstream Company led by its President, Liam Mallon, emphasized that these reforms will eliminate undue challenges for oil companies operating in Nigeria.
The Executive Orders, effective from February 28, 2024, include:
1. Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024
2. Presidential Directive on Local Content Compliance Requirements, 2024
3. Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines
In a statement by his spokesman, Ajuri Ngelale, Tinubu assured the ExxonMobil delegation that the Federal Government is committed to resolving the ongoing divestment issues between ExxonMobil 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 stated.
Tinubu praised ExxonMobil for its commitment to environmental protection in Nigeria, particularly its efforts in reducing gas flaring. He highlighted that Nigeria is undergoing significant reforms aimed at achieving a win-win situation for all parties and attracting more investments.
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), and Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), also attended the meeting. They discussed divestment, decommissioning, and abandonment issues within the company. Lokpobiri noted that the ministry is addressing these matters in line with the Petroleum Industry Act (PIA) and global best practices.
Liam Mallon expressed appreciation for the support and reassurances provided by the Nigerian government and pledged ExxonMobil’s long-term commitment to Nigeria’s energy sector. He also commended President Tinubu for his bold reforms within his first year in office.
