By Milcah Tanimu
President Bola Tinubu has asserted that the three Executive Orders on oil and gas reforms he signed will enhance Nigeria’s competitiveness in the global petroleum sector. This assurance came during a meeting with a delegation from ExxonMobil Upstream Company, led by its President, Liam Mallon, at the Presidential Villa in Abuja.
Ajuri Ngelale, Special Adviser to the President on Media and Publicity, stated that President Tinubu emphasized the reforms would prevent any undue challenges for oil companies operating in Nigeria. The three Executive Orders, effective from February 28, 2024, include:
– **Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024**
– **Presidential Directive on Local Content Compliance Requirements, 2024**
– **Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines**
During the meeting, President Tinubu assured the ExxonMobil delegation that the federal government is committed to resolving the ongoing litigation between ExxonMobil and Seplat Energy regarding divestment issues. He expressed optimism that both parties are willing to reach a resolution.
“We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this,” said Tinubu.
President Tinubu commended ExxonMobil for its commitment to environmental protection and efforts to reduce gas flaring in Nigeria. He highlighted the ongoing reforms aimed at creating a favorable investment climate and achieving a win-win situation for all stakeholders.
“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,” Tinubu said. He described ExxonMobil as a vital partner in Nigeria’s development and urged the company to continue supporting his administration’s goals.
“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 added.
The meeting also included discussions on divestment, decommissioning, and abandonment, attended by Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), and Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas). Lokpobiri highlighted ongoing efforts to resolve divestment issues and address decommissioning and abandonment 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,” Lokpobiri stated.
ExxonMobil’s President, Liam Mallon, expressed appreciation for the support and reassurances from the Nigerian government. He pledged the company’s long-term commitment to Nigeria’s energy sector and commended President Tinubu for undertaking bold reforms in his first year in office.
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