Investment Opportunities in Akwa Ibom Petroleum And Energy Limited (APEL)
Akwa Ibom Petroleum And Energy Limited (APEL)Akwa Ibom State is the second largest oil-producing state in Nigeria and provides the operational base for Exxon Mobil which is currently investing massively in the expansion of terminal facilities at its Qua Iboe Terminal, Ibeno and some gas utilisation projects. Exxon Mobil contributes about 28 percent of Nigeria's total output. Other multinational oil companies operating in Akwa Ibom State include Shell Petroleum Development Company of Nigeria and ELF.
Akwa Ibom State is located within Nigeria's Niger Delta region. The Niger Delta basin is one of the most prolific hydrocarbon provinces in the world. The sedimentary basin occupies a total area of 75,000km2 and is at least 12km thick in its central part. Total recoverable hydrocarbon is estimated at more than 20 billion barrels of oil and 120 trillion cubic feet of gas, making the region one of the highest concentrations of petroleum per unit volume of basin-fill sediment. The state government has just created a Ministry of Petroleum and Mineral Resources to oversee its interests in the sector.
PETROLEUM AND ENERGY LIMITED (APEL)
Akwa Ibom Petroleum and Energy Limited is a state-funded holding company recently incorporated to facilitate the active participation of the state and its indigenes in the Nigerian oil and gas sector. It has three main subsidiaries, namely: * APEL Exploration and Production Company Limited * APEL Refining and Petrochemical Company Limited * APEL Gas Company Limited
APEL Production and Exploration Company will focus on the upstream sector. It is currently bidding for oil blocks and marginal fields within Akwa Ibom State. APEL Refining and Petrochemical Company will be responsible for the construction and take - off of an export - oriented refinery for which the state has received Federal Government approval, while APEL Gas Company will focus on gas utilisation projects.
APEL is seeking joint venture partners with international investors in the key areas of its operations.
Memorandum of Understanding (MOU) A Memorandum of Understanding was executed in 1986 between the Government and its Joint Venture Partners on Incentive for Encouraging Investments in Exploration and Development Activities and Enhancing Crude Oil Export. The existing Memorandum of Understanding has undergone periodic reviews and negotiations are on for a further review
The Gas Sub-Sector
New incentives were introduced between 1990 - 1993 by the Federal Government to encourage further investment in the gas sub-sector. The incentives include a guaranteed minimum price for gas, a more generous royalty rate of 5-7 per cent, a liberal capital allowance rate, and a reduction of Petroleum Profit Tax for gas to 65.75 per cent.
Other incentives for the sector include the Associated Gas Framework Agreement, AGFA, of 1992 which guarantees capital investments for gas facilities as part of oil field development and petroleum profit tax, PPT, at 40 per cent. Indigenous and foreign investors with companies incorporated in Nigeria are allowed to own 100 per cent of natural gas and petrochemical plants with a tax exemption for five years.
Investment Opportunities
Exploration and exploitation opportunities. Concessions are available for investors interested in Joint Venture with APEL Exploration and Production Company Limited.
Seismic data acquisition, processing and geo-technical engineering. As drilling increase, sea bottom surveys and core companies will also thrive in the state.
Refinery and Petrochemical Plants. Investors in APEL Refinery and Petrochemical Company Limited with minimum capacity of 100,000 - 150,000 barrels per day will be guaranteed supply of crude and necessary feedstock
Oilfield service companies like drilling rigs, logging, etc are viable investment areas.
Gaspowered Industries. APEL Gas Company Limited will be promoting several gas utilisation projects. Government guarantees the supply of gas at reasonable rate.
Marginal fields in Akwa Ibom State. Small-scale investors can partner with the government and indigenes of Akwa Ibom State to exploit several small fields.
Conceptual designs, local fabrications, etc.
Large-scale offshore funding of ring-fenced and bankable projects. Provision of venture capital resources.
Technological transfer programmes. There are opportunities to set up specialised institutes or centres for capacity building in the oil and gas sector.
Mega Petroleum Company Limited is a petroleum Export, exploration and crude oil export company working from the active indigenous participation treaty with the state and APEL, Investors willing to participate in any of these projects can get information by contacting us.
megapetroleum_online@yahoo.com
akwaibomstate.gov.ng/aboutakwaibom.html
posted by Akpaka M @ 9:26 AM
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