COMAPNY NEWS IN BRIEF
MTN shares up as Nigeria scraps tax
Nigeria suspended the implementation of a new telecommunications tax meant to help reduce the nation’s budget deficit that’s expected to hit a record next year.
The government set up a committee to review the 5% levy, which would have come into effect this year, Communications Minister Isa Pantami said in an emailed statement. It will make a decision on the tax after a report is issued. Shares in MTN, the country’s biggest mobile provider, gained.
Africa’s biggest oil producer is looking for ways to boost income amid falling crude production, rising fuel-subsidy costs and low revenue. The country has one of the lowest tax-to-gross domestic product ratios in the world, at 6% in 2019, according to the Organization for Economic Co-operation & Development.
The government this month proposed a budget of 19.8 trillion naira (R785 billion) for next year, with 63% of the spending plan to be funded through debt. The expected shortfall is about three times expected government revenue for the period and 5.5% of GDP, well above the 3% legal limit.
The new tax would have boosted government income, but added to the rising cost of operations in the mobile industry in Africa’s largest economy “which is already overburdened with a plethora of taxes totaling about 41 categories” imposed by both federal, state and local governments, said Pantami, who opposed the levy. -Fin24
TotalEnergies lodges production licence
TotalEnergies has lodged its production licence application for Block 11B/12B offshore of South Africa, the national petroleum regulator said on Tuesday, before a deadline expired which might have seen the oil major forfeit its right to develop the huge discovery. The deadline would have expired this week.
The application was filed on Monday and "will be assessed for completeness over the next 14 days", the Petroleum Agency of South Africa told Reuters in an email.
Bloomberg reported that production from the newly-discovered Block 11B/12B could revive the state-owned fuel agency PetroSA’s 45 000-barrel-a-day Mossel Bay gas-to-liquids plant, which has run out of feedstock. South Africa also plans to use the fuel to transition away from coal, which is used to generate nearly all of the nation’s electricity.
If TotalEnergies meets the requirements, obtains environmental authorisation and starts the development - located in an area regarded as one of the toughest ocean environments due to the Agulhas current - output could potentially begin as early as 2026, PetroSA CEO Phindile Masangane told Bloomberg last month.
Starting in 2019, Total has made discoveries of gas and condensate - a light liquid hydrocarbon - offshore South Africa.-Fin24
Nigeria suspended the implementation of a new telecommunications tax meant to help reduce the nation’s budget deficit that’s expected to hit a record next year.
The government set up a committee to review the 5% levy, which would have come into effect this year, Communications Minister Isa Pantami said in an emailed statement. It will make a decision on the tax after a report is issued. Shares in MTN, the country’s biggest mobile provider, gained.
Africa’s biggest oil producer is looking for ways to boost income amid falling crude production, rising fuel-subsidy costs and low revenue. The country has one of the lowest tax-to-gross domestic product ratios in the world, at 6% in 2019, according to the Organization for Economic Co-operation & Development.
The government this month proposed a budget of 19.8 trillion naira (R785 billion) for next year, with 63% of the spending plan to be funded through debt. The expected shortfall is about three times expected government revenue for the period and 5.5% of GDP, well above the 3% legal limit.
The new tax would have boosted government income, but added to the rising cost of operations in the mobile industry in Africa’s largest economy “which is already overburdened with a plethora of taxes totaling about 41 categories” imposed by both federal, state and local governments, said Pantami, who opposed the levy. -Fin24
TotalEnergies lodges production licence
TotalEnergies has lodged its production licence application for Block 11B/12B offshore of South Africa, the national petroleum regulator said on Tuesday, before a deadline expired which might have seen the oil major forfeit its right to develop the huge discovery. The deadline would have expired this week.
The application was filed on Monday and "will be assessed for completeness over the next 14 days", the Petroleum Agency of South Africa told Reuters in an email.
Bloomberg reported that production from the newly-discovered Block 11B/12B could revive the state-owned fuel agency PetroSA’s 45 000-barrel-a-day Mossel Bay gas-to-liquids plant, which has run out of feedstock. South Africa also plans to use the fuel to transition away from coal, which is used to generate nearly all of the nation’s electricity.
If TotalEnergies meets the requirements, obtains environmental authorisation and starts the development - located in an area regarded as one of the toughest ocean environments due to the Agulhas current - output could potentially begin as early as 2026, PetroSA CEO Phindile Masangane told Bloomberg last month.
Starting in 2019, Total has made discoveries of gas and condensate - a light liquid hydrocarbon - offshore South Africa.-Fin24
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