The Nation Newspaper

Category: Energy

  • Kaztec advances work on Addax’s Antan platform, jacket

    Kaztec advances work on Addax’s Antan platform, jacket

    Work has reached advanced stage  on the construction of the platform and jacket for oil production from Antan field, owned and operated by  Sinopec Addax Petroleum Limited, at its Snake Island fabrication yard in Lagos.

    The work is being undertaken by Kaztec Engineering  Limited,a subsidiary of Chrome Group.

    Antan oil field is in water depth of about 40 metres and located in oil mining lease (OML) 123 holding approximated recoverable reserves of 15 million barrels and expected to produce 12,000 barrels per day (bpd) at peak. Steel work in Antan is estimated at between 1400 and 1500 tons.

    The Group Executive Director, Engineering and Technology, Nigerian National Petroleum Corporation (NNPC), Adebayo Ibirogba, who was on  working visit to the fabrication yard at the weekend said he was impressed by the level and standard of work he saw and promised that the corporation will continue to support local fabrication yards by giving projects to do.

    Ibirogba said: “We are here to see for ourselves what Kaztec is doing in the oil and gas industry in terms of fabrication, local content, and their contribution to the efforts to indigenise operation.

    “Kaztec is a client and they are doing some work for us and they are angling for more works. For us, we look for value-added work  at every point in the value chain. So, when we have indigenous fabricators like this, it is very important that we come to see what they are doing and actually assess if they can improve our business. As they are integrated so is NNPC, we want to produce more oil, we want to convert the oil into petroleum products and to serve the Nigerian people and to increase our contribution to the transformation agenda of President Jonathan’s administration.

    “We are impressed with what we saw here considering the fact that this is a new yard but there is plenty of room for development. Also from what we saw, the standards are very high and only hope it will get better.

    “For local fabrication yards to continue to be engaged, we need to increase their activities in the upstream sector. We can all see that all hands are on deck to get the Petroleum Industry Bill (PIB) out. When we get the PIB out, it will create a level playing field for all players and that is what the indigenous fabrication yards need. Many don’t even want incentives, they just need a level playing field so that they can compete in an open and transparent market and I think with that, the people that are driving the investment will be confident and investments will come. Remember that crude oil is inching back to $60 per barrel, and $60-$65 per barrel is a range for profit.”

    For the marginal and brown field operators and how to boost their continued existence in business through technology, Ibirogba said: “Technology is a worldwide phenomenon; we don’t have monopoly of technology in Nigeria. We lean on the entire world industry but there are several advances going on at the same time in our efforts to improve production, and bring down the cost of production. For the marginal field operators, the reason why they are buying these assets is because they are lean in size, and their operating expenditure (opex) is low. Therefore, what they need do is  work and see those assets are cheaper than the international oil companies (IOCs). There is no doubt that many of them are currently facing hard times but whatever hard times they are facing now is temporary. It is normal, all businesses are technical, it goes down and comes up again. Our advice to everyone is to hang in there, hold on to what you have because it will get better.”

    On construction of floating production, storage and offloading vessels (FPSOs), he said that the local content laws give them (local fabrication yards) competitive advantage, so we encourage everyone who wants to invest in them locally because we will definitely patronise the local fabricators well before we go abroad.

    The Managing Director of Kaztec Engineering Limited Mr. John Niezner while conducting the NNPC delegation round the fabrication yard, said the company operates wholly in line with the Nigerian Content Act by engaging Nigerians in all its welding and fabrication operations. He said most of the engineering designs and materials are locally sourced, adding that the company’s operations contribute enormously to the country’s Gross Domestic Product.

     

     

     

  • Egbin to generate 2670Mw by 2019

    Egbin to generate 2670Mw by 2019

    Sahara Energy Group and its technical partner, Korea Electric Power Company of Nigeria (KEPCO), have promised to increase Egbin Power Plc’s capacity by 1350 megawatts (MW)  to bring its cumulative installed output capacity to 2670MW by 2019. The plant currently  has an installed capacity of 1320MW.

    Sahara Chairman Kola Adesina made the pledge last weekend when President Goodluck Jonathan commissioned the rehabilitated sixth steam turbine of the plant with 220MW capacity.

    Kola said: “We have commenced an ambitious plan to double the capacity of Egbin within the next four years, with the addition of 1,350MW Combined Cycle plant of which we have commissioned the Front End Engineering Design Study (FEED). All these have been possible because of your Excellency’s commitment to the power sector reforms and dogged determination to give our citizens a new lease of life through the provision of reliable power supply.”

    He said besides repairing unit 6, the company has also carried out the overhauling and retooling of Unit 4, which lost 20MW out of its 220MW capacity. Egbin is the largest power plant in West Africa comprising 6 x 220MW units of turbines with a total capacity of 1,320 MW. The Egbin Power Plant is critical to the nation as it accounts on a daily basis for about 20 per cent of the power generated in the country, he added.

    Adesina said: “Mr. President, the Unit that you are here to commission is an example of the benefits that privatisation of the power sector is bringing to our nation Nigeria.  The unit broke down in 2006 and for seven years could not be rehabilitated due to sundry challenges. On handover of the Egbin Power Plant to its new owners, KEPCO and Sahara Power Group in November 2013, we immediately made its rehabilitation a priority culminating in completion of the repair works.

    “Recognising the importance of commerce and industry to your transformation programme, Egbin unit 6 output is to be made available under an innovative bilateral commercial arrangement to Eko and Ikeja Electricity Distribution Companies to help improve power availability in Lagos and its industrial outskirts. We are indeed leading a new dawn in job creation within Lagos and its environs; and fostering gains in the gross domestic product of the economy and reduction in crime rates.

    “In addition, supporting the ideals of a cleaner and greener state, with reduced use of generators leading to healthier environment and improved quality of  life and also achieve the noble objectives and unravel the bottlenecks in the power supply value chain, we seek government’s help in terms of gas availability and expansion of the transmission network. In the light of paucity of funds faced by the government, the hands of the private sector need to be strengthened by allowing significant investment in both the transmission and gas infrastructure. With appropriate models and investment recovery mechanism, this holistic public, private partnership (PPP) approach will engender a faster, cheaper and more productive result in rapidly growing value chain.”

    Adesina stated that by what the new management of Egbin has done; over 1 million homes in Lagos will enjoy additional six hours per day of stable power supply. Over 6,000 direct jobs, over 10,000 indirect employment, will be created in terms of support and maintenance services, engineering, procurement, supplies to power sector, including support for the Small and Medium scale industries.

    “The new owners and managers have worked closely together to resolve some of the age-long legal, technical, commercial, regulatory and funding issues besetting the sector. We crave for more enduring mutual cooperation among all the market participants. Whilst the central goal for us is to meet the needs of our customers, we enjoin our ombudsman Nigerian Electricity Regulatory Commission (NERC), to kindly regulate with empathy. Life and living can be more exciting when we work together,” he added.

  • Seplat, Oando, others becoming big players

    Indigenous independent oil companies such as Seplat, and Oando have what it takes to play at higher level, following their acquisition of big assets in the oil and gas industry, a Professor of Energy Economics, University of Port Harcourt, Prof Wunmi Iledare, has said.

    He said the companies are raising their game amid the sale of assets by Shell, and other International Oil Companies (IOCs). Iledare said the industry, which has long been dominated by the IOCs, is seeing the emergence of indigenous firms that acquire the assets divested by these IOCs resulting in increased production levels from the locals.

    Speaking against the backdrop of the acquisition of ConocoPhillips by Oando, the listing of Seplat in London and Nigerian Stock Exchanges, and the decision of Seven Energy to secure $225million of new equity investment from Singapore Investment Company- Tamasek, the International Finance Corporation (IFC) among others, Iledare said local firms have gotten what it takes to undertake big-ticket transactions in the oil and gas industry.

    Iledare, who is also the President, International Association of Energy Economics (IAEE) globally, said plans by IOCs to abandon onshore for offshore activities have opened up opportunities for indigenous firms to play better.

    He said: “Unfolding events in the industry show that local firms have stepped up their game through various acquisitions in the industry. Most of the acquisitions have helped the local companies to play better and bigger.  They can now venture into areas hitherto dominated by the foreign-owned companies such as Shell, Chevron and others.

    “The only area where the domestic operators are yet to wield considerable influence is in exploration. There are Nigerians who can handle exploration activities well. They have gotten the exposure, skills, funds, and other attributes, which foreigners have. However, they need to improve on what they have going by the ever-changing methods, ideas and technology in the industry.”

    Iledare said local firms played important roles in oil and gas industry in United States, adding that  Nigerian companies can as well do the same thing.

     

  • World Bank to promote solar power

    The World Bank Group has launched the ‘Scaling Solar’ initiative to help create a viable market for solar power projects in Africa and increase supply of energy for millions across the continent.

    In  a statement issued by Ejura Audu of  Africa Communications,  the  bank announced the launch of Scaling Solar at the Powering Africa Summit in Washington DC.

    The summit is a gathering of African ministries, and utility companies that came to discuss ways of improving access to energy in the continent.

    Scaling Solar aims to create a viable market for private solar power projects in Africa that will help governments increase the supply of energy for millions of residential and commercial consumers across the continent. Scaling Solar reduces the development time and uncertainty for bidders and investors, while lowering tariffs for utilities, which ultimately benefits consumers.

    “The World Bank Group is committed to promoting sustainable universal access to modern energy in Africa, and Scaling Solar is a key step towards attaining this goal,” said Jean Philippe Prosper, IFC Vice President for Global Client Services. “By quickly delivering affordable electricity to previously unreached populations, significant progress can be made on other development goals,” he added.

    Africa has some of the world’s most abundant solar resources, yet more than a third of the population lives without electricity. Investors developing private solar projects in Africa are often deterred by a variety of obstacles, including the unique features and structures of the different markets, high transaction costs, heavily negotiated agreements, and high perceived risk and cost of capital. As a result, the region continues to struggle with slow, relatively expensive and ineffective solar development, which impedes access to electricity, the World Bank Group said.

    The World Bank said that large-scale photovoltaic solar power can be quickly and economically developed to increase the supply of electricity to national grids and improve the reliability of power services for households and businesses. Scaling Solar provides a straightforward package to help countries determine the size and location of projects, then auction them competitively to developers. The initiative combines World Bank guarantees, Multilateral Investment Guarantee Agency, (MIGA’s) investment guarantees, and IFC financing to mobilise privately funded solar projects that are connected to the grid.  A simplified process and suite of contract templates significantly speeds this process to enable initial electricity production to begin within two years of initiating an engagement.

    “The countries we work with in Africa to support the development of solar energy look to the World Bank Group for our full suite of services – from technical knowledge and innovation to guarantees and financing,” said Anita Marangoly George, World Bank Senior Director for the Energy and Extractives Global Practice. “Through Scaling Solar, we are able to respond nimbly and effectively to this growing area of demand.”

    Scaling Solar builds on the World Bank Group’s experience in promoting small and larger-scale solar power development in emerging economies around the world and on South Africa’s successful Renewable Energy Independent Power Producer Programme (REIPP). Scaling Solar will lower the cost of solar by helping governments to procure solar power competitively and enhance the provision of sustainable energy in Africa.

    “This initiative offers a framework that allows countries to rapidly and efficiently mobilise private capital into solar projects with high development impact without having to start from scratch,” added Edith P. Quintrell, MIGA’s Director of Operations.

     

  • Petroleum Ministry, others to tackle vandalism

    The Ministry of Petroleum Resources, the Nigerian National Petroleum Corporation (NNPC) and the National Security Adviser (NSA) have initiated moves to curb pipeline vandalism and crude  oil theft through digital surveillance.

    The initiative will also ensure that operators in the oil and gas sector deploy sensors in areas where pipelines are located to check vandalism. The mechanism will connect every centimetre of the pipeline, and further ensure that operators enjoy the latitude of being informed immediately any act of vandalism is being carried out on any part of the pipeline.

    The Group General Manager, Group Public Affairs, NNPC, Ohi Alegbe, said the industry is at a stage where opportunities in technology are being explored to stop the menace of pipeline vandalism and other untoward practices.

    He said efforts are ongoing to use sensors to check vandalism, adding that the involvement of NNPC in the fight against pipeline vandalism and other untoward practices was in line with its responsibility to develop the upstream and downstream sectors.

    He said the  Corporation distributes petroleum products to its depots through pipelines, and at the same time uses the channel to provide gas to the end-users, especially the power generation companies (GENCOs).

    He stated that pipeline breakage and other problems are critical to the growth of the sector, adding that the government is not leaving any stone unturned to stop it.

    He said the  National Security Adviser (NSA), Col Sambo Dasuki( rtd) is the only competent person mandated to speak on the technology, in view of the importance the Federal Government attaches to the issue of pipeline vandalism.

    Alegbe said information regarding the use of the technology are sensitive, and is therefore, being protected from the public to enable the government achieve its desired results of reducing pipeline destruction.

    Also, the Senior Special Assistant on Gas to the Minister of Power, Dr Frank Edozie said the ministry, National Security Adviser and NNPC are involved in the scheme to tackle pipeline vandalism through digital method.

    He said the Ministry of Power does not own pipeline, but only uses it as a channel through which gas is transported to the power generation companies (GENCOs) for electricity production.

    Ownership of the pipelines, he said, revolves round the International Oil Companies (IOCs) and NNPC, adding that the development underscored the reasons behind the involvement of NNPC and the Ministry of Petroleum Resources in the fight against pipeline vandalism through technological process.

    Edozie said the government has adopted physical measures to deal with the problem, by deploying members of military and para-military to monitor pipelines and further arrest vandals. He said the Joint Task Force (JTF) comprising the army and the police have arrested and prosecuted vandals, stressing that the devices are going to complement such efforts.

    He said: “In the past, efforts were made by the government to secure pipelines. The Army, Navy, Police and the Nigerian Civil Defence Service Corps (NCDSC) monitored pipelines but now, the government has put in place measures to complement the physical protection of the pipelines by ensuring that sensors are deployed into pipeline areas or zones.  The effectiveness of the sensors depends on the number of operators deployed to check vandalism.”

    The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, said the government is declaring zero tolerance on vandals, stressing that a more proactive measure would be used to curb the sharp practices.

     

  • SON moves against importers of fake LED bulbs

    Importers of sub-standard Light Emitting Diode (LED) energy saving bulbs are in for hard times, says the Standards Organisation of Nigeria (SON). It has adopted measures to stop influx of such bulbs.

    The organisation has also started examination of all imported LED bulbs to determine their genuineness. LED bulbs are considered the best energy saving bulbs. They are expensive but have long life span.

    SON’s Head of Enforcement, Bede Obayi said the bulbs are undergoing tests in the agency’s laboratory to determine their level of reliability, and further ensure that those that fail to meet the required safety standards are impounded to serve as deterrent to other importers.

    He said the tests vary in scope, adding that they seek to achieve a common goal of differentiating the original from fake.

    Obayi told The Nation that SON is conducting what it described as Life and Turfion tests on the bulbs in order to know the compositions, workings, and other vital information about the bulbs, and subsequently separate the fake from the original.

    He said Life test is going to show the life span of the bulbs vis-a-vis knowing the number of hours they can spend before they go off, while the Turfion test shows the distinct and definite natures of the bulbs.

    He said bulbs are expected to spend certain number of hours, days, or months, adding that there are cases whereby bulbs goes off few hours after they are fixed.

    Obayi explained that people use substandard energy saving bulbs without considering their financial and health implications. He said bulbs that are not showing reasonable level of light emission, offering lasting value, among meeting other requirements provided by their manufacturers, are deemed to be substandard, and should be withdrawn from the market.

    Obayi said there was no let up in the fight against importation of substandard energy equipment, noting that SON has been withdrawing obsolete gas cylinders from the market in line with the Federal Government’s directive that the  products must be phased out to pave way for the production of new ones locally.

    According to him, complaints from customers made the government to initiate the tests, among taking other precautionary measures to protect the users.

    He said the delay in impounding fake energy bulbs, was as a result of lack of enough evidence on them, stressing that the tests would give a true picture of the bulbs used in Nigeria.

    Obayi said: “It was not proper for SON to start impounding energy saving bulbs without having enough proofs to substantiate its claims.  The tests would reveal a lot of things. The outcome would determine the next line of action which SON would take. We have heard of fake energy saving bulbs in the market, but we need to follow due process by conducting a thorough investigation on the issue before we do anything.

    “We have organised a forum for all the stakeholders especially those that are importing the bulbs. We told them to collect Standards Organisation of Nigeria Conformity Assessment Programme (SONCAP) certificate since it is a major way of knowing whether products coming into Nigeria meet the local standards.

    He said possessing of SONCAP certificate is mandatory for importers of goods into the country, arguing that anybody without the certificate is not worthy of bringing goods into the country.

    The government’s decision to introduce pre-paid meters made electricity consumers to determine their consumption level and costs. In recent times, millions of energy conserving bulbs have flooded the market as consumers transit from analog to pre-paid meters.

  • Manufacturers seek liberalisation of meter market

    The Electricity Meter Manufacturers Association of Nigeria (EMMAN), has urged the Federal Government to liberalise the meter market to allow their members sell meters directly to individuals and corporate organisations through approved vendors by the Nigerian Electricity Regulatory Commission (NERC).

    The Executive Secretary of EMMAN, Mr. Muideen Ibrahim, made call at the inauguration of the remodelled National Meter Test Station and the opening of the Technical Inspectorate Service Field Office in Lagos at the weekend. The meter test station is under the newly created Electricity Management Services Limited (EMSL).

    Also, the Federal Government has said it will enforce standards on electrical materials to ensure that Nigeria does not become dumping ground for substandard materials.

    The Minister of State for Power, Mr. Mohammed Wakil, also made this known in Lagos at the commissioning of the remodelled National Meter Test Station and the opening of the Technical Inspectorate Service Field Office.

    He said President Goodluck Jonathan has reformed the generation, transmission and distribution value chains of the power sector adding that the government now focuses on effective delivery of safe and reliable electricity supply to Nigerians.

    He noted that the government is resolved to enhance consumers and investors’ confidence through sustained inspection, testing and certification of electrical materials and equipment.

    Wakil said: “Electricity materials should be of high quality and specification. All categories of electrical installations, power systems and network must be properly planned, designed and tested before use. Gone are the days of sub-standard equipments and installations which compromised safety of Nigerians. More pointedly manufacturers of fake power equipments are hereby put on notice.

    “The long arm of the law shall catch up with those endangering lives of innocent citizens. Nigerians do not only want adequate power supply but also safety and reliability.”

    The minister said the significance of safety and quality control informed the establishment of Electricity Management Services Limited adding that the agency is growing into a giant. “I am happy to note that EMSL has within this short period achieved remarkable success which includes the remodelled meter test station and others at Kaduna and Port Harcourt. The technical inspectorate service field offices of EMSL, have detected defective power equipments in many zones,” he added.

    The Managing Director, EMSL, Mr. Peter Ewesor, said the remodelled national meter testing station will be saddled with the roles and responsibilities of enforcement of technical and safety standards. He said other roles are technical inspection, testing and certification of all categories of electrical materials and equipments and electrical installations adding that in line with EMSL mandate and regulations, no electrical installation or network can be put into use unless it has been tested and certified fit for use by engineers and technical officers of EMSL.

    “Over 10,000 substandard meters have been rejected for not having anti-energy-theft protection. These types would have led to high commercial and collection losses for the investors. We have rejected over five thousand meters having terminal connections that were out of specifications, this would have led to risk to workers and staff of the utility companies and possible burning of the meters on installations,” he said.

    Ibrahim said the only way to ensure effective distribution of meters to electricity consumers is when meter manufacturers are allowed to sell meters to government institutions, private estates and barracks, among other consumers.

  • Oil marketers allay fears over falling crude price

    The Major Oil Marketers Association of Nigeria (MOMAN) has called on Nigerians not to panic because of fall of the crude oil price. The price will still rise, it said.

    The asociation said the consequences of the inability of its members to import fuel on sustainable basis was due to the free fall of the Naira in the foreign exchange market.

    Speaking at a quarterly roundtable on the economy, which was organised by the Nigerian NewsDirect in Lagos, the Executive Secretary, MOMAN, Mr. Obafemi Olawore, said crude price fluctuations had always been cyclical and noted that the price would soon correct itself.

    He urged Nigerians not to panic because oil price will still rebound. “How soon the price will rebound, I cannot say but when it rises, we should save into Sovereign Wealth Fund,” he added.

    Olawore urged policy makers to address the challenges of foreign exchange fluctuations to enable investors plan ahead. He said the government should look inwards by halting what the country does not really need like importation of toothpicks and other similar items. He also called for the passage of the Petroleum Industry Bill (PIB) in order to boost investment in the upstream sector.

    “If we can fix the power sector, patronage of diesel will drop, and price of diesel will also drop. Unless the downstream sector is fully deregulated, domestic price may not reflect current price at the international market, he said.

    However, due to the fall in prices of oil, the Monetary Policy Committee of the Central Bank of Nigeria (CBN) raised interest rates from 12 to 13 per cent and at the same time devalued the naira. The exchange rate of naira to dollar dropped to N208 recently.

    The chairman of the roundtable, Dr Diran Fawibe, stated that the fall in crude oil price was affecting the country because the government focuses only on the oil and gas sector as main source of foreign exchange earnings. He suggested that if the government could focus more on non-oil and gas sector and other mineral resources like palm oil, cocoa and other mineral materials, the fall or increase in the prices of oil would not have any impact on Nigeria’s economy.

    The Director-General, Lagos Chamber Commerce and Industry (LCCI), Muda Yusuf, who was represented by Mr. Vincent Nwani, said if crude oil price continues to fall, there would be a huge fiscal problem in the economy.

    “If the crude price continues to drop, some state governments may find it difficult to pay salaries. But Nigeria may not be ready to diversify until oil price falls to $10 per barrel. But I hope the country can take advantage of the drop in crude price to do things correctly by diversifying to other sectors,” he said.

  • Seplat aims at 50,000 bpd equity production by 2071

    Nigeria’s leading indigenous independent oil producer, Seplat Petroleum Development Company Plc, has set its eyes on achieving daily equity production of 50,000 barrels of oil and 250 million standard cubic feet per day (mmscf/d) of gas by end of 2017.

    Seplat’s Managing Director, Austin Avuru, told The Nation that the production milestones had been their target from the beginning. He said besides the newly acquired interests in oil mining leases (OMLs) 53 and 55, the operated production stands at between 70,000 and 74,000 barrels per day (bpd) and between 120 and 275 mmscf/d by end of this first quarter. However, Seplat’s equity production is 33,000 bpd.

    With the recent acquisitions, the targets may likely be achieved before 2017, an industry stakeholder told our correspondent.

    Avuru said: “Our plans from the beginning has always been to increase not just gas or oil but continuously grow oil and gas production to a possible plateau at the end of 2017. But more importantly to a sustainable plateau, which means we must also find the reserves to underpin that plateau production and achieve a reserve production ratio of at least 20 years. In summary, we will grow oil, gas production and grow our reserves to a level that can sustain that growth in oil and gas production. It is a tripartite thing and we will focus on them, so for us these days, we no longer talk about operated production, we talk about our own equity production.

    “Today, we are on an operated production of about between 70,000 and 74, 000 barrels per day and our equity there is around 33,000 barrels per day. We hope to drive our own equity production for oil over the next three years closer 50,000 barrels per day, and drive our gas production equity to between 200 mmscf/d and 250 mmscf/d in the next three years.  Those are projections but that is where we want to be. Again, there are mitigants to all of these – oil price, cut down on capital expenditure (capex) but that is where we want to be.

    “By the end of this year’s first quarter, we would have doubled our producing capacity from 120mmscf/d to about 275mmscf/d. And our new plant is modular, so we can stick in two extra modules and add another 150mmscf within a short time and with a relatively small capex spend. What that means is that we can build it up to 375mmscf/d or 400 mmscf/d. So our target at the end of 2017, is to be able to process and deliver between 300 mmscf/d and 400 mmscf/d and they will all go into the domestic market. And by that time, our target is to see that 20-30 per cent of our bottom-line is from gas.

    Seplat just bought 40 per cent interest from OML 53 and 22.50 per cent interest from OML 55 to be able to meet their projected targets.

    On the acquisitions, Avuru said: “This transaction fits neatly with our strategy of securing, commercialising and monetising natural gas in the Niger Delta with a view to supplying the rapidly growing and evolving domestic market.  In addition to the large scale discovered, but undeveloped gas and condensate resources that are yet to be fully classified through detailed technical work, there are near term opportunities to increase and optimise oil production significantly above current levels.  We very much look forward to working with NNPC and leveraging our technical and commercial expertise as operator to realise the full potential of this high grade acreage.

    “The addition of OML 55 to our portfolio, also expands our footprint in the Niger Delta to six blocks and further cements our position as a leading indigenous independent exploration and production (E&P) in Nigeria.  OML 55 provides us with a number of attractive opportunities to boost oil and gas output, and is consistent with our strategy of prioritising those that offer near-term production growth, cash-flow and reserve replacement potential in the onshore and shallow water offshore areas of Nigeria. We are pleased to have extended our operating partnership with NNPC who we look forward to working with in our capacity as operator pursuant to the Joint Operating Model,” he added.

     

  • Fed Govt seeks 10 per cent power generation from coal

    Fed Govt seeks 10 per cent power generation from coal

    As part of the Federal Government’s efforts to diversify the sources of power generation, attention is being focused on exploiting the abundant coal deposits in some parts of the country.

    The government expects to generate 10 per cent of the power supply needs of Nigerians from coal, the Power Minister, Prof Chinedu Nebo, has said, adding that licences are being given to companies that want to invest in coal-power plants.

    Nebo, who spoke in Lagos, said: “Government is working on diversifying sources of power generation to make sure that we have a good robust energy mix. As a result  of this, more licences have been issued to companies that are interested in mining coal for power generation. We are looking at a time where about 10 per cent of our power generation will come from coal-fired turbines.  The President is determined to ensure that it happens.”

    He said the decision to veer into exploitation of coal for power generation has become imperative in view of the menace of gas pipeline vandalism, which seriously sabotages government’s efforts at providing stable power supply to the populace. He said vandalism is a thorn in the flesh of the government as 70 per cent of the nation’s power supply comes from gas fired turbines. “The phenomenon of gas pipeline vandalisation is another problem. Vandalism is taking a toll on us and it is a situation where our own compatriots vandalise the oil and gas pipelines and especially the gas pipelines. About 70 per cent of our power generation is gas-fired turbines and 30 per cent hydro. We have not been doing coal, renewable and biomass, among others, and these are areas the government is focusing now,” he said.

    Nebo also noted other areas the government is channeling resources and attention to improve power supply including existing and proposed new hydro plants. He said: “The hydro power plants including Kainji, Jebba, and Shiroro, the government has done much to make sure they go back to their initial capacity. For over 30 years, there has been no overhauling of the Kainji turbines but this government has undertaken that. Very soon Jebba and Kainji will be operating at capacity or near capacity. We are also working on about 12 small and medium hydro plants including Kashimbilla, which is almost ready and will be inaugurated soon. The turbines have been installed but the transmission components will be flagged off shortly. The contract has already been awarded.

    “Work has also started in Zungeru hydro power since 2013. A lot of civil works are ongoing there and on completion, the plant will be generating 700 megawatts (MW) to the national grid and the President will soon flag off the Mambilla power project that will add 3050MW when completed.

    “Licences have been issued by the Nigerian Electricity Regulatory Commission(NERC) to companies that want to do solar power generation in Nigeria and the good thing is that there is an attraction because solar is more capital intensive but its maintenance is much less. Down through the year, you don’t have to buy fuel because God has already given the fuel, which is the sunlight. So, solar is expensive to install but costs much less to maintain along the year. For over years, you save a lot of money by using solar technology and government is working very hard to make sure it happens by giving solar the highest tariff consideration. If you are generating power by solar, you will get the best tariff in the country.

    “More independent power plants (IPPs) are coming. The Azura-Edo IPP, a 450MW Open Cycle Gas Turbine (OCGT) power station, which is part of a 1,500MW facility being developed near Benin City, was flagged off about two months ago. Ughelli power plant has not only doubled capacity within a year but is also trying to add another 1000MW in the next 12 to 24 months.”