Oil & Energy
‘We Will Continue To Invest In Nigeria’
Shell will continue to invest in Nigeria “under the right conditions”, Chairman of Shell Companies in Nigeria, Mutiu Sunmonu has said in Abuja.
Mr. Sunmonu, who is also the managing director of Shell Petroleum Development Company of Nigeria (SPDC), said: “Shell will continue, under the right conditions, to invest in projects that would benefit the people. We are not doing this because we lack investment options. We are doing it because we believe in a strong and healthy nation.”
In a statement in Lagos, Shell Corporate Media Relations Manager, Tony Okonedo, quoted Sunmonu as saying this at the leadership lecture series of IBB Golf and Country Club, Abuja, which was held as part of activities marking Nigeria’s 50th independence anniversary.
Delivering a lecture titled: “Investing in the Nigerian Oil and Gas Sector”, the managing director also explained the scope and philosophy behind investments made by SPDC and its Joint Venture partners (NNPC, Total, Agip).
SPDC, the oldest energy company in Nigeria, has developed “long term and continuing commitment to the country, its people and the economy”, generating billions of dollars to help fund development and growth.
Working along with NNPC and other international oil companies, SPDC has also made big investments in the oil and gas industry.
Mr. Sunmonu cited Gbaran-Ubie Integrated Oil and Gas development and Afam V1 power plant as two examples of recent investments that will further the development of Nigeria.
Afam V1 power plant commenced electricity generation in October 2008, fed by gas from SPDC’s new Okoloma gas plant, while oil and gas production from Gbaran-Ubie began in July this year.
He said that, in addition to these investments, SPDC and its Joint Venture partners support and finance community development initiatives in the Niger Delta.
In 2009 alone, SPDC and its partners contributed an additional $57.7 million directly to development projects – many delivered in partnership with others.
He said: “Last month, the UN secretary-general invited leaders of the 192 UN member nations to a summit in New York, to discuss how to help the world’s poorest people. The poor are those without a voice. They’re the ones without water, food, shelter, medicine, education. And they need help.
According to him, “In Nigeria, the government cannot provide all the help on its own. SPDC knows this and that’s why we place great importance on making a difference in the environment in which we operate.”
On the Golden Jubilee Anniversary, Mr. Sunmonu said, Nigeria “has good reasons to celebrate,” stressing that the country holds nearly 10 per cent of global proven oil reserves and about 8 per cent of global proved natural gas reserves.
But he said that, for Nigeria to continue to attract international investments, it needs to sustain confidence and stability, and respect the sanctity of contracts.
He added: “I was delighted when President Goodluck Jonathan recently launched the ‘Roadmap for the Power Sector Reform’. The great majority of Nigerians want dramatic improvements in their quality of life, whether to have modern appliances, or simply to have electricity so students can study for a brighter future. More gas and more power will raise living standards, support sustainable economic growth and kick-start new industries.”
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Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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