Oil & Energy
Firm Alerts On $558m Assets’ Threat …Over Severance Package
The management of Neconde Energy Limited, a member of Obijackson Group and operator of the Oil Mining Lease (OML 42), has raised alarm over threat to its $558 million (about N200.8 billion) assets.
The Managing Director of the company, Mr Frank Edozie, disclosed this during an interactive session with newsmen yesterday in Lagos while cautioning PENGASSAN over picket plans on May 15.
Edozie alerted the public on plans by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to picket the company over issues relating to severance package.
He explained that in March 2016, Neconde and PENGASSAN entered into an agreement over welfare issues, including increased severance package, transfer and 13th month allowance with a caveat that the agreement will only be implemented once production hits 70,000 Barrels Per Day (BDP).
However, he expressed surprise that despite the fact that the current production level remained at 15,000 bpd, PENGASSAN in alliance with some workers of Neconde have concluded arrangement to picket the company on May 15.
The Neconde boss said that a component of its strategic goal for the year to achieve the 70,000bpd target has led it to develop “barged production” as an alternative to crude evacuation using the Trans Forcados Pipeline which has been out of service since Feb. 13, 2016.
“We have also undertaken some strategic steps, such as rehabilitation of Batan and Odidi Flow Stations to enable the achievement of our targeted peak gross production rate.
“Revamping of Jones Creek and Egwa Fields for work over of existing wells and development of other infrastructure which includes refurbishing a gas Central Processing Facility (CPF) in Odidi as well as commencement of re-entry of Odidi, Jones Creek fields Egwa 1 & 2.
“Despite the idle state of the asset, he said the company has remained committed to workers welfare and prompt the payment of salaries, especially during the period when oil prices remained at its lowest ebb.
“Additionally, we had to relocate our operations to Warri from Lagos, for us to be closer to the base to better enable us to meet our goals of increasing our contributions to the Nigerian economy.
“Expectedly, this relocation meant redeployment of employees to the new location, and this was executed in a manner that the associated inconveniences to employees were duly considered and properly mitigated,” he said.
According to Edozie, “we are currently in talks with the leadership of PENASSAN to ensure that we reach a mutually beneficial agreement on some of the demands presented by the association.
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By Felicity Bradstock for Oilprice.com 16
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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