Oil & Energy
SPDC Remits $31bn To Federation Account, NDDC
Shell Petroleum Development Company (SPDC) remitted 29.8 billion dollars to the federation account and 1.2 billion dollars to Niger Delta Development Commission (NDDC) between 2002 and 2016.
General Manager, External Relations, Mr Igo Weli, made the disclosure in Port Harcourt while reacting to the shut-down of SPDC flow station and gas plant in Belema community by angry youths.
The youths accused the company of neglecting them and marginalizing their community.
Addressing newsmen, Weli said the seizure of the company’s facilities by the youths would not only send wrong signal to the international community, it was capable of discouraging further investment in the Niger Delta.
He said: “People are having high expectations from SPDC; they forget the company is not government and does not have the resources to solve world hunger.
“SPDC has made several efforts to sensitise the people on how our business is run, so that their expectations can be realistic and align with realities of how we run our business.
“The business we do add value in several ways through contributions to the federation account and the NDDC.
“Between 2012 and 2016, SPDC JV contributed $29.8 billion to the federation account which flows down to the state governments, local governments and to the communities.”
Weli said the company had also set aside three per cent of its annual budget to NDDC as its contribution to the development of the Niger Delta.
The GM described the closure of the company’s facility as ‘worrisome’ especially as the company and its partners had sent millions of naira on human and infrastructure programmes in the communities.
“If the youths isolate our corporate social responsibility and put all the burden of infrastructure needs on SPDC, then the expectation would not balance.
“In 2016 alone, our contribution to NDDC was 106.8 million dollars; people need to define their expectation; ask themselves if their expectation is realistic and if SPDC is government.
“People should express their grievances in a way that follows due process to avoid sending wrong signal to potential investors about how businesses are treated in our society,” he said.
Weli said that SPDC had set aside N7 billion in the accounts of several cluster communities in the Niger Delta for the region’s development.
He said the funds were yet to be spent due to restiveness, litigations and court injunctions which affected implementation of its social investment drive in the communities.
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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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