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Towards Stable Electricity Supply In Rivers

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The Rivers State Government recently reaffirmed its commitment to ensuring stable and constant electricity in the State.

The State Governor, Rt. Hon. Chibuike Rotimi Amaechi who disclosed this at the Inter-denominational church service to mark this year’s Armed Forces Remembrance Day assured that citizens of the State would by December this year enjoy stable and constant electricity.

Acknowledging the challenges facing the people of the state, the governor said he would tackle them promptly, adding “Government is fully aware of its commitment to the people who elected me into office”. He reaffirmed that plans were on-going to provide stable and constant electricity in the state by December 2012.

To further reaffirm this commitment, the government signed a Memorandum of Understanding (MoU) with Shell Nigeria Gas, a subsidiary of the Shell Petroleum Development Company (SPDC) for the development and distribution of natural gas within Port Harcourt and its environs. A similar agreement was also signed with Oando Gas and Power on the same issue as its determination to reposition the state in the development of the gas sector as well as help in improving the power plans of the state government.

The MoU represents a key step in not only the gas masterplan implementation but will also put the state reputation as the energy hub of the country and improve the socio-economic benefits of the state. This can only be possible if the parties keep to the agreements. The MOU covers a period of thirty years.

Rivers State is a major oil and gas province in the Sub-Saharan Africa with more than 40 percent of Nigeria’s crude oil reserves and 55 percent of natural gas reserves located in the state. Many key players in the Nigerian Petroleum and natural gas industry have their regional offices in Port Harcourt, the capital of the state.

However, despite the more than 50 years of active operation in the state, there is very little synergy between the oil and gas industry and the local economy, particularly with respect to power distribution and transmission, and effective participation of indigeneous entrepreneurs.

The on-going efforts by the Rivers State government at repositioning the power sector would boost electricity supply in the state and take the state to a greater heights in our pursuit of making electricity safe, reliable and affordable. There is currently an increase in electricity generation in the state but that would not solve the problem until there is a corresponding increase in distribution.

The vision of the present administration in the State is to transform the economy through efficient use of energy resources as well as to position Port Harcourt as the Energy capital of the West African Sub-Region and the Gulf of Guinea. The use of gas resources to power electricity in Rivers State will enable its people get the benefits of the resources of their land.

One very important aim of the state government from the time past has been to develop its gas turbine into one of the leading Independent Power Project (IPP) in the country and the government had continued to offer a wide range of solutions to the problem of power shortage for which several feasibility studies and plans have been done. The government has continously placed priority on the development of the power sector in the state, hence the Omoku gas turbine, Trans-Amadi and Eleme gas turbines had undergone processes of power distribution and transmission, yet their aims are not fully achieved, though the state power station at Oyigbo (Afam) is giving a boost to the power project of the state.

The government of Amaechi believes in serving as a reference for excellence, this, he wants to show in the power supply as he did in the social responsibility. The governor’s reassurance to fulfil his promise of providing adequate electricity to the entire state before the end of his tenure, no doubt, must be backed with action.

At a meeting  with Chiefs, elders, youths, women and opinion leaders of communities whose lands would be acquired for the construction of the planned 33/11/KV injection Sub-Stations and Rows for transmission lines, the state Commissioner for Power, Hon. Augustine Wokocha reiterated that government was committed to providing a stable and an affordable electricity supply in the state.

He advised communities against unnecessary interruption that would impede the course of the surveyors and valuers, stating the resolve of government to complete its projects in record time. “Communities should cooperate with surveyors and valuers as well as the contractors that would handle the projects to enable them carry out power work that would be beneficial to both the government and the communities”, he stressed.

Port Harcourt is a very comfortable investment zone and the state continues to make its mark and contribution towards sustainable power production and distribution. It is hoped that the government will establish an Independent Power Project (IPP) that will power the business sector in the state and have other things that will enable the state have independent power plants in the strategic areas. It is also hoped that the state would work with the Federal Government plans to privatize the power sector, bearing in mind that power is still in the exclusive list.

The government has so many things to put in place before it can go into the Independent Power Project which President Goodluck Jonathan is trying to do in the reodmap on power sector reform. The Federal Government’s gas-to-power initiative, the passing into law of the Nigerian Local Content Bill and other initiatives by the Rivers State government from its Petroleum and Natural gas resources would provide the necessary enabling materials for the achievement of stable and constant electricity supply to the state.

With the Federal Government’s intention to ensure that oil companies end gas flaring by December this year, it is expected that the Rivers State government would key into the programme to make energy-driven economy for the state as it will attract investment opportunities and create jobs for the people in the power and industrial sectors.

The Nigerian Electricity Regulatory Commission (NERC) has put in place necessary mechanism in order to have an acceptable platform for the proposed electricity tariff review and already collating materials to work with, with a view to issuing a new cost of electricity in the country. This will usher in a subsidised cost of electricity for ordinary Nigerians who may not be able to afford the proposed increase in tarrif, especially those in the rural areas and others. More than 40 per cent of the electricity in the country are generated privately for greater efficiency.

This calls for the Federal Government to reduce import taxes paid on components used for producing power equipment. Such reduction of import duties would encourage investors and governments in the country to produce more power to improve the supply situation, create jobs and wealth for the country. Regular and efficient power supply remains the only infrastructure that is required to install the full entrepreneurial energies of the state and nation’s economy, and unleash unprecedented economic growth.

The Rivers State government’s focus is to make progress in optimizing its gas for distribution to power industries and key into the President’s gas-to-power framework or masterplan. The power sector in the state, in the third quarter of last year showed good signs of improvement which began after the turn-around maintenance and upgrading of the electricity supply and distribution by the State government in conjunction with the Power Holding Company of Nigeria (PHCN) in the State. Residents of Port Harcourt and the state are concerned about whether the tempo can be sustained to end the blackouts suffered in recent past. Thanks to the Amaechi government because the situation which was described as failure and epileptic has resurrected with unending power supply chain-transmission, distribution and generation.

In the electricity business, if any section of the chain is insufficient or works at sub-optiomal level as a result of poor equipment or operation, it would affect other sections, so the state government in its commitment to providing electricity for the people overhauled the entire supply chain of the power sector in the state, which is currently paying off. Rivers people and residents of Port Harcourt and its environs are now enjoying improved power supply and it is hoped that by the end of this year and with the plans underway, there will be substantial increase in power generation in the state, even with the envisaged growth in gas supply next year.

The current development exemplifies the government’s seriousness in ensuring stable and constant electricity by December this year and also underscores the government’s capability in managing the complex synergies in the power sector reform which seems to task more responsibilities to the PHCN. Seven years after the Power Sector reform Act 2005, we ought to have moved to the point of counting our gains of the reform as against the benefits lost. In the light of emerging realities, there is a lot more that needs to be done to secure an anchor to the reforms which are proving unworkable.

It will be a worthwhile experience for Rivers people to have a telling reference of the improvement or stability in power supply in the State from the Governor Amaechi-led administration. The State Power Station in Afam which is off-grid is on course and it is giving what the metropolis wants and enabling the state deliver services that are so critical to the welfare of the people.

The governor has thought reasonably by trying to replicate the model in his state. What the nation needs at this time are scores of compact micro-schemes to deliver power off-grid to take the wind out of the sail of the inept PHCN.

 

Shedie Okpara

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Rivers PETROAN Elects 12-Member Executive 

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The Petroleum Products Retail Owners Association of Nigeria (PETROAN), Rivers State Branch, has elected a 12 – member executive to steer the affairs of the association for the next four years.
The executive, elected during the Annual General Meeting (AGM) of the association, at it’s secretariat in Port Harcourt, and sworn in immediately after the election, was mandated to, among other things, tackle the adulteration of petroleum products as well as address irregularities in meter readings across the state.
The newly elected executive include, Pastor Ezekiel I. Eletuo  as  Chairman,  Kanu Addeson C. as Vice Chairman , Dr. Ejike Jonathan Nnbuihe as Secretary,  Fidelis A.Inaku as Treasurer and Lady C. N. Ekejiuba as Financial Secretary.
Others are Anaenye Anthony as Publicity Secretary, Arc. Kingsley O. Anyino as Organising Secretary, Nze Peter Ezenwa as Chief Whip, and Sunny Williams as Auditor.
Other members of the executive included Chidiebere Ronel Akwara as Welfare Officer, Ibe Chimaobi C. as Legal Adviser, and Emetoh Chizoba as Assistant Secretary.
Inaugurating the new leadership, PETROAN Zonal Chairman, High Chief Sunny G. Nkpe, charged the team to build on the achievements of the outgoing executive.
He urged them to collaborate with stakeholders in the petroleum sector to ensure industry stability and address issues of multiple taxation.
Nkpe who emphasized the need for transparency, accountability, and an open-door policy in administering the union, insisted these principles remained crucial in advancing the association’s objectives and improving members’ welfare.
The zonal chairman also commended the outgoing executive for their accomplishments during their tenure and for conducting a smooth transition process.
He further described their efforts as instrumental in strengthening the union’s standing in the state.
In his acceptance speech, the new Chairman, Pastor Ezekiel I. Eletuo, thanked members for their confidence and pledged to improve on the foundations laid by the previous administration.
He promised his leadership would be guided by transparency, accountability, fairness, unity, and integrity.
Eletuo called on all members to support the new executive in its efforts to elevate the association.
Also speaking, the immediate past Chairman, of the association, Sir Chilam Francis Dimkpa, expressed appreciation to members for their support during his administration and stressed the need for them to extend the same cooperation to the new leadership.
Dimkpa highlighted key achievements of his tenure to include capacity building for members, increased union visibility through media advocacy, and the establishment of stronger ties with stakeholders, corporate organisations, and individuals.
He also acknowledged the support of the state government, the Police, the Department of State Services (DSS) and the Nigeria Security and Civil Defence Corps (NSCDC).
Stakeholders present at the event also delivered their goodwill messages.
Highlights of the event included  administration of oath of office to the new executive and the presentation of certificates of return by the zonal chairman.    .
By: Amadi Akujobi
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FG Intensifies Efforts To Reposition Tourism Sector 

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The Federal Government has intensified efforts towards reposition Nigeria’s hospitality and tourism industry for global competitiveness, aimed at strengthening regulation, professionalism and workforce standards across the sector.
This was made known last week when the National Institute for Hospitality and Tourism (NIHOTOUR) conferred  fellowships, inducted professionals and inaugurated the governing boards of the Hospitality and Tourism Sector Skills Council of Nigeria (HTSSCN) in Abuja.
The high-profile event, held at Merit House, Maitama, drew senior government officials, regulators, tourism operators, cultural institutions, hospitality investors and development partners in what stakeholders described as a major institutional shift .
Government also formally inducted registered practitioners into various professional categories while also inaugurating the Board of Trustees and Board of Directors of the HTSSCN, an employer-led platform designed to align workforce competencies with industry expectations.
Speaking at the event, the Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musa Musawa, said the initiative represented a strategic intervention to strengthen accountability, standards and institutional coordination within Nigeria’s tourism and hospitality ecosystem.
According to the minister, Nigeria’s vast cultural assets, tourism destinations and creative talents can only translate into sustainable economic value through professionalism, regulation and globally accepted operational standards.
She noted that tourism and hospitality industry remains one of the fastest-growing sectors globally, contributing significantly to employment generation, foreign exchange earnings and cultural diplomacy.
Musawa explained  that NIHOTOUR Establishment Act has expanded the institute’s mandate beyond training, positioning it as a regulatory and certification authority for hospitality, tourism and travel practitioners in the country.
“No sector can attain sustainable growth without structure, standards, institutional coordination and skilled professionals,” she said, stressing the need for stronger collaboration between government agencies, operators, training institutions and private sector stakeholders.
In his keynote address, the Director-General and Chief Executive Officer of NIHOTOUR, Abisoye Fagade, described the event as a historic turning point in the formalisation of Nigeria’s tourism and hospitality industry.
Fagade said the induction of practitioners, conferment of fellowships and inauguration of the HTSSCN governing boards marked the beginning of a new era of institutional governance, professional recognition and sector-wide coordination.
“Regulation and standardisation are no longer optional; they are economic necessities if Nigeria truly intends to compete globally,” he stated.
By:  Nkpemenyie Mcdominic, Lagos
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Big Oil Reconsiders Previously Unattractive Destinations

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The Middle Eastern crisis has prompted a reprioritization among international oil companies. Previously unattractive drilling destinations are suddenly looking quite attractive—even Alaska.
The oldest oil and gas producing part of the United States has for years been out of the spotlight as the industry moves to cheaper and faster-growing locations. The only news of any substance about Alaska recently was the Biden administration’s approval of the Willow project, led by ConocoPhillips, which was set to boost the state’s oil output by 160,000 barrels daily, and Australian Santos’ Pikka project, set to start commercial production this year. That was years ago. Now, Big Oil is eager to drill in Alaska.
Earlier this month, a lease sale in the National Petroleum Reserve in Alaska attracted record bids, worth a total $163 million. Among the bidders were Exxon, Shell, and Repsol, with the latter already partnering with Santos on the Pikka development. And this may be just the beginning.
Related: Saudi Aramco Looks to Raise $10 Billion from Real Estate Asset Deal
The Bureau of Land Management offered 625 tracts across about 5.5 million acres for bid in the sale, revived at the end of last year by the Trump administration. No lease sales were held in the National Petroleum Reserve in Alaska under President Biden. Yet under Trump’s One Big Beautiful Bill, there will be a total of five lease sales in Alaska over the next ten years.
“With the imminent start-up of the Pikka project on the North Slope, the reversal in the decline of oil production in the great state of Alaska is going to help put more oil in the Pacific area at an important moment,” Repsol’s head of upstream operations, Francisco Gea, said as quoted by the Financial Times. Gea called Alaska “a fantastic opportunity”. The Pikka project, which has a price tag of $4.5 billion, will produce up to 80,000 barrels daily.
It is indeed a fantastic opportunity, at the very least because it is nowhere near the Middle East and as such is a highly secure energy exploration destination. Canada is in a similar position, by the way: the head of the International Energy Agency earlier this month told an industry event Canada had a golden opportunity to step in as a secure energy supplier in a world that’s currently 14 million barrels daily short on supply because of the Middle Eastern crisis.
Security, then, is what has prompted Big Oil to return to the North—even Shell, which left in 2015 after writing off as much as $7 billion on an unsuccessful drilling campaign hampered, among other things, by strong environmentalist opposition. According to the Financial Times, the supermajor’s decision to partake in the latest Alaska lease sale was surprising for analysts.
However, according to chief executive Wael Sawan, the lease sale concerns a different part of the state. “It is a very, very, very different part of Alaska that we have gone to,” he told the Financial Times. “This is an onshore exploration opportunity in a very well-established basin that has been producing for some time… So this is not offshore Alaska where we have had the challenges in the past.”
Crude oil is not the only thing drawing the energy industry to Alaska in these times of oil and gas trouble. Gas is also a magnet—in this case, in the form of the Alaska LNG project. Interest in the Alaska LNG export project has spiked since the war in the Middle East choked 20% of global LNG supply and sent Asian buyers scrambling for expensive spot cargoes.
Glenfarne Group, the majority owner and developer of the facility, aims to sign binding offtake agreements with buyers soon and advance final investment decisions to later in 2026 and early 2027, company executives told media earlier this year on the sidelines of an energy conference in Tokyo.
“There’s a real interest, particularly with everything happening in the Middle East right now. Everyone would like to get those (preliminary deals) turned into long-term agreements,” Adam Prestidge, president of Glenfarne Alaska LNG, told Reuters in March.
Alaska LNG is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
The latest Alaska developments show clearly how the Middle East war has put energy security back in the spotlight, making previously challenging locations desirable again. With an estimated 1 billion barrels of oil supply wiped out of markets since the war began, according to Aramco’s Amin Nasser, alternative supply sources have become urgently needed, and not just for the short term. Even if the Strait of Hormuz reopens soon—which at the moment seems unlikely—energy security will in all probability remain a top priority both for energy producers and for consumers.
By Irina Slav for Oilprice.com
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