Oil & Energy
‘No Illegal Refineries In Niger Delta’
A former commissioner in Delta, Mr Peter Biakpara, has debunked claims of existence of illegal refineries in the Niger Delta region, saying that what existed was display of “local expertise”.
Biakpara urged the government to encourage the local refineries, noting that unless they were supported and regulated, illegal crude oil bunkering would continue to thrive in the area.
“Rather than destroy the refineries, the government should get the operators together, examine how they carry out their activities and see how it can improve on it and make it better.
“After all, today’s giant oil refining companies may have started in crude ways like what we now tag illegal refineries”, he said in Asaba.
Biakpara, who was a member of former Gov. James Ibori’s cabinet, said that those who died due to lead poisoning in the Northern part of the country “died just because they were not told how to safely get what was around them”.
“What the government should do is to teach these people how to do these things more safely because there are no illegal miners.
“Talking specifically about illegal refineries and illegal bunkering, people wake up every morning and they see oil around them and they want to survive. It is natural that they would want to use the oil they see, for their survival’’, he said.
He advised the government to apply the principle of allowing those whose lands produce oil to benefit from it by being the operators while it played the role of regulator.
According to Biakpara, since illegality has been attached to the people’s activities in the coastlines, because of the way they access the crude oil, oil theft can only stop when government sells crude directly to the people.
He remarked that now was the auspicious time to encourage small scale refineries that would strengthen local expertise and create jobs and wealth since the country was tinkering with diversification of its economy.
“I spoke about the reliance on local expertise in anything we are doing and particularly we are talking about generating income with or without the oil.
“Without the oil we are talking about artisanal mining and they spoke about illegal miners, for me there are no illegal miners.
“There are miners, that are people who grow up with the mineral we are talking about and you would agree with me that a man wakes up and want to survive with what is around him.’’
Biakpara advised against further destruction of the refineries, cautioning that “as long as the government continues to fight and destroy the activities of the small oil refineries in the creeks, more will be springing up.’’
“I have used their products to power my boat and many people patronise them on daily basis, and there has been no damage to engines.”
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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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