Oil & Energy
NNPC Drags MRS, Capital Oil To EFCC
In a move to recover about 130 million litres of Premium Motor Spirit (PMS) valued at N17,439 billion belonging to the Nigerian National Petroleum Corporation (NNPC), the company said, it had reported Capital Oil and MRS which are alleged to have stolen the product to both the Department of State Services (DSS) and the anti-graft agency, Economic and Financial Crimes Commission (EFCC).
A statement by NNPC’s Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, said the decision to take the issue to DSS and EFCC was part of measures aimed at achieving full recovery of the products or its monetary value.
He explained that, the product was stored in the facilities of the two indigenous downstream operators, under a throughput arrangement in order to ensure a robust strategic reserve.
The product, according to him, disappeared under inexplicable circumstances.
The Chief Operating Officer, Down Stream, of the Corporation, Mr Henry Ikem-Obih, who provided details of the act by the two indigenous oil firms told newsmen in Abuja, that the infraction was unearthed earlier in the year when NNPC needed to access the products stored in the said facilities in Apapa area of Lagos.
He said: “We instructed the Pipelines and Products Marketing Company (PPMC), a subsidiary of NNPC, to send additional trucks to those locations to move products for distribution aimed at meeting a supply shortfall we discovered in the market, but after days of not being able to access the terminals we had to take a decision as NNPC management to invite auditors and inspectors to go and do a physical check on the inventories.”
Ikem-Obih said that, the infraction by the two downstream firms was a violation of existing throughput contract which prohibits the owners of the facilities from tampering with the products in their custody without express permission of the corporation.
The NNPC official, however revealed that so far, MRS has fully complied by returning the 30 million litres of PMS which it expropriated but that Capital Oil Limited was yet to comply.
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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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