Oil & Energy
NNPC To Open Up Seven Hydrocarbon Basins …For Oil Exploration Purpose
The Nigerian National Petroleum Corporation (NNPC) has says it would reinvigorate exploratory activities in the seven hydrocarbon basins in Nigeria to shore up the nation’s reserve base.
NNPC, Group Managing Director, Dr Maikanti Baru disclosed this in Abuja when he received Governor Ibrahim Geidam of Yobe during a courtesy visit.
In a statement by Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, Baru said modalities were on to open up all the basins in the country to prospective investors.
“We are on target and we are looking at the prospectivity of the whole basins of Niger Delta, Chad, Anambra, Benue Trough, Benin, Sokoto and Bida.
“We are focused on delivering on these basins in line with our mandate,” Baru said.
He disclosed that preliminary exploratory activities had indicated some signs of hydrocarbon in eastern Yobe side of the Chad Basin, adding that once the Corporation received security clearance, the 3D seismic data acquisition in the area would continue as scheduled.
Baru noted that modern technology would be deployed in the exploration of the Yobe section of the Chad Basin, similar to that deployed in the Borno side of the Chad basin.
He revealed that exploratory activities executed in the Benue Trough in the 1990s had indicated presence of hydrocarbon in the region and attempts which were made under Production Sharing Contract arrangements had involved Shell, Chevron and Agip, which had drilled a well each in the region.
Earlier, the governor said his visit was informed by the commitment of President Muhammadu Buhari’s administration to increase Nigeria’s oil reserves through exploration of oil and gas in the Chad Basin.
He said the policy direction of the Federal Government was of interest to the state because the basin covered a large area, including Yobe.
“My visit is a follow-up to our request on exploration of oil in the Yobe section of Chad Basin.
“The assurance which you gave that the exploration for hydrocarbon deposits in part of Yobe State was being considered has reinforced our resolve to work with you on diversifying the sources of national economy for improved revenue generation,” Geidam said.
He commended Baru for stemming the incessant scarcity of petroleum products, increasing revenue accruable from the Oil and Gas Sector to the Federation Account among other feats.
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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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