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‘Cause Of Nembe Creek Oilfields’ Explosion Still Unknown’

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The cause of the March 1 explosion from Oil Well No.7 within Nembe Creek oilfields remains unknown, as the investigation into the incident enters day two, the Federal Government says.
The National Oil Spills Detection and Response Agency (NOSDRA) said on Friday that it had commenced investigations into the explosion located within OML 29 operated by Aiteo Eastern Exploration.
It would be recalled reports that an explosion from an oil well within the oil block on March 1 ignited a fire which Aiteo officials said was put off on March 2, had already discharged crude oil and gas into the environment.
NOSDRA’s Director-General, Dr Peter Idabor, had told newsmen that a Joint Investigative Visit (JIV) had been scheduled for Thursday to ascertain the possible cause of the incident.
The volume of crude oil and gas discharged into the surrounding environment arising from the explosion is yet to be ascertained
Idabor explained that the JIV, a statutory probe of leak incidents in the oil and gas sector would determine the cause of the explosion, the volume of oil leakage as well assess damage to the environment.
He said that a JIV report signed by representatives of the community, NOSDRA, Bayelsa State Government and the oil firm who participated in the investigation was expected at the end of the probe.
A member of the joint investigative team, from the Nembe Creek field, said that the team was yet to arrive at a conclusion on the cause of the blast.
“The JIV is still ongoing; it was not rounded up as we progressed with physical inspections on Thursday without arriving at the probable cause from physical examinations.
“There appears the need for a more detailed and technical assessment to understand the primary cause of the incident prior to explosion that is more visible at moment on the riser.
“The investigation therefore requires further details and is still open,” Donald Egba, a community representative on the JIV said.
However, a statement signed by Management of the oil firm made available by its Public Relations Manager, Mr Ndiana-Abasi Mathew on March 2, confirmed that there was no human casualty.
Aiteo, an indigenous Oil and Gas Exploration and Production firm pledged that investigation into the incident was of utmost priority.
It said that the explosion did not affect the 97 km Nembe Creek Trunk Line (NCTL) which was shut down on February 28 prior to the incident. However, fears that oil export would be affected by the outage of the 150,000 barrels per day capacity export line were allayed as the JIV team member who spoke to NAN said that the facility had been restarted.
“The NCTL from our findings at the field is up and running as the incident did not in any way have links with the pipeline. Shell Petroleum Development Company in 2015 divested its equity in OML 29 and transferred its interest in the oil block including NCTL for 1.7 billion dollars to Aiteo.

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Geregu Power’s Half-Year Profit Up 148% On Back Of Increased Enegry Sales

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Geregu Power turned in 148.5 per cent more in net profit for the first half of the year compared to the same period of last year.
The company’s position was impacted by increased income from energy sales and, to some extent, capacity charge – the company’s major revenue sources.
The feat could mean the synergy struck by the firm with Siemens earlier in the year towards capacity expansion is beginning to pay off The electricity provider, backed by Femi Otedola, who chairs the board of Nigeria’s oldest lender FBN Holdings, announced an agreement with the German multinational technology conglomerate in May to more than double its current nameplate capacity to 1,200 megawatts
That entails scaling up Gereru I, one of its top power plants, to 500mw from 435mw and building a 500mw-new power plant using lower emissions turbines.
“The establishment of a combined cycle operations to generate an additional 200mw,” is also being planned, Geregu Power said in a May statement.
Revenue for the period under review climbed to N80.7 billion, up by 32.5 per cent, according to its unaudited earnings report issued Friday.
One notable downside of the generally strong performance was impairment loss on financial assets, which accelerated more than threefold to N6 billion after long-due receivables from trade debtors surged by 220.3 per cent.
Profit before income tax rose to N30.2 billion from N12.3 billion a year earlier.
The stock has returned 150 per cent since the start of the year, outperforming the Nigerian Exchange’s main stock index, which has yielded 33 per cent.
It has also outpaced NGX 30, the index that tracks the thirty most capitalised and most liquid equities on the bourse, which has improved by more than 27 per cent.
The share price of Geregu Power has not moved since 4 March, stuck at N1000 per unit.

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NUPENG, PENGASSAN Demand Dangote Refinery Sabotage Probe

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The joint unions of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas and Senior Staff Association (PENGASSAN) have demanded an investigation into the alleged sabotage by International Oil Companies (IOCs) to undermine and destabilise the operations of Dangote Refinery and Petrochemicals.
The two associations made the call in Lagos via a letter to President Bola Tinubu jointly signed by the General-Secretary, NUPENG, Comrade Afolabi Olawale, and his PENGASSAN counterpart, Comrade Lumumba Okungbowa, and made available to journalists.
Consequently, the unions charged the Federal Government to take decisive action to safeguard Dangote Refinery and ensure its successful operation for the benefit of the country.
The unions noted that “protecting our National assets is our collective responsibility”, insisting among others that the findings of such investigation be made public to ensure transparency and maintain public trust.
Describing Dangote refinery as not only a critical National Asset, but also a beacon of hope for energy security, economic growth, and employment opportunities, the unions said the matter must not be allowed to end without thorough investigation.
The letter, written through the office of the Chief of Staff to the President, Femi Gbajabiamila, reads, “The leadership and members of our great Union and Association profoundly appreciate your commitment and dedication to restoring the economic growth and prosperity of our dear Nation, and we are also fully mobilised and committed to supporting all your laudable thoughts and hard decisions towards these lofty goals.
“Unfortunately, we are deeply concerned and shocked by the recent unusual allegations by the Dangote Refinery and Petrochemicals Company of a deliberate plot by some International Oil Companies (IOCs) to frustrate their business efforts and continued existence.
“These sabotaging actions reportedly include denying the Refinery crude oil supply and artificially inflating market prices of the crude oil to the Company, thereby forcing Dangote Refinery and Petrochemicals Company to source crude oil from other countries, even as far as the United States of America with attendant high operating costs and logistics.

By: Lady Godknows Ogbulu

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FG, Oil Producers Agree On Crude Supply To Local Refineries

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The Federal Govern
ment and Crude Oil Producers in Nigeria have agreed to work toward a sustainable supply of crude oil to local refineries under a market-determined pricing system.
The aim is to ensure that while the operators do business optimally, the refineries are not starved of feedstock.
The agreement, reached at a Virtual Meeting held with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and all the international oil companies (IOCs), was on the status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template.
The producers, under the umbrella of the Oil Producers Trade Section (OPTS), agreed to concede to a framework that would be mutually beneficial, ensuring that local refineries are not strangulated due to off-the-curve prices.
Speaking with newsmen, Komolafe explained that contrary to a report that the decision was to placate certain interests, it was indeed targeted at ensuring energy security for the country.
“It is the job of the regulator to interface between the producers and the refiners; it is a delicate balance because we do not want one to overrun the other because that will lead to problem.
“If we don’t have product, then there will be energy gap in supplying the industry and this will not be a palatable situation for all, and if we have robust supply, but they shut down the upstream and we can’t get crude production, then there is also a problem. So, we, as regulator, are simply trying to maintain the delicate balance”, he said.

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