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Energy Experts Give Reasons For N’Delta Under-Development

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Some experts in the oil and gas industry have identified style of governance, bad policies and lack of transparency, among the many challenges hindering development of Nigeria’s oil rich Niger Delta.
The experts spoke after a documentary screening on the “Impact of Corruption and Conflict on Investments, in Energy Rich Niger Delta Communities’’, in Abuja, on Friday.
The documentary screening was organised by an NGO, African Initiative for Transparency, Accountability and Responsible Leadership (AfriTAL).
The Tide source reports that the documentary focused on two communities of Ogidigben and Gelegele in Delta and Edo States respectively, where various government projects there failed and the people still live in abject poverty.
Rev. Fr Edward Obi, a catholic priest and an environment activist said the style of governance adopted in the country’s oil sector was unfortunately riddled with holes.
“We are in a country where people sit in their offices and make decisions that affect people without consulting them.
“It is a bad style of governance and it is seriously affecting the environmental regulation of the oil and gas industry,’’ Obi said.
According to him, government has never been transparent in running the oil and gas sector, adding that the communities are hardly involved or educated on government plans.
“Till now, I do not think that government is considering using other voices that the people listen to.
“If you go to these rural communities, you see many churches irrespective of how under developed they are.
“People in these communities go there, they listen and respect what they are taught there, these kind of leaders that teach these people can be used as agents to educate members of the communities on what government’s plans are.
“When the people understand all what government wants to do, the project they plan, the benefits to the community and the people, they will welcome it and the desired results will be achieved.
Dr Solomon Adeleye, another oil and gas expert said that corruption in Nigeria was often perceived as affecting government and governance, but it had never been considered to be adversely affecting communities.
He said that government must adopt a different style to manage the oil and gas sector to enable it drive growth and development.
“Nigeria is more of a gas nation than oil, it is very important that government does not use the same pattern it used in managing crude oil to run the gas sector.
“They must do away with things that made it impossible for government to achieve results and focus on current trends and opportunities to ensure growth and development,’’ Adeleye said.
He said currently, there were about 25 per cent of Nigerians that were unemployed and with three per cent population growth, so efforts must be made to create more jobs especially in the gas sector.
Also, Mrs Faith Nwadisi of Women in Extractive Industry said there was need to bring women on the table while discussing issues in the oil and gas sector.
Referring to the screened documentary, she said that the role of women was not reflected there, noting that women bore 90 per cent of the negative impact of oil on communities.

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Oil & Energy

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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Oil & Energy

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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