Oil & Energy
Efficiency, Transparency: DPR Unveils Upstream Guidelines
The Department of Petroleum Resources (DPR), Friday unveiled the new upstream guidelines which would promote efficiency, transparency and accountability in the sector.
Director of the agency, Engr Sarki Auwalu, who spoke at the annual rig and vessel stakeholders regulatory workshop in Lagos also said the DPR has actual volume of crude oil produced in the country.
Represented by Engr. Enorense Amadasu, Deputy Director and Head of Upstream Division, of the DPR, Awalu said the agency’s ability to account for Nigeria’s crude oil volume was premised on innovation and the ultimate agenda of the incumbent administration to run the nation’s oil and gas sector efficiently and transparently.
He said:”We, as a regulatory agency, can account for every molecule produced in this country, at the well head, at the flow stations and at the terminal. We have all devices to monitor and account for every hydrocarbon produced in the country today.
Next year, we will organise production accounting workshop with all stakeholders including Nigeria Extractive Industries Transparency Initiative (NEITI), Federal Inland Revenue Servuce (FIRS), Oil Producers and Trade Section (OPTS), National Assembly and the media for all to understand how we account for every drop of oil produced and exported,” he said.
Speaking against the backdrop of concerns raised by stakeholders on the possibility of multi-layer taxes in the upstream sector, the agency’s boss said royalty is statutory
He added:”The other costs people are talking about is the processing fee. The new amendments they are concerned about is a token because these are amendments that have not been done in the past 20 years. Thus government is working with all stakeholders to ensure it is reviewed.
“The cost is a minute aspect of the production cost we are talking about. It is less than 0.0001 per cent of the production cost. That basically will not have much impact on the cost of production. But when we talk of cost reduction, we are talking of how you can improve on your logistics to reduce cost, how you can benchmark your cost with other industry related costs in the gulf of Guinea, your data acquisition cost and other big item costs.
“We have also been given a mandate as a regulatory agency to go out and work with sister agencies to reduce production cost by 5 per cent.
In 2020, we will continue with government’s mandate to promote efficiency and accountability and transparency in the sector. We will ensure we grow production from 2.2 million barrels per day, mbpd to 3.0 million barrels per day mbpd and sustain constant engagement with all stakeholders in the sector,” he said.
He spoke on the guidelines,saying it will guide operators on what is expected of them at every stage of their operations.
He said:”The essence of our meeting is to engage the industry and sensitize them on the programmes we have embarked upon for the past one year and also to seek more collaborations and for them to buy into our initiatives.
“The initiatives will promote efficiency in the industry, promote transparency and meet up with government aspirations by keying into government’s agenda on exploration and to achieve the three million barrels per day (bpd) target by year 2020 and to improve reserves to 40 billion barrels from 37 billion barrels as at today”.
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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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