Oil & Energy
Operator Laments Excessive Regulations In Oil, Gas Sector
A marginal oil field operator, Prof Anthony Adegbulugbe, has described the numerous government regulations and approvals in the country’s oil and gas sector, as a disincentive to investors.
Adegbulugbe, chairman of Green Energy International Ltd., lamented that unfortunately, operators must obtain these regulations and approvals before they would be allowed to operate.
Adegbulugbe said this in Port Harcourt, at the launching the book, Marginal oil Fields Development and Operation in Nigeria.
According to him, “there is too much regulations and approvals from the regulatory agencies in the sector. We have the Customs, NCDMB, DPR, Navy, and so many others. These numerous regulations could act as disincentives to investors.”
The book co-authored by Dr. Ibani Frank-Briggs, Prof Sunny Nwajide and Engr. Emiyarei Ikuru, explained how the marginal oil fields worked in Nigeria.
He used the opportunity to caution oil and gas host communities in the Niger Delta against the entitlement mentality, so as to enhance harmony and progress with companies operating in their domain.
He said, “a marginal operator who is producing barely 1,500barrels per day and some members of the host community are demanding to be paid N2million monthly salary just for being the host.
“The oil multinationals are also facing same too, but they are large firms and may not really affect them like it’s affecting us. So we must disabuse the people’s mind on this issue of entitlement mentality.
“Entitlement mentality must be worked on by host communities, else there will be no progress in such communities.
Also speaking, one of the book authors, Dr. Ibani Frank-Briggs, said the book provided information to entrepreneurs and investors who were interested in becoming players in the country’s marginal oil fields.
“The concept of marginal field is a new one and there is a lot of knowlegde gap, so we wrote this book to provide information on how the marginal fields work,” he said.
Another co-author, Prof Sunny Nwajide, said marginal fields of the Niger Delta held an enormous amount of hydrocarbon resources, with over 5million barrels estimated reserves.
The book reviewer, Prof Mike Onyekonwu, regretted that after the last marginal fields bid rounds, only 33percent of the country’s marginal fields were active, while 67 percent were idle.
By: Tonye Nria-Dappa
Oil & Energy
‘Revamping Moribund Refineries ‘ll Address Rising Cost Of Petroleum Products’
Oil & Energy
The Race To Cut Methane Emissions Is Exposing A Global Divide
By Felicity Bradstock for Oilprice.com 16
Oil & Energy
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.
-
Sports3 days agoNigerian Trio Target Titles At PFL Africa Finals
-
Education3 days agoFCE Yola Graduates 3,555 Teachers , Seeks Upgrade to University
-
Niger Delta3 days agoDiri Restates Stance On Lagos-Calabar Coastal Highway
-
Niger Delta3 days agoC’River, NUJ Pay Tribute To Late Guardian Editor
-
News3 days agoNDLEA Recovers Tons Of Illicit Drug Consignments In Nine States
-
Opinion3 days agoChecking Voter Apathy In Nigeria’s Electoral Process
-
Politics3 days ago2027: DICKSON’S EX-ALLY VOWS TO WORK AGAINST NDC INTEREST IN BAYELSA
-
Politics3 days ago2027: GROUP PLEDGES 40,000 SUPPORTERS FOR COALITION CANDIDATES IN RIVERS
