Oil & Energy
Bayelsa Seeks To Reacquire OML 46 Licence
Indications have emerged that the Bayelsa State Government has not given up on its Oil Mining Lease (OML 46) licence which was revoked by the Department of Petroleum Resources (DPR).
The Tide source reports that Bayelsa Oil Company reapplied for the licence during the last bidding exercise conducted by the DPR.
The bid was, however, unsuccessful.
It would be recalled 1that the licence for OML 46 asset, located within onshore swamps in the state, was won by the Bayelsa Government in 2013 through a bidding process conducted by the DPR.
Meanwhile, the DPR on April 6, 2020 announced the revocation of 11 of the 13 marginal fields licences it issued to indigenous oil firms to build capacity and promote Nigerians’ participation in the oil sector.
Reacting to the development, Governor Douye Diri, last Wednesday, expressed shock over the revocation and the state’s unsuccessful bid to reacquire the marginal field as the Bayelsa Oil Company was excluded from the bidding exercise.
Diri spoke on the oil mining licence at the weekly Executive Council Meeting at the Government House, Yenagoa.
He said the marginal oil field remained a prized asset of the state to which it is sentimentally attached and called on the Federal Government to reconsider its decision on the matter.
He called on the DPR, the Nigerian National Petroleum Corporation (NNPC) and the Minister of State for Petroleum, Timipre Sylva, to consider returning the oil field to Bayelsa.
“There has been this issue of the Bayelsa State-owned Atala Oil Field. We kept a studied silence over the matter because we needed to have all the information that led to the revocation of the licence of our state-owned asset.
“Part of what I have done in the last one week of my absence was to state the position of the Bayelsa State Government, which I did very clearly to the President of the Federal Republic of Nigeria.
“So our position on Atala Oil Field is that it is a prized asset of Bayelsa State and that revocation should be cancelled.
“Bayelsa State Government might not have the financial capacity or the technical know-how but the government is ready to partner financial and technical experts to ensure that the field goes into full production,” he said.
Meanwhile, a Public Affairs Analyst in the state, David West, advised the state government to approach the regulators and address the issues that led to the revocation of the licence.
He noted that the state failed to utilise the potential of the marginal field by developing it to produce crude oil that could be refined locally to meet domestic energy needs.
“The marginal fields were a rare opportunity wasted by the past administration that kept the licence dormant; there are terms and conditions but the state carried on as if the licence does not expire,” Mr West said.
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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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