Oil & Energy
Addax Licence: NUPRC Assures Stakeholders On Transparency In Upstream Petroleum Sector
The Chief Executive Officer (CEO), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, has assured stakeholders of the commission’s resolve to ensure transparency in all its dealings.
Komolafe gave the assurance in an interview with The Tide’s source in Abuja on Friday, while giving an update on the revoked Addax Petroleum licence.
The source recalls that Komolafe had confirmed that Addax Petroleum lost Oil Mining Licences (OMLs) 123, 124, 126 and 137 and were reverted to NNPC due to its inability to meet set obligations in the licence award provision .
It further reports that NUPRC, formerly known as the Department of Petroleum Resources (DPR), in 2021, revoked four Production Sharing Contracts (PSCs) licences operated by Addax Petroleum, citing production decline and non-development of assets for several years.
The assets were immediately re-awarded to Kaztec Engineering Limited/Salvic Petroleum Resources Limited (KEL/Salvic) Consortium, consisting of two Nigerian owned independents, with effect from March 23, 2021, with the approval of President Muhammadu Buhari.
According to Komolafe, the re-award of the Addax licence will be a test case for the effectiveness of the Petroleum Industry Act (PIA).
He said prior to now, oil mining leases were issued under the defunct Petroleum Act.
The PSCs consists of Oil Mining Licence (OML) 123, 124, 126 and 137, all belonging to Addax Petroleum Development Nigeria Ltd. (APDNL), and Addax Petroleum Exploration Nigeria Ltd. (APENL).
Addax Petroleum was established in 1994, and since August 2009, has been a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide.
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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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