Oil & Energy
FG Blames Waning Investment, Insecurity For Declining Crude
The Federal Government has said absence of long-term investment in the oil and gas sector and insecurity should be blamed for Nigeria’s current low crude oil production.
A statement by the Senior Adviser, Media and Communications, Horatius Egua, quoted the Minister of State, Petroleum Resources, Timipre Sylva, as having made the comment while speaking at a ministerial plenary, at the ongoing Ceraweek, in Houston, Texas.
Specifically, Sylva stated that this development was responsible for the inability of Nigeria to meet the Organisation of Petroleum Exporting Countries (OPEC) quota in recent times.
Although Nigeria’s OPEC production quota is pegged at 1.8 million bpd, in the last few years, the country has struggled between 1.3 and 1.4 million bpd.
Sylva insisted that the speed with which International Oil Companies (IOCs) and other investors were withdrawing investments in hydrocarbon exploitation had further contributed significantly to Nigeria’s underperformance.
“The rate at which investments was taken away was too fast. Lack of investment in the oil and gas sector contributed to Nigeria’s inability to meet OPEC quota. We are not able to get the needed investments to develop the sector and that affected us,” he stated.
He also cited security challenges as another major factor that contributed to the lack of significant growth of the sector in the country and added that the drive towards renewable energy by climate enthusiasts had discouraged funding for the sector.
Sylva, however, called for a change of attitude, stressing that in decades to come hydrocarbon will continue to play a central role in meeting the energy needs of the world.
The Minister said although Nigeria was in full support of the energy transition, the country and the African continent should be allowed to develop at its own pace to be able to meet the energy needs of the over 600 million people who have no access to any form of power in Africa.
“There are about 600 million people in Africa without access to power and of that number the majority live in Nigeria. And of the over 900 million people without access to power in the world, the majority live in Africa.
“So how do we provide access to power for these people if you say we should not produce gas? We believe that gas is the way to go.
“We believe that gas is the way forward and the one access to power. For the energy transition programme to be taken seriously we need to have an inclusive energy transition programme,” he argued.
According to him, while Africa believes in the energy transition, it has its peculiar problems.
“We are saying that our energy transition should be focused on gas to bridge the energy gap. This is what we have been saying. We need a just and equitable energy transition programme,” Sylva further stated.
According to him, Nigeria was also not in any way against the energy transition programme, but urged promoters of renewable energy as the only path to energy transition to give the poorer countries of the world the opportunity to achieve energy sufficiency before doing away with fossil fuel.
“As Africans we are saying that we must be allowed to transit through gas. We cannot achieve one energy base load through renewable alone. The rest of the world must listen to us. We are happy that our point of view is being taken,” he stressed.
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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.
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