Oil & Energy
Reps Probe Aiteo, Addax Over Oil Spills, MoU
The House of Representatives has commenced investigation into activities of Addax Petroleum Nigeria Limited and Aiteo Eastern Exploration and Production Company, over negative impact of oil spills and disregard for Memorandum of Understanding in Rivers State.
The two oil firms, Addax and Aiteo, were petitioned over their activities in the three Kalabari Local Government Areas of Degema, Asari-Toru and Akuku-Toru of the State by the Amanyanabo of Kalabari Kingdom and the Kalabari Frontiers.
The petition was laid on the floor of the House of Representatives by the member representing Degema/Bonny Federal Constituency, Hon. Doctor Farah Dagogo.
The Amanyanabo of Kalabari, Prof. T.J.T Princewill, through (Barr.) Tubotamuno Dick, accused Addax Petroleum Nigeria Limited of brazen disregard and disrespect to Kalabari people with its activities in OML126 and OML137 oil fields.
The monarch in the petition explained that Addax has refused to enter into an MoU with the host communities, warning of a likely breakdown of law and order in the said oil fields, explaining that the oil exploration activities by Addax have continued to threaten their source of livelihood and the Kingdom as a whole.
“We have done everything humanly possible as law-abiding citizens to make Addax Petroleum Nigeria Limited see reasons and execute a Memorandum of Understanding with Kalabari Kingdom as a way of ensuring a peaceful working environment of mutual benefits to all, but it appear that Addax Petroleum Nigeria will have none of it, and has gone ahead to disrespect Amanyanabo and Natural Ruler of Kalabari Kingdom,” a part of the petition reads.
Similarly, the Kalabari Frontiers wants the House of Reps to mandate Aiteo to provide relief materials to the Kalabari communities affected by their outrageous crude oil spill in Eell 1, OML 29, Santa Barbara Oil Field.
The petition signed by Alabo Fiala Okoye-Davies, Chief Fiala Tuboalabo Fiala; Chief Flag Amakiri; Hon. Japusoibina Ekine and Ibimina Victor Osoma, also requested for effective remediation plan being put in place for mitigation of the polluted region in line with global best practices, international standards and technical expertise’
“Compensation, water rights and individual claims be made payable to thousands of those economically displaced,” the petition further reads.
In his ruling, Speaker of the House of Representatives, Hon Femi Gbajabiamila, directed the House Committee on Petitions to investigate the allegations and revert to the House.
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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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