Oil & Energy
TotalEnergies Exits Nigeria’s Onshore Oilfields
TotalEnergies has announced plans to sell its minority stake in a Nigerian oil joint venture, joining other top firms divesting from onshore oilfields in the country.
According to Bloomberg, Patrick Pouyanne, Chief Executive, TotalEnergies, said this in a conference call on Thursday.
Pouyanne said the company was planning to offload its 10 per cent interest in a firm that holds 20 onshore and shallow water permits in Nigeria.
Shell, the operator of the licences, is already considering bids from four local firms for its 30 per cent shareholding in the company.
In May 2021, Shell said it had started discussions with the Federal Government to sell its onshore oil assets in Nigeria.
Pouyanne said “disruptions of local communities are sources of great concerns” in the country were some of the reason.
The company would join the league of foreign oil companies exiting the Nigerian oil market after operating in the market for over 60 years.
International oil companies (IOCs) intend to focus on deep-water fields due to the operational difficulties — including sabotage — experienced on onshore fields.
In February, Seplat Energy Plc entered into an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.3 billion.
In March, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the country lost about $3.27 billion worth of crude oil to theft between January 2021 and February 2022.
Meanwhile, the Federal Government said it had collaborated with security agencies, operators, and relevant stakeholders, to clamp down on the activities of oil thieves.
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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.
