Oil & Energy
NUPRC Declares End To Marginal Fields, Descretional Oil Blocks Allocation
Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has officially declared the era of marginal fields and discretional oil block allocation in Nigeria over.
Chief Executive, NUPRC, Gbenga Komolafe, made this known at the 2022 Strategic International Annual Conference organized by the National Association of Energy Correspondents (NAEC) in Lagos.
Appraising the Petroleum Industry Act (PIA), Mr. Gbenga Komolafe, represented by Dr. Abel Nsa, said the legislation signed into law by President Muhammadu Buhari on August 16, 2021, “has put an end to the era of the marginal field.”
“No marginal fields shall be declared under this era because the PIA provisions have foreclosed this as well as any discretionary allocation of oil blocks.
“Accordingly, the Minister shall now award Petroleum Protecting Licenses (PPL) on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act,” he said.
Going down the memory lane, he said, “30 oil blocks have, so far, been awarded through the marginal oil fields programme. Of these, 2 blocks in 1999; 24 were awarded in 2004, two in 2010, and one before this year. As of today, 17 of these oil blocks are currently producing while 13 are not. The PIA has adequately addressed this, and PPLs have been awarded to firms based on merit.”
According to him, “the challenges of seamless production in the form of rampant crude theft and sabotage of critical infrastructure are still with us, and it has become one of the major issues we are addressing as a commission and government”.
He said the Commission had developed some key initiatives aimed at reducing the oil theft menace to the barest minimum in the short run, and eventual elimination in the long run.
He stated that there is a Road map for tackling the security challenges in the industry and the Commission is collaborating with the security agencies, for a robust security framework that ensures Government Security Forces (GSF) provide pipeline and asset security.
Meanwhile, he added, efforts are in place to promote the implementation of Nodal Surveillance Technologies on the main trunk lines at each manifold for real-time loss detection that will enable swift and more proactive responses, as we enforce installation of tamper detection technologies as part of designs for pipeline and related oil and gas production facilities for approval of the Commission.
He said the Commission was equally using public enlightenment campaign to educate citizens on the dangers associated with crude oil theft and pipeline vandalism, in collaboration with relevant agencies such as the National Orientation Agency (NOA).
“We are planning seven additional regulations in line with provisions in the PIA to guarantee a return on every dollar invested in Nigeria over any other jurisdictions”, he concluded.
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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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