Oil & Energy
Equinor To Divest $1bn Stake In Nigeria’s Agbami Oil Assets
As the gale of International Oil Companies (IOCs) divestment from Nigeria deepens, Norwegian energy firm, Equinor, has hired Standard Chartered to assist in the sale of its major stake in an offshore oilfield in Nigeria.
The potential sale of Equinor’s 20 per cent stake in the Agbami field offshore Nigeria could fetch up to $1 billion, according to Reuters’ sources.
Equinor is reportedly looking to sell its Nigerian oilfield stake to focus on more profitable and newer projects, the sources said.
U.S. supermajor, Chevron, is the operator of the Agbami Field, which lies 70 miles off the coast of the central Niger Delta region and spans 45,000 acres. Chevron has a 67.3 per cent interest in the field, whose production has dropped in recent years. To offset field decline, infill drilling continued in 2019, Chevron says.
In 2020, the field produced 29,000 barrels of oil equivalent per day (boepd), down from 36,000 boepd in the previous year, according to our source.
The rumored sale makes Equinor the latest oil major looking to either exit or downsize operations in Nigeria.
ExxonMobil is trying to sell shallow water assets offshore Nigeria, but President Muhammadu Buhari made a U-turn in August on his initial approval of the asset sale to Seplat after the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, declined to approve the deal.
TotalEnergies and Shell are also looking to sell assets in Nigeria. In May 2022, TotalEnergies launched the sale of its 10 per cent stake in a joint venture, SPDC.
Shell said as early as in 2021 that it did not see its upstream oil operations in Nigeria as compatible with its strategy to become a net-zero energy business.
Last year, Shell put on hold the sale of its onshore assets in Nigeria to comply with a Nigerian Supreme Court ruling to wait for the outcome of an appeal regarding an oil spill in 2019.
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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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