Oil & Energy
NUPRC Reaffirms Support For Indigenous Oil, Gas Companies
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the commission will continue to support indigenous oil companies to grow, especially with the right policies and regulations.
Chief Executive, NUPRC Commission, Mr Gbenga Komolafe, said this recently when he paid a visit to the exhibition stand of Green Energy International Ltd. at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, U.S.
He said the commission would continue to support companies, in the ranks of Green Energy International, with quick turnaround time for licensing and other necessary approvals needed to grow their business.
He said at a time that funding for oil and gas projects was becoming difficult due to policies around energy transition and a deliberate shift to renewable energy projects, the company had been able to secure one.
According to him, the ability of the company to secure funding for its various projects is a testament that it was on the right track and as such, needed all the right support to grow.
‘‘If you look at what the company has done. You will discover that they have tried to leverage in-country capability and that is in alignment with what NUPRC is doing.
“We have come here as a commission to give them encouragement and to assure the company that new will give them all the backing as a business enabler”, he said.
Komolafe said NUPRC, as a business enabler, would ensure that its policies and regulations were enabling enough to incentivise businesses to grow.
In growing businesses, he said companies would be requiring different types of permits and licenses for operational efficiency in reducing unit costs of production in a manner to make them competitive.
He maintained that the NUPRC was working to ensure that the turnaround time for issuing permits and licenses were reduced drastically to increase operational efficiency.
Also speaking, Chairman, Green Energy International, Prof. Anthony Adegbulugbe, said the company which was incorporated in 2006 is the operator of the Otakikpo marginal field in Oil Mining Lease (OML) 11.
He explained that the company was set up to explore all the opportunities in the oil and gas value chain for the overall benefits of its stakeholders and the Nigerian economy.
According to him, the mandate of the company is to create localised domestic markets based on small scale gas opportunities in its local host communities, Nigeria, and Africa at large.
‘‘In 2010, the Federal Government decided to implement a World Bank study on Small Scale Gas Utilisation and the Otakikpo Marginal Field was awarded to Green Energy to undertake the pilot project.
“The implementation of this project will involve the installation of LPG processing and bottling plants”, Adegbulugbe said.
The Chairman said since the company began operations, it had recorded five million cumulative man-hours without lost-time injury (LTI).
He said: “Approaching banks for funding is one of the requirements, so that they are sure that there are no restiveness issues that would impact operations negatively”.
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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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