Oil & Energy
INTELS Pays N56.3bn Concession Fees To NPA, BPE
Intels Nigeria Limited says it has so far paid the sum of $184.6 million which is about N56.3 billion as concession fees to the Nigerian Ports Authority (NPA) and the Bureau of Public Enterprises (BPE) between 2006 and 2016.
A statement from the company which was made available to the press stated that a breakdown of the payment includes: $10.3 million as commencement fee, $68.4 million as lease fee, $35.7 million as through put fee and $79 million as land industrial area fee.
INTELS in its report said prior to the concession, it tailored its services, facilities and operations to support its acitvities in the oil and gas industry.
According to the statement, the highly technical facilities required to support oil and gas related operations also requires special equipment and highly skilled manpower to manage such operations, which therefore leads to higher level of investments by INTELS relative to competitors.
“The Logistics and equipment infrastructural needs of the terminals concessioned to INTELS require much higher investment and specialised skill in contrast to other terminals.
“This consequently was projected to yield higher returns to the concessionaire as well as the government.
“This informed the basis for fixing a higher through put fee per ton for these terminals to be paid by concessionaries of terminals located in the ports at that time of concession, while other terminals pay a much lower figure per ton under their concession agreements.
The report further stated that it had always been clear that certain ports on account of their specific character and locations were to be dedicated and designated for oil and gas cargo hardling while others were not.
The report also said that the firm was committed to developing the Badagry Port and Free Zone of over 5,00 metres of Quay wall and 603 hectares port area consisting of container terminal, refined products terminals, oil services centre, general purpose terminals and Roll off (RORO) terminals.
According to the report, the Badagry port had provision for 322 hectares industrial area, 162 hectares dedicated logistics park, 26 hectares expatriate housing compound and free trade zone state.
Oil & Energy
‘Revamping Moribund Refineries ‘ll Address Rising Cost Of Petroleum Products’
Oil & Energy
The Race To Cut Methane Emissions Is Exposing A Global Divide
By Felicity Bradstock for Oilprice.com 16
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.
-
Sports4 days agoNigerian Trio Target Titles At PFL Africa Finals
-
Education4 days agoFCE Yola Graduates 3,555 Teachers , Seeks Upgrade to University
-
Niger Delta4 days agoDiri Restates Stance On Lagos-Calabar Coastal Highway
-
Niger Delta4 days agoC’River, NUJ Pay Tribute To Late Guardian Editor
-
News4 days agoNDLEA Recovers Tons Of Illicit Drug Consignments In Nine States
-
Opinion4 days agoChecking Voter Apathy In Nigeria’s Electoral Process
-
Opinion6 hours ago
Ancestorial Worship: My Take (1)
-
Politics4 days ago2027: DICKSON’S EX-ALLY VOWS TO WORK AGAINST NDC INTEREST IN BAYELSA
