Oil & Energy
FG Loses Oil Block To Shell, Agip …As Court Reverses Forfeiture Order
The interim order of forfeiture granted the antigraft agency, the Economic and Financial Crimes Commission (EFCC) in respect of the Oil Prospecting License OPL 245 otherwise known as Malabu oil block to the Federal Government was Friday reversed by an Abuja Federal High Court.
It would be recalled that, the court gave the forfeiture order on January 26, based on a motion ex-parte filed by EFCC, retrieving the ownership of the oil block from two multinational oil companies. Shell and Eni.
Following the forfeitiore order, Shell and Eni approached the court with an application challenging the ruling.
They argued that, the rights of parties to fair hearing was not properly followed before the ruling and prayed for a reversal and to enable the parties address the issue legally.
Delivering ruling Friday in two seperate applications of Shell Nigeria Exploration and Production Company Limited and Agip Exploration Limited, Justice John Tsoho, held that, the order of forfeiture ought not to have been granted EFCC boss in the first instance.
Tsoho said, the reversal was predicated on the fact that EFCC did not meet the required conditions to enjoy such forfeiture order.
The court upheld that, having vacated the interim forfeiture order, it issued to the Federal Government, there is no longer a suit on the matter pending before him.
As it stands, Nigeria has lost the Malabu oil block which is believed to be the richest oil block in Afrrica to the two oil multinationals, Shell and Agip.
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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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