Oil & Energy
SPDC Links Major Spills To Sabotage
The Shell Petroleum Development Company of Nigeria has insisted that it does not make any business sense for any hydrocarbons exploration and production company to deliberately spill crude oil into the environment in a competition-ridden industry.
Instead, Shell would spend all available resources and deploy the most modern technology to capture, process, pump and store for export, the minutest drop of crude oil and natural gas liquids in order to make maximum return on investments.
Raymond Asukwo, head, pipelines, SPDC-East, who said this during a special media session in Port Harcourt last Thursday, stressed that the clarification became necessary following certain insinuations that oil majors operating in the Niger Delta, including Shell, were in the habit of spilling oil, and not making efforts to clean-up and remediate impacted sites.
Asukwo, noted instead, that the activities of pipeline vandals, crude thieves and operators of illegal refineries, have unleashed more devastating damage to the region’s environment.
He explained that more than 70 per cent of all spill incidents and 98 per cent of total volume of oil spilled yearly are associated with illegal activities of mostly armed gangs, who depend on crude and pipeline theft to eke out a living or deliberately attack oil facilities as a means of expressing their angst over sustained neglect of the region by the government.
Asukwo, particularly fingered Bomu and Soku oil fields in Rivers State as worst areas where criminal gangs have created oil blocks, built manifolds and refineries for themselves using most crude and unsafe means to siphon oil into barges, vessels, tankers, and sometimes, train coaches in exchange for cheap money and arms from ready buyers.
The Shell pipelines expert stated that the activities of operators of illegal refineries, oil bunkerers, and facilities vandals now threaten the United Nations Environment Programme (UNEP) study team’s efforts in Ogoniland as illegal refineries and oil facilities’ sabotage have become more frequent features, especially in the Bomu, Bodo, Kpor, K-Dere axis of Gokana.
A 40-minute overfly of Bomu field in Ogoni by The Tide, United States-based Cable News Network (CNN), and Bloomberg News spotted no fewer than 20 islands or blocks harbouring more than 200 illegal refineries, numerous illegal connections to crude facilities and deserted oil bunkering points, with resultant smokes billowing at intervals, and the crude thieves scampering for cover on sighting the helicopter.
The team also saw, with utter trepidation, kilometers of stretch of streams and rivers which empty into Bonny river, heavily polluted with crude formations and slicks, while the green vegetation has been completely eliminated in very large, hitherto, mangrove forests and wetlands.
Asukwo had explained that SPDC has some of the best oil spills management systems in the world, including Pipeline Integrity Management System (PIMS), Pipeline Intelligence Pigging System (PIPS), Oil Spills Response Management System (OSRMS), Oil Spills Contingency Plan (OSCP), as well as Communities And Shell Together (CAST), which manages pipeline stakeholder issues such as surveillance and security.
He said the application of the above plans ensures that weak and faulty pipelines, valves, among others, are detected and replaced to maintain production capacity, saying that only unserious business concern would allow its critical and essential facilities to fail, and consequently loose revenue.
According to him, deferments arising from crude shut-in as a result of operational failure or sabotage on its facilities and huge costs of repairs were business challenges Shell would want to avoid but pointed out that the socio-economic conditions have forced the company to operate under tight situations.
Nelson Chukwudi
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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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