Oil & Energy
BPE Dispels Rumour On BEDC, DISCOs’ Licence Renewal
The Director-General, Bureau of Public Enterprises (BPE), Alex Okoh has declared that contrary to insinuations, there is indeed nothing ongoing in terms of contract or licence renewal for any of the distribution companies (Discos), including BEDC Electricity Plc.
In a statement from BEDC, following a news conference in Benin, Edo State capital, Okoh was quoted to have appealed to civil society groups, residents and all stakeholders in the BEDC franchise areas to exercise restraint and allow the company perform its functions without any hindrance.
The clarification comes even as he described BEDC as one of the best managed discos, saying, “The government respects contracts and would not do anything to jeopardise the operations of companies that the Federal Government had willingly entered into agreements with, including the Discos”.
“We have followed the development in Benin Disco with keen interest, and indeed the attention of the Bureau has been drawn to certain erroneous information over the purported renewal of the licences issued to the Discos, including BEDC Electricity Plc for the purpose of retail distribution of electricity”.
While clarifying the difference between a performance agreement review, and what has been purported as a review of the operating licence of the Disco, Okoh disclosed that the performance agreement stipulates the milestones that the core investors should achieve within a specified period.
However, he said the issue of licensing is a different matter altogether, and is being handled by the Nigerian Electricity Regulatory Commission (NERC).
According to him, all discos sold were thus also required to acquire NERC licence in addition to purchasing the privatised company and its assets.
He added, “For BEDC, there is an existing 15 years NERC licence broken into 10 years plus five year, with another 10 years renewal option at the end of the 15 years period i.e. licence of up to 25 years”.
He explained that the Federal Government was pursuing a comprehensive power sector recovery programme that would address the challenges of the sector, including those faced by customers under the Benin franchise areas.
Okoh added that government was equally working with its international partners to reposition the power sector, saying BEDC in particular has benefited from the services of such institutions like the United States Agency for International Development (USAID), aimed at getting the best electricity services to the people.
In her update across the franchise states, the Managing Director/CEO, BEDC Plc, Mrs Funke Osibodu, disclosed that 27 applications were received for the Meter Asset Provider (MAP), adding that after screening, seven were currently going through the financial bid review process.
On the Ondo South network rehabilitation project, she disclosed that the Federal Government, through the National Independent Power Project (NIPP), has joined forces with BEDC for the speedy rehabilitation of the whole network.
“According to the new schedule of the joint effort, the first phase is from Ore junction to Okitipupa, where 19 communities had been connected to the grid in Ondo South, including Ore, Odigbo, Adaja and Liyetu among others.
In Ondo North, 34 communities have been connected including Gedegede, Ikun, Eriti, Oke-Agbe, Ikare, Arigidi, Oba-Akoko and Ikaram among others.
Speaking on the disruption of power supply in some areas, Osibodu explained that for the affected areas such as Evbuotubu, Oliha, Uwelu, Ikpoba dam, Okhoro, Upper lawani and part of GRA, BEDC had put in place a contingency plan to connect customers in the affected areas to existing functional feeders.
This is on a temporary measure pending when the faulty power transformer will either be repaired or replaced.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor