Oil & Energy
SPDC’s Oil Production Hits 514,000 bpd
The Shell Petroleum Development Company (SPDC) says it has grown its oil output to an average of 514,000 barrels per day (bpd) and developed additional capacity to produce more.
The Chairman of Shell Companies in Nigeria Mr Osagie Okunbor, disclosed the production data in the oil firm’s 2020 briefing notes made available to newsmen last Wednesday in Yenagoa.
According to the publication, SPDC achieved the feat in 2019 when its production rose more than 10 per cent to 514,000 barrels of oil equivalent per day (boe/d) due to enhanced exploration and production activities.
On gas production, the SPDC stated it fed the domestic market and to the export market through the Nigeria Liquified Natural Gas (NLNG) plant, adding that it supplied approximately 50 per cent of the NLNG plant capacity.
The company’s gas feed to the NLNG facility in Bonny Island in Rivers comes largely from the Gbaran-Ubie and Soku plants in Bayelsa and Rivers.
According to the publication, gas production from Soku facility increased from 100 Million standard cubit feet per day (MMscf/d) in 2018 to 350MMScf/d in 2019.
The SPDC also stated that the improved oil output was due to addition of 106 producing wells within its oil blocks in the Niger Delta.
The oil firm said that within the period under review, the Trans Ramos Pipeline which conveyed crude to its Focados oil export terminal was re-opened.
It said that the Gbaran-Ubie gas plant in Yenagoa, achieved peak production with 175,000 barrels of oil equivalent per day.
SPDC said it had the largest oil production asset in the country and operated a leased area of 31,000 square kilometres from which it produced while working to increase capability by investing in exploration and production activities.
“The SPDC JV’s assets include 340 producing oil wells consisting 97 land, 181 west and 62 central assets, 56 producing gas wells (10 land, three west and 43 central assets). A network of approximately 4,000 km of oil and gas pipelines and flow lines.
“The assets include 10 gas plants, two major oil export terminals, Bonny and Focados and an additional export facility a shallow water Floating Production Storage and Offloading Vessel christened `Sea Eagle’ currently stationed off Bayelsa coastline, One power plant,” the publication said.
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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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