Oil & Energy
Expert Faults NASS On PIB …Wants Rejig Of Domestic Supply Clause, Others
An Associate Professor of Energy and Environmental Law in the Rivers State University, Dr. Samuel Chisa Dike, has picked holes in the recommendations made by the Senate and the House of Representatives, as a prelude to the passage of the Petroleum Industry Bill (PIB), saying, some of the recommendations do not meet the yearnings and aspirations of the people of the Niger Delta in particular and Nigerians in general.
Dike, who made his position known in an exclusive interview with The Tide in Port Harcourt, said the domestic supply obligation clause, contained in the bill which expects the International Oil Companies (IOCs) to supply crude oil to the Nigerian National Petroleum Corporation (NNPC), as a public limited company is faulty because, according to him, NNPC as a public limited company, out to make profit, would hardly supply petroleum products to Nigerians as envisaged, if arrogated that primary responsibility.
Consequent upon this, the university teacher appealed to the Nationl Assembly to rejig and amend that clause before its joint session, to reflect the emerging realities in other developed countries.
“In other developed countries, the domestic supply obligation clause is intended to make sure that there is energy security, security of supply of all petroleum products including crude oil to the people, not to a company. This clause should be rejigged and amended before the joint session,” he pleaded.
Dike, who is also the National President of the Association of Environmental Lawyers of Nigeria (AELN) equally indicated that it is wrong to direct NNPC, as contained in the bill to spend 30 percent of its profits to fund frontier basins, stressing that it is an aberration in that NNPC, going by the recommendations in the bill is a public limited company.
According to him, the government cannot dictate to a limited company how it should manage its profits. He also queried the rationale for directing the company to spend its profits in developing the frontier basins in Chad and up North, new areas where oil is likely to be found, whereas the basins in the South of the country are already mature and developed.
“That means that NNPC is going to spend 30 percent of its income to develop those areas whether there is oil or not. This is not the proper way to deploy the profits of a public limited company,” he said.
Dike further noted that the three percent earmarked for host communities in the bill is grossly inadequate, saying, the provision blatantly negates the gains made by the amnesty programme, and therefore, retrogressive, and called on President Muhammadu Buhari not to assent to the Bill if it is passed by the National Assembly without amending the offensive clauses.
The senior lecturer, however, commended the National Assembly for making efforts to pass the bill and for breaking what he described as a jinx, contending that the important clauses the NASS has injected into the bill are nebulous and unclear.
By: Donatus Ebi
Oil & Energy
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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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