Oil & Energy
‘Vandalism, Sabotage Culminate Eight Oil Terminals Shutdown’
Pipeline vandalism, sabotage and other factors have culminated in the shutdown of eight oil terminals, according to data obtained from the Nigerian National Petroleum Company Limited.
The eight oil terminals, including Forcados, Bonny, Odudu, Brass, Yoho, Urha, Ajapa and Aje, were shut between August and October, 2021, leading to losses and deferred crude oil production valued at about N556 billion at the official exchange rate of N411.95 to the dollar.
As a result, deferred/lost production in October alone was to the tune of 4,824,946 barrels of oil, the lowest among the figures posted during the three-month period. Losses and deferment in August, September and October were put at 6,680,620 barrels; 6,362,700 barrels; and 4,824,946 barrels respectively.
Already, the Organisation of Petroleum Exporting Countries, OPEC, has put Nigeria’s oil output at 1.273 million barrels per day, mb/d in November 2021, indicating a shortfall of 300,000 below its 1.5 mb/d quota. The latest output also showed a drop of 4.2 percent compared to 1.329 mb/d, excluding condensate, produced in the corresponding period of 2020.
The organisation which disclosed this in its December 2021 Monthly Oil Market Report, MOMR, made available to The Tide, noted that the output was based on data obtained from direct sources.
However, the report did not provide reasons for the declining output during the period, but investigation pointed to factors, such as pipeline vandalism, oil theft and illegal refining.
Also, in its latest report released to the press, Shell stated: “While the Shell Petroleum Development Company joint venture (SPDC JV) is not responsible for preventing illegal oil refineries, it is committed to preventing attacks and breaches of its pipelines and well heads. In 2020, 92 percent of oil spills were caused by sabotage and theft – similar to previous years.
“Sabotage incidents often occur in remote areas of the Niger Delta where access is difficult. The SPDC JV works closely with government agencies, non-governmental organisations and communities to proactively minimize spills from illegal activity.
This involves using simplified zonal pipeline maps to enhance targeted response and prevent incidents from occurring.”
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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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