Oil & Energy
Nigeria Ends 2021 With Yet Lower Oil Production
No glimmer of hope is insight for Africa’s largest crude oil producer and exporter, Nigeria, as the country’s crude oil output plunges even lower than expected.
Statistics from the Organization of the Petroleum Exporting Countries, OPEC says the country’s oil output remains around 1.2million barrels per day despite opportunities to churn out between 1.7 and 1.5 in quota during the year ending.
The OPEC’s market report for December sees the country’s oil output sliding from 1.7mb/d in 2019, to first 1.4mb/d in 2020, and at the beginning of this year, to 1.3mb/d at the second quarter of the year, and has remained in that region till November, according to latest collated data.
According to secondary sources, total OPEC -13 crude oil production averaged 27.72 mb/d in November 2021, higher by 0.29 mb/d m-o-m.
Although crude oil output increased mainly in Saudi Arabia, Iraq and Nigeria last month, however, increment in Nigeria’s case amounted to just a few thousands of barrels, not significant enough to cause any major celebration in the year.
Although no disruption to production by Niger Delta pressure groups has been recorded recently, some pipeline shutdowns and shut-in, thefts, vandalism, leaks and flows were reported during the year.
Latest industry data obtained from the Nigerian National Petroleum Company Limited showed that eight oil terminals were shut down between August and October this year, leading to both losses and deferred crude oil production valued at about N556billion at the official exchange rate of N411.95 to the dollar.
According to collated data, the affected eight terminals include Forcados, Bonny, Odudu, Brass, Yoho, Urha, Ajapa and Aje.
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.
The shut-ins and losses, according to the report, were due to pipeline vandalism, community interferences, sabotage of oil facilities, among others.
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.
Further analysis of the reports from the NNPC showed that 20 incidents led to deferred output of 6,680,620 barrels of crude oil in August due to various production shut ins.
It was also observed that eight crude oil terminals were affected in August, as production was curtailed at the facilities during the period.
The affected terminals in the reviewed month include Forcados, Sea Eagle, Brass, Yoho, Qua Iboe, Escravos, Ajapa and Otakikpo.
Explaining some of the incidents that curtailed production in one of the terminals, for instance, the NNPC said, “Energia (an oil firm) injection into Brass line (was) suspended due to pipeline damages.
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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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