Oil & Energy
Crude: Six IOCs To Remit N380bn For Domestic Sales In Oct
International Oil Companies (IOCs) are set to pay N380.04 billion in October 2022 as proceeds from the sale of domestic crude oil, according to the Nigerian National Petroleum Company (NNPC) Limited.
The NNPC Limited, which made this known in its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Friday, September 23, said the payment would be for July, this year.
A FAAC document, obtained by The Tide’s source, indicated that the expected amount was for the sales of 8.44 billion barrels of oil.
It noted that July 2022 domestic crude oil payable in October 2022 by NNPC Limited was in line with the 90 days payment terms, involving Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN) and Shell Petroleum Development Company (SPDC).
Others included Total Exploration and Production Nigeria, First Exploration and Production (First E&P), and Universal.
It stated that CNL would be paying N80.02 billion for 1.74 million barrels of crude, while MPN would pay N128.66 billion for 2.85 million barrels of oil, and SPDC and Total would pay N28.03 billion and N112.63 billion for 643,904 and 2.54 million barrels of crude oil, respectively.
It also stated that First E&P and Universal would pay N30.24 billion and N30.24 million for 650,069 and 10,000 barrels of oil, respectively.
The Group Chief Executive (GCE), NNPC Limited, Mele Kyari, could not be reached, the weekend, for comments, but he had recently noted that “The NNPC Limited is firmly focused on investing to grow production of both oil and gas, but more importantly, gas and gas infrastructure development, creating linkages to the market and expanding midstream value-adding opportunities.”
The GCE, who identified some problems as constraining output and revenue had said: “We are not unmindful of the current challenges, particularly security in the operational areas, Cash call arrears settlement and other above-ground issues that confront the industry, the question therefore to ask is how do we provide a pathway for growth under these conditions?.
“Well, we must all admit that growth and reinvestment of capital is the only way forward, the consequences of an alternate future can be quite dire.
“Also, particularly heartwarming is the fact that our long history clearly demonstrates resilience, and this is another era in our history to demonstrate our resilience and the collective will to overcome the challenges.
“We have deployed creative solutions to tackle security challenges in the operational areas. Technological intervention for both monitoring and prompt intervention would also be set up. The tackling of the menace is a top priority for NNPC Limited.”
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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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