Oil & Energy
Poor Corporate Governance Killing Indigenous Oil Firms – NCDMB
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has identified lack of corporate governance sustenance as responsible for the shutting down of several indigenous oil and gas companies.
Wabote gave the indication at the Rebranding Ceremony of the Niger Delta Exploration and Production (NDEP) into Aradel Holdings, at the Weekend.
Regreting that many local oil and gas companies have died because they do not adhere to corporate governance principles, Wabote insisted that for the indigenous oil and gas companies grow and achieve sustainability, they must instill the principles of corporate governance in their operations.
He lauded the management of Aradel Holdings for setting high standards of corporate governance, saying, “one of the incredible things the Chairman, Chief Ladi Jadesimi, the former Managing Director, Dr Layi Fatona, and their team have done is instilling the spirit of corporate government.
“That is why the company is succeeding.The owners of the business are not contractors; they do not engage contractors and they do not engage in round tripping. That has led to their success”.
Wabote, who described Aradel Holdings as a good example, noted that they have made significant returns to their joint venture partners.
“They are one of the local companies that NNPC Limited is proud to associate with. NCDMD is also proud of their success and we will continue to support them”, he assured.
Wabote further challenged indigenous producers to emulate Aradel Holdings by taking corporate governance seriously, recommending that owners of businesses detach themselves from the daily operations of their organizations.
He also challenged Aradel Holdings to champion the development of local content, stressing that the implementation of the Nigerian Content initiative and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act enabled indigenous producers to not only exist but thrive.
According to him, it is the responsibility of Aradel Holdings and other local producers to support local content, protect and enhance it, with a view to creating jobs, growing technology, and developing the nation’s natural resources.
While noting that the percentage of unemployed Nigerians was over 30 per cent, the NCDMB boss warned that it would be a grave mistake if the oil industry were to de-emphasise local manufacturing and local production and called on the firm to play an active role in the acquisition of assets being divested by some international operating oil companies.
The Chairman, Aradel Holdings, Chief Ladi Jadesimi, while tracing the history of the firm, noted that it had operated in the past three decades and pioneered several initiatives, including marginal field operations, one of which he said is the Okpele Field, which has grown the daily production from about 1,000 barrels of crude oil per day to 13,000 barrels.
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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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