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Towards Stable Electricity Supply In Rivers

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The Rivers State Government recently reaffirmed its commitment to ensuring stable and constant electricity in the State.

The State Governor, Rt. Hon. Chibuike Rotimi Amaechi who disclosed this at the Inter-denominational church service to mark this year’s Armed Forces Remembrance Day assured that citizens of the State would by December this year enjoy stable and constant electricity.

Acknowledging the challenges facing the people of the state, the governor said he would tackle them promptly, adding “Government is fully aware of its commitment to the people who elected me into office”. He reaffirmed that plans were on-going to provide stable and constant electricity in the state by December 2012.

To further reaffirm this commitment, the government signed a Memorandum of Understanding (MoU) with Shell Nigeria Gas, a subsidiary of the Shell Petroleum Development Company (SPDC) for the development and distribution of natural gas within Port Harcourt and its environs. A similar agreement was also signed with Oando Gas and Power on the same issue as its determination to reposition the state in the development of the gas sector as well as help in improving the power plans of the state government.

The MoU represents a key step in not only the gas masterplan implementation but will also put the state reputation as the energy hub of the country and improve the socio-economic benefits of the state. This can only be possible if the parties keep to the agreements. The MOU covers a period of thirty years.

Rivers State is a major oil and gas province in the Sub-Saharan Africa with more than 40 percent of Nigeria’s crude oil reserves and 55 percent of natural gas reserves located in the state. Many key players in the Nigerian Petroleum and natural gas industry have their regional offices in Port Harcourt, the capital of the state.

However, despite the more than 50 years of active operation in the state, there is very little synergy between the oil and gas industry and the local economy, particularly with respect to power distribution and transmission, and effective participation of indigeneous entrepreneurs.

The on-going efforts by the Rivers State government at repositioning the power sector would boost electricity supply in the state and take the state to a greater heights in our pursuit of making electricity safe, reliable and affordable. There is currently an increase in electricity generation in the state but that would not solve the problem until there is a corresponding increase in distribution.

The vision of the present administration in the State is to transform the economy through efficient use of energy resources as well as to position Port Harcourt as the Energy capital of the West African Sub-Region and the Gulf of Guinea. The use of gas resources to power electricity in Rivers State will enable its people get the benefits of the resources of their land.

One very important aim of the state government from the time past has been to develop its gas turbine into one of the leading Independent Power Project (IPP) in the country and the government had continued to offer a wide range of solutions to the problem of power shortage for which several feasibility studies and plans have been done. The government has continously placed priority on the development of the power sector in the state, hence the Omoku gas turbine, Trans-Amadi and Eleme gas turbines had undergone processes of power distribution and transmission, yet their aims are not fully achieved, though the state power station at Oyigbo (Afam) is giving a boost to the power project of the state.

The government of Amaechi believes in serving as a reference for excellence, this, he wants to show in the power supply as he did in the social responsibility. The governor’s reassurance to fulfil his promise of providing adequate electricity to the entire state before the end of his tenure, no doubt, must be backed with action.

At a meeting  with Chiefs, elders, youths, women and opinion leaders of communities whose lands would be acquired for the construction of the planned 33/11/KV injection Sub-Stations and Rows for transmission lines, the state Commissioner for Power, Hon. Augustine Wokocha reiterated that government was committed to providing a stable and an affordable electricity supply in the state.

He advised communities against unnecessary interruption that would impede the course of the surveyors and valuers, stating the resolve of government to complete its projects in record time. “Communities should cooperate with surveyors and valuers as well as the contractors that would handle the projects to enable them carry out power work that would be beneficial to both the government and the communities”, he stressed.

Port Harcourt is a very comfortable investment zone and the state continues to make its mark and contribution towards sustainable power production and distribution. It is hoped that the government will establish an Independent Power Project (IPP) that will power the business sector in the state and have other things that will enable the state have independent power plants in the strategic areas. It is also hoped that the state would work with the Federal Government plans to privatize the power sector, bearing in mind that power is still in the exclusive list.

The government has so many things to put in place before it can go into the Independent Power Project which President Goodluck Jonathan is trying to do in the reodmap on power sector reform. The Federal Government’s gas-to-power initiative, the passing into law of the Nigerian Local Content Bill and other initiatives by the Rivers State government from its Petroleum and Natural gas resources would provide the necessary enabling materials for the achievement of stable and constant electricity supply to the state.

With the Federal Government’s intention to ensure that oil companies end gas flaring by December this year, it is expected that the Rivers State government would key into the programme to make energy-driven economy for the state as it will attract investment opportunities and create jobs for the people in the power and industrial sectors.

The Nigerian Electricity Regulatory Commission (NERC) has put in place necessary mechanism in order to have an acceptable platform for the proposed electricity tariff review and already collating materials to work with, with a view to issuing a new cost of electricity in the country. This will usher in a subsidised cost of electricity for ordinary Nigerians who may not be able to afford the proposed increase in tarrif, especially those in the rural areas and others. More than 40 per cent of the electricity in the country are generated privately for greater efficiency.

This calls for the Federal Government to reduce import taxes paid on components used for producing power equipment. Such reduction of import duties would encourage investors and governments in the country to produce more power to improve the supply situation, create jobs and wealth for the country. Regular and efficient power supply remains the only infrastructure that is required to install the full entrepreneurial energies of the state and nation’s economy, and unleash unprecedented economic growth.

The Rivers State government’s focus is to make progress in optimizing its gas for distribution to power industries and key into the President’s gas-to-power framework or masterplan. The power sector in the state, in the third quarter of last year showed good signs of improvement which began after the turn-around maintenance and upgrading of the electricity supply and distribution by the State government in conjunction with the Power Holding Company of Nigeria (PHCN) in the State. Residents of Port Harcourt and the state are concerned about whether the tempo can be sustained to end the blackouts suffered in recent past. Thanks to the Amaechi government because the situation which was described as failure and epileptic has resurrected with unending power supply chain-transmission, distribution and generation.

In the electricity business, if any section of the chain is insufficient or works at sub-optiomal level as a result of poor equipment or operation, it would affect other sections, so the state government in its commitment to providing electricity for the people overhauled the entire supply chain of the power sector in the state, which is currently paying off. Rivers people and residents of Port Harcourt and its environs are now enjoying improved power supply and it is hoped that by the end of this year and with the plans underway, there will be substantial increase in power generation in the state, even with the envisaged growth in gas supply next year.

The current development exemplifies the government’s seriousness in ensuring stable and constant electricity by December this year and also underscores the government’s capability in managing the complex synergies in the power sector reform which seems to task more responsibilities to the PHCN. Seven years after the Power Sector reform Act 2005, we ought to have moved to the point of counting our gains of the reform as against the benefits lost. In the light of emerging realities, there is a lot more that needs to be done to secure an anchor to the reforms which are proving unworkable.

It will be a worthwhile experience for Rivers people to have a telling reference of the improvement or stability in power supply in the State from the Governor Amaechi-led administration. The State Power Station in Afam which is off-grid is on course and it is giving what the metropolis wants and enabling the state deliver services that are so critical to the welfare of the people.

The governor has thought reasonably by trying to replicate the model in his state. What the nation needs at this time are scores of compact micro-schemes to deliver power off-grid to take the wind out of the sail of the inept PHCN.

 

Shedie Okpara

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AEDC Confirms Workforce Shake-up …..Says It’ll Ensure Better Service Delivery

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The Abuja Electricity Distribution Company(AEDC) has announced a major restructuring exercise as part of efforts to reposition the utility firm for improved service delivery, operational excellence, and stronger customer focus.
In a statement issued by the AEDC management late last Thursday, the company said the move aligned with its ongoing corporate transformation strategy designed to make AEDC more agile, innovative, and customer-centric.

As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.

It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.

“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.

“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.

“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.

AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.

The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.

“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.

“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.

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Economic Prosperity: OPEC Sues For Increase In Local Crude Oil Refining 

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The Chairman of the Organisation of the Petroleum Exporting Countries (OPEC) Board of Governors, Ademola Adeyemi-Bero, has advised local oil refiners in Nigeria to increase in-country refining of crude, noting that value creation for crude oil will support economic growth and development.
Adeyemi- Bero who gave the urge at the Nigerian Association of Petroleum Explorationists Pre-Conference Workshop in Lagos, insisted the country must move away from decades of crude exports and focus on retaining value within the local economy.
He said, “We’ve been an oil and gas exporting country. We produced oil; once there was oil, we put it in a tank and sent it abroad. 40 or 50 years later, people blame Shell and others, but I don’t. They are businesses looking for feedstock for their industrialisation. If you give it to them, they’ll still take it.”
Adeyemi-Bero, who is also the Chief Executive Officer of First Exploration & Petroleum Development Company, said Nigeria had a responsibility to develop its energy resources locally and use them to drive industrial growth, rather than depend on foreign markets, adding that President Bola Tinubu would have returned fuel subsidies if the Dangote refinery had not been there to produce fuel locally.
”Just look at the impact the Dangote refinery has had on foreign exchange and gross domestic product growth. You can imagine what would have happened if that had occurred 50 years ago. If the president had said, ‘I’m cancelling subsidies, and I’m not going to allow multiple exchange rates.’ We didn’t have the option of having petroleum products in this country; I’m sure he would have changed his policies and gone back to subsidies. It’s as simple as that. Let’s not over-aggregate.
He continued, “If you go to Saudi Arabia today, if you go to the UAE, if you go to Qatar, if you go to Malaysia, if you go to Brazil, they are expanding the value chain and keeping it in their space. Now, one man built a refinery; we fought him, we argued with him. But the impact of that Dangote refinery on our GDP and foreign exchange is big.”
According to him, local refining and crude utilisation would also help stabilise the naira and strengthen the nation’s economy.
“If we can sell some oil in naira, let’s do it if it works for both parties. The strength of the naira is what it commands in trade. This is why nobody wants the naira outside this space, but the day you can pay for oil in naira because both parties agree, it strengthens the naira,” he said.
Adeyemi-Bero stressed that Nigeria must deliberately reduce its dependence on exports and focus on value creation to avoid future economic decline.
“We need to decline exports. All of us like to sell, but the person who will buy from us will be willing to buy at the right price. ‘I’m investing in dollars, so don’t come and buy in naira. If I invest in dollars, then pay me in dollars.’ But we could make that happen,” he stated.
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Senate Seeks Mandate To Track, Trace, Recover Stolen Crude Oil Proceeds

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The Senate Ad-hoc Committee on Oil Theft and Sabotage, has sought for an expanded mandate to track, trace, and recover stolen crude oil proceeds both locally and internationally.
Chairman of the committee, Ned Nwoko, made the call while speaking with newsmen, on the progress made so far by the committee, in Abuja, last Thursday.

Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.

“This is a national call to action. Nigeria cannot afford to continue losing trillions to corruption, inefficiency, and criminal networks.

“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.

Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.

“This represents one of the most troubling cases of economic sabotage our nation has ever faced.

“We have made far-reaching recommendations to end this long-standing menace.

“There is need for strict enforcement of international crude oil measurement standards at all production and export points.

He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.

The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.

He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.

“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.

“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.

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