Oil & Energy
SNEPCO Begins Oil Production At Bonga North-West
Shell’s deep-water
subsidiary in Nigeria, Shell Nigeria Exploration and Production Company (SNEPCO), has commenced oil production from the first well at the Bonga North-West deep-water development offshore Warri in Delta State, another milestone for the country’s energy industry.
In a statement, Shell Nigeria’s Corporate Media Relations Manager, Precious Okolobo, quoted Shell’s Upstream International Director, Andrew Brown, as saying that, “This is an excellent addition to our deep-water portfolio – a key growth theme for Shell’s world-wide upstream business.
“It’s also good news for Nigeria, as it is a new source of oil revenues and strengthens Nigeria’s deep-water expertise, a key driver of economic development.”
The Bonga project, which began producing oil and gas in 2005, was Nigeria’s first deep-water development in water depths over 1,000 metres, while the Bonga North-West represents a significant step forward for the project.
The statement indicated that “oil from the Bonga North-West sub-sea facilities is transported by a new undersea pipeline to the existing Bonga floating production, storage and offloading (FPSO) export facility.
“The Bonga FPSO has been upgraded to handle the additional oil flow from Bonga North-West which, at peak production, is expected to contribute 40,000 barrels of oil equivalent per day, helping to maintain the facility’s overall output.
“Four oil producing wells and two water injection wells in the Bonga North-West development will be connected to the FPSO, from where oil is loaded onto tankers for shipping around the world,” Okolobo said.
The Bonga North-West project is part of Shell’s long-standing commitment to developing deep-water engineering skills in Nigeria. The investments made by SNEPCo and its other project partners in the Bonga North-West project include upgrades of local contractors’ facilities and providing specialised training for Nigerians to work in the energy industry.
The Bonga project is operated by SNEPCo, which holds a 55 per cent stake. The other project partners are Esso Exploration and Production Nigeria (Deepwater) Limited (20 per cent), Total E&P Nigeria Limited (12.5 per cent) and Nigerian Agip Exploration Limited (12.5 per cent) under a Production Sharing Contract with the Nigerian National Petroleum Corporation.
The Tide recalls that a number of new production manifolds, subsea umbilical systems, oil production and water injection flowlines and subsea tree systems were installed on the sea bed around 1,000 metres below the surface.
A significant part of the project was carried out by Nigerian companies, including a local contractor that fabricated and installed the FPSO topsides.
The project leadership and majority of staff working on the Bonga North-West project are Nigerian – testament to the growth of deep-water engineering experience in SNEPCo.
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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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