[size=14pt]Power Supply: Allied Energy to double power generation capacity[/size]
Business Jul 26, 2010

Nigeria Agip and Natural Resources (NAER) and Allied Energy Plc have concluded plans to make additional investment of $1billion (about N150 billion) in the power sector to double the electricity generation capacity of Okpai, first Independent Power Plant (IPP) located in Delta State.

The investment considered as the highest by a private sector in electricity sector in Nigeria is an equivalent of three years budget approval by the Federal Government.

A source close to the Presidency said at the weekend in Lagos that Allied Energy and NAER are partnering in the electricity sector to raise the power generation capacity of Okpai IPP from 480 mega watts (MW) to 930MW to support of the Federal Government’s aspiration of electric power sufficiency in the country.

The partners, according to him are financing the project to consolidate success recorded by NAER as the most reliable supplier of electricity to the national grid five years after the commissioning of Okpai IPP on April1, 2005.

He said: “The commitment of NAER to power generation and development of infrastructures in Nigeria among all the International Oil Companies (IOCs) operating in the upstream sub-sector is a welcome development and receiving the support of President Goodluck Jonathan and the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke.

We believe that the partners will replicate the achievement recorded in fast-tracking the construction of the plant between 2003 and 2005, so that another 450 MW can conveniently be added to the national grid within a short period”. The Okpai IPP Phase 1 was started in 2003 and commissioned on April, 1 2005 while commercial operation began seven months later.

The start up of the plant increased electric power production in Nigeria by 15 per cent. The Project consists of an Integrated Combined Circle electric power generation plant for the production of 480 MW made up of two gas turbines and one steam turbine.

It also boasts of an overhead 130kv transmission line 54km in length that crosses the River Niger to connect the plant to the national grid at Obosi/Onitsha in Anambra State. Equally, a 14km pipeline was constructed to ensure that fuel gas is transported from the NAOC JV system to the power plant.

It would also be recalled that NAER was also the only IOC that responded to invitations made by the former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Jackson Gaius-Obaseki in the development of the offshore Oil Prospecting License (OPL) 91 now Oil Mining Lease (OML) 119 of Nigerian Petroleum Development Company (NPDC) .

This response made as a service contractor resulted in the growth of production of the Okono/Okpoho field from 15,000 barrels per day (bpd) to 60,000bpd before it was returned to NPDC.

In collaboration with NAER, the company also won the deep water block OPL 244.
The Presidency official added that the execution of the additional power generation will be funded 100 per cent by Agip/Allied Energy so as to fast-track the construction process.

He explained that this again will enable the NNPC to have equity in power plant which in turn will boost revenue generation of the corporation.

He called for the support of the host community and stakeholders to give necessary support to the proposed power project and plans to acquire 60 per cent equity in Okono/Okpoho fields.

“We are glad that the partners are also willing to make huge investment in Okono/Okpoho fields to double the production capacity of crude oil from 60,000 bpd to 120,000bpd to boost the production capacity of the Nigerian Petroleum Development Company (NPDC), taxes and royalty to the Federal Government”, the official noted.

He added: “Nigeria is fortunate to have Agip committed to power projects in Nigeria and we are ready to encourage any other company that is willing to make investment in the power sector.

Failure of the Federal Government to create level playing field for NAER/Allied Energy in the acquisition of 40 per cent and 20 per cent respectively in Okono/Okpoho fields will amount to denial of foreign direct investment (FDI) in the power sector.”

“What is the need for holding meetings with foreign investors by President Jonathan outside Nigeria, if after they have expressed interest to invest in power sector, some Nigerians will like to truncate the arrangement to satisfy their own parochial interest?”, he asked.

An official of NAER disclosed that the company is investing in power sector to reduce cost of producing electricity through alternative sources by industrial, commercial and residential consumers in Nigeria in demonstration of full support for the administration of President Jonathan.

“We are also in support of the Petroleum Industry Bill (PIB) so that it will be possible for us to raise fund to finance various Joint Venture (JV) projects easily and boost production capacity Nigeria’s production capacity under Incorporated Joint Venture (IJV) Arrangement in the oil and gas industry.

Our investigation confirmed that Camac Group, the parent company of Allied Energy Plc has been in the power sector for the past decades supplying electricity to large urban cities in the United States (US) such as Dallas, Houston in Texas and other cities in California where electricity deregulation is being implemented.

The findings also revealed that NRG, a leading power company and the largest solar power company in the US in partnership with Camac is developing the largest solar power park in South Africa. It then implies that Camac that invested over $2 billion in exploration and production to boost Nigeria’s crude oil production is again willing to boost electricity generation. in Nigeria by partnering NAER in Okpai.

Recently, the company in partnership with NAER commenced the production of crude oil on deep offshore Oyo field located 75 kilometres off the Nigerian coast to raise oil output with the return of peace to the Niger Delta.

http://www.vanguardngr.com/2010/07/26/power-supply-allied-energy-to-double-power-generation-capacity/

ok we don hear. . .next?

A source close to the Presidency said at the weekend in Lagos that Allied Energy and NAER are partnering

all these fake news sef!

A source close to the presidency?? this is an initiative by a private company. . .

DISCLAIMER:

The article you just read is a PAID ADVERTORIAL. Assertions or otherwise are purely opinions and beliefs of NAER and their associates and don't represent the express opinion and position of Vanguard newspapers or the Federal Governmnent of Nigeria.
Reader discretion is advised.

[size=14pt]Multinational oil firms plan $134b investment in oil, gas sector[/size]
Emeka Ugwuanyi 20/07/2010 00:00:00

International Oil Companies (IOCs) operating in Nigeria said they have $134 billion investment plan in the oil and gas industry over the next six years.

A breakdown of the investment plan shows that about $33 billion is for production sharing contracts (PSCs) activities while $77 billion is for joint venture operations over the next six years and $20 billion for gas development in the next five years. Besides, the oil firms said they have invested over $5 billion in gas in the last two years.

If the oil companies execute their plan, it would substantially boost oil production, revenues for the government and the oil firms, as well as enhance government’s aspirations to drastically reduce flared gas, optimally increase utilisation and earn as much money from gas as in oil.

The oil firms are, however, sceptical about the investment as the contentious issues in the Petroleum Industry Bill (PIB), especially on fiscal, acreage leases and midstream provisions remain unresolved, although government officials said the requests of the operators and government’s position as regards the bill, are being harmonised by the National Assembly.

The representative of Mr. Andrew Fawthrop, Managing Director of Chevron Nigeria Limited at the Nigeria Extractive Industry Transparency Initiative, (NEITI’s) South West road show and town hall meeting in Lagos last week, Mr. Supo Shadiya, an Executive Director in Chevron who spoke on behalf of the IOCs on the PIB, highlighted the disadvantages of passing the bill into law in its present state.

He also enumerated the contributions of the IOCs to the development of the oil and gas industry including efforts at improving power supply. He said that despite the contentions, the IOCs as responsible corporate citizens, would abide by whatever becomes the outcome of the PIB but noted that the bill if passed in its current state, would not achieve the Federal Government’s aspirations for the industry.

He said: "Government’s aspirations for gas and power would not be met as a large number of new gas projects are not economic under the current PIB, while the introduction of midstream into the industry would further impact project viability. The regulated gas prices, absence of payment security and lack of infrastructure issues, which still remain unresolved, are not good for the growth of the industry.

"Almost all the production sharing contracts (PSCs) projects are economically unviable under the PIB, while government’s take from the joint venture oil remains one of the highest in the world."

He stressed the importance of creating environment that would attract investment and advised government to heed sanctity of contracts agreements to boost investors’ confidence.

On contributions of IOCs to the economy, Shadiya said: "IOCs have been long term investors in Nigeria for over 50 years. With the Nigerian National Petroleum Corporation (NNPC), we represent almost all Nigeria’s oil and gas production about 98 per cent, and share about 99 per cent in investments. IOCs have brought significant technical expertise and financial resources, crucial in developing Nigeria’s oil and gas industry. IOCs have grown gas production by over 50 per cent in the last six years, invested over $5 billion in gas in the last two years and plans to spend $20 billion in the next five years. They have built two independent power plants (IPPs) - Afam and Okpai with combined 1,100 megawatts (MW) capacity.

"IOCs have grown oil production to about 700,000 barrels per day, provide a significant employment, sponsor universities and vocational institutions’ scholarships and our investments have a multiplier effect on the broader economy. Besides, he noted IOCs’ continued investment is necessary to support Nigerian content.

"Under the PIB, 70 per cent of new gas projects are uneconomic, the proposed midstream, further will negatively impact gas projects viability and the wider economy will not benefit from multiplier effect of investment in gas.

"PIB does not allow for fully commercialised national oil company (NOC), does not resolve joint venture funding issues and besides, reduced IOCs’ investment in Nigeria will impact local capacity development."

http://thenationonlineng.net/web3/business/energy/6348.html

$134b is an eye popper. We must make sure the power plants never evr become "NEPA".

The multinational IOCs are just employing distraction tactics to make us forget the PIB.

President Jonathan and the national assembly should please make the PIB law. That will reduce neo-colonialism in Nigeria.

^^ these guys will do anything to resist the PIB, including paying dumb journalist who copy and paste anything about missed investments

No wonder we still havent achieved much in terms of local content after all the noise
No wonder we still havent seen decrease in gas flaring

these guys will do anything to resist new bills that will regulate their activities, they just want to do as tehy please