Oil & Energy
‘Power Vandalism, Highest In Uyo’
Uyo, the Akwa Ibom State
capital has been ranked most notorious in vandalism of electricity facilities amongst areas covered by the Port Harcourt Electricity Distribution Company (PHED), a subsidiary of 4 power consortium Limited.
The Managing Director, of 4 Power Company, Engr. Mathew Edevbie, disclosed this last week in Port Harcourt when the Senate Committee on Privatisation and commercialization visited the Power firm at its Moscow Road Zonal Office in Port Harcourt.
Lamenting the high incidences of vandalism in Uyo, Edevbie said vandalisation of substations, stealing of cables, breaking of transformers, stealing of transformer oil as well as removal of gel from transformers in the area was frustrating the operations of the company.
“Running Uyo is four to five times the revenue we get there”, he said, remarking that his company which considered pulling out of Akwa Ibom State because of the problem, had taken its cry to the Governor of the State, Chief Godswill Akpabio, for intervention.
He regretted that the company inherited a network which is worse than envisaged at the period it acquired Power Holding Company of Nigeria (PHCN) facilities.
Enumerating other challenges, he mentioned inefficient metering and billing system resulting in high commercial losses, rampant electricity theft, massive debts owed by government agencies, wrong staff attitude, inadequate generation, high interest rate and lack of interest by funding institutions, amongst numerous others.
He, however, reiterate the company’s vision of becoming the most efficient and substainable utility firm in Nigeria as best provider of services, deliver returns to stakeholders and enahcne the vitality of the region but solicited for public support against activities of vandals.
He particularly urged members of the Senate Committee to initiate anti-power theft legislation that would strengthen power companies to penalize and prosecute vandals, law against aggressive behavior against utility personnel as well as the establishment of special court to handle electricity cases.
Responding, the Committee Chairman, Senator Gbenga Obadara, sympathized with power investors for allegedly buying PHCN infrastructure with monumental rot and blamed them for not acquainting themselves with the state of the infrastructure.
He advised PHEDC to take advantage of provisions of existing legislations to attend to the present challenges promising that his committee would study its findings and know how to assist them in the face of the challenges confronting the company.
The Committee chairman described the power sector as a lucrative one that has capacity to yield profit to the investors with time and urged members of the public to co-operate and be patient with the new investors as it would require some time for the nation to attend the desired target.
He commended the company for its determination towards better service delivery to the people.
Vice Chairman of the Committee and a one time managing director of Niger Delta Development Committee (NDDC), Senator Emmanuel Aguariavwodo advised management of the power firms to partner with the law enforcement agencies and also expand its commercial frontiers towards economic sustainability and viability.
The Committee Chairman said they were in the state as part of their tour round the country to ascertain the level of progress in the privatization process.
Chris Oluoh
Illegal refineries being destroyed by Naval officers in Warri, recently.
The Bill for an act to prohibit gas flaring, encourage commodity utilisation, and provide for penalties and remedies for gas flaring violations has passed its second reading in the House of Representatives.
Sponsored by the Member representing Ikorodu Federal Constituency (APC, Lagos), Babajimi Adegoke Benson, the bill seeks to prohibit the flaring and venting of natural gas, except in strictly regulated circumstances, while encouraging the utilisation of gas resources to foster economic growth and energy generation.
The proposed legislation aims to mitigate the environmental, health, and economic impacts of gas flaring, aligning Nigeria’s oil and gas operations with international climate change commitments.
Offenders, who violate the provisions of the proposed law, would face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations.
Leading debate on the general principles of the bill, Benson said gas flaring has plagued Nigeria for decades, resulting to severe environmental degradation, public health crises, and economic losses while it environmentally, contributes to greenhouse gas emissions, global warming, and acid rain, exacerbating climate challenges.
The lawmaker said public health impacts of the practice are equally dire, as pollutants from gas flaring cause respiratory and cardiovascular diseases, particularly among residents of communities close to flaring sites.
According to him, economically, flaring results in the waste of a valuable resource that could otherwise be harnessed for energy generation or exported to generate revenue.
Benson insisted that the bill was designed to address those issues while bringing Nigeria in line with global standards such as the Paris Agreement on climate change.
“The bill provides for a comprehensive prohibition of gas flaring except in emergencies or when explicitly authorised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“Operators are required to submit and implement Gas Utilisation Plans, detailing how gas that would otherwise be flared will be captured, processed, or commercialised.
“Offenders, who violate these provisions, face stringent penalties, including fines of $5 per 1,000 standard cubic feet of gas flared and potential suspension of operations for repeat violations. Furthermore, the Bill ensures that communities affected by gas flaring are entitled to compensation and environmental restoration, creating a mechanism for redress.
“Transparency and accountability are integral to the enforcement framework of this Bill. Operators must submit regular reports on gas flaring incidents, which will be audited and made publicly available by the NUPRC. This approach ensures public oversight and stakeholder engagement, fostering trust and compliance.
“Nigeria’s adoption of this Bill positions the country to emulate such success, ensuring a balance between environmental stewardship and economic development.
“The implementation of this Bill will be overseen by the Nigerian Upstream Petroleum Regulatory Commission, which will monitor compliance through regular audits, enforce penalties, and facilitate gas utilisation projects in collaboration with operators and development partners.
“The Anti-Gas Flaring (Prohibition and Enforcement) Bill, 2024, is a timely and necessary response to one of Nigeria’s most pressing environmental challenges. Its provisions are both practical and forward-looking, addressing immediate concerns while laying the groundwork for a sustainable future.
“I urge all Honourable Members to support the Second Reading of this Bill as a demonstration of our collective commitment to environmental protection, public health and economic progress”, he added.
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Oil major, Shell, has restated its commitment to the development of Nigerian companies through contract awards and scaling up of expertise.
Managing Director, Shell Nigeria Exploration and Production Company ((SNEPCO) Limited, Ron Adams, made the remark while speaking at the Opening Ceremony of the 13th edition of the Practical Nigerian Content forum held in Yenagoa, Bayelsa State, with the theme “Deepening the Next Frontier for Nigerian Content Implementation”.
Represented by the Manager, Business Opportunity, SNEPCO’s Bonga South-West Aparo Project, Olaposi Fadahunsi, he said several benefitting companies had taken advantage of the patronage to expand their operations and improve their expertise and financial strength.
Adams said, “Shell companies execute a large proportion of their activities through contracts with third parties, and Nigeria-registered companies have been key beneficiaries of this policy aimed at powering Nigeria’s progress”.
He emphasized that Shell companies in Nigeria also continued to develop indigenous manpower through scholarship programmes with over 3,772 undergraduate and 109 Niger Delta post graduate scholarships since 2016.
“As we speak, beneficiaries of the 13th edition of the Niger Delta Post Graduate Scholarship awards are pursuing their studies in the United Kingdom. The employability rate of the scheme is high with over 98% of the graduates who won the awards securing employment in the oil and gas industry, academia and Information Technology, among other sectors, within one year of completing their studies”.
He commended the Nigeria Content Development and Monitoring Board (NCDMB) for ensuring compliance with the Nigerian Content Act saying “Nigerian content will continue to be an important part of Shell operations”.
The four-day conference hosted by the Nigerian Content Development and Monitoring Board (NCDMB) and participating companies reviewed progress on the development of Nigerian content pertaining to the implementation of the Nigerian Oil and Gas Industry Development (NOGICD) Act since it was enacted in 2010.
Shell companies in Nigeria are among the more than 700 oil and gas entities that participated in the forum with a strong message of support for Nigerian companies, having awarded contracts worth $1.98 billion to the businesses in 2023 in continuing effort to develop Nigerian content in the oil and gas industry.
The Nigerian National Petroleum Company Limited (NNPCL) has sold the first cargo of Port-Harcourt low sulfur straight run fuel oil (LSSR) to Dubai-based Gulf Transport & Trading Limited (GTT).
The company is expected to load the cargo in the coming days onboard the Wonder Star MR1 ship, signalling the commencement of operations at the plant and the exportation of petroleum products.
The ship would load 15,000 metric tons of the product, which translates to about 13.6 million litres.
Although the volume coming from the NNPC into the global market is still small, the development has the potential to impact the Very Low Sulphur Fuel Oil (VLSFO) benchmarks in the future, while changing the market realities for Atlantic Basin exporters into Nigeria and other regions.
The sulfur content of the export by NNPC stands at 0.26 per cent per wt and a 0.918 g/ml density at 15°C, according to Kpler, a data and analysis company.
The cargo was reportedly sold at an $8.50/t discount to the NWE 0.5 per cent benchmark on a Free on Board (FOB) basis.
Kpler reported that the development would help displace imports from traditional suppliers in Africa and Europe, as Nigeria’s falling clean product (CPP) imports are already decreasing, dragging imports into the wider West Africa region lower as well.
