- Badagry Deep Seaport Threatened as Host Communities Demand Equity Participation
There are indications that the proposed Badagry deep seaport project may be stalled following what the host communities described as neglect by the federal, state governments and APM Terminal, the majority shareholder in the proposed project.
In an interview with journalists, the Mobee of Badagry Kingdom, High Chief Menu Toyon, who is also the spokesman of the communities, expressed worry that APM Terminal and other stakeholders have not taken step to address the concerns raised by the host communities regarding their equity participation.
Toyon said: “Some peoples’ properties are going to be used, some people will be relocated; but I will tell you that when you light a candle and put a paper on top of it, there is bound to be fire. Let the APM Terminal come and meet with the stakeholders and talk to us.’’
He noted: ’’Though we held a meeting about two years ago, we have not heard from them since then. The state government will be having 20 per cent, federal government will be having 20 per cent and APM terminal will be having 60 per cent, which is 100 per cent, what percentage are they giving to the stakeholders, I mean owners of the land?
“My grandfather was among the first farmers at the Gberefu beach land in the 1880s and till now, we the stakeholders have nothing to show that things are coming to Badagry. Good, It has been approved by the federal government, Lagos state welcomed it, oil exploration is going on with crude being taken but the stakeholders in the oil exploration area don’t have anything to show for it, we are in the dark.”
He said: “For now, there is no disagreement between the federal or state government and the stakeholders, but what we are expecting now since the inauguration has been done in Denmark by Ambode where he appointed Ernest Shonekan, the former interim president and chairman of the APM terminal is for parties to reach a compromise on the issues at stake.
“In 1873, arbitrators were appointed on this axis, I have the document and everything is with me. Now before starting anything, there must be peace accord, amiable settlement between the stakeholders and APM Terminal. We welcome the idea in a very good direction but at the same time, we are in fear that what happened in Niger Delta does not to happen in Badagry.”
On the impact of the host communities opposition to the establishment of the seaport, he stated: “I said it earlier that it is a welcome idea, Badagry has been suffering for ages and this time that they brought deep seaport which I will tell you almost 90 per cent of Badagry people don’t know what it means until last week when they held a conference at ASCON to enlighten our youths about what we are going to experience.
“Now, it is going to bring influx of people, it is going to provide employment opportunities for our children even the yet unborn children but all the same, the stakeholders must be carried along, this is what I am emphasizing on, we should be carried along, that is my submission.”
Petrol Subsidy Likely to Gulp N2T This Year –Rainoil GMD
Nigeria may end up spending N2 trillion on petrol subsidy this year if the current situation persists, the Group Managing Director, Rainoil Limited, Dr Gabriel Ogbechie, has said.
Ogbechie said this on Sunday at the Nigeria History Series of the Centre for Values in Leadership, themed ‘Indigenous participation in the downstream oil and gas sector’ moderated by Prof. Pat Utomi.
While lamenting the lack of deregulation in the downstream sector, he said the government was spending about N8m daily on petrol subsidy.
He described the sector as highly regulated, saying, “I wonder if there is any other sector of the economy that is as regulated as the downstream.”
He said, “The biggest elephant in the room today as far as the downstream is concerned is the failure, so to speak, of the government to deregulate the downstream – fixing the price at which petroleum products are sold, I believe, is very seriously harmful to this economy.”
According to him, the landing cost of the petrol imported into the country is about N300 per litre, based on the current naira-dollar exchange rate.
Sirius Petroleum and Baker Hughes Collaborate on OML 65 Drilling in Nigeria
Sirius Petroleum, the Africa-focused oil and gas production and development company, has signed a memorandum of understanding with Baker Hughes. The MoU names Baker Hughes as the approved service provider for Phase 1 of the Approved Work Program (AWP) of the OML 65 permit, a large onshore block in the western Niger Delta, Nigeria. Baker Hughes will provide a range of drilling and related services at a mutually agreed upon pricing structure to deliver the initial nine-well program.
Sirius has signed various legal agreements with COPDC, a Nigerian joint venture, to implement this program. COPDC has signed a Financial and Technical Services Agreement (FTSA) with the Nigerian Petroleum Development Company (NPDC) for the development and production of petroleum reserves and resources on OML 65. The FTSA includes an AWP which provides for development in three phases of the block. and Sirius has entered into an agreement with the joint venture to provide financing and technical services for the execution of the PTA.
The joint venture will initially focus on the redevelopment of the Abura field, involving the drilling and completion of up to nine development wells, intended to produce the remaining 2P reserves of 16.2 Mbbl, as certified by Gaffney Cline and Associates (GCA) in a CPR dated June 2021.
Commenting, Toks Azeez, Sales & Commercial Executive of Baker Hughes, said: “We are extremely happy to have been selected for this project with Sirius and their JV partners. This project represents an important step towards providing our world-class integrated well-service solutions in one of the most prolific fields in the Niger Delta. Baker Hughes’ technological efficiency and execution excellence will help Sirius improve its profitability and competitiveness in the energy market.”
Bobo Kuti, CEO of Sirius, commented: “We are delighted to have secured the services of one of the world’s leading energy technology companies to work with our joint venture team to deliver the approved work program on the block. OML 65. We look forward to building a long and mutually beneficial partnership with Baker Hughes.”
Egbin Decries N388B NBET Debt, Idle Capacity
Egbin Power Plc, the biggest power station in Nigeria, has said it is owed N388bn by the Nigerian Bulk Electricity Trading Plc for electricity generated and fed into the national grid.
The company disclosed this on Tuesday during an oversight visit by the Senate Committee on Privatisation, led by its Chairman, Senator Theodore Orji, to the power station, located in Ikorodu, Lagos.
The government-owned NBET buys electricity in bulk from generation companies through Power Purchase Agreements and sells it to the distribution companies, which then supply it to the consumers.
The Group Managing Director, Sahara Power Group, Mr. Kola Adesina, told the lawmakers that the total amount owed to Egbin by NBET included money for actual energy wheeled out, interest for late payments and available capacity payments.
Egbin is one of the operating entities of Sahara Power Group, which is an affiliate of Sahara Group. The plant has an installed capacity of 1,320MW consisting of six turbines of 220 megawatts each.
The company said from 2020 till date, the plant had been unable to utilize 175MW of its available capacity due to gas and transmission constraints.
Adesina said, “At the time when we took over this asset, we were generating averagely 400MW of electricity; today, we are averaging about 800MW. At a point in time, we went as high as 1,100MW. Invariably, this is an asset of strategic importance to Nigeria.
“The plant needs to be nurtured and maintained. If you don’t give this plant gas, there won’t be electricity. Gas is not within our control.
“Our availability is limited to the regularity of gas that we receive. The more irregular the gas supply, the less likely there will be electricity.”
He noted that if the power generated at the station was not evacuated by the Transmission Company of Nigeria, it would be useless.
Adesina said, “Unfortunately, as of today, technology has not allowed the power of this size to be stored; so, we can’t keep it anywhere.
“So, invariably, we will have to switch off the plant, and when we switch off the plant, we have to pay our workers irrespective of whether there is gas or transmission.
“Sadly, the plant is aging. So, this plant requires more nurturing and maintenance for it to remain readily available for Nigerians.
“Now, where you have exchange rate move from N157/$1 during acquisition in 2013 to N502-N505/$1 in 2021, and the revenue profile is not in any way commensurate to that significant change, then we have a very serious problem.”
He said at the meeting of the Association of Power Generation Companies on Monday, members raised concern about the debts owed to them.
He added, “All the owners were there, and the concern that was expressed was that this money that is being owed, when are we going to get paid?
“The longer it takes us to be paid, the more detrimental to the health and wellbeing our machines and more importantly, to our staff.”
Adesina lamented that the country’s power generation had been hovering around 4,000MW in recent years.
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