- International Consumers Owe Power Firms N30.5bn
International electricity consumers who get their supply from Nigeria owe the power producers $100m (N30.5bn at the official exchange rate of N305 to a dollar), the Federal Government has said.
This is coming as findings showed that power generation was hampered in the past one week in about eight plants due to high frequency constraints caused by loss of feeders belonging to some electricity distribution companies.
Documents obtained by our correspondent in Abuja on Friday, containing the minutes of the recent 16th power operators meeting that was chaired by the Minister of Power, Works and Housing, Babatunde Fashola, as well as sector activities in the past week, showed that producers of electricity and service providers in Nigeria were being owed billions of naira.
The minutes, compiled by the Federal Ministry of Power, specifically stated that a report on the debt being owed the power producers had been submitted to the minister.
The Permanent Secretary, FMoP, Mr. Luis Edozien, according to the minutes, also directed the Transmission Company of Nigeria and the Nigeria Bulk Electricity Trading Plc to work together to recover the money ($100m).
It said, “The NBET informed the meeting that the report on international customer payments had already been submitted to the Chairman (Fashola) and that the report contained all reconciliation with Market Operator and novation agreement.
“The permanent secretary (power) confirmed receipt of the report. He stated that a meeting between the TCN and NBET took place with a view to addressing the arrears of $100m due to international customers. He suggested that the differences in opinion between the TCN and NBET should not affect the recovery of the outstanding balance.
“He advised the TCN and NBET to collaborate and recover the outstanding balance and execute the novation agreement. NBET informed the meeting that a letter had been written for the managing directors of the TCN and NBET to sign on the payments.”
The meeting, therefore, directed NBET to forward a detailed report on the payment by NIGELEC, a power firm of the Republic of Niger and CEB of the Republic of Benin, as well as the outstanding balance on international customers to Fashola so as to enable him to brief the President.
On May 10 this year, The PUNCH reported that the Republics of Benin and Niger paid $159,773,116.61 (N48.84bn at the official exchange rate of N305.7 to a dollar) as electricity charges to NBET.
The Federal Government had at the time stated that both countries had a combined balance of $92,315,986.20 (N28.22bn) to pay to NBET, adding that the payments made were remitted to the power generation companies and service providers in Nigeria.
It stated that the two African countries made the payments through their power companies, NIGELEC of the Republic of Niger and Community Electric du Benin of the Republic of Benin.
Meanwhile, findings showed that power generation remained poor during the week, as it hovered around 2,600 megawatts and 4,100MW.
Industry reports showed that the instability in power production during the week was largely due to high frequency issues in the system occasioned by the loss of Disco feeders.
This, according to the sector’s National Control Centre, led to generation constraint in eight power plants, which are Shiroro, Kainji, Jebba, Odukpani, Geregu I, Omotosho I, Olorunsogo II, and Transcorp Ughelli.
The NCC also stated that line constraint to power generation was observed in two other plants and announced that the Transamadi station had been restored to the grid following outage since November 20, 2016.
In one of its reports during the week, it said, “High frequency due to loss of Disco feeders remains a significant constraint to generation in Shiroro, Kainji, Jebba, Odukpani, Geregu I, Omotosho I, Olorunsogo II, and Transcorp Ughelli. Also, there were increased line constraints at Olorunsogo I and Ibom.”
Further findings showed that the sector lost about N1.3bn daily during the week as a result of constraints to power generation, while an average of 1,400MW of power was not generated due to high frequency issues.
Equatorial Guinea to Launch Vision on Post-COVID Energy Transition Plans with Report and Film
The Africa Energy Series (AES): Equatorial Guinea 2021 campaign – comprising a report and a documentary – will serve as a critical tool to navigate the energy investment landscape in one of Africa’s more mature petroleum producing markets; Equatorial Guinea has largely been able to sustain its pace of engagement with global investors in the face of COVID-19, forecasting $1.1 billion in FDI in oil and gas activities in 2021; The third edition of the AES: Equatorial Guinea 2021 report will be released at Africa Oil & Power’s U.S. Africa Energy Forum 2021 networking event in Washington, D.C. this July.
Africa Oil & Power is proud to announce the upcoming launch of its Africa Energy Series (AES): Equatorial Guinea 2021 investment report and documentary, as part of a multimedia campaign set to champion the domestic energy sector and shape the West and Central African energy narrative.
The dual-language publication will target key developments driving a post-COVID-19 recovery in Equatorial Guinea – namely, the growth of petroleum and power industries; regional gas monetization initiatives; a clean energy transition; the impact of environmental, social and governance criteria; and expansion of the national diversification agenda.
A 30-minute documentary will provide a visual complement to the publication, featuring first-hand interviews with government officials, private sector players, industry regulators and energy experts discussing Equatorial Guinea’s unparalleled ambition and future plans.
“From spearheading regional gas monetization initiatives to drilling new exploration wells as early as Q2 2021, Equatorial Guinea continues to cement its reputation as a progressive, dynamic force on the African energy stage,” said H.E. Gabriel Obiang Lima, Minister of Mines and Hydrocarbons. “The Africa Energy Series publication in conjunction with a detailed documentary format, gives us the voice to showcase the depth of our full-stream investment opportunities to a global audience.”
Since the onset of COVID-19, Equatorial Guinea has been proactive in safeguarding opportunities for foreign investors and continuing to drive capital into its hydrocarbon resources. In February, Chevron achieved first gas flow from the successful execution of its Alen Gas Monetization project, a $475-million investment representing the first phase of Equatorial Guinea’s Gas Mega Hub masterplan.
The Ministry of Mines and Hydrocarbons is currently promoting several capital-intensive projects – including the construction of modular oil refineries, a gold refinery, liquefied petroleum gas strategic tanks, a urea plant and the expansion of a compressed natural gas project – which are open for investment. Last December, the Ministry of Mines and Hydrocarbons announced a forecast of $1.1 billion in foreign direct investment in oil and gas activities in 2021.
Active in Equatorial Guinea since 2015, AOP released its first AES documentary on the country in 2016, followed by investment reports in 2018 and 2019.
The AES: Equatorial Guinea 2021 investment report will be launched at the U.S. Africa Energy Forum 2021 online seminar and in-person networking event in Washington, DC. (July 12). The documentary will be launched at the U.S. Africa Energy Forum conference in Houston (October 4-5) and broadcast globally on news networks.
U.S. Africa Energy Forum 2021 Launches: Promotes U.S. Role as Primary Investor in African Energy
The U.S. Africa Energy Forum 2021 – organized by Africa Oil & Power, in partnership with the African Energy Chamber’s U.S.-Africa Committee – will foster alignment between U.S. and African governments’ energy policies and highlight African oil, gas, power and renewable projects across the energy value chain for U.S. investors; the multi-day forum unites U.S. and African policymakers, energy executives and industry leaders to create new linkages and foster discussions that drive long-term policy formation and project execution; the in-person, two-day summit and gala dinner will be hosted in Houston, Texas (October 4-5, 2021) and an online seminar and in-person networking event will be held in Washington D.C. (July 12).
Africa Oil & Power (AOP) and the African Energy Chamber are excited to announce the launch of the first-ever U.S. Africa Energy Forum (USAEF). This event aims to create deeper cooperation between the U.S. and Africa on energy policy, to reach alignment on long term sustainability goals, to stimulate greater American investment in the African oil, gas and power sectors, and to engage and reposition the U.S. as the primary partner of choice for African energy developments.
Under the theme “New Horizons for U.S. Africa Energy Investment” the forum will explore diverse foreign investment and export opportunities across the continent, including natural gas as a vital fuel for the energy transition; energy storage and battery minerals; Africa’s place in global energy supply chains; the benefits of the African Continental Free Trade Area; evolving energy technologies and how they relate to the future role of petroleum resources; and on-and off-grid power developments.
An online seminar and in-person networking event will be held in Washington D.C. on July 12, 2021, building up to the in-person U.S. Africa Energy Forum summit and gala dinner, to be hosted in Houston, Texas, on October 4-5, 2021. Africa Oil & Power and the African Energy Chamber invite all U.S.-based companies with an interest in engaging with African industry leaders and project developers to participate in the USAEF Houston summit.
This initiative comes at an important juncture in U.S.-Africa relations. The Biden Administration’s announcements of its intentions to proactively build a stronger U.S.-Africa partnership coincides with the fact that African projects are seeing rising interest from U.S. companies and lending institutions alike. The USAEF event is thus dedicated to enabling dialogue between its participants that advances these developments.
“Our mission has always been to showcase the resource potential that Africa has to offer while at the same time showing its growing preference for sustainable energy policies and technologies. Toward that end, we hope it becomes evident that Africa does not just want investment capital: it wants smart capital and an accompanying partnership with the investors,” says James Chester, Senior Director of Africa Oil & Power. “The U.S. Africa Energy Forum represents the first-of-its-kind opportunity to catalyze U.S. participation in Africa’s energy transformation – via technology, policy support, capital injection and skills development – and turns a new page in the chapter on global energy investment.”
In partnership with the African Energy Chamber’s U.S.-Africa Committee, AOP will introduce American companies to African opportunities and advance an agenda of sustainable, long-term investment in African energy and other sectors by U.S. organizations.
“The rise in support from the U.S. to the continent is a credit to Africa itself, which is increasingly viewed as a favored destination for global investors, multilaterals and export credit agencies,” says Jude Kearney, President of Kearney Africa and former Deputy Assistant Secretary for Service Industries and Finance at the U.S. Department of Commerce during the Clinton Administration. “Africa continues to command a healthy share of global FDI in oil and gas industries. It has for decades shown that investment in those sectors is favorable compared to other jurisdictions and can be successful by many measures. Even as Africa and the rest of the world wrestles with a global pandemic, Africa’s energy sector shows vitality and resiliency – not only in hydrocarbons but in regard to new opportunities in mining, liquefied natural gas, and agriculture.”
Both African governments and private sector sponsors of African energy projects value highly the combination of investment and partnership that US investors famously convey. The USAEF seeks to enable successful partnerships between its participants such that the energy development goals of U.S. investors and strategic partners and their African counterparts can be achieved.
Angola’s Petroleum Agency Outlines Timeline for Ongoing Bid-round
Angola’s National Oil, Gas and Biofuel’s Agency (ANPG) has outlined its timetable for the evaluation of its ongoing 2020 bid round, as interest in the acreage on offer continues to grow.
In line with its statutory duties as national concessionaire in charge of the attribution of petroleum exploration blocks, the ANPG has sought to adjust its processes to remain competitive in the current market environment, which is dominated by concerns around COVID-19, long-term demand considerations and stiff competition from new and promising frontiers like Guyana and Suriname.
The ongoing bid-round is a manifestation of Angola’s strategy for the continuous attribution of petroleum concessions 2019-2025 which was approved and codified by Presidential Decree no. 52/19, of 18 February 2019. The aim of the strategy is to provide access to promising acreage to competent explorers in an effort to increase geological knowledge about Angola’s hydrocarbons potential and ultimately increase proven reserves.
A hybrid online and physical roadshow for the current bid-round is scheduled for April 6 in at the Talatona Convention Centre in Luanda. This event will provide the opportunity for investors to engage with the agency regarding the blocks on offer, the data packages and the accessibility studies, as well as touch upon environmental, logistical and local content issues.
This will kickstart a series of both digital and in-person roadshows and technical presentations to promote the blocks to be awarded in key international markets. The acreages on offer include:
- Three blocks of the lower Congo onshore Basin CON1, CON5 and CON6
- Six of the Kwanza onshore Basin (KON5, KON6, KON8, KON9, KON17 and KON20)
In line with the provisions of Presidential Decree No. 86/18, of 2 April 2019, which establishes the rules for the organization of bid rounds, the ongoing 2020 bid round will unfold as follows:
- Tender Launch
- Proposal submission
- The opening of offers from potential suitors in a public setting
- The evaluation and qualification of proposals
- The submission of the evaluation report to the Ministry of Mineral Resources and Petroleum and Gas
- Contract negotiation with the winners of the bid-round
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