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Thursday, May 23, 2024


Power: Concession Of Hydropower Plant  To Fetch Federal Government $2.1trillion In 30 Years

 Olushola Bello

The Federal Government will, for the next 30 years, earn a total of $2.1 trillion for concessioning the 700 MW Zungeru hydropower plant.

 According to a statement by the Federal Government, the deal is proposed to fetch $70 million per annum, and if this is calculated over 30 years period which is when the concession is supposed to last, the cumulative amount that will accrue to the government will come to $ 2.1 trillion.

 The Federal Government on Tuesday officially transferred operations of the Zungeru Hydroelectric Power Plant to Penstock Limited, a subsidiary of Mainstream Energy Solutions Limited, which it selected in February 2023. Tuesday’s move is expected to “boost Nigeria’s power generation capacity and contribute significantly to meeting the country’s growing energy demands,” a statement signed by the Senior Special Assistant to the Vice President on Media and Communications, Stanley Nkwocha, read

According to Nkwocha, the deal was disclosed during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja.

At the meeting, the NCP announced that the Concession Agreement was signed on December 13, 2023, by the Bureau of Public Enterprises (BPE) and Penstock Limited.

It stated that following the Council’s approval, the Concessionaire fulfilled its obligation by paying 50 percent of the commencement fees on January 5, 2024.

Penstock Energy Ltd is a subsidiary of Mainstream Energy Solution Ltd, the concessionaire of Kainji and Jebba Hydro Power Plants (HPP) with an installed capacity of 760MW and 578.4MW.

Penstock Energy Limited financed the 700MW Zungeru hydropower plant- the second largest hydropower plant in Nigeria with a staggering $1.3bn loan from China.

businessstandardsng.com: A strategic cross-reporting initiative.

Oil Theft: NNPC Makes Breakthroughs As It Unearthed  Fresh 223 Illegal Connections, Refineries

 Olushola Bello

The Nigerian National Petroleum Company Limited has recorded some breakthroughs while deepening its war on crude oil theft. It recently discovered 223 fresh illegal connections and illegal refineries in the Niger Delta.

In a two-minute video obtained by Channels Television on Wednesday, it was revealed that the incidents were recorded between the 10th and 16th of February 2024.

A breakdown showed that 27 of the incidences occurred at Matron Engineering facilities, 21 at Pipeline Infrastructure Nigeria Limited, 7 at Shell Petroleum Development Company facilities, four at Tantite Security Services Ltd, and 156 incidences were recorded at facilities owned by government security agencies.

Additional details said 20 illegal connections were discovered in Okirika Rivers State, Bayelsa State, and Delta State, while illegal refineries were uncovered at different locations in Rivers, Delta, Bayelsa, and Abia states.

As seen in the video, sacks of crude oil were discovered in Warri, while cans of crude oil were seized in Edo State. More oil sacks were also seized in Olobiri, Bayelsa State.

Vandalised wellheads and pipelines were spotted in Bayelsa, and vehicles used for operations by the oil thieves were seized in Ole, Ugheli, and Warri in Delta State.

According to NNPCL, 52 suspects have been arrested so far.

On the geography of the incidents, the State Oil Company said 8 were recorded in deep blue waters, 32 in the western region, 123 in the central region, and 60 in the eastern region part of the Niger Delta.

“For NNPC Limited, there is no backing down on the war on crude oil theft until the menace is eradicated,” the Chief Executive Officer, NNPCL, Mele Kyari, said.

The fresh incidents come on the heels of relatively low crude oil production bedevilling the oil and gas sector.

Statistics obtained by Channels Television from the Organisation of the Petroleum Exporting Countries (OPEC’s) Monthly Oil Market Report (MOMR) for February, revealed that Nigeria’s crude oil production appreciated to 1.4 million barrels per day in January, but the country has been unable to meet its OPEC quota of 1.74 mb/d for 2023, and 1.58 mb/d for 2024.

 businessstandardsng.com: A strategic cross-reporting initiative.

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