Energy:
Nigerian Oil and Gas Mining Report
Yar’Adua Creates Niger Delta Ministry
While creating a new Ministry of the Niger Delta, President Umaru Musa Yar'Adua has approved the rationalisation and restructuring of the other federal ministries, bringing the total number to 28. The ministries will be manned by 42 ministers whose appointment is to conform with the basic principle of federal character.
The move is said to be part of efforts to fast-track and effectively coordinate the implementation of the Seven-Point Agenda of the government.
Under the new arrangement, a Ministry of Niger Delta has been created to lead and coordinate environmental and youth empowerment policy initiatives as well as reinforce the Administration’s commitment to the overall development of the region.
Similarly, the Ministry of Police Affairs has been restored to give necessary attention to the security imperatives of the nation within the ambit of the Seven-Point Agenda.
The Ministry of Energy has been broken into two - the Ministry of Power, to be manned by a substantive Minister and the Ministry of Petroleum Resources with a minister and a minister of state.
Other adjustments to the current ministerial structure are the restoration to their original concepts of the Ministries of Aviation; Transport; Environment; Works, Housing and Urban Development; Water Resources; and Agriculture and Rural Development.
Furthermore, the ministers in the Ministries of Education, Mines and Steel Development, Science and Technology, have been reduced by one each.
Under this new structure, which is expected to engender greater flexibility, direction and focus, "there will be 28 ministries and 42 ministers to cover the constitutional requirements for federal character while addressing the issues of equity and affirmative action", according to the spokesman for the President, Mr Olusegun Adeniyi.
Other ministries in the new dispensation are: Finance, Health, Justice, Commerce and Industry, Foreign Affairs, Defence, Information and Communications, Labour and Productivity, Youth Development, Women Affairs and Social Development, Tourism, Culture and National Orientation, Interior and Federal Capital Territory Administration. The National Planning Commission and National Sports Commission retain the same structure.
Yar’Adua also directed that all ministers are to re-articulate the mandates of their ministries and departments in line with the requirements of the Seven-Point Agenda under the guidance of the Secretary to the Government of the Federation and the Head of Service.
Yar’Adua To Launch N19.2bn Zamfara Power Plant
President Umaru Musa Yar'Adua will next month lay the foundation for a 100megawatt Zamfara hydro-power plant. The contract which will cost N19.2 billion was awarded to the China Geo-Engineering Ltd (CGC) and will be completed in two and half years.
Announcing this in Abuja during a visit to the Executive Vice-Chairman of the Power Holding Company of Nigeria (PHCN), Engr. Bello Suleiman, Zamfara State Governor, Alhaji Mamuda Aliyu Shinkafi, said preparations have been concluded to have the President lay the foundation of the gigantic project in October. He said this was in line with the 7-Point Agenda of the president, which has been heartily embraced by the Zamfara State government.
The project is situated at Gotowa Dam village in Shinkafi/Zurmi local government area of the state and has a capacity of 2billion cubic metres of water, which could take care of the irrigation of about 10,000 hectres of land for the production of rice and tomatoes in the downstream.
This might not be unconnected with long term plans by state governments to better prepare for the times when the petrodollar would run its full course and states are left to fend for themselves. A hydro-power station is usually cheaper to construct and maintain and differs from the choice of costlier thermal plants by states like Lagos, Kano and Akwa Ibom.
Shinkafi said the project would be financed by the China-Import/Export Bank, with a guarantee from Sofitel Capital Corporation of the United States and Intercontinental Bank Plc on a seven-year BOT plan.
The governor told PHCN officials he was in search of professional advice and came to them to discuss the issue of Power Purchase Agreement (PPA) since his government wanted the hydro power station to be connected to the national grid upon completion.
The PHCN chief executive, commended the foresight of Governor Shinkafi and assured him of full support.
Rivers to Link All Communities by Road
Rivers State government has said that despite the incessant activities of criminals in the state which had affected its development plans, it is determined to link all communities by road as well as construct internal roads across the state.
This was revealed by the Deputy Governor of River State, Engr. Tele Ikuru, during a child dedication service in honour of little Miss Victory Yiibari Gregory Nwidam at Saint Dominic's Catholic Church, Bane in Khana local government area of the state. Miss Victory Yiibari is the daughter of the Chairman of Khana local government area, Hon. Gregory Nwidam.
The deputy governor, who represented Governor Chibuike Rotimi Amaechi, observed that the security situation in the state was hampering the smooth execution of its desires, adding that "we need a peaceful environment to enable us build roads and infrastructure."
Ikuru said government was ready to provide the necessary infrastructure but "criminals are making it difficult" and charged stakeholders to see themselves as apostles of peace by admonishing their children, brothers and youths against acts of cultism, kidnapping, illegal oil bunkering and other social vices.
He congratulated Hon. and Mrs. Gregory Nwidam for their new baby and urged the chairman to use his position and resources to worship God just as he enjoined the clergy not to relent in their prayers for government and the state. Hon. Gregory Nwidam on his part expressed gratitude to the state government and well-wishers who joined his family in thanking God and appealed for assistance to the Bane community.
Chanomi Creek pipeline blown up again
The Chanomi Creek pipeline in Warri, Delta State, has been ruptured again just as Nigeria was celebrating 48 years as an independent nation.
Although militants’ involvement has been suspected, no group had claimed responsibility as at press time.
Two major pipelines criss-cross the Chanomi Creek, one owned by the Shell Group, which transports some 130,000 barrels of crude per day for export, and the other by Chevron Corporation, which supplies crude from Port Harcourt to both the Warri and Kaduna refineries, which was ruptured.
The development was first reported by technicians of the Warri refinery on noticing a drop in the pipeline pressure raised the alarm, which led to the discovery that the pipeline had been tampered with.
The rupture is coming less than eight months after the Nigerian National Petroleum Corporation awarded the contract for the repair of the pipeline, which was blown up by militants in February 2006.
The project was initially awarded to Zachem International at the cost of $107m, but later re-awarded to a community based contractor, Fenog Nigeria Limited, at a now disputed cost.
A source at the Warri refinery “The management was compelled to make enquiries on the fate of the pipeline when the technicians on night duty suddenly noticed a drop in pressure on the pipeline at WRPC’s end. It was thereafter discovered that the pipeline had ruptured somewhere in the creeks of Warri South-West LGA of the state.
“As am talking to you now, we are no longer receiving crude oil through the Chanomi Creeks pipeline in WRPC. We only have stocks of crude oil in our tanks for three days; it means we may be compelled to shut down the plant by Friday.”
Although details of the incident were sketchy, investigations revealed that pipeline ruptured in Egwa area of Warri South-West LGA of Delta State.
Sylva Unfolds Plan To Disarm Militias
Bayelsa State Governor Timipre Sylva has announced an imminent comprehensive disarmament programme to soon be unfolded to encourage the various militant groups in the state to drop their arms and ammunition for a final peace process.
Speaking in Yenagoa during a ceremony to mark 12th anniversary of the creation of the state, Chief Sylva said his administration would demobilize and re-integrate all armed groups in the state. He urged the militants operating in secrete camps in the state to embrace the opportunities the state would offer to every one of their members.
Sylva said the time had come for the state to shun the toga of an insecure territory and rather adopt its real status as a safe and peace-loving state. "At the inception of this administration, we decided to replace the image of Bayelsa with one of unity, national patriotism, security, peace and prosperity," he stated, appealing to all armed groups in the state to lay down their weapons and join him in developing the state with the mantra that " Bayelsa State needs your sweat and not your blood."
Shell $1.3bn Power Station Begins Operations
The 450 megawatts Afam Power Station being built by Shell Petroleum Development Company (SPDC) at the cost of $1.3 billion in Okoloma community, Oyigbo Local Government area of Rivers State, has started operation.
SPDC’s Spokesman, Precious Okolobo, said in a statement in late October that the oil giant as operator of the joint venture has begun commissioning the first turbine of the Afam VI Power Plant, the Okoloma Gas Plant and associated gas wells - collectively known as the Afam Gas and Power Project.
Stakeholding in the project include NNPC with 55%, Shell 30%; Agip 5%; and Total, 10%
Okolobo said the Gas Plant started supply of gas on October 11, and commissioning of the second turbine of the Afam VI Power Plant was planned for early November, while performance tests on the first gas turbine should be finalised by early November.
He said when completed, the project will provide gas equivalent of approximately 20per cent of the current total domestic gas supply.
The SPDC spokesman also said the second phase of the power plant will collect heat from the exhaust gases of the three gas turbines to generate steam to power a turbine capable of generating an additional 200 MW of electricity.
According to the statement, the project’s mandate includeds procuring and installing transformers, concrete poles and conductors to provide electricity to local communities. Seven communities will be connected with electricity in this first phase.
