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Forte Oil’s Amperion Power completes acquisition of Geregu Power Plant

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LAGOS – Forte Oil PLC, one of Nigeria’s major marketer of petroleum products has announced that its subsidiary, Amperion Power Distribution Company Limited (Amperion Power) has completed the acquisition of a majority stake in the 414MW Geregu Power plant located in Kogi State of Nigeria, under the government-led privatization programme in the power sector.

In a statement made available to Biztellers in Lagos and signed by the company’s spokesman, Odion Aleobua, Amperion Power had completed the acquisition of the power plant ahead of the Wednesday, August 21, 2013 deadline with the payment of US$99m to the Bureau of Public Enterprises (BPE) representing 75% balance for the power generation asset. This is in addition to the US$33m mandatory down payment made on February 21, 2013 to the BPE by the group to complete the required bid sum of US$132m.

Forte oil filing stationIn achieving this feat, Forte Oil PLC had to build a partnership with seasoned and competent entities in the global power sector. Under the partnership arrangement, Forte Oil Plc currently owns 57% of Amperion’s equity while its technical partners; BSG Resources Limited – a global diversified energy group owns 38% while the Shanghai Municipal Electric Power Company (SMEPC); the world’s largest power company, has a 5% stake.

Commenting on the acquisition, the Group Chief Executive Officer, Forte Oil PLC, Mr. Akin Akinfemiwa said: “We are very pleased to have achieved this milestone at this crucial stage of our transformation programme, which include diversification of our downstream petroleum business into high margin energy sectors such as power generation and upstream exploration and production”

This investment serves to optimize our revenue drive through multiple income streams which underpins our resolve for superior value creation for our investors and shareholders. We are not only poised to establish ourselves in power generation sector but to also carve a niche by increasing the capacity of the plant by about 50% to over 600MW in the short to medium term, in demonstration of our commitment to help bridge the current power deficit in Nigeria.

Our overall objective is to build Nigeria’s leading Energy Solutions Provider on the pillars of solid corporate governance, sound business ethics and compliance, enhanced Safety, Health and Environment Practices, Technology-Driven World Class Business process and a highly skilled and motivated workforce.”

Geregu Power Plant was commissioned in 2007 with three Siemens V94.2 open cycle gas turbine power generation units totaling 414MW of installed capacity. The three operational units namely GT11, GT12, and GT13 have a rated capacity of 138MW each. The station is supplied gas from two pipelines, a 24-inch wide old pipeline and 36-inch wide 136 KM long new pipeline from the Natural Gas Treatment Plant. These are able to satisfy the fuel requirements of 3 units running on a full load of 414MW.

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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

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ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

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