PEOPLES DAILY, TUESDAY, JULY 2, 2013
PAGE 20
Energy Company News
Lafarge WAPCO
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n celebration of its Health and Safety Week, Lafarge WAPCO has pledged its continuous support for the National Industrial Safety Council of Nigeria (NISCN), with its concerted efforts to ensure a work friendly environment for its workers. Speaking recently at its Shagamu, Ogun State plant, the General Manager of Lafarge WAPCO, Mr Joe Hudson pointed out that the company had recorded zero accidents since the beginning of the year, making it one of the best places to work. “According to the International Labour Organisation, every year, an estimated two million men and women die as a result of occupational accidents and work related diseases across the world.
Sterling Bank Plc
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ngoing right issue by Sterling Bank Plc has kicked off to a resounding success as individual retail shareholders and shareholders’ groups have indicated interests in picking up their rights and mobilizing other shareholders to support the recapitalization programme of the bank. The expressions of interests and supports from minority and retail shareholders reechoed the unanimous endorsement of the bank’s capital raising programme by shareholders at the recent general meeting. Non-core shareholders, with less than five per cent equity stake, including a large number of minority retail shareholders of more than 88,000, collectively hold about 65 per cent equity stake in Sterling Bank.
FCMB
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irst City Monument Bank Plc. (FCMB), expects the pace of loan growth to accelerate to 25 percent in 2013, more than doubling from last year’s 11 percent increase. Net income will grow an average of 35 percent per year over the period from 2012 to 2015, the Lagos-based lender said last Thursday in an e-mailed statement. Noninterest income from consumer banking will grow more than 50 percent a year, it said. The stock gained 3.8 percent to N4.75 in Lagos trading Thursday, the biggest increase in three weeks.
Revenue pressure mounts as Nigeria faces oil price swings Stories by Etuka Sunday with agency report
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igeria’s economic managers are probably peering nervously at the ticker price for bonny light crude oil right about now. While the nation’s $275 billion economy depends on oil revenues for only about 15 percent of economic output, according to NBS data, the price of crude has an outsized impact on everything from the naira exchange rate, to consolidated government revenues. “Several pressure points have developed in the Nigerian
economy in recent weeks, which may expose the Achilles heel in the credit story, namely its vulnerability to a sharp and sustained decline in oil revenues,” FBN capital analysts, led by Gregory Kronsten, said in note released on June 27. Global bonds, stocks and commodities have slumped beginning May 22, after United States Fed Chairman Ben Bernanke put investors on notice that the Central Bank is prepared to begin phasing out its quantitative easing programme. Bonny Light crude, Nigeria’s main export grade, has fallen 16 percent from this year’s peak of
$120.54 per barrel on February 8 to $101.61 on Tuesday. Falling oil production and portfolio outflows have also led to pressure points on the economy. The 2013 budget assumes average crude oil production {including condensates} of 2.53 million barrels per day (mbpd) while an official at the presidency estimated the current level of production at 2.06 mbpd as at last week. The loss of almost a quarter of Nigeria’s oil output due to theft and sabotage has the potential to stall foreign investment and is increasingly a fiscal drag on
spending by state and local governments, rating agency, Moody’s Investors Service said last Month. Nigerian finance minister, Ngozi Okonjo –Iweala has put bunkering and other leakages at 300,000 bpd. Gadio says unless there is any meaningful progress in terms of structural fiscal reforms, Nigeria will remain vulnerable to long-run oil boom and bust cycles. Any fall in oil prices below the $100 per barrel mark for Bonny Light would put a further squeeze on oil revenues and the Nigerian economy.
Elumelu’s Heirs Holdings commits USD2.5bn to Obama’s ‘Power Africa Initiative’
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s part of his commitment to deliver affordable and accessible power to the continent, African business leader, Tony O. Elumelu is committing US$2.5 billion to the power sector in Africa. The investment is being made through his pan-African proprietary investment company Heirs Holdings – the single largest investor included in the White House statement announcing the Power Africa initiative. Power Africa is a multistakeholder partnership between the United States, the governments of Ghana, Tanzania, Kenya, Liberia, Nigeria and Ethiopia, and the African private sector, with the shared objective of accelerating investment in Africa’s power sector over the next five years. The initiative was launched in South Africa during Obama’s Town Hall at the University of Cape Town. Earlier this year, Elumelu’s holding company, through its investee company, Transnational Corporation of Nigeria
(Transcorp), purchased the Ughelli power plant, one of Nigeria’s largest power assets, which it plans to restore to its full generating capacity of 1000 megawatts. “The investment we are making demonstrates our intent to become a significant player in the power sector. It also shows in a clear and meaningful way that African capital can and should be part of the solution to Africa’s challenges. We need more African companies to step up and get involved in Africa’s development.” Elumelu, who is Chairman of Heirs Holdings, went on to say, “Heirs Holdings’ investment in Power Africa is not just about creating value for shareholders. We want to conduct business in this strategic sector for the long term, in a way that links economic return to social benefits – a key component of what I call Africapitalism. “Access to affordable, uninterrupted power will have an immeasurable impact on
Total awards N672bn contracts to develop Egina field
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n a bid to facilitate the development of the offshore Egina field located in Oil Mining Lease (OML) 130 which is expected to come on stream in the second half of 2017, Total has awarded contracts worth $4.2 billion (N 672 billion)to Saipem and FMC Technologies. Saipem has bagged an award of a $3 billion contract from the French oil company for engineering and construction work on subsea facilities for development of the field. The Italian contractor will carry out engineering, procurement, fabrication, installation and precommissioning of 52 kilometres of oil production and water injection flowlines under the deal. It will also deliver 12 flexible jumpers, 20 kilometres of export pipelines and 80 kilometres of
umbilicals, as well as mooring and offloading systems, with installation work to be carried in 2016 and 2017. Most of the fabrication work will be carried out at the Saipem Rumuolumeni yard in Port Harcourt in line with Nigeria’s local content requirements. Houston-based FMC Technologies, Inc. said it has received an order from Total Upstream Nigeria Ltd (TUPNI). operator of the OML 130 block, for subsea equipment for the Egina field. The award has an estimated value of$1.2 billion. FMC Technologies’ scope of supply includes subsea trees and wellheads, manifolds, installation tooling, flowline connection systems, and associated control systems. The equipment is scheduled for delivery commencing in 2015.
Tony O. Elumelu the economic ecosystem. The cost of doing business will come down, entrepreneurs will expand and innovate, and jobs will be created as a result. That
is a very tangible example of what Africapitalism is about: the private sector creating economic prosperity and social wealth.”
TCN blames current power shedding on vandals
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he General Manager (Public Affairs) of the Transmission Company of Nigeria, Dave Ifabiyi, has blamed the current load shedding being experienced in the country on the activities of vandals on two major gas pipelines. “There is a total generation loss of 1,598 megawatts of electricity,” Ifabiyi said in a statement issued in Abuja. “The total power generation as at today is 2,290 megawatts. With this low-level generation, the operation and control of the system is at a major challenge.” He further revealed that the disruption, which specifically affected Rivers State Independent Power Station, would soon be corrected. Ifabiyi explained that the vandalised gas pipelines take supply from different plants, saying one took supply from the
Okoloma gas plant while the other took supply from Escravos. He said the loss occurred when NGC could not move gas to Afam IV and VI generation plants as well as the Independent Power Plant in Rivers State, adding that the second vandalised gas pipeline from Escravos to Warri was responsible for the cutback of 1,005 megawatts in power generation from Egbin station. He revealed that Olorunsogo, Omotosho and Geregu power generating plants were also affected by the power drop. The country’s power generation capacity recently hit 6,000 megawatts, according to the Minister of Power, Professor Chinedu Nebo. He, however, projected a generation of between 10,000 MW and 20,000MW in 2014 and 2016 respectively for the country.