Forte Oil Plc, owners of the Geregu Power Plant, says it has signed a $90m agreement with Siemens for the overhaul of the plant ahead of the introduction of the Transition Electricity Market.
The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa, disclosed this on Tuesday when he led members of the company’s management to the Nigerian Stock Exchange for a ‘Facts behind the figures’ presentation.
“What we have done is to sign a $90m agreement with Siemens, who are the original manufacturer of the plant. While we are waiting for the interim period to be over, what we are going to do is to carry out a major overhaul; first of all, of the turbine that has reached its extended hours of operation.
“If that begins to work, then we will still be able to generate 60 per cent of our capacity because we will now start work on a second turbine; the contract is for three turbines.”
He expressed the belief that in eight months’ time, the overhaul would have been completed and the TEM would have set in.
On the state of the plant, Akinfemiwa said,
“Geregu, on its own, can generate 60 per cent of its capacity today potentially. We have three turbines; one of them is due for an overhaul having reached its extended hours of operation. We have two others that still have some kind of life before they get to their extended hours of operation.