Energy
General Electric rehabilitates 3 gas turbines at NDPHC power plants
The project at NDPHC involved GE rehabilitating three 9E.03 gas turbines at NDPHC’s power plants in Sapele and Calabar.
General Electric company has announced the successful completion of a gas turbine rehabilitation project at Niger Delta Power Holding Company’s (NDPHC) power plants located in Nigeria. Financial terms of the deal were kept under wraps.
This disclosure was made public by General Electric, in a notification sent to the NASDAQ Stock Exchange, which was seen by Nairametrics.
READ: GenCos to shut down over NBET’s administrative charge
The project at NDPHC involved General Electric rehabilitating three 9E.03 gas turbines at NDPHC’s power plants in Sapele and Calabar, Nigeria. The company’s experts collaborated with the counterparts of its field services execution company, FieldCore, for stage three-bucket change-outs on three gas turbines, apart from additional combustion check-up.
Explore the Nairametrics Research Website for Economic Data
Backstory: In July 2018, The Niger Delta Power Holding Company (NDPHC), with the aim to facilitate greater use of its power plants by improving transmission and distribution infrastructure, signed a letter of intent with General Electric, for the provision of an end-to-end power intervention program.
It is worth noting that NDPHC is the major producer of electricity in Nigeria, with an overall installed capacity of 4.0-gigawatts. Currently, the company carries around 35% of the total generating capacity in the country.
READ: NDDC probe: House of Reps to sue Akpabio for perjury
Why this matters
The completion of the project will help NDPHC in minimizing the unplanned downtime risk of these power plants; thus, boosting the efficiency and reliability of the facilities in producing electricity. This will help in securing and restoring the supply of up to 360MW of electricity, which is sufficient for supplying power to around 2 million houses.
However, the rehabilitation project is expected to help unlock the 2.5GW of additional generation capacity, to be sold to industrial and commercial hubs in the country.
READ: TCN, NNPC partner to boost gas availability, increase power supply
In the same regard, the successful rehabilitation of the power generation assets at Calabar and Sapele plants will help increase the 9E gas turbines’ efficiency, while lowering emissions and providing essential power for industrialization, healthcare facilities, homes, schools, and businesses.
GE has been collaborating with energy stakeholders to deploy innovative technologies tailored to respond to the needs in the region since the 1950s, with reliable baseload and flexible emergency power. In 2018, the company celebrated its 100th power plant in Sub-Saharan Africa; today, up to 17 GW of gas power generation on the grid runs on GE gas turbines.
Energy
Exxon Mobil to cut 14,000 jobs as pandemic hit oil demand, prices
Exxon Mobil announced it will slash its global workforce by 15% over the next two years, as it struggles to preserve dividends.
Exxon Mobil Corp on Thursday, October 30, 2020, announced that it will reduce its global workforce by 15% by the end of 2022 – an unprecedented culling by North America’s biggest oil explorer, as the coronavirus pandemic hits energy demand, prices, and struggles to preserve dividends.
The job cuts are expected to include 1,900 U.S. jobs – mostly in Houston, the headquarters for its US oil and gas businesses – as well as layoffs previously announced in Europe and Australia and reductions in the number of contractors, some of which have already taken place.
READ: Exxon Mobil, Chevron record their worst losses in history
READ: Presco Plc projects N24.53 billion turnover in Q4 2020
This was disclosed in a statement that was released by the energy giant on Thursday, October 30, 2020.
The staff reduction is part of the latest effort by the Chief Executive Officer, Darren Woods, to curtail spending and halt the worst string of quarterly losses since Exxon assumed its modern form with the 1999 takeover of Mobil Corp.
READ: Chevron considers divesting from Nigeria, to focus on U.S Shale Oil
What you should know
Exxon and other oil producers have been slashing costs due to a collapse in oil demand and prices, as well as ill-timed bets on new projects. The Big Oil rivals of Exxon are also cutting thousands of jobs in response to the pandemic-induced demand slump. BP Plc plans to slash 10,000 jobs, Royal Dutch Shell Plc will cut as many as 9,000 roles, and Chevron Corp. has announced around 6,000 reductions.
Norton said that Exxon’s workforce stood at about 88,000 people, including 75,000 in-house employees and about 13,000 contractors as of year-end 2019.
READ: Why the NNPC is being dragged to US courts by Exxon Mobil, Shell
Exxon’s job cut is a sign of its weakened financial position compared to its former status as the S&P 500 Index’s biggest company less than a decade ago, and a profit powerhouse used to ride out oil-price cycles.
This year’s downturn has been particularly damaging because it also affected refining, usually a cushion in times of low oil prices. Also, it came at a time when Exxon was already increasing borrowing to fund a large expansion program. The company was forced to retreat on these plans in April, reducing capital spending by $10 billion and delaying or scaling back most of the major projects.
READ: Exxon begins talks with domestic firms to divest businesses in Nigeria
The stock has plunged more than 50% this year. Its dividend yield is now more than 10%, indicating that investors are anticipating a cut. Exxon maintained the quarterly payout on Wednesday and is expected to post its third consecutive quarterly loss when it reports earnings tomorrow.
What they are saying
The Company in its statement said, “These actions will improve the company’s long-term cost competitiveness and ensure the company manages through the current unprecedented market conditions.’’
Exxon’s spokesman, Casey Norton, through an email said that the total reduction means the company will reduce its workforce by about 14,000 people, split between employees and contractors from year-end 2019 levels. The cuts will come through attrition, targeted redundancy programs in 2021, and scaled-back hiring in some countries.
READ: Google fired up, post strong advertising growth
What this means
Another set of job losses in the oil sector in Nigeria is looming. Nigeria is one of Exxon’s biggest operational bases in oil and gas exploration and production globally. Also, this is another setback after Shell announced 9,000 job cuts globally, which includes Nigeria, and the announcement by Chevron that it plans to reduce its staff strength in Nigeria by 25%.
Energy
FG to invest in the deployment of Mini-grid systems to power 5 million homes in 2021
The Minister said the government will invest in Mini-grid systems that will provide power for 5 million homes in 2021.
In a bid to provide remote communities with clean and affordable energy, the Minister of Power, Engineer Sale Mamman has disclosed that the Government is set to invest heavily in the deployment of Mini-grid systems that will provide power for 5 million homes in 2021.
This disclosure was made by Engr. Sale Mamman in a statement released into the mainstream media via his official Twitter handle.
READ: Electricity: Nigeria now has an installed generation capacity of 13,000MW – Minister of Power
It is virtually impossible to have the National grid covering every geographical point within Nigeria, that is why Government is investing heavily in the deployment of Mini-grid systems which can easily get to the most remote communities and provide clean, affordable energy.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
The Minister explained that it is virtually impossible for the National grid to cover every geographical point within Nigeria. He emphasized that this reality prompted the present administration to sort out alternatives, and as a result, the Government is set to invest heavily in the deployment of Mini-grid systems, which can easily get to the most remote communities and provide clean, and affordable energy in 2021.
READ: Nigeria to fix irregular power supply in 40 years- Senate
What they are saying
The Minister, in his statement, said, “It is virtually impossible to have the National grid covering every geographical point within Nigeria, that is why the Government is investing heavily in the deployment of Mini-grid systems, which can easily get to the most remote communities and provide clean, affordable energy.
“In 2021, part of our priorities at the Ministry and two of its implementing agencies will be on providing these Mini-grid systems for communities and stand-alone home solar systems. We have a target of 5 million homes. Clean, affordable, and accessible energy for all.”
(READ MORE:FG set to create at least 5 million jobs for youths in the power sector – Minister of Power)
What you should know
The Minister of Power, Engineer Sale Mamman, at the 2021 budget defense before the House of Representatives Committee on Power in Abuja, yesterday disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
READ: UPDATED: FG appoints Eweluka as NBET MD, as finance, power ministers wrestle
The Minister also pointed out that the distribution system had the capacity to evacuate 5,500MW of power, which is a significant improvement from 4,500MW in 2015.
Energy
Electricity: Nigeria now has an installed generation capacity of 13,000MW – Minister of Power
Engineer Sale Mamman has disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000mw to 13,000mw.
The Minister of Power, Engineer Sale Mamman, has disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000mw to 13,000mw under the leadership of President Muhammadu Buhari.
A statement was issued by the Office of the Minister of Power via its official Twitter handle.
READ: The number of idle power plants in Nigeria rises to 10
READ: Here is why Gencos may halt power sector investment plans
Nigeria now generates 13,000mw of power, says Minister.
The Minister of Power, @EngrSMamman has said that the Nigeria’s installed grid power generation capacity has grown from 8,000mw to 13,000mw under the leadership of President @MBuhari pic.twitter.com/4CJhyS6DXs
— Office of the Minister of Power (@PowerMinNigeria) October 29, 2020
Yesterday, during the 2021 budget defense before the House of Representatives Committee on Power in Abuja, Engr. Sale Mamman said that under the leadership of President Muhammadu Buhari, the capacity of the installed power generation grid has grown from 8,000mw to 13,000mw.
READ: Buhari to commission Lagos-Ibadan railway January 2021, starts operation November 2020
However, members of the committee raised concerns about the power supply to their various constituencies, urging the minister to ensure adequate supply. The Minister explained that the distribution system had the capacity to evacuate 5,500mw of power, which is a significant improvement from 4,500mw in 2015, and better performance should be expected in the near term.
READ: Buhari flags off $2.8 billion gas pipeline project, biggest in Nigeria’s history
Engr. Aliyu Magaji (APC-Jigawa), the Chairman of the Committee, asked the Minister to mete out stiffer sanctions to the distribution companies (DISCOs), to enable them to sit up and provide the desired services to the Nigerian people.
Magaji said that if the minister ensured the sanction of the DisCos, he would become the darling of lawmakers and the entire Nigerians.
READ: Buhari earmarks N420 billion for N-Power, GEEP and others under NSIP in 2021 budget
READ: GenCos want Discos’ job as it seeks to sell electricity directly to customers
What they are saying
Speaking on the performance of the Ministry since 2015, Engineer Sale Mamman said, “Under the able leadership of President Muhammadu Buhari, the country’s grid power capacity has increased significantly from the time this administration took over in 2015 to date.”
READ: FG set to create at least 5 million jobs for youths in the power sector – Minister of Power
He explained further that, “during the period between 2015 to date, the sector recorded successes and has faced challenges. In order to deliver this administration’s promise of providing stable and affordable power to Nigerians, a way forward was defined and supported by Mr. President’s political will.”
Portland Paints and Products Plc: Decrease in paint sales depletes revenues
#EndSARS: Police did not shoot protesters – IGP Adamu
Nigerian women need over 50% representation in government by 2023
LivingTrust Mortgage Bank posts N192 million in Q3 2020
How to prioritise your needs over wants
COVID-19 Update in Nigeria
Daily Parallel Market Exchange Rate – ₦460/$1
CBN discloses eligible businesses, those ineligible to apply for N75 billion Youth Investment Fund
Post-#EndSARS: A time of reckoning for the Insurance companies in Nigeria
6 Cryptos rich investors are buying
