Wednesday 17 July 2013

Shell Shuts-down Afam VI Power Plant And Gas Plant.

THE nation’s power output has dropped by another 105 megawatts due to eventual shutdown of Afam VI Independent Power Plant operated by Shell Petroleum Development Company (SPDC) Joint Venture.

Shell Corporate Media Relations Manager, Tony Okonedo, who confirmed the shutdown in a statement Tuesday, said Afam VI power plant was shut due to shortage of gas supply.

“The Shell Petroleum Development Company Joint Venture today (July 16) shut down Afam VI Power Plant due to shortage of gas arising from the closure of the Trans Niger Pipeline (TNP) as a result of crude oil theft related leaks.

“The shutdown of the TNP system, comprising the 28inch and 24inch streams, resulted in the deferment of 150,000 barrels of oil per day, and also led to tank tops and non-evacuation of condensate from Okoloma Gas Plant which supplies Afam VI Power Plant with feed gas,” the statement revealed.

Shell has been battling with frequent attacks on the pipeline for some weeks now, as it had previously been targeted by crude oil thieves and shut down several times.

The multinational oil firm said the company has continued to lose about $15 million (N2.4 billion) to the shutdown on daily basis.

As the situation persists, Shell said it had to shut down Okoloma Gas Plant yesterday, as it could not continue to produce gas without the evacuation of condensate.

According to Okonedo, Afam VI power plant was available at 624MW capacity, but supplying only 105MW to the national grid due to reduced gas volume at the time of shutdown.

He said the latest leak on the TNP occurred on the 24inch stream at Owokiri on July 11, while a joint investigation team, comprising government agencies, community and civil society representatives and SPDC personnel, found that unknown persons had installed a 6inch crude theft valve on the facility.

SPDC, according to him, has repaired that leak, and was working to remove other crude theft points that were discovered in the process.

“The 28inch TNP had earlier been shut in for removal of similar oil theft connections. The company is striving to repair the TNP as quickly as possible, and restore operations that will enable power generation to resume at Afam VI.

“SPDC is deeply concerned about the negative impact of incessant crude theft activities on lives and environment in the Niger Delta, and also the loss of electricity to businesses and households across the country. The total daily loss from the TNP shutdown alone comes to about $15 million (N2.4 billion),” he added.

The Managing Director of SPDC, Mutiu Sunmonu, had earlier lamented the persistent attacks on the pipeline, describing it as a major setback for the company and the nation as a whole.


http://www.ngrguardiannews.com/index.php/national-news/127300-power-generation-drops-as-shell-shuts-afam-plant

Here is what gets me, the IOC's are divesting their operator ship and equity in these field (i suspect due to crude theft among other reason) and NNPC is now operating them.

I begin to wonder how NNPC (which is government owned) can stem this wave of crude theft were these private IOC's , that are aggressively into profit making,could not do so. The funny thing is that they know who the oil thieves are yet noting can be done to stop them. I believe the reason why they cannot be touched is because the government are doing the stealing through their private companies.

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