Vice President Mohammed Namadi Sambo has made it clear that all decisions and project implementations in both the Niger Delta Power Holding Company (NDPHC) and the National Council on Privitatization (NCP) were taken on the basis of sound professional advice and to ensure that it succeeded in providing power for the benefits of Nigerians and the economic development of the country.

Vice President Namadi Sambo said today at the commissioning of the Gwagwalada 330/132/33kva transmission substation build under the National Integrated Power Projects, commended the Ministry Of Power, the Niger Delta Power Holding and the Contractors handling the project for the successful and timely completion of the project.

According to Namadi Sambo who represented President Goodluck Jonathan at the event, the Federal Capital Territory (FCT) as well as the National Grid had experienced remarkable system stability, especially during disturbances that had in the past resulted in total system collapses.

“This new level of system stability has been directly attributed to the installation of these extensive transmission works implemented by the National Integrated Power Projects (NIPP)” He added

He called on Nigerians to solidify the current administration’s great achievements by being patriotic, adding: “by protecting these public assets entrusted in your care as part of your civic responsibility, you are guarding them against misuse and vandalization so that generation yet unborn will not only benefit from these projects, but shall build on the legacies we have bequeathed unto them.  It is only when these assets are preserved that our great efforts will be consolidated.”

While reiterating his firm belief and respect for Democracy and its norms and values, the Vice President reaffirmed their administration’s commitment to the progress and prosperity of Nigeria, saying: “we shall continue to make our contributions to the development of our dear country as patriotic citizens. We are confident that posterity shall place us on the right side of history.”

Earlier in his address, the Minister of Power, Professor Chinedu Nebo said that the completion of the Gwagwalada sub-station and other power projects across the country is part of the great achievement of the Jonathan administration and represent the dividend of the Transformation Agenda in the Power Sector.

The minister reminded Nigerians that the Niger-Delta Power Holding Company belonged to them all as it is owned by all the three tiers of government, adding that it is as result of that most of the projects being commissioned were not cited in the Niger-Delta.

He pleaded with those vandalizing the gas-to-power infrastructure in the country to give Nigeria a chance to celebrate the achievements of the current administration.

“Today we did not only have the capacity to generate 6,000 megawatts of power if we have the Gas but also to wheel out, through transmission, about 5,500 megawatts.” He added

The Managing Director of the Niger-Delta Power Holding Company, James Olotu said that the Gwagwalada   330/132/33kv Transmission substation runs from Ajaokuta substations, stopping at Apo and Katampe and Shiroro lines with a distance of about 450km of lines.

“The whole essence of this infrastructure is to ensure and assure efficient and effective power delivery on durable power plants into this location radiating the power in Lokoja, Gwagalada, Abuja main and all the way to Apo and Katampe thereby assuring quality supply of power when on this grid into these communities and enhancing the quality of life of the Nigerian citizenry.” [myad]

Lekoil Limited has announced a loss of $11.9 million, about N2.38 billion for its 2014 financial year. With this performance, Lekoil, an oil and gas exploration and development company with a focus on Nigeria and West Africa, has posted a total loss of $30 million (N6.01 billion) for two consecutive years, 2013 and 2014. In its 2013 financial year, the company posted a loss of $18.1 million, an equivalent of N3.62 billion.

The company, in a statement announcing its audited result for the year ended, December 31, 2014, however, failed to state the reasons for the loss. Directors of the company on the other hand, stated that the ability of Lekoil to continue to operate as a going concern is dependent on the continuing of exploration and evaluation activities on Oil Producing License, OPL 310. The directors also added that it is important that ongoing development activities on Otakikpo continued as planned and the availability of sufficient cash resources to fund ongoing operations.

In this regard, the company said, “Having evaluated these factors, the Directors believe the use of the going concern assumption to be the appropriate basis for the preparation of the 2014 financial statements, for the following reasons: “The Company and its partner on Otakikpo are working on an agreed plan to achieve first oil by mid-2015. On OPL 310 the parties are working on a 2015 provisional plan, which includes completion of interpretation of 3D seismic data and drilling of an appraisal well.

“The Directors are of the view that the current cash balance, together with the cash inflow from Otakikpo production, will be sufficient to fund the development and production activities on Otakikpo and the completion of the interpretation of the 3D seismic data on OPL 310.”

It further stated that economic evaluations, in respect of the Otakikpo estimated net 2P reserves and 2C contingent resources under the Phase I and II development of Otakikpo is a robust project with a NPV (10 per cent) of $77.2 million net to Lekoil. At a $40 oil price scenario on marginal field terms the NPV could rise to $85.2 million if provisional pioneer status is obtained.

Commenting on the company’s performance, Chairman, Lekoil, Mr. Samuel Adegboyega, said: “We are sincerely grateful for the support shown by our investors, the Nigerian government, the local communities we operate in, and our entire workforce who are allowing us to turn our vision into a reality.” He stated that the company’s immediate priority, going forward, is to re-enter the Otakikpo 2 well to start followed by Otakikpo 3 well, and then grow initial production in order to generate the cash required to part fund the further development of the field and to fund ongoing activities on our portfolio.

“Given that Lekoil’s Nigerian subsidiaries are classed as indigenous companies in Nigeria, another of our shorter term objectives is to look to secure Ministerial Consent to the farm-ins, and pioneer tax status which, if granted, will have significant fiscal benefits for the Company as we grow production. “Longer term, we plan to acquire onshore 3D seismic over Otakikpo. We also plan to appraise the shallow water opportunities in the offshore part of field which is already covered by 3D seismic.

“The fall in oil prices from mid-2014 has resulted in us lowering our short to mid-term oil price assumptions in our development plans to levels at or below those prevailing today. For Otakikpo, our analysis reveals that the breakeven price for the project is below $30 per barrel in our base case. This breakeven number can be lowered further if we are successful in our application for Pioneer Tax Status for Otakikpo.”

Also commenting, the Chief Executive Officer, CEO, Mr. Lekan Akinyanmi, said, “Given the current low oil price environment and capital constraints for many smaller Exploration & Production companies, we expect to see many more opportunities over the course of the next 12 months. “However, our main focus during 2015 will be on enhancing shareholder value through the development and monetisation of Otakikpo together with the continued appraisal work to further de-risk the Ogo discovery. [myad]