Power- FG and GE Sign $350 Million Funding Contract

Federal Government signed a $350 million contract with General Electric (GE) to maintain the building of small-scale power projects across Nigeria

Speaking at the ceremony in Abuja, The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said the contract would expedite the federal government’s ongoing efforts towards providing satisfactory power supply to industrial zones, as well as Small and Medium Enterprises (SMEs) across the country, in line with the Nigerian Industrial Revolution Plan.

FG Proceed to Rejuvenate Iron, Steel Sub-Sector

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said Federal Government has completed plans to develop and implement an all-inclusive Backward Integration Policy (BIP) for the iron and steel sun-sector of the Nigeria economy. He said this at a one-day stakeholders’ forum themed: ‘Transformation of minerals, iron and steel sub-sector for industrial revolution in Nigeria’ in Lagos, noted the move was in line with the Nigeria Industrial Revolution Plan.

Oil Profits Slump as Drilling Costs Rise

 In a time when companies like Oando are seeking to raise an additional 2.5bn in share capital, Investors are shunning the world’s biggest oil companies as drilling costs surge, major projects are delayed and energy prices stagnate. “Investors have lost interest in the big energy companies,” said Fadel Gheit, an analyst with Oppenheimer & Co. in New York. “They offer little or no growth.”

Oando Bids to Increase Share Capital by 2.5 Billion

In an effort to reduce its dependence on debt and loans, Oando Plc is to increase its authorised share capital from N5 billion to N7.5 billion so as to make room for potential capital raising opportunities. The company wants to rely more on equity financing, hence the bid to increase its share capital to N7.5 billion.

The Board, who want to rely more on equity financing, will be seeking the approval of other  shareholders for the capital increase at an Extra-Ordinary General Meeting scheduled to hold in February 18, 2014.

Ecobank Capital, Orion Oil sign $500m deal

Ecobank Capital, the investment banking arm of Ecobank Group, leading pan-African bank, says it has successfully raised, on behalf of Orion Oil Limited, the sum of $500m to be utilised for the prepayment of crude oil cargos to be supplied by Société Nationale des Pétroles du Congo (The National Oil Company of the Republic of Congo).

According to a statement by the bank, the facility comprises a United States dollar-denominated $342m tranche and a XAF-denominated $158m tranche.

Vandalism: Power Generation Drops by 450MW

The Transmission Company of Nigeria has said that electricity generation in the country has dropped by 450 megawatts.

The firm said the drop on Saturday was due to vandalism of pipelines supplying gas to the Okpai Power Plant in Delta State.

The plant, it said, was shut down as a result of the reported vandalism, adding that the development would warrant power rationing across the country for four days.

Formalising Illegal Refineries

Illegal oil bunkering is not new in the Niger Delta. It is institutionalised. It is not a theft by a bunch of idle and hungry youths.  Rather, it is ‘an industry’ with syndicates that handle various aspects of the illegal oil bunkering business. Many of these syndicates lay claim to having top government officials as partners and initiators. Others claim they have top officials in the forces (police, army, navy, air force) as well.

It is an industry that has birthed a few other atrocious industries, such as:

GE, XD to Boost Africa’s Power Supply

In order to meet the growing demand for electricity in Africa, General Electric (GE) and XD Electric Group have joined hands together to offer transmission and distribution solutions to generate electricity.

According to a statement from GE, on Thursday, the arrangement would involve the combination of GE’s grid automation capabilities with XD Electric’s comprehensive portfolio of primary high-voltage equipment.

Dangote Signs $3.3b Refinery Deal

The Dangote Group on Wednesday signed a $3.3 billion loan agreement with a consortium of both international and local banks to establish the biggest petroleum oil refinery and petrochemical/fertilizer plants in Nigeria.

The projects, which will gulp $9 billion, will start with a $3.3 billion medium term deal involving local and foreign banks as financiers. The investment initiative is in form of a loan agreement for the construction of a petrochemical plant to be located at the Olokola Free Trade Zone in Ondo and Ogun states.