Forte Oil pays $33m for Geregu power plant

02 March 2013, Sweetcrude, Lagos – Forte Oil, an indigenous Nigerian company, has paid $33 million for acquiring 51 per cent of the Geregu power plant.

The money was paid into the account of the National Council on Privatisation, NCP, and represents the local component of N519.12 million, being 25 per cent down payment for the plant.

Chairman of the Technical Committee of NCP, Mr. Atedo Peterside, confirmed receipt of the amount to State House correspondents in Abuja after a meeting of the council chaired by Vice President Namadi Sambo.

According to Peterside, the Geregu plant is now valued at over $600 million, above the $549 million it was valued at in 2007 when the Federal Government began negotiations to sell 51 per cent of the plant.

Forte Oil is partner to Amperium Consortium in the deal. Peterside also disclosed that NCP has approved the sale of Omotosho and Olorunsogo power plants to the Chinese firm that was building them.

He said in the process of approving the sale of the plant to the Chinese firm, it offered the right of first refusal for the plants worth $166 million. The company would be acquiring 51 per cent stake of the plant on completion.

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