Yemie Adeoye 26 August 2013, Lagos – Forte Oil Plc, a major petroleum products marketer, has announced that its subsidiary, Amperion Power Distribution Company Limited (Amperion Power), has completed the acquisition of a majority stake in the 414MW Geregu Power plant located in Kogi State of Nigeria, under the government’s power sector privatisation programme.
In a statement made available to SweetcrudeReports in Lagos and signed by the company’s spokesman, Odion Aleobua, Amperion Power completed the acquisition ahead of the Wednesday, August 21, 2013 deadline with the payment of US$99 million to the Bureau of Public Enterprises, BPE, representing 75% balance for the power generation asset. This is in addition to the US$33 million mandatory down payment it made on February 21, 2013 to the BPE, which adds up to the total bid sum of US$132 million.
In achieving this feat, Forte Oil Plc had to build a partnership with seasoned and competent entities in the global power sector. Under the partnership arrangement, Forte Oil currently owns 57% of Amperion’s equity while its technical partners; BSG Resources Limited – a global diversified energy group – owns 38% while the Shanghai Municipal Electric Power Company, SMEPC, one of the world’s largest power company, has a 5% stake.
Commenting on the acquisition, Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa, said: “We are very pleased to have achieved this milestone at this crucial stage of our transformation programme, which include diversification of our downstream petroleum business into high margin energy sectors such as power generation and upstream exploration and production”
He added: “This investment serves to optimise our revenue drive through multiple income streams which underpins our resolve for superior value creation for our investors and shareholders. We are not only poised to establish ourselves in power generation sector but to also carve a niche by increasing the capacity of the plant by about 50% to over 600MW in the short to medium term, in demonstration of our commitment to help bridge the current power deficit in Nigeria.
“Our overall objective is to build Nigeria’s leading Energy Solutions Provider on the pillars of solid corporate governance, sound business ethics and compliance, enhanced Safety, Health and Environment Practices, Technology-Driven World Class Business process and a highly skilled and motivated workforce.”
Geregu Power Plant was commissioned in 2007 with three Siemens V94.2 open cycle gas turbine power generation units totaling 414MW of installed capacity. The three operational units namely GT11, GT12, and GT13 have a rated capacity of 138MW each. The station is supplied gas from two pipelines, a 24-inch wide old pipeline and 36-inch wide 136 KM long new pipeline from the Natural Gas Treatment Plant. These are able to satisfy the fuel requirements of 3 units running on a full load of 414MW.
