Forte Oil'S Amperion Power completed the acquisition of Geregu Power plant

Forte Oil'S Amperion Power completed the acquisition of Geregu Power plant

PLANS PLANT EXPANSION BY 50%
Forte Oil PLC, Nigeria’s major marketer of petroleum products is proud to announce 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-led privatization programme in the power sector.
Amperion Power completed the acquisition of the power plant ahead of the Wednesday, August 21, 2013 deadline with the payment of US$99m to the Bureau of Public Enterprises (BPE) representing 75% balance for the power generation asset. This is in addition to the US$33m mandatory down payment made on February 21, 2013 to the BPE by the group to complete the required bid sum of US$132m.
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 Plc 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); the world’s largest power company, has a 5% stake.
Commenting on the acquisition, the Group Chief Executive Officer, Forte Oil PLC, 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”
This investment serves to optimize 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.
Source: forteoilplc.com
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