Transcorp to revive idle gas fields in Niger Delta

Tony Elumelu, chairman, Transnational Corporation of Nigeria (Transcorp), says the company is ready to take over and revive some moribund gas fields in the Niger Delta region.

Elumelu made this known in an interview with NAN on the sideline of Transcorp’s 10th annual general meeting in Calabar, Cross River state.

He said the company had started discussing with NNPC in this regard, saying the project aims to realise the company’s objective of improving the country’s economy while also making profit.

“We are not relenting. We are in discussion with NNPC to see whether we can take over and run the idle gas plants. We have the capacity to do this,” he said.

“Our thinking is that instead of having these moribund gas fields in the Niger Delta lie idle, let some power generating companies that have the resources such as Transcorp Power, take them over.

“We can revamp them, produce gas and use it to improve our power generation and get the country realise its present target of 10,000 megawatts of electricity.”

Elumelu said Transcorp Power was poised to improve access to electricity in the country and ensure that small and medium scale industries had the capacity to produce more and boost the economy.

“Power generation and consumption is a problem in Nigeria today and if we can improve electricity generation, that will help to check the shortfall and boost the economy,” he said.

The chairman noted that the poor performance in the power sector had affected Transcorp’s operations.

According to him, the company needs at least 300 megawatts of electricity daily.

On the company’s performance in 2015, Elumelu said while Transcorp’s earnings declined marginally, it recorded growth in profit and maintained a strong asset base.

“Our total asset is growing at 19 per cent. It grew from N170.8 billion to N202. 9 billion,” he said.

“Gross earnings declined marginally by one per cent to N40.8 billion as against N41.3 billion in 2014.

“But the group’s operating profit grew from N13.6 billion in 2014 to N15.03 billion in 2015, a 10 per cent growth.”