The company, in a statement signed on Wednesday by the Head, Brand and Corporate Communications, Mr. Odion Aleobua, confirmed that it had taken full operational control of the power plant since it was handed over to it by the Federal Government on Friday, November 1, 2013.
Forte Oil Plc said it acquired Geregu Power as part of its diversification from primary business of petroleum products marketing.
It said it planned to carve a niche for itself in power generation by increasing the current capacity of the plant to over 600MW in the short to medium term.
The optimisation, according to Forte Oil, will be a demonstration of the company’s commitment to bridge the current power deficit in Nigeria and help to actualise Nigerians’ expectations from the power sector.
Ahead of the operation of the plant, Forte Oil said it had to build a partnership with competent entities in the global power sector, adding that it had entered a technical partnership arrangement with the Shanghai Municipal Electric Power Company, the world’s largest power company.
Located in Kogi State, the Geregu Power Plant is backed by business mogul, Femi Otedola.
Forte Oil, through its subsidiary Amperion Power, completed the acquisition of the power plant ahead of the August 21, 2013 deadline with the payment of $99m to the Bureau of Public Enterprises representing 75 per cent balance for the power generation asset.
This was in addition to the $33m mandatory down payment made on February 21, 2013 to the BPE by the group to complete the required bid sum of $132m.
The Geregu Power Plant was inaugurated in 2007 with three Siemens’ open cycle gas turbine power generation units totalling 414MW of installed capacity.
The three operational units have a rated capacity of 138MW each, and are fuelled with gas from two pipelines from a Natural Gas Treatment Plant. These are able to satisfy the fuel requirements of three units running on a full load of 414MW.
Information from Punch was used in this report.