Forte Oil Pc, Nigeria’s leading petroleum products retailer has announced plans to inject about $90 million towards the upgrade of its 414 megawatts Geregu power plant.
The Group Chief Executive Officer, Mr. Akin Akinfemiwa, announced the investment plan in Lagos yesterday during the inauguration of 100 brand new trucks acquired by the company to boost operational efficiency.
Recall that Forte Oil Plc had on September 30, 2012 acquired the 414MW Geregu Power Plant under the government-led privatisation through its subsidiary, Amperion Power Distribution Company.
According to him, a contract for the plant’s major overhaul has been awarded to Siemens, adding that once this was carried out, power would contribute about 40 per cent to its bottom line because that is what the company is looking at to drive returns and shareholders’ value in the medium term. He explained that the company bought a new power plant, hence, the need to add lines of turbines would not be necessary, saying, it would rather consolidate on the existing turbines than invest on expansion.
The overhaul, according to him, is expected to last for 18 months, stressing that plans have been concluded to reduce that to 12 months.
Meanwhile, the company said it has acquired 100 brand new product delivery trucks in line with its strategy to sustain operational efficiency and attain exceptional product throughput. The Mercedes Benz trucks financed through equity and debt provided by Heritage Bank, are a significant addition to the over 1000 existing trucks its fleet operations as the company takes an audacious step toward an unrivalled market dominance in the Nigerian downstream sector.
Commenting on the acquisition of the trucks, Akinfemiwa said, “we are very confident that the acquisition of these 100 world-class product delivery trucks is a very strategic investment that will substantially increase our capacity to grow our revenue, profitability and ultimately maximise value for our shareholders as we move towards our mission of building a long-term successful company, boosting investor confidence by making Forte Oil Plc the investment of choice in Nigeria and globally, he said.
Source : SunOnline