Afam PDF

SHELL IN NIGERIA
THE AFAM VI POWER PLANT

& OKOLOMA FACILITY
APRIL 2011
The Afam VI Power Generating Plant and Okoloma

NAG Facility
In November 2005, The Shell Petroleum Development
Company of Nigeria Limited (SPDC) was awarded the
contract for the Afam VI power plant and the Okoloma gas
plant in Rivers State, in the Niger Delta. The project is
supporting economic growth and providing power for millions
of people in the Niger Delta and elsewhere in Nigeria.
The Afam integrated gas and power project took less than
three years to achieve first power in August 2008. The 650-
megawatt (MW) combined-cycle power plant is an advanced
design that requires only two-thirds of the gas needed by
many of Nigerias existing power plants to generate each unit
of electricity. Afam VIs three gas turbines were fully
commissioned in July 2009 and the steam turbine fully
commissioned in December 2010. In the combined cycle
commercial operation, they are generating 624MW net Work on the project began in 2005 and includes a new high
dependable capacity, some 14-24% of overall generation voltage switchyard, a gas receiving facility and six new gas
contribution to the national grid. Since initial commercial wells. The power plant is delivering electricity to the
operations in January 2009, Afam VI has cumulatively government-owned Power Holding Company of Nigeria
supplied over 5.5 million megawatt hours (MWhrs) of (PHCN), which operates the other Afam power plants I-V.
electricity to the national grid.
The Okoloma gas plant
In the combined cycle operating mode, waste heat from the The Okoloma plant provides the gas for Afam VI power plant
gas turbines is used to generate an additional 200MW of and equally support domestic gas supply network. It combines
very low emission electricity by steam turbine. SPDC started both the conventional and advanced Twister technology, the
commissioning the steam turbines in April 2010 and achieved first of its kind in Africa for gas processing.
combined cycle operations in December 2010 amidst
challenges from the Nigerian grid system. Okoloma can process 240 million cubic feet of gas each day
and is being supplied from six gas wells drilled for the project.
This is an extremely important project for Nigeria, said From here, the plant supplies gas both to the Afam VI power
Mr. Mutiu Sunmonu, Country Chair, Shell Companies in plant and the Nigerian Gas Company, which manages the
Nigeria and SPDC Managing Director. As a Nigerian, domestic gas network and supplies industrial users around the
I know that more power will raise the standard of living for country.
millions of my countrymen. When theres power, students
can study at night for a brighter future. The Afam VI Power Plant & Okoloma Facility
At its peak, the project employed approximately 4,000 local
The integrated gas and power project is the largest of its kind construction workers. Nigerians made up approximately 95%
in the country, where many lack access to reliable power of the labour force. All the unskilled workers and 60% of the
and electricity shortages are common. The plant will offer skilled workers came from local communities and the project
consumers more reliable electricity supplies and a cleaner offered them opportunities to learn new skills. For example,
low-emission alternative to diesel and petrol generators that some received training in scaffolding to international
are widely used when blackouts occur. standards and have since found work outside their
THE AFAM VI POWER PLANT & OKOLOMA FACILITY

Aerial view of Afam integrated gas and power plant
communities. Nigerian companies supplied over 90% of the (over $850,000) was signed in August 2010, covering 22
building materials. The Afam project hosted a number of communities in the area. A major objective of this GMoU
events for employees and members of the community. These is to empower the Oyigbo Cluster to take ownership of its
include a voluntary HIV testing programme and counseling for development.
workers.
As part of SPDCs community development efforts, the project

supplied and installed equipment to connect 16 local
communities impacted by the project to the electricity grid for
the first time. All the communities have now been connected,
but work is ongoing on upgrading infrastructure to
accommodate increased energy requirements for the
communities and complete installation for others yet to be
connected.
In 2006, SPDC signed agreements -- Global Memoranda of

Understanding (GMoU) -- with 16 local communities impacted
by the project. These agreements are renewed annually.
GMOUs give responsibility to communities for their own
development. (For more on what these agreements are and
how they are implemented, see separate briefing note on
GMoUs). Under the GMoU, over 90 projects were funded at a
cost of $20 million, including the construction of roads, health Switchyard Afam Power Plant
centres, schools, town halls, markets, water schemes, youth
enterprise training and the introduction of micro-credit schemes
for small businesses.
Furthermore, the Oyigbo Cluster GMoU with a five-year tenure More information on the operations of Shell companies in
and with an annual value of more than 130 million Naira Nigeria can be found at www.shellnigeria.com
Published by Shell Companies in Nigeria: Shell Petroleum Development Company of Nigeria Limited, Shell Nigeria Exploration and Production Company Limited and
Shell Nigeria Gas Limited.
Royal Dutch Shell plc. and the companies in which it directly or indirectly owns investments are separate and distinct entities. But in this publication,
the collective expression Shell may be used for convenience where reference is made in general to these companies.

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SHELL IN NIGERIA

THE AFAM VI POWER PLANT

The Afam VI Power Generating Plant and Okoloma

THE AFAM VI POWER PLANT & OKOLOMA FACILITY

As part of SPDCs community development efforts, the project

In 2006, SPDC signed agreements -- Global Memoranda of

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