Sahara Group berths in power sector
Sahara Group – an African oil and gas, energy and infrastructure conglomerate – is making inroads in the power sector across the African continent.
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The group made an audacious entry into the power sector through the acquisition of strategic power assets. The acquisition was realised under the privatisation programme of the Federal Government of Nigeria which recently led to the transfer of the assets of former Power Holding Company of Nigeria (PHCN) to private investors.
A release issued in Accra said, “Working through a number of Special Purpose Vehicles (SPV), it successfully acquired majority shareholding stakes in two assets of the PHCN in the privatisation exercise by the Nigerian government, namely Egbin Power Plc, the largest power generation plant in Nigeria - and Ikeja Electricity Distribution Company (IKEDC), which is the largest power distribution network in Nigeria.”
“In addition, Sahara also acquired 70 per cent of First Independent Power Company Limited (FIPL), while the Rivers State Government retains a 30 per cent stake in the entity,” the statement added.
The acquisition, it said, reinforced Sahara Power’s quest to enhance its competitive advantage and footprints in the sector, while looking to deliver world-class power solutions in Nigeria and, ultimately, offshore.
The release said the group had subsequently taken its vision of "being the provider of choice wherever energy is consumed" to other continents, extending its trademark operational and service excellence that has become its competitive edge in the jurisdictions where the group operates.
It said: “With over 17 years experience in the sector, Sahara is an example of continuous development of an organisation with a mission to leave a legacy for all generations.”
Expansion projects
In 2004, the release noted, the company expanded its storage operations into Ghana, becoming the first petroleum marketer to build and operate tankage in the country. Its present 45,000 tonnes facility revolutionised the Ghanaian market and opened up the industry for independent marketers to build and operate storage there.
“In 2006 the company participated in the bid round for the privatisation of the LPG terminal in Nigeria and was selected as the preferred bidder,” it said, adding, “In 2012, the storage business expanded into Cote d’Ivoire and will continue to grow with total capacity of over 200,000 tonnes by the middle of the decade.”
In line with the need to diversify its interests, the release said, the company also took advantage of the indigenisation programme of the upstream sector by participating in the marginal field bid rounds in 2000.
“The group participated actively in the bid and was awarded the Tsekelewu Field as operator in partnership with AOG. The success in winning the marginal field became the platform to develop upstream competence to seek and acquire additional assets to build a robust portfolio,” it added.
Way forward
It said working with the Korean Electric Power Corporation (KEPCO) as technical partners, the group was committed to delivering efficient, affordable and sustainable power supply in the nearest future through investments in new technology, infrastructure upgrade and human capital development.
“Already, Egbin and IKEDC are currently undergoing transformative initiatives that would change the face of power generation and distribution in Nigeria and subsequently, the entire African continent,” it said.
