May 17, 2020

Two Missing in Chevron Rig Fire off Nigeria's Coast

energy digital
Chevron
offshore rig fire
Nigeria
Admin
2 min
After a fire engulfed one of Chevron's offshore rigs off the coast of Nigeria, two persons remain missing
Two remain missing after one of Chevron's offshore rigs exploring oil and gas fields off the coast of Nigeria caught fire Monday. Thus far, 152 wo...

 

Two remain missing after one of Chevron's offshore rigs exploring oil and gas fields off the coast of Nigeria caught fire Monday. Thus far, 152 workers have been found and the company is still investigating the remaining persons and ultimate cause of the fire.

It's suspected that the fire was caused from a major build up of gas pressure from drilling, leading to a “gas kick.” Nnimmo Bassey, who runs an environmental watchdog group in the country, told the Guardian, “Workers were trying to contain the gas pressure and they didn't succeed.”

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Chevron spokesman Scott Walker said the company is "still investigating the incident and ... working to fully understand what happened." There was some "sheen around the well that is being investigated."

The fire is still blazing, but Chevron says there has been no oil spillage from the incident.

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Nigeria is Africa's largest oil producer and the fifth-largest crude oil exporter to the U.S. However, over 50 years of oil production in the region has caused some incredible environmental damage throughout the delta's creeks and offshore waters.

In December, news of a second oil spill in the last two months on behalf of Shell Petroleum has brought more attention to the foreign oil companies operating in Nigeria. The cumulation of these events should encourage the local government to increase monitoring of activities of oil companies in the region to prevent future incidences.

 

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Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

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The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

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As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

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