NCP Okays OENPL’s Take over of Coal Mines for Power Generation

Ndubuisi Francis

The National Council on Privatisation (NCP) has granted approval to Orbit Exploration and Natural Products Limited (OENPL) to take over the mineral titles of Ogboyega North and South Coal Blocks, 769 and 772 ML from Western Metal Products Company (WEMPCO).

By this approval, OENPL has indicated readiness to generate electricity with coal from the mines.
NCP’s approval was conveyed at its meeting in Abuja, which was presided over by the Chairman and Vice President, Prof. Yemi Osinbajo

In granting the approval, the NCP noted that that due diligence by the Bureau of Public Enterprises (BPE) on OENPL indicated that it is capable of providing the financing and technical expertise required to successfully operate the coal mines.

The BPE said in a statement issued by its Head, Public Communications, Ibeh Uzoma Chidi that the NCP observed that WEMPCO had requested for privatisation agency’s approval to transfer the mineral titles of the two coal blocks to OENPL in line with the provisions of the Asset Share Purchase Agreement (ASPA).

On it’s part, OENPL had proposed to spend N112 billion to procure equipment for operationalising the two coal blocks and go into power generation.

Ogboyega North and South Coal Blocks were sold to WEMPCO in 2007 at a fee of $7.378 million and $7.678,250 million, respectively.

However, 15 years after the transaction, the two coal blocks have not been fully operationalised.

Consequently, WEMPCO requested BPE’s approval to transfer the mineral title to OENPL.

This necessitated the Bureau to review the provisions of the Assets Sale Purchase Agreement (ASPA) executed with WEMPCO which confirmed that the request conforms with the provisions therein, particularly Article 18.6 which allows such transfer of shares, subject to the consent of NCP/BPE.

Having studied the business plan and financial position of OENPL, the BPE recommended to the NCP that it was capable to operate the mines.