Oando-NNPC Joint Venture Fuels 60MW Electricity Plant in Bayelsa

Oando PLC has disclosed that its upstream Joint Venture (JV) with NNPC E&P Limited (NEPL), the NEPL/Oando JV, has supported the actualisation of a 60-megawatt Independent Power Plant (IPP) in Yenagoa, Bayelsa State.

The company said that the project, inaugurated by President Bola Ahmed Tinubu, is one of four infrastructure initiatives encompassing major developments such as the New Yenagoa City Road 1, the Sagbama–Ekeremor Road, and the 630-meter Angiama–Oporoma Bridge.

Together, these projects reflect the coordinated effort of Bayelsa State Governor, Sen. Douye Diri, to unlock regional productivity across the state.

According to the company, the NEPL/Oando JV is the sole supplier of gas to the plant. Specifically, the JV will supply 11.2 million standard cubic feet per day (MMSCFD) of gas to the plant, providing a steady fuel source for electricity generation.

The gas is delivered through the JV’s Elebele Valve Station, which is connected to a major trunkline to ensure a continuous supply.

In his address, Tinubu described the power plant as a critical enabler of development. “I have commissioned several transformative projects, and the Bayelsa Independent Power Plant stands out as a true blessing and a product of visionary thinking. Thank you for embarking on it. There can be no industrialisation and development, skill development, and empowerment without power.”

Bayelsa State governor, Sen. Douye Diri, said the project was made possible by supportive federal policies and reforms in the power sector, “The Administration’s desire and decisive policy intervention have paved the way for meaningful reforms in various sectors, including the power sector, enabling us to deliver on our pledge of reliable, independent energy through the construction of 60 MW gas-fired turbines. This project will act as a catalyst for local development, stimulating economic activity and strengthening the socio-economic fabrics of the zones.”

Group Chief Executive of Oando PLC, Wale Tinubu, speaking on NEPL/Oando JV’s integral role in the actualisation of the IPP, stated, “This project reflects our long-standing commitment to Bayelsa State and its people. By enhancing power reliability, we are helping to unlock new opportunities for businesses, improve living standards, and stimulate broader economic growth across the State. Our integrated approach, connecting gas to demand and delivering stable energy where it is needed most, ensures that development is both sustainable and inclusive. As one of the largest employers in Bayelsa, we are proud to deepen our contribution to the State’s progress.”

The Bayelsa State IPP is expected to deliver stable electricity to tens of thousands of homes and businesses in Yenagoa and its environs, significantly reducing reliance on self-generation and lowering end-user power costs.

The 60MW plant is designed as an integrated system combining gas supply, embedded generation, and a dedicated distribution network. By locating generation close to demand centres, the project is expected to reduce transmission losses and improve voltage stability.

The company reported that the JV was responsible for the Front-End Engineering Design (FEED) and Detailed Engineering Design (DED) for the tie-in connection infrastructure linking the IPP to the JV’s existing gas network, a system that incorporates advanced safety mechanisms designed to safeguard all connected assets.

The JV also provided a comprehensive engineering dossier to support project execution. The JV certified that the completed tie-in spur was subsequently safe and fully operable and also provided technical support during the commissioning and gas introduction phases.

The Bayelsa IPP responds to structural vulnerabilities in Nigeria’s centralised grid, including recent prolonged outages caused by transmission disruptions along the Owerri–Ahoada–Yenagoa corridor due to vandalism. The project introduces a more resilient, localised power model designed to ensure continuity of supply in high-demand urban clusters.

The supply of gas to Bayelsa’s IPP expands Oando’s footprint in Nigeria’s power sector, building on its track record in developing and operating key energy infrastructure. This includes the country’s first combined-cycle power plant, the flagship Okpai Independent Power Plant, as well as the Akute Independent Power Project in Ogun State and the Alausa Independent Power Project in Ikeja, Lagos, one of the earliest embedded generation projects in Nigeria.

These projects have contributed to improved power supply both to the national grid and within their host communities, with the Akute and Alausa IPPs serving as early examples of decentralised energy delivery in the country.