Ghana: Labour Unions Suspend Feb 13 Protest Against Imposition Of VAT On Electricity
Labour unions under the umbrella of the Trades Union Congress (TUC) in Ghana have suspended their planned nationwide protest over the imposition of Value Added Tax (VAT) on electricity consumption which was scheduled for February 13, 2024.
The partial suspension of the policy by the government has informed the decision by the labour unions to suspend the protest.
Speaking to journalists at a press briefing on Friday (9 February), the General Secretary of the Industrial and Commercial Workers Union (ICU-Ghana), Morgan Ayawine, said, “The message we are sending out to our members is that it is a victory.
It is a victory not only for our members but also for Ghanaians.
“We want to believe that it is a suspension in perpetuity.
So, our members should not feel that we have been defeated.”
“It is not a defeat and we have also told our members and organised labour will be on red alert, so if the government thinks that it can play a smart one on us, we are still there and alive; we can bounce back.
“The fact that we have not taken a position not to discuss or engage the government on the [15%] VAT on electricity means that it is gone,” he added.
Source:https://energynewsafrica.com
Nigeria: NERC Sanctions Eleven Discos For Failing To Comply With Regulatory Rules
The Nigerian Electricity Regulatory Commission (NERC) has sanctioned eleven electricity distribution companies due to their non-compliance with capping of estimated bills for unmetered customers.
The NERC revealed this in a press statement on Thursday, February 8, 2024, which also reaffirmed its commitment to regulatory compliance and consumer protection within the Nigerian Electricity Supply Industry (NESI).
“The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder,” NERC said.
It revealed that a review of the Electricity Distribution Companies (“DisCos”) billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.
In response to this and in a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), has issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014).
NERC stated that this stipulates the following: Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
“Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31% March 2024,” NERC added.
“Regulatory Sanctions: The Commission shall deduct a sum of $10,505,286,072 from the annual allowed revenues of the eleven (11) DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission.”
Source:https://energynewsafrica.com
Ghana: NLC Writes To TOR MD Over Interdiction Of Two Union Executives
The National Labour Commission, the agency responsible for resolving disputes between workers and employers in the Republic of Ghana, has written to the Acting Managing Director of TOR Daniel Osei Appiah to respond to complaints received from the national executives of the General Transport Petroleum and Chemical Workers’ Union over the interdiction of their two executives.
In a letter signed by Dr Bernice A.Welbeck, the Executive Secretary of NLC, said, “The Commission writes to forward a copy of the letter to you and request your response to the complaint by the Union before the close of work on February 13, 2024.
“Treat as urgent given the Union’s decision to begin picketing on 13th February 2024,” a portion of the letter said.
It would be recalled that the Board of Directors of the Tema Oil Refinery (TOR) interdicted Serwah Duncan-Williams and David Koomson who are executives of GTPCWU at the refinery at their 261st sitting on December 13, 2023.
The two executives were issued query letters for allegedly speaking to the media about the Tema Oil Refinery and Torentco Asset Management Limited partnership deal.
The Board accused the executives of disclosing the company’s information to persons not authorised to receive it, in breach of Article 43(4) (vii) of the Collective Bargaining Agreement (CBA) between TOR and GTPCWU of GTUC dated 13th February 2018.
“Your breach of the non-disclosure agreement sighted on April 2023, in which you undertook not to disclose the details of the draft TOR/Torentco Lease and O&M agreements. Giving details of TOR’s draft lease agreement with Tema Energy Processing Limited (TEPL) to the press and print media.
“Using without lawful authority any property or facility provided by the Company for some purpose (media hosting) not connected with the Employee’s official duties, in breach of Article 43 (4)(ii) of the CBA between TOR and GTPCWU of GTUC dated 13th February 2018.”
The company, therefore, invoked Article 43 Section 11 of the Collective Agreement to interdict the two executives.
Reacting to the decision by the Board, the National leadership of GTPCWU rejected the claims by the Board, stating that the press conference was rather organised by the National leadership and not the two executives.
The leadership of GTPCWU accused the management of failing to go through the processes stated in the staff Collective Bargaining Agreement.
Source:https://energynewsafrica.com
Source:https://energynewsafrica.com Equatorial Guinea: ExxonMobil Set To Exit Oil Exploration In Equatorial Guinea
US oil and gas supermajor, ExxonMobil, has planned to leave Equatorial Guinea after operating in the Central African nation for for about three-decade.
ExxonMobil told Bloomberg that it will transfer its holdings in the country to the government and that “Our focus now is on a safe handover of operations and caring for all impacted by this change.”
Exxon also added that the exit was part of the company’s long-term strategy.
That strategy focuses on investments in the lowest-cost and fastest-growth locations, Bloomberg noted in its report.
These locations include Guyana and the Permian.
The news coincided with reports that French TotalEnergies was planning to exit onshore oil in Nigeria, following in the footsteps of fellow supermajor Shell, which last month said it would sell its onshore business in the country for $1.3 billion.
Speaking at the release of TotalEnergies’ financial results for 2023, CEO Patrick Pouyanne said that “Fundamentally it’s because producing this oil in the Niger Delta is not in line with our Health, Security and Environmental policies, it’s a real difficulty.”
Onshore oil production in Nigeria has been problematic for decades, with pipeline vandalism and infrastructure sabotage rampant despite government efforts to rein these in.
Both supermajors, however, will remain in Nigeria’s offshore oil sector, which is more lucrative while less problematic, Reuters noted in a report.
Speaking of problems, these could have been a big reason for Exxon’s decision to leave Equatorial Guinea, according to one analyst interviewed by Bloomberg.
Uncertain regulatory regimes and political stability must have been among the factors Exxon considered before deciding what to do with its Guinea business, the director of Rice University’s Center for Energy Studies at the Baker Institute in Houston, Ken Medlock, told the news outlet.
“If those risks mount, companies could pack up and leave if they have other opportunities with a better risk-reward profile,” he explained.
Source:Oilprice.com
South Africa: Power Interruptions Being Experienced In Tsomo, Other Areas May Last Longer – Eskom
Residents of Tsomo and surrounding areas in South Africa are experiencing interruptions in electricity supply as a result of storms and extreme weather conditions experienced over the past few days, South Africa’s power utility company Eskom has said.
The weather conditions have also affected power supply in Cofimvaba within Intsika Yethu Local Municipality.
“The affected areas have been isolated to keep them safe while Eskom teams are embarking on a complex operation to reconstruct and restore electricity supply to the affected areas as soon as possible,’’ Eskom said in a statement on Thursday, February 8, 2024.
Eskom noted that supply restoration might take longer, since it might pose a challenge to access certain sites.
“We thank the affected customers for their patience,’’ Eskom said.
Source: https://energynewsafrica.com
Powering Africa Summit 2024
The 9th Powering Africa Summit 2024 (PAS24) continues under the theme “Capital Flows Underpinning the Energy Transition”, focusing squarely on energy project development and infrastructure and the enabling environment.
Following the success of the Africa Energy Forum and the Africa Climate Summit in Nairobi, you will contribute to critical discussions on the impact of reducing debt costs, seeking alternatives to sovereign guarantees, and unlocking the climate finance promised to Africa’s energy sector.
Hosted by Power Africa, in the heart of the U.S. capital and the home of the World Bank Group, PAS24 will focus on the critical financial aspects needed to develop Africa’s energy sector more effectively, with conversations rooted in reducing the cost of debt and innovative solutions to the sovereign guarantee impasse.
The programme comprises a series of high-level boardrooms, and, for the first time, we will be hosting a Celebration Dinner so that discussions can continue into the evening.
05 – 06 March 2024 | Washington D.C.
Ghana: Bawumia Promises To Abolish Import Duty On Solar System
The Vice-President of Ghana and Flagbearer of the governing New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has promised to abolish duties on solar panels that are imported into the West African nation.
According to him, the move is aimed at making solar system installation in the country affordable and cheaper in line with global energy transition from fossil fuels to green energy.
Outlining his vision for the country ahead of general election next December, Dr. Bawumia said his administration would diversify the energy generation mix with the introduction of solar and wind power.
The Vice-President said, under his leadership, Ghana would increase the solar energy capacity by additional 2000 megawatts.
He added that this would be contracted through independent power producers.
He indicated that this would help to reduce the country’s dependence on oil and gas.
“This will significantly reduce the cost of electricity,” Dr. Bawumia said.
Source:https://energynewsafrica.com
Ghana: Bawumia Promises To Increase Solar Power Capacity By 2000MW
Ghana’s Vice President and flag-bearer of the government of the New Patriotic Party for the December 2024 general elections, Dr Mahamudu Bawumia, has promised to increase the country’s solar energy capacity with additional 2000MW if given the nod by Ghanaians.
Currently, Ghana’s solar energy capacity stands around 186MW, according to data from the Ministry of Energy.
Outlining his vision for the country ahead of the December general elections, Dr Mahamudu Bawumia said his administration would diversify the energy generation mix with the introduction of solar and wind power.
This, the flag-bearer said, would be contracted through Independent Power Producers.
According to the Vice President, this would help to reduce the country’s dependence on oil and gas.
“This will significantly reduce the cost of electricity,” Dr Mahamudu Bawumia said.
Dr Bawumia believes that with reliable and cost competitive power, Ghana would attract more manufacturing capacity into the country, create more jobs, improve services, export more products and support the AfCFTA strategy to improve the participation of Ghanaian industries in intra-Africa exports and trade.
Source:https://energynewsafrica.com
Baker Mckenzie Launches Lithium Fire Report Outlining Global Foreign Investment Framework For Key Lithium Jurisdictions
Baker McKenzie has launched its Lithium FIRE Report, outlining the global foreign investment framework in key lithium jurisdictions around the world.
The report sets out an overview and analysis of recent foreign investment review developments with a focus on lithium in a number of countries with substantial lithium reserves.
Lithium is an essential component across many of the technologies required to enable a net zero transition, including lithium-ion batteries, electric vehicles and energy storage systems.
Richard Blunt, Partner, Baker McKenzie London, and Chair of the Global Energy, Mining, Infrastructure and Projects Group, notes: “The demand for lithium has increased exponentially.
Governments, industrials involved in manufacturing components for clean energy technologies, and electric vehicle manufacturers (to name just a few) are all competing to secure its supply.
As energy security becomes an increasingly important concept, lithium is also playing a key role in the latest geopolitical patterns.
New players are entering the mining market, innovative contractual structures are being developed, and unconventional partnerships are being forged – all in the name of securing the supply of lithium.”
Blunt explains that amid heightened geopolitical tensions, it is not surprising that resource nationalism is a growing trend in the lithium industry, and governments around the world are increasingly using foreign investment rules to review lithium transactions, with multiple deals being subject to in-depth scrutiny or even outright prohibition in recent years.
“While concerns are primarily focused on control by state-owned or influenced enterprises, anyone looking to secure a supply of lithium needs to be aware of the foreign investment landscape across the countries fortunate to have significant lithium reserves,” he notes.
The report includes details of foreign investment frameworks for lithium in four countries in Africa: Democratic Republic of Congo, Ghana, Mali and Zimbabwe.
In Zimbabwe, foreign investors interested in securing lithium investments must obtain an investment licence issued by the Zimbabwe Investment and Development Agency.
Lithium has also been declared a strategic mineral under Zimbabwe’s Finance Act 13 of 2023.
In another example, the foreign investment screening procedure in Ghana applies to lithium; however, there are slightly different procedures for foreign investment, acquiring shares, and asset/business transfers involving domestic assets in a mining company in Ghana.
The report outlines the availability of a foreign investment screening procedure, which may apply to lithium investments in each jurisdiction.
If such a screening procedure is in place, the report delves into more detail, including the reviewing agencies, types of transactions or events that may trigger screening rules, notification thresholds, timeline for approvals, applicable fees and statutory penalties for failing to notify.
The Lithium fire report also outlines the focus of the foreign investment review screening in these jurisdictions and whether there are substantive tests or points that must be satisfied. Lastly, the report looks at the possible outcomes of the foreign investment review screening procedure in each jurisdiction.
Source: https://energynewsafrica.com
Saudi Order To Halt Oil Capacity Expansion Won’t Stop Oilfield Services Growth
The Saudi government’s order for Aramco to suspend work on expanding its oil production capacity from 12 to 13 million bpd will not hit demand for oilfield services, according to analysts cited in The National.
While analysts expect the suspension to affect expansion work at two offshore fields – Manifa and Safaniya – they remain upbeat that there will be significant growth opportunities for oilfield service companies in 2024 and beyond.
The Saudi state ordered Aramco to stop work on expanding its maximum sustainable capacity to 13 million barrels daily at the end of January.
The company said in a statement at the time that its maximum sustainable capacity was determined by the state under a law from 2017 and added that it would update its capital spending plans for the year in accordance with the new government directive in March when it announces its 2023 financial results.
Saudi Arabia’s state oil company said it was working to boost its production capacity to 13 million barrels daily back in 2021.
The capacity expansion was scheduled to come fully online by 2027 and come on in chunks, chief executive Amin Nasser said at the time.
Yet concern about the possibility of extended weak demand for oil may have driven the decision to reverse the capacity boost plan, The National wrote, citing analysts.
The report also mentioned factors regularly cited as responsible for lower oil demand projections, such as EV sales and a generalized reference to renewable energy.
“We think the market overreacted and the jack-up rig count will likely remain stable to modestly up in 2024, and other projects, including Marjan, Berri and Zuluf, will continue to move forward,” Evercore ISI managing director James West told The National.
“We remain confident the long-duration offshore and international upcycle will continue and drive significant growth opportunities for oilfield services companies in 2024 and beyond,” West also said.
Source:Oilprice.com
Petrobras To Invest $100 Billion In Offshore Oil Production
Brazil’s state oil firm Petrobras plans more than $100 billion in investments this decade to boost offshore oil production as it looks to be one of the last oil producers standing when oil demand starts to drop, CEO Jean Paul Prates has told the Financial Times.
“We need to keep the core business very safe . . . We are not doing a crazy transition,” the company’s top executive told FT, commenting on the recently announced strategic plan through 2028.
Petrobras needs new oil exploration and production frontiers open as it wants “to be able to be there at the very end of the fade-out of oil,” said Prates, who became CEO at the Brazilian state energy firm a year ago under leftwing Brazilian President Luiz Inácio Lula da Silva.
As much as $73 billion out of the $102 billion total capex planned from 2024 to 2028 is set to go to exploration and production, according to Petrobras’s presentation to investors last week.
After spending a decade on selling off many assets outside Brazil, Petrobras is now shifting its strategy to portfolio diversification, keeping the focus on the most profitable assets, the company said.
Reserves replacement, new frontiers, and increased gas supply are all pillars of the new exploration and production strategy.
Petrobras is now re-evaluating its portfolio in search of synergies and economic diversification and is looking at new frontiers in exploration, especially in the Equatorial Margin offshore Brazil, Prates said in the investor presentation.
Last autumn, Prates said that Petrobras expects to begin in 2024 offshore exploration drilling close to the mouth of the Amazon River in the so-called Equatorial Margin offshore Brazil.
The Brazilian firm currently doesn’t have permission from regulators to drill for oil and gas in the environmentally sensitive area.
Petrobras has appealed the decision of the Brazilian environmental protection agency, which last year refused to grant approval for the project.
Source: Oilprice
Ghana: GRIDCo Restores Power Supply To Northern Regions After System Disturbance
Ghana’s power transmission company has announced the restoration of power supply to the northern part of the country after a system failure which resulted in outages across the north.
A statement issued by the Corporate Affairs of GRIDCo revealed that at about 05:29 am, the 330/161kV auto transformer at the Kintampo substation tripped, causing an outage to the Anwomaso-Kumasi Transmission Line, resulting in the system disturbance.
The statement said restoration commenced immediately and full restoration completed at 07:35 am.
“GRIDCo apologises for the inconvenience caused,” the statement said.
Source: https://energynewsafrica.com
Nigeria: Ikeja Electric Bags Integrated Management System Recertification
Ikeja Electric, one of the power distribution companies in the Federal Republic of Nigeria, has received approval for its Integrated Management System (IMS) after an intensive review of its policies, processes and procedures.
The IMS certification which collapses various management systems into a single, overall comprehensive and harmonised management system, increases efficiency and effectiveness, motivates employees and improves document management, and internal and external communication, amongst other benefits.
Speaking during the presentation ceremony at the company’s corporate headquarters, Mrs Folake Soetan, MD/CEO of Ikeja Electric, expressed delight at the latest additions to the organisation’s kitty, which further reinforces the company’s unwavering commitment to the promotion of environmental sustainability, safety and well-being of stakeholders and satisfactory customer experience.
She stated that Ikeja Electric remains resolute in prioritising quality, health, safety and environment in their daily business operations and “this recertification is a testament to our consistent efforts to uphold the highest standards in all we do.”
Commenting, the Head of Quality, Health, Safety & Environment, Engr Jamiu Badmos, said achieving the feat of three distinctive certifications at once was the first of its kind in the industry and it covers the ISO 9001:2015 on Quality Management Systems, ISO 14001:2015 on Environmental Management Systems and ISO 45001:2018 on Occupational Health & Safety Management Systems.
“This marks a milestone in our journey towards a future that is both technologically advanced and environmentally responsible,” she said.
Jamiu reiterated the fact that this is not just a source of pride, but a charge to meet up with the zero-fatality mandate set by the company’s board and management.
“Even though our performance and numbers set us ahead within the energy value chain, we need to get to the point where we have no fatality recorded for staff or third party; as the leader of the DisCos,“ he expressed.
While presenting the certificates, the Deputy Lead Auditor, Bluestar Management Systems Pvt. Ltd, Mrs. Oyenike Shobowale, congratulated the Board, management and staff of the company on the outstanding feat, setting it as a global brand. “Ikeja Electric is the new pace setter on the energy value chain and other stakeholders need to step up their game in their dealings with the company. It is important, however, to keep reviewing the system and making improvements,” she said.
The leadership of Ikeja Electric is steadfast in its commitment to operational excellence, leveraging technology to enhance exceptional service delivery and continues to be at the forefront of innovations in the energy sector through its mantra: ‘Customer First, Technology Now.’
Source: https://energynewsafrica.com
Kenya: Owner Of Killer Embakasi Gas Plant, Three Others Detained By Police
The Kenyan police have arrested the owner of the Embakasi gas plant which exploded and killed six people and left about 300 people seriously injured last Thursday.
According to a report by the Star, the owner, Derrick Kimathi, and three officials of National Environment Management Authority (NEMA) have been detained at Capitol Hill Police Station, pending a court ruling on Wednesday.
The report mentioned the three NEMA officials as Joseph Makau, David Ong’are and Marrian Kioko.
The court is going to rule on whether the three would be detained for 21 days pending the conclusion of the probe into the matter.
Counsel for the accused had vehemently opposed their detention, saying the fundamental rights of their clients were being violated.
They argued that the accused persons were innocent until they were proven guilty and that the four might end up not being charged after the investigations.
The four were, on Tuesday, arraigned before Chief Magistrate Dolphina Alego with the state seeking detention orders pending completion of investigations.
The 21 days sought is set to allow the Directorate of Criminal Investigations to finish investigations on cases of murder, conspiracy to commit a felony, negligent act causing harm and abuse of office.
According to Star, Isaac Tenei, who is the investigator, told the court that there is fear of the respondents interfering with witnesses and them being a flight risk.
The prosecution counsel argued that the lives of the four might be in danger considering the loss of lives, properties and injured victims from the Embakasi fire.
They also noted that the matter is one of public interest and it needs to be expedited
Source: https://energynewsafrica.com