Nigeria: Shell Exits Onshore Exploration, Sells Assets For $2.4Bn
British energy giant, Shell has agreed to sell its Nigerian onshore oil assets to a consortium of local companies for US$2.4 billion.
The company revealed this in a statement posted on its website.
According to Shell, it is selling its Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), for a consideration of $1.3 billion, with buyers making an additional payment of up to $1.1 billion relating to prior receivables at completion.
The buyer of the asset, known as Renaissance, is a consortium formed of ND Western, Aradel Energy, First Exploration & Production (E&P), Waltersmith, and Petrolin.
“Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions,” the statement reads.
Shell said it will remain a major investor in Nigeria’s energy sector through its deepwater and integrated gas businesses.
Following completion, Shell said it “will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG”.
The SPDC JV is an unincorporated joint venture comprised of SPDC Ltd (30 percent), the Nigerian National Petroleum Company Limited (55 percent), Total Exploration and Production Nigeria Ltd (10 percent), and Nigeria Agip Oil Company Ltd (5 percent).
The SPDC JV holds 15 oil mining leases for petroleum operations onshore and three for petroleum operations in shallow water in Nigeria — operated by SPDC.
“The consideration payable to Shell as part of the transaction is US$1.3bln,” the statement further reads.
“The buyer will make additional cash payments to Shell of up to US$1.1bln, primarily relating to prior receivables and cash balances in the business, with the majority expected to be paid at completion of the transaction.
“The amounts above will be adjusted to reflect any shareholder distributions, above US$200 million, made prior to completion.
Other contingent payments, including those related to gas supply to NLNG, may become payable depending on business performance and fluctuation of product prices.”
Shell noted that it has three other main businesses in Nigeria that are outside the scope of the transaction.
They include Shell Nigeria Exploration and Production Company Limited (SNEPCo), Shell Nigeria Gas Limited (SNG), and Daystar Power Group.
“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions,” Zoe Yujnovich, Shell’s integrated gas and upstream director, said.
Source: https://energynewsafrica.com
Ghana: Sentuo Refinery Test Run Products Are Of High Quality-NPA
Sentuo Refinery, a newly constructed refinery in Tema in the Republic of Ghana, which is currently undergoing a test run, has produced high-quality petroleum products, according to the petroleum downstream regulator, National Petroleum Authority (NPA).
The Chief Executive Officer of the National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid, who disclosed this to a section of the Ghanaian media, said his outfit visited the refinery to inspect the ongoing test run and examined the samples of the products the refinery had produced.
The refinery which is owned by a Chinese investor has an initial capacity of 40,000 barrels per day and would gradually be upgraded to 100,000 barrels per day in the future.
The refinery expects to complete the ongoing test run between March and April 2024 after which the National Petroleum Authority would issue them an operational licence.
After the issuance of the operational licence, the refinery would then commence commercial operation.
Ghana spends US$400 million monthly to import refined petroleum products from Europe and the Middle East and this puts pressure on the local currency, the Cedi.
Although the West African nation has a crude oil processing refinery, TOR, it has become idle for some years as a result of poor leadership.
An attempt to get a strategic partner to bring Ghana’s refinery back to operation has been fraught with controversies due to a lack of transparency in the whole process.
Dr Mustapha Abdul-Hamid expressed the hope that the coming of Sentuo Refinery and Africa’s largest refinery, Dangote Refinery in Nigeria, would help to bring the cost of fuel down.
“I am sure that when we get to 100,000 barrels per day ay, then, we can assure ourselves that we can get moderate pricing or reasonable pricing for petroleum products in Ghana,” he asserted.
“So for Sentuo Refinery, it’s good news for all of us,” he stated.
When reached via the telephone, Mr Albert Duncan, Engineering Consultant and Project Lead at the Sentuo Refinery, confirmed the high quality petroleum products produced by the refinery as stated by the regulator.
He was hopeful that the ongoing test run would be completed in March as scheduled for commercial operation to commence.
Source:https://energynewsafrica.com/
Nigeria: Dangote Petroleum Refinery Starts Production
Africa’s largest crude oil refinery, Dangote Refinery has commenced production of diesel and aviation fuel.
Addressing Nigerian during the official opening of the refinery President of Dangote Group, Alhaji Aliko Dangote thanked President Bola Ahmed Tinubu for his support, encouragement, and thoughtful advice towards the actualisation of this project.
Dangote also thanked the Nigerian National Petroleum Company Limited (NNPC Limited), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerians for their support and belief in the historic project.
“We thank President Bola Tinubu for his support and for making our dream come true.
This production, as witnessed today, would not have been possible without his visionary leadership and prompt attention to details.
His intervention at various stages cleared all impediments thereby accelerating the actualisation of the project.
We also thank the NNPC, NUPRC and NMDPRA for their support.
These organisations have been our dependable partners in this historic journey. We also thank Nigerians for their belief and support in this project.
We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals.”
“This is a big day for Nigeria. We are delighted to have reached this significant milestone.
This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.
This is a game changer for our country, and I am very fulfilled with the actualisation of this project.”
The refinery has so far received six million barrels of crude oil at its two SPMs located 25 kilometres from the shore.
The first crude delivery was done on December 12, 2023, and the 6th cargo was delivered on January 8, 2024.
The Refinery can load 2,900 trucks a day at its truck-loading gantries.
The products from the Refinery will conform to Euro V specifications.
The refinery design complies with the World Bank, US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms.
Employing state-of-the-art technology.
“I must extend our sincere appreciation to our Bankers and financiers, both local and offshore, who demonstrated a great deal of patience, in seeing us through many difficult times.
In the same vein, we thank the Government of Lagos State, under the leadership of Babajide Sanwo-Olu, who has been incredibly proactive in ensuring that the many challenges we encountered in the course of executing this project were quickly resolved.
I thank him immensely.”
“I also sincerely thank our host communities and their Traditional leaders for their sustained patience, forbearance, and admirable willingness to work with us to find amicable and win-win resolutions to the many issues we have had to deal with as the construction of this huge facility progressed.
Our staff have also contributed so immensely to the success of this project. I thank them profusely.”
Source:https://energynewsafrica.com/
Iran Missile Attack Kills Kurdish Oil Tycoon
A missile attack carried out by Iran’s Islamic Revolutionary Guard Corps killed a prominent Kurdish energy businessman at his home in Erbil.
Some outlets note that Peshraw Dizayee, who died in the attack with four family members, had purported ties with Israeli intelligence services and that the attack was in fact an assassination.
The Islamic Revolutionary Guard Corps itself said they had struck the “spy quarters” of Israel in Kurdistan, per Reuters report, which cited Iraqi state media.
“In response to the recent atrocities of the Zionist regime, causing the killing of commanders of the Guards and the Axis of Resistance … one of the main Mossad espionage headquarters in Iraq’s Kurdistan region was destroyed with ballistic missiles,” the IRGC said in a statement.
“We assure our nation that the Guards’ offensive operations will continue until avenging the last drops of martyrs’ blood,” the corps also said.
The attack on Dizayee’s house came after members of the Islamic Revolutionary Guard Corps were killed in Syria, including one senior commander, Reuters noted in its report. The deaths resulted from an Israeli airstrike outside Damascus.
The IRGC attack was condemned by Iraq authorities and the U.S. State Department.
The Prime Minister of Kurdistan, Masrour Barzani called it a “crime against the Kurdish people”.
According to Reuters, Dizayee had close ties with the Barzani clan that runs the autonomous region.
“We will continue to assess the situation, but initial indications are that this was a reckless and imprecise set of strikes,” a spokeswoman for the White House National Security Council said, as quoted by Reuters.
“The United States supports the sovereignty, independence, and territorial integrity of Iraq,” she added.
Forbes author and Middle East commentator Paul Iddon noted that while maybe reckless, the attack “wasn’t necessarily imprecise”.
Iddon noted the accuracy track record for Iranian ballistic missiles and the fact the IRCG had targeted the home of a local tycoon: in 2022, the corps fired missiles at the villa of Baz Karim Barzanji – another Kurdish energy heavyweight who was involved in plans to export natural gas to Turkey.
Source: Oilprice.com
Germany: Thousands Of Tractors Block Berlin Traffic Over Plans To End Diesel Subsidy
Thousands of German farmers, truck drivers and agricultural workers have gathered with tractors and other heavy equipment in front of the Brandenburg Gate in central Berlin for a demonstration against the government’s plans to end tax breaks on diesel fuel.
Police estimated that at least 3,000 tractors had arrived for the protest on Monday and an estimated 2,000 more were on their way in a climax to weeklong protests.
The tractors blocked traffic in parts of the city and Berlin’s public transit agency reported major service delays. About 10,000 people had registered for the demonstrations against Chancellor Olaf Scholz’s plans to cut subsidies, but Berlin police expected more to attend.
A total of 1,300 police officers have been deployed to the protests, Berlin Police Chief Barbara Slowik told city leaders.
Finance Minister Christian Lindner addressed thousands of the protesting farmers and said there was no money for further subsidies.
“I can’t promise you more state aid from the federal budget,” Lindner told the crowd in front of the Brandenburg Gate.
“But we can fight together for you to enjoy more freedom and respect for your work.”
Farmers union head Joachim Rukwied, who had to take the microphone from Lindner and beg the crowd to stop booing him to hear what the minister was saying, said: “I have respect for every politician who is prepared to come to us.”
“The finance minister is here,” he said. “It makes no sense to boo him.”
“The farmers believe that the German community, the widespread community, supports them even though the centre of Berlin has dropped to a standstill,” he said.
“The question for the farming community now is do the protests stop today or will they go further,” he said.
Over the past week, farmers have blocked highway entrances and slowed down traffic across Germany as they expressed dissatisfaction with concessions the government has already made.
Berlin announced plans to cut subsidies and tax breaks on diesel and agricultural vehicles after a court ruling tore a multibillion-euro hole in the government’s budget, forcing Scholz’s coalition to find savings.
The government, which has partially walked back the plans, defended the reductions by pointing to increases in farmers’ incomes in recent years.
In the financial year 2022-23, farms made a record profit of 115,400 euros ($126,000) on average, a 45 percent increase on the year before, according to industry figures.
On January 4, the government said the tax exemption for farming vehicles would be retained and cuts in diesel tax breaks would be staggered over three years.
Scholz said in a video message on Saturday that “we took the farmers’ arguments to heart”, adding that he believes the government came up with “a good compromise”.
But the farmers with backing from the opposition conservatives and far-right parties said the government’s concessions do not go far enough.
“Farmers will die out,” farmer Karl-Wilhelm Kempner said on Sunday as he boarded a bus in Cologne to head to the demonstration.
“The population must understand that far more food will be imported” if subsidies are not restored.
Source: Aljazeera
Ghana: PETROSOL Appoints William Ntim-Boadu To Its Board
Petrosol Ghana Limited, one of the fastest growing indigenous oil marketing companies in the Republic of Ghana has appointed Mr. William Ntim-Boadu, a seasoned and well-respected energy finance professional, as a member of the company’s Board of Directors.
His appointment took effect from 1st January, 2024, a statement from the company revealed.
Mr. Ntim-Baodu has 14 years’ senior leadership experience in the energy sector, and is currently the Chief Executive Officer of HFields Limited, an oil services firm and also doubles as an Executive Director of the Milton Group, a business information technology solutions firm.
He currently serves on the Board of Ebony Oil & Gas Ltd, a bulk oil import, distribution and export company.
At the national level, Mr. Ntim-Boadu, though relatively young, has been called upon to offer his expertise to address major national issues in the energy sector.
Between 2016 and 2017, he was part of the team of experts whose work led to the creation of the ESLA Bond programme to address the energy sector financial crisis.
Again, between June 2021 and June 2022, he was part of the three-member Interim Management Committee (IMC) appointed by the Government of Ghana and tasked with the responsibility of coming out with the strategic direction of the Tema Oil Refinery (TOR) by identifying a strategic operating partner, conducting a technical evaluation of the processing plant and managing the daily operations of the refinery within that period. This assignment was executed diligently and their report submitted to the government.
Between 2017 and 2020, Mr. Ntim-Boadu doubled as the General Manager of Astra Oil Services Ltd, a bulk oil import, distribution and export company as well as the Commodity Trading & Risk Manager of Zen Petroleum Ltd, an oil marketing company, and played a key role in setting up Astra Oil Services, a sister company of Zen Petroleum, and contributed to the growth of both companies.
Additionally, between 2010 and 2017, Mr. Ntim-Boudu served as the Chief Finance Officer of Sage Petroleum, a bulk oil import, distribution and export company, and played a key role in helping to raise funding for the construction of the Quantum Liquefied Petroleum Gas (LPG) Storage and Loading Infrastructure at Anokyi, near Atuabo, in the Western Region, which has contributed significantly to the financial viability of the company and national LPG supply security. Prior to that, he had served diligently as the Manager-Commerce of the same company and contributed to the company’s growth.
Some of the previous roles he played include, Accountant and Oil Trader, Cirrus Oil Services and Associate (Audit), KPMG, a global audit firm.
He is a Chartered Accountant and a Member, Association of Certified Chartered Accountants (ACCA), UK and holds Bachelor of Science (Accounting option) degree from the University of Ghana Business School, Legon as well as a Diploma in French from the Ministry of Education, France.
He has attended several courses in energy finance, oil trading and International Financial Reporting Standards (IFRS), both locally and internationally.
Source: https://energynewsafrica.com
European Natural Gas Prices Slump As Lower Demand Offsets Supply Risks
Europe’s benchmark natural gas prices dipped on Monday morning in Amsterdam by 4.8% amid weak industrial demand and bigger-than-average stockpiles for this time of year, despite a prolonged cold snap in northwestern Europe and signs that Qatar may have paused at least five LNG tankers in and around the Red Sea.
The front-month February Dutch TTF Natural Gas Futures, the benchmark for Europe’s gas trading, had slid by 4.82% at $33.35 (30.45 euros) per megawatt-hour (MWh) as of 9:47 a.m. in Amsterdam on Monday.
The prices have largely ignored the deep freeze of the past week in most of Europe as traders believe the market is well supplied to finish this winter season – which we are now halfway through – with sufficient natural gas in storage sites.
Gas withdrawals across Europe have accelerated in the past 10 days, but storage in the EU is still nearly 80% full, according to data from Gas Infrastructure Europe.
As of January 13, EU gas storage sites were 79.7% full, the data showed. Last week’s below-average freezing temperatures saw the biggest withdrawals in a week so far this winter season.
“However, storage remains above the 5-year average of 68% full for this time of year,” ING strategists Warren Patterson and Ewa Manthey wrote in a note on Monday.
“For now, we are still assuming that European storage will finish this heating season at around 52% full, which suggests limited upside for European gas prices,” the analysts added.
High level of inventories, weak demand from industry, and increased confidence that Europe could go through the winter without major supply disruptions have all led to traders becoming more bearish on Europe’s natural gas prices.
That’s despite the cold weather and ship-tracking data reported by repoters on Monday that Qatar looks to have paused LNG cargo shipments via the Bab el-Mandeb Strait to the Red Sea/Suez Canal route.
Source: Oilprice.com
Ghana: TOR Interdicts Two Union Executives Over TOR -Torentco Deal
The Board of Directors of the Tema Oil Refinery, TOR, Ghana’s premier refinery has interdicted two executives of the General Transport, Petroleum Workers’ Union over the controversial TOR -Torentco deal.
The Board took the decision to interdict Serwah Duncan -Williams and Anthony Koomson who are executives of GTPCWU at the refinery at their 261st sitting on December 13, 2023.
The two executives were issued with query letters for allegedly speaking to the media about the Tema Oil Refinery and Torentco Asset Management Limited partnership deal and making some comments that sought to bring the reputation of the refinery into disrepute in October 2023.
This portal understands that the executives in response to the queries denied the claims by the Board.
Sources within the refinery told this portal that on October 4, 2023, the Union held an emergency meeting with their members which was attended by the national executives.
According to our sources, at that meeting the national leadership updated the members on the ongoing TOR-Torentco (now Tema Energy and Processing Limited) and exposed the actions of some staff who registered an entity named TOR Workers Charity Trust on the blind side of the entire workforce to champion TOR -Torentco deal.
Sources within the refinery explained that the national chairman of the Union, Brother Bernard Owusu after engaging the workers addressed the press infront of the refinery and not Serwaa Duncan-Williams and Anthony Koomson as claimed by TOR Board.
The two executives, this portal understands stated categorically in their engagement with the workers and updating them on the issue was based on Whistle Blowers Act 2006, Act 720 Section 1,2&3 pages 3 &4.
However, in a letter signed by the Acting Managing Director, Daniel Osei Kofi Appiah, on the orders of the Board sighted by energynewsafrica.com, it said the Board reviewed the responses of the executives to the queries and found them unacceptable.
According to the letter, the company therefore made a decision to initiate the disciplinary process with further investigations into all the allegations they made.
The Board accused the executives of divulging company information to persons not authorized 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.
“Per the above provisions, you are hereby served notice of interdiction from duty with effect from January 10th, 2024, to enable the Company proceed with unhampered investigations ,” the letter said.
Source:https://energynewsafrica.com/
Zambia: Two Persons Caged For Vandalising Zesco’s Electrical Infrastructure In West Lusaka
Two persons have been arrested for vandalizing electrical infrastructure belonging to Zambia’s power utility company, Zesco Limited, in West Lusaka.
The suspects whose names are not yet known to this portal are currently being held at the Matero Police Station.
The suspects were arrested on Saturday,13th January 2024 following the vigilance of Sekelela community members.
In a post on Facebook by Zesco Limited and sighted by energynewsafrica.com, the power distribution company praised the vigilance of Sekelela community members for their act, leading to the arrest of the suspects.
“ZESCO sincerely appreciates the bravery and community spirit shown by the residents of Sekelela.
This incident highlights the power of collective action in safeguarding our community’s assets.
“The suspects are currently held at the Matero Police Station and efforts to find the other individuals who escaped continue. Let’s keep up this spirit of vigilance and cooperation! Let’s keep the lights on.
“Report suspicious acts of vandalism to ZESCO Limited Security on 0978-783000,” the company said.
Source:https://energynewsafrica.com/
Electricity Production In Azerbaijan Increased By 0.9% Last Year
Azerbaijan’s Ministry of Energy has revealed that electricity generation in the country increased by 272.3 million kWh (0.9%) in 2023 compared with the same period in 2022.
According to the ministry, during 12 months, electricity production at TPPs amounted to 27 160.4 million kWh, at HPPs to 1757.2 million kWh, and on other sources to 359.0 million kWh.
56.6 million kWh of electricity was generated at WPPs, 79.4 million kWh at SPPs, and 223.0 million kWh at the solid household waste incineration plant.
During the reporting period, electricity generation made up 26441.2 mln kWh on Azerenergy OJSC (24794,2 mln kWh at TPPs, 1647.0 mln kWh at HPPs),
481.0 mln kWh on State Energy Agency of Nakhchivan AR (325.03 mln kWh at TPPs, 95.02 mln kWh at HPPs, 60.93 mln kWh at SPP), 41.9 mln kWh at WPPs on Azerishig OJSC, and 2312.5 mln kWh on Independent PPs).
In 2023, the electricity exports amounted to 3252.5 mln kWh, and imports to 211.8 mln kWh.
The electricity generation in the republic in December 2023 amounted to 2788.7 million kWh.
During the month, exports of electricity production amounted to 504.3 million kWh, imports to 11.0 million kWh.
Source: https://energynewsafrica.com
UK Plans Massive Expansion Of Nuclear Power
The UK has announced a major nuclear power generation capacity expansion, with the government calling it the “biggest expansion of nuclear power for 70 years”.
“Nuclear is the perfect antidote to the energy challenges facing Britain – it’s green, cheaper in the long-term and will ensure the UK’s energy security,” Prime Minister Rishi Sunak said, as quoted by media.
“This is the right long-term decision and is the next step in our commitment to nuclear power, which puts us on course to achieve net zero by 2050 in a measured and sustainable way,” Sunak added.
The news comes on the heels of a recent report that French EDF plans to extend the lives of the nuclear power plants it operates in the UK.
The company said it would invest the equivalent of some $1.65 billion in the initiative, aiming to maintain current power output levels from its nuclear power plants until at least 2026.
“These lifetimes will be reviewed again by the end of 2024 and the ambition is to generate beyond these current forecasts, subject to plant inspections and regulatory approvals,” EDF said.
Nuclear, which many climate activists slam for not being green or renewable enough has recently made a comeback, except in Germany and Spain.
The rest of the world, however, seems to have realized that the rush to net-zero will not happen without nuclear, saying as much at last year’s COP28.
The UK has some of the most ambitious transition targets, with a massive buildout in wind power capacity in the plans.
However, it is also struggling to rein in a cost of living crisis that some commentators of local energy policies have attributed to those same plans.
The country’s current nuclear power capacity of 6 GW is spread across nine reactors at five sites. Six other reactors have been shut down since 2021.
Another two sites are planned to be built, one of them at least with a capacity of over 3 GW. By 2050, the country’s government plans to have 24 GW in capacity.
Source: Oilprice.com
Global Renewable Energy Capacity Additions Jumped By Nearly 50% In 2023
Renewable capacity installations surged by almost 50% last year as global renewable energy capacity hit nearly 510 gigawatts (GW), led by solar photovoltaics and a jump in new Chinese installations, the International Energy Agency (IEA) said in a new report on Thursday.
New renewable capacity saw the fastest growth rate in the past two decades, and 2023 was the 22nd year in a row that renewable capacity additions have set a new record, the IEA said in its Renewables 2023 report.
Renewable capacity growth in Europe, the United States, and Brazil hit all-time highs, but China outshined all with an “extraordinary” acceleration in installations, the agency noted.
Last year, China commissioned as much solar PV as the entire world did in 2022, while its wind additions jumped by 66% year-on-year. Globally, solar PV alone accounted for three-quarters of renewable capacity additions, the IEA’s report showed.
In June 2023, IEA Executive Director Fatih Birol said “This year, the world is set to add a record-breaking amount of renewables to electricity systems – more than the total power capacity of Germany and Spain combined.”
“The energy crisis has turbocharged demand for both large-scale plants & rooftop solar,” the IEA’s top executive added.
Investment in solar power generation was set to eclipse investment in oil production in 2023 for the first time ever, the IEA said in May 2023.
In its latest report today, the IEA said that “The world’s capacity to generate renewable electricity is expanding faster than at any time in the last three decades, giving it a real chance of achieving the goal of tripling global capacity by 2030 that governments set at the COP28 climate change conference last month.”
“The new IEA report shows that under current policies and market conditions, global renewable capacity is already on course to increase by two-and-a-half times by 2030,” Birol said in a statement.
“It’s not enough yet to reach the COP28 goal of tripling renewables, but we’re moving closer – and governments have the tools needed to close the gap.”
Source: Oilprice.com
South Africa: Mulilo Energy, EDF Win 1 Gigawatts Bess Tender
Two renewable energy developers, Mulilo Energy Holdings (Pty) Ltd and EDF Renewables, have been selected as the preferred bidders for three battery energy storage system (BESS) projects in South Africa.
The projects which will be situated in South Africa’s Northern Cape and North West Provinces will deliver cost-effective and efficient storage capacity to the country’s ailing electricity grid.
Boasting a capacity of 257 MW/1,028 MWh,
According to a report by energy capital and power, the project is poised to commence in mid-2024.
The Oasis Aggeneis, Oasis Mookodi, and Oasis Nieuwehoop projects will dispatch electricity under a 15-year power purchase agreement with South Africa’s power utility,Eskom.
The total cost of the projects is estimated to be $375 million.
“We commend the South African government’s strong commitment to the rapid buildout of battery energy storage, a key focus technology for Mulilo,” stated Robert Helms, partner at Copenhagen Infrastructure Partners, majority owner of Mulilo, adding, “With the announcement, we are proud for Mulilo to continue its positive contribution to the country’s energy security, socioeconomic growth, and green transition.”
A total of five projects were awarded under South Africa’s Battery Energy Storage Procurement Program by the country’s Department of Mineral Resources and Energy in March 2023.
The projects make up a 513 MW tender and are poised to provide capacity, energy, and ancillary services throughout South Africa.
Source: https://energynewsafrica.com
Indian Refiners Set To Ask For Extra Saudi Oil After Sharp Price Cut
Two Indian state refiners are seeking to boost imports of Saudi crude oil after the kingdom cut the official selling price of its key export grade for February to the lowest in 27 months, company sources said.
Indian Oil Corp (IOC.NS), the country’s top refiner, and Bharat Petroleum Corp (BPCL.NS), are looking at lifting an additional 1 million barrels of oil each from Saudi Aramco (2222.SE) in February, the sources said.
Saudi Aramco typically notifies Asian buyers of their monthly crude allocations by the 10th of every month.
Indian oil companies did not respond to Reuters emails seeking comments, while Saudi Aramco declined to comment.
IOC is seeking more oil from Saudi Arabia and West Africa partly as it is facing problems in buying Russian light sweet crude Sokol because of challenges in payments, one of the sources said.
India, the world’s third-biggest oil importer and consumer, has been gorging on Russian crude, sold at a discount after western nations shunned purchases from Moscow.
That led to Russia becoming top oil supplier to India, knocking Iraq and Saudi Arabia to second and third place, data obtained from trade sources showed.
Washington last month sanctioned ships and vessel operators for the sale of Russian oil at above the $60-per barrel cap set by the Group of Seven nations and tightened rules, including heightened scrutiny by banks and service providers to ensure that cargoes do not breach the price cap.
Following the sanctions, several tankers meant to deliver Sokol crude to India have been diverted in the past two months depressing India’s Russian oil imports in December to an 11-month low.
India’soil minister Hardeep Singh Puri recently said that the decline in India’s import of Russian oil was due to unattractive prices and not payment issues.
IOC used to receive 6-7 cargoes of Sokol oil every month under its annual deal with Rosneft (ROSN.MN).
The refiner may ask for additional supplies under its term deals with West African producers Nigeria and Angola to make up for loss in Russian oil supply, the source said.
Source: Reuters