The Republic of Uganda is exploring for oil in two new regions where potential discoveries of crude could increase the East African country’s proven reserves of 6.5 billion barrels, Dr. Ruth Ssentamu Nankabirwa, Minister for Energy and Mineral Development said on Wednesday
Commercial quantities of crude oil were discovered in the Albertine Graben basin in Uganda’s west near the border with the Democratic Republic of Congo nearly two decades ago, but production is not projected to start until next year.
Government geologists are exploring two new regions located in Uganda’s north and northeast, Energy Minister Ruth Nankabirwa said at a press conference in the capital Kampala, according to Reuters.
“The ministry is conducting preliminary petroleum exploration studies in the Moroto-Kadam Basin to assess its oil and gas potential. Similar surveys have started in the Kyoga Basin,” she said, referring to the two new regions.
“Early results suggest the potential for commercial oil and gas in the Moroto-Kadam Basin.”
Uganda has five basins where hydrocarbon potential is suspected, with only one, the Albertine, successfully explored so far, the energy ministry says.
The two oil fields in the Albertine basin – Tilenga and Kingfisher – are majority-owned by TotalEnergies with a 56.7% stake, while China’s CNOOC and the Uganda national oil company UNOC own the remaining share.
Commercial production has been delayed by various factors including disagreements with oil firms over field development strategy and taxation, and a lack of infrastructure and funding to develop it.
Only 72 of 457 planned wells have been drilled in the Tilenga and Kingfisher oilfields, Nankabirwa said, and oil firms had submitted a plan for a liquefied petroleum gas (LPG) facility for which the government planned to issue a license.
The government expects a decision next month from Chinese funders, including EXIM bank and SINOSURE, that Uganda has been wooing to provide credit for the proposed East African Crude Oil Pipeline (EACOP), Nankabirwa said.
The 1,445-kilometer (895-mile) EACOP will help Uganda export its crude via a port on Tanzania’s Indian Ocean coast.
Source: https://energynewsafrica.com
South Africa’s power utility company, Eskom, in collaboration with various law enforcement agencies have successfully removed over 35 illegally connected transformers in Diepsloot Extension 6, Gauteng.
This joint operation is part of Eskom’s ongoing efforts to reclaim its network and alleviate the strain caused by unauthorised and illegal electricity connections.
In the 2022/23 financial year, Eskom experienced non-technical losses of around R5 billion due to illegal connections, meter bypasses, and other electricity-related criminal activities within its supply area.
These illegal practices compromise Eskom’s financial health and its ability to deliver a dependable electricity supply to legitimate customers.
Illegally connected transformers not only destabilise the network, causing frequent supply interruptions, extended outages and substandard service for paying customers but also pose significant safety risks to Eskom technicians working on the system.
“We are deeply appreciative of the collaboration with the South African Police Service (SAPS), Joburg Metropolitan Police Department (JMPD), Red Ants, Eskom Protective Services, and private security companies, in ensuring the success of this operation,” Monde Bala, Eskom’s Group Executive for Distribution said in a statement after the exercise on Tuesday, August 20,2024.
“These efforts are crucial in safeguarding Eskom’s assets, ensuring public safety, and mitigating the severe energy losses caused by illegal connections, meter bypasses, and acts of theft and vandalism, concluded Bala.
While most of our employees are dedicated and committed to delivering their daily job outputs and striving to enhance Eskom’s performance, we maintain a clear stance of zero tolerance towards crime and corruption.
Consequently, we are currently investigating allegations from community leaders that some Eskom employees are allegedly involved in the sale of illegal transformers.
“We will update community leaders on the outcomes of these investigations once they are concluded,” Eskom said.
Source: https://energynewsafrica.com
European power markets are experiencing a notable shift as renewable energy sources, particularly wind and solar, become a larger part of the energy mix.
On Tuesday, power prices in several European markets, including Germany, dipped below zero due to a surge in green electricity production.
In Germany, wind generation is expected to hit 22.7 gigawatts, the highest level in four months.
This spike in renewable output has overwhelmed the grid, leading to negative prices during six separate hours on Tuesday, as recorded by Epex Spot SE.
Negative pricing occurs when there is more electricity supply than demand, a scenario becoming more frequent as Europe continues its aggressive push toward renewable energy.
The rapid expansion of wind and solar capacity is reshaping the continent’s energy landscape.
On days when both sources are generating at high levels, the market can become saturated with inexpensive power, driving prices down to the point where they even turn negative.
While this benefits consumers in the short term, it also highlights the challenges of managing an energy grid increasingly reliant on intermittent renewable sources.
On the flip side, when wind and solar are lacking, it can starve the grid of needed energy.
In the long term, integrating battery storage systems is crucial to addressing these fluctuations.
By storing excess energy generated during periods of high wind and solar output, batteries can release power when renewable generation is low, stabilizing prices and ensuring a consistent supply of electricity.
As Europe continues its transition to green energy, the frequency of negative pricing events is likely to increase, showcasing the need for energy storage investments as a way to manage a grid dominated by renewables while ensuring energy security.
Source: Oilprice.com
Ghana’s Vice President and flag-bearer of the governing New Patriotic Party (NPP) Dr Mahamudu Bawumia has promised to resolve the challenges with the implementation of the Cash Waterfall Mechanism (CWM) if elected as President of Ghana in the upcoming General Election scheduled for December 7.
On page 176 of the NPP Manifesto which was launched last Sunday, August 18, 2024, the party announced several measures to deal with the challenges in the power sector.
“Under a Bawumia presidency, we will digitise the revenue platform that will apply Cash Waterfall Mechanism (CWM) sharing ratio at the point of all electricity tariff payment to enhance liquidity within the electricity value chain, increase transparency and reduce indebtedness,” the NPP 2024 Manifesto captured.
The Cash Waterfall Mechanism was proposed by the current government in 2017 when Boakye Agyarko was the Energy Minister to address liquidity challenges in the sector. However, its implementation was delayed until 2020.
It was to ensure fair and transparent distribution of revenues to all the players in the electricity supply value chain.
In June 2023, the President, Nana Akufo-Addo, and Vice President Mahamadu Bawumia directed revisions to the Cash Waterfall Mechanism (CWM) under the Energy Sector Recovery Programme due to ECG’s challenges in adhering to existing guidelines.
The directive aimed to enforce CWM guidelines and enhance its effectiveness.
As part of this, the PURC was tasked with appointing independent auditors for quarterly audits of ECG and NEDCo collections and disbursements to validate declared collections and ensure CWM compliance.
The ECG was instructed to use CWM as the sole payment mechanism for customer revenues and operate a single holding account for collections. Quarterly audits of ECG’s collections and disbursements were also mandated.
The PURC would validate revenue collections and payments according to CWM guidelines and reconcile quarterly with MoF and the CWM team to identify any payment shortfalls to be covered by the Finance Ministry.
Source: https://energynewsafrica.com
Senegalese government has set up a commission of legal, tax, and energy sector experts to review its oil and gas contracts and work to rebalance them in the national interest, Prime Minister Ousmane Sonko said on national television on Monday, Reuters reported.
President Bassirou Diomaye Faye, who defeated the ruling coalition candidate in a landslide victory in March, ordered an audit of the oil, gas and mining sectors after coming into office, and vowed to renegotiate the terms of contracts with foreign operators in the country if needed.
Authorities have not shared details on the audit or updates on any renegotiation plans.
Sonko said they were committed to their promise to the Senegalese people “to come back to these various agreements to re-examine them and work to rebalance them, obviously in the national interest.”
He said the commission will have sufficient resources to look into the contracts and hire experts from abroad if necessary.
He did not say how long the review would take.
The move comes soon after Senegal became an oil producer for the first time.
Australia’s Woodside Energy announced in June that its Sangomar oil and gas field had produced its first oil.
Gas production is also due to begin by the end of the year at the Greater Tortue Ahmeyim (GTA) liquefied natural gas (LNG) project, operated by BP.
Source: Reuters.com
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has expressed its readiness to clamp down and withdraw the licence of erring marketers aiding peddling of petroleum products particularly Premium Motor Spirit in jerry cans.
The NMDPRA made this known last Friday after an indoor stakeholders’ meeting involving major retail outlet managers in the Federal Capital Territory, FCT.
The meeting was aimed at reiterating the authority’s standing regulations against illegal peddling of petroleum products particularly PMS in jerry cans.
Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, said marketers were warned that henceforth the authority would ensure strict compliance.
Mr Ukoha said it would increase its surveillance monitoring routine and clampdown on erring marketers found aiding and abetting this practice by suspending their retail licences.
“The authority is taking this decisive step to safeguard lives and properties of Nigerians that are usually at risk of fire outbreaks through improper handling of the volatile and highly flammable product.
“The authority is also mindful of the nefarious practices of cross border smuggling of the products with the use of jerry cans and must tackle such,’’ he said.
A team led by the executive directors of NMDPRA, Ukoha and Dr Mustapha Larmode in collaboration with security agencies also conducted surveillance to some outlets around the metropolis.
In the process, the team discovered a couple of illegal fuel dumps and depots around the FCT.
The perpetrators were arrested and subsequently handed over to the Department of State Security for prosecution.
Source: https://energynewsafrica.com
Chevron is already a major player in Angola’s oil sector, where it holds a market share of 26%. However, the U.S.-based major recently took a step that promises to expand its footprint further.
Specifically, it announced in mid-June that it had signed contracts for two license areas off the coast of Angola – Blocks 49 and 50, both located in an ultra-deepwater section of the Lower Congo Basin.
Just a few years ago, this deal wouldn’t have been possible.
First, the other party to the contracts — the National Oil, Gas and Biofuels Agency (ANPG) — didn’t even come into existence until 2021.
That’s when the Angolan government, led by President João Lourenço, created the agency to serve as the state oil and gas concessionaire — that is, the government body responsible for negotiating petroleum agreements, a role previously assigned to the national oil company (NOC) Sonangol.
Diamantino Pedro Azevedo, Minister of Mineral Resources and Petroleum has made it a point that Angola must not choose between economic growth and environmental protection.
He crafted solutions to energy transition, reforming the energy sector, while simultaneously increasing market certainties and creating opportunities.
For the energy companies, certainty translates into confidence, and confidence leads to more investment, more jobs and more robust growth for Angola.
Second, the type of contracts Chevron signed for Blocks 49 and 50 wasn’t available in Angola until 2020, when they were launched as part of the Angolan plan to reform and incentive investment in its oil and gas industry, an initiative that dates to 2017.
These risk service contracts (RSC), as they’re known, are designed specifically for high-risk projects that are anticipated to have trouble securing investment commitments through the usual channels — that is, competitive bidding processes and the signing of production-sharing agreements (PSA).
Under RSCs, investors provide exploration and development services in exchange for guaranteed payments.
This is in contrast to PSAs, under which investors are entitled to claim a share of production, assuming that exploration leads to commercial development.
In other words, the Angolan government’s reform program made Chevron’s deal for Blocks 49 and 50 possible. (It has also made other deals possible, including the RSCs signed in 2020 by ExxonMobil, another U.S.-based giant.)
A New Frontier
Chevron has not yet made many details of its new contracts public. It has not, for instance, revealed the value of the deals.
However, the company certainly seems to view these projects as significant. As William Lacobie, the managing director of the company’s Southern Africa Strategic Business Unit, pointed out last month, Blocks 49 and 50 represent a new frontier for Chevron subsidiary Cabinda Gulf Oil Co. Ltd (CABGOC).
Thus far, he noted, CABGOC has focused on Blocks 0 and 14, both located in well-explored sections of the Angolan offshore zone. Blocks 49 and 50 will be “CABGOC’s first operated assets outside of our existing Cabinda concession area,” he said.
But Chevron will not be the only party to benefit. Angola also stands to gain from the new contracts, which will add value to the national economy.
This value will come partly in the form of investment and partly in access to the sophisticated new technologies needed to explore (and possibly develop) the ultra-deepwater blocks.
A Sign of Reform
The benefits aren’t limited to money and technology, however. The RSCs for Blocks 49 and 50 also show that the reforms driven by Diamantino Pedro Azevedo are opening up new opportunities for the oil and gas industry.
Let me explain.
The RSCs are attractive to Chevron because they give the company an opportunity to earn money even though Blocks 49 and 50 lie within the ultra-deepwater section of the offshore zone.
These areas have yet to be fully explored, and they lack the extensive production infrastructure that supports the U.S. major’s upstream operations at Blocks 0 and 14.
In other words, the new contracts allow the company to enter a frontier province and expand its footprint in Angola without incurring too much risk.
At the same time, the deals benefit the country, as they will bring Chevron’s expertise, equipment, and technology to these ultra-deepwater sites, hopefully as a prelude to further investment in the area by other international oil companies (IOCs).
This is not something Angola could have accomplished in other ways, as Sonangol does not have the resources needed to explore and develop the blocks on its own, and a competitive bidding process might have failed to attract other investors.
The same is true of ExxonMobil’s deals for Blocks 30, 44, and 45. Without RSCs, these sites, all of which are located within another frontier province known as the Namibe Basin, might never have been able to secure investment commitments.
Other Changes for The Better
The availability of RSCs aside, Angola has made a number of other changes since 2017 in a bid to encourage IOCs to do business there.
For example, it has formulated plans for partial privatization of Sonangol. The NOC had previously functioned more as an arm of the government than as an oil company, serving as the main point of contact for all potential partners, enforcing industry laws and regulations, and operating multiple non-core subsidiaries at the behest of officials in Luanda.
Now, though, it has hived off many of its daughter companies and is preparing for an initial public offering on local and international exchanges.
Meanwhile, Angolan authorities have also established a permanent offer scheme that allows ANPG to accelerate the pace of signing contracts by negotiating directly with IOCs on certain projects rather than carrying out competitive bidding rounds.
Additionally, it has revised the tax code to offer additional incentives to investors in the petroleum sector and has reformed local content policies in ways that are designed to help IOCs work with local contractors.
Moreover, Angola has taken steps to assist the oil and gas sector less directly. For example, it now permits citizens of 98 countries to visit Angola without a visa, up from 62 previously.
This measure was ostensibly designed to facilitate tourism, but it also promises to benefit IOCs since some of the new entries on the list are countries that host the world’s biggest oil and gas operators, such as the U.S., the UK, South Korea, Japan, and India.
Altogether, these measures seem to have helped Angola weather the coronavirus (COVID-19) pandemic in 2020 and other events that disrupted global energy markets in subsequent years.
They have also allowed the country to attract investments for new projects. These include deals for construction of the Cabinda and Lobito refineries and for the expansion of liquefied natural gas (LNG) exports to Italy by 1.5 billion cubic meters (bcm) per year.
More Reform Needed
Even so, Angola has more work to do. Reform must continue.
Despite the progress made so far, Angola’s government has yet to proceed with plans to sell up to 30% of Sonangol.
It has set a deadline of 2026 for the company’s IPO, but it has also said it will only move forward after taking certain steps to establish the NOC as a vertically integrated oil and gas company that has a substantial upstream footprint and more capacity to meet domestic fuel demand, as the AEC discussed in greater detail in July 2023.
Moving forward, the government will need to ensure that these steps do not falter.
If Luanda fails to take these steps and enact further reforms, it risks losing some of the ground it has gained.
It will have a harder time staving off a long-term decline in crude oil output, boosting natural gas production, attracting funding for refining and petrochemical projects that can supply the local market with cleaner fuels, and laying the groundwork for its eventual transition to renewable energy.
Therefore, it must work to make the country more competitive, more business-friendly, and more transparent.
It should clamp down on corruption and improve oversight of its sovereign wealth fund, which handles the state’s earnings from oil and gas sales.
It ought to team up with investors to look for ways to maximize local content, and it should consider additional tax breaks for IOCs.
Moreover, it should establish a domestic value chain for the country’s natural gas production by encouraging consumption of liquid petroleum gas (LPG).
This would allow many more Angolans to gain access to clean-burning fuels and phase out the use of biofuels that contribute to deforestation such as charcoal and wood.
It’s true that Angola’s oil and gas sector has made progress since 2017, thanks to the reforms enacted by the Lourenço administration.
But the reform process should not stop here, with the signing of Chevron’s new RSCs. It should move forward so that the country has a better chance to aim for a brighter future.
Source: energychamber.org
Today Eni has started gas production from the Argo Cassiopea field, the most important gas development project in Italy.
The gas, coming from one of the four subsea wells drilled in recent months in the Strait of Sicily, has been transported through a 60 km subsea pipeline to the Gela processing plant.
Here it will be processed and then fed into the national grid, contributing to Italy’s energy needs.
The Argo Cassiopea production project, operated by Eni in joint venture with Energean, has begun production just three years after the start of works.
Production is carried out entirely under the sea, with no visual impact and near-zero emissions. A dedicated installation of 3.6 MWp of photovoltaic panels will ensure the project achieves carbon neutrality for Scope 1 and 2 emissions.
Argo Cassiopea plays a central role in Eni’s strategy to increase the use of domestic natural gas for energy security and as a low-emission source.
Argo Cassiopea’s reserves are estimated at around 10 billion cubic metres of gas, with peak annual production expected to 1.5 billion cubic meters of gas.
Source: Eni.com
Nigeria’s President Bola Tinubu has appointed Engineer Jennifer Adighije as the new Managing Director/CEO of Niger Delta Power Holding Company (NDPHC).
Engr Adighije takes over from Chiedu Ugbo, who completed his two-term tenure as MD in August 2016.
Her appointment which was confirmed in a statement released by Chief Ajuri Ngelale, Special Adviser to the President, Media & Publicity, on Monday, also announced the appointment of new management members of the power company.
The new management includes Engineer Abdullahi Kassim, Executive Director (Generation), Engineer Bello Babayo Bello, Executive Director (Networks) and Mr Emmmanuel Umeoji, Executive Director (Corporate Services)
Others are Mr Omololu Agoro, Executive Director (Finance & Accounts), Engineer Omoregie Ogbeide-Ihama, Executive Director (Strategy & Commercial), and Barrister Steven Andzenge, Executive Director (Legal Services).
According to the statement, President Tinubu expects Ms Jennifer Adighije and the new members of the management of the company to deploy their expertise and experience to drive NDPHC’s mandate of effectively managing the National Integrated Power Projects (NIPP).
Ms Jennifer Adighije, the new NDPHC Chief Executive Officer, is an experienced engineer with vast competencies across management functions in the private and public sectors.
She started her career journey at PHCN (formerly NEPA) as a Transmission Maintenance Engineer and later moved to Globacom where she worked impeccably to create cutting-edge value-added services which propelled her to Helios Towers Nigeria, as Head of the company’s project management office PMO.
She later joined the Central Bank of Nigeria at the managerial level in the Procurement Department, where she did Value Engineering and Cost Control on the bank’s capital projects.
She holds a Master’s Degree in Wireless Networks & Telecommunications from Queen Mary University of London, UK, and a Bachelor’s Degree in Electrical/Electronic Engineering from the University of Lagos, Nigeria.
She is a member of the Nigerian Society of Engineers, a registered COREN practitioner, and a life member of the Rotary Club.
Source: https://energynewsafrica.com
South Africa has withdrawn a ministerial determination to procure 2500MW of nuclear power following concerns by the public that South Africans have not been consulted on the matter.
Electricity and Energy Minister Dr Kgosientsho Ramokgopa disclosed this to the press in Pretoria last Friday, August 16, 2024.
“I have taken the decision…to withdraw the gazette to allow for that public participation to happen.
“The only time we got to know and be alerted that the process was not subjected to a public consultation process is when the [court] papers were filed and the Minister took the decision that we are withdrawing the gazette; we allow for that public participation so that the process is clean…and transparent,” he told the media.
In December last year, the Minister announced that South Africa would soon begin the procurement process for some 2500MW of nuclear energy.
At a media briefing at the time, the Minister explained that the Department of Mineral Resources and Energy (DMRE) had to satisfy a raft of rigorous National Energy Regulator of South Africa (NERSA) suspensive conditions, which took into account various factors before the go-ahead could be issued.
As a result of the withdrawal, the Minister said the process for the procurement would be delayed, according to a report by South African Government News Agency.
“Of course, there is a penalty you pay as a result of this decision [in] that you are delaying the process. But we are happy to delay the process so that we are able to allow for each and every party in the country that wants to add a voice in how we are going to procure this process for them to be given the opportunity to be able to make that submission.
“So it will add another three to six months in the process. We are happy to do that for as long as we protect the integrity of the process; for as long as we cement the transparency of the process so that there’s general public confidence in the work that we are doing.
“I want to give confidence to the South African public that we will take you every step of the way. We will carry South Africans every step of the way to preserve the integrity of any procurement process, including the nuclear procurement process, especially given its checkered history,” he explained.
Despite the withdrawal, the procurement of nuclear energy remains a government plan for the country’s energy security.
Nuclear energy forms part of government’s Integrated Resource Plan 2019’s envisaged energy mix for South Africa.
“Nuclear is part of the mix. Nuclear is part of the future but it’s important that as we go out…the procurement process must be able to stand the test of time. In this instance, it’s the ability to be able to subject itself to scrutiny.
“Let’s go back to that process; accord the public an opportunity to scrutinise, respond and then on the basis of that [Nersa] can make a determination on concurrence. Once we receive that, we’ll issue the gazette and ensure that we procure,” Dr Kgosientsho Ramokgopa said.
Source: https://energynewsfrica.com
Initiated in 2018, IRENA’s Global Network of Long-Term Energy Scenarios Practitioners (Global LTES Network) provides a global platform to exchange knowledge and good practices in the use and development of scenarios to guide the clean energy transition and promote wider and more effective use of LTES in government for energy and climate policymaking.
At the 5th edition of its annual flagship International Forum on Long-term Scenarios for the Clean Energy Transition, IRENA will once again bring together scenario practitioners in government, academia, technical institutions, international organizations, and the private sector.
The Forum will focus on alignment between energy and climate planning, the role of scenario planning for de-risking investment for the clean energy transition, scenario communication, lifestyle changes, energy security, and hydrogen integration.
The Forum will take place at the IRENA Innovation and Technology Centre in Bonn, Germany, from 9-11 September 2024 in a hybrid format (on-site and virtual), allocating only a limited number of participants on-site (priority given to the LTES members, partners, and speakers), and accepting registrations for virtual participation in the event.
The Bui Power Authority (BPA) Corporate Affairs Team has been honoured as the “Corporate Affairs Team of the Year” under the Energy Sector Category at the 2024 National Communications Awards held in Accra, the capital of Ghana.
This significant recognition was further complemented by an award to the Senior Manager, Corporate Affairs, Lawyer Akua Sakyi, who was honoured as the “Outstanding Woman in Communication Leadership of the Year”.
This year’s ceremony, which was on the theme: “Celebrating Excellence and Technology in Innovation,” took place at the Accra Marriott Hotel. The event underscored the importance of communication in advancing technology and fostering growth in various sectors.
The National Communications Awards is an annual event dedicated to celebrating excellence in communication and digitalisation across Ghana.
It serves as a platform to recognise the exceptional contributions of companies, organisations, teams and professionals who play a pivotal role in the nation’s development through effective communication and innovative digital practices.
Commenting on the award won by herself and her team, Madam Akua Sakyi, a professional with a wealth of experience in the industry, said she was proud to be acknowledged in such a meaningful way.
Akua Sakyi displaying her award
“It’s an incredible honour to receive this award. Being part of a community that understands the power of effective communication in leadership is something I deeply value. I hope this recognition serves as an inspiration to other women to pursue their respective careers with hard work and dedication and to never lose sight of their dreams,” she stressed.
Madam Akua Sakyi also expressed her heartfelt gratitude to the organisers of the National Communications Awards and to the CEO of the BPA, Hon. Ing. Samuel Kofi Ahiave Dzamesi, who has created an enabling environment for staff members to thrive in their respective areas. She pledged that, together with her team, they would continue to uphold the standards of excellence in everything they do.
These awards highlight the critical role of communication in the energy sector and the valuable contributions of women in leadership positions
Source: https://energynewsafrica.com
Ghana National Petroleum Corporation CEO Joseph A. Dadzie will discuss Ghana’s latest deepwater drilling campaigns and plans to become a regional energy trading destination at the upcoming conference
Ghana is bolstering its oil and gas industry through new deepwater drilling campaigns and a $60-billion petroleum hub project in the Western Region.
Recently-appointed Ghana National Petroleum Corporation (GNPC) CEO Joseph A. Dadzie will speak on the country’s efforts to drive production increases, grow domestic refining capacity and build a diversified national energy economy at African Energy Week: Invest in African Energy 2024 in Cape Town this November.
Ghana’s upstream oil and gas sector is currently experiencing revitalized growth, driven by new onstream projects set to enhance the country’s oil production capacity, tap into new reserves and reverse declining output.
Key projects include Tullow Oil’s deepwater Jubilee Field, which aims to bring onstream three new producer wells and two water injectors this year.
Two producer wells have already come online, increasing the field’s production to more than 100,000 barrels per day (bpd).
The ultra-deepwater Pecan Phase 1A Upstream Project – led by GNPC, Aker Energy and Lukoil, among other partners – is currently in approval stage and expected to start commercial production in 2025.
Additionally, the Ntomme Far West Development is currently in the pre-feasibility stage, with progress made towards drilling the first well.
Ghana’s downstream oil and gas sector is also expanding significantly, with key infrastructure projects such as the $700-million gas processing plant at Atuabo and the $380-million Tema VI Liquids Storage Terminal enhancing the country’s refining and storage capacities.
Moreover, the government of Ghana finalized agreements in June 2024 to develop the initial phase of the first integrated downstream petroleum hub in West Africa. To be funded by the TCP-UIC private-sector consortium, the multi-phase project includes three refineries, five petrochemical plants, storage tanks, jetties, a port and associated LNG and logistics infrastructure. The development supports Ghana’s plans to become the premier destination for energy trading in West Africa. The country signed agreements with Senegal and The Gambia in July 2024 to increase the export of petroleum products, expanding its network that already includes Mali, Niger, Burkina Faso, Ivory Coast and Togo.
Meanwhile, GNPC has been pivotal in advancing local content within Ghana’s oil and gas sector, aiming to maximize the participation of Ghanaian businesses and professionals in the industry.
The NOC has actively supported the development of local skills and capacity through partnerships with educational institutions and specialized training programs. In May 2024, GNPC Foundation opened applications for its 2024/2025 local scholarship program, which targets undergraduate and postgraduate students pursuing degrees in Ghana. Additionally, GNPC’s efforts include collaborations with IOCs to ensure technology and knowledge transfer, further embedding local expertise into the sector and directly addressing the skills gap in the industry.
“GNPC’s participation at AEW 2024 will shed valuable insight into Africa’s energy future, as Ghana represents one of the most historic producers on the continent. With new deepwater and ultra-deepwater projects in the pipeline – in addition to the multi-billion-dollar petroleum hub initiative – GNPC will enhance discussions on energy security, local content and sustainable growth for stakeholders looking to invest in African energy,” said NJ Ayuk, Executive Chairman of the African Energy Chamber.
Source: African Energy Chamber
Kenya Electricity Generating Company PLC (KenGen), Africa’s premier green energy generator, has been inducted into the Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index.
This significant development is expected to signal a potential surge in foreign direct investments for the NSE-listed firm, highlighting its strategic importance in the global energy sector.
This strategic capital investments milestone enhances KenGen’s visibility and attractiveness to global investors, positioning it as a key player in the frontier markets landscape.
“This development is expected to enhance shareholder value by attracting more international investment, thereby increasing liquidity and potentially driving up share prices,” said Eng. Peter Njenga, KenGen’s Managing Director and CEO.
The MSCI Frontier Markets Small Cap Index serves as a crucial benchmark for institutional investors seeking to gain exposure to emerging economies with high growth potential.
KenGen’s inclusion in this index underscores its robust financial performance, innovative energy solutions, and commitment to powering Kenya’s future sustainably.
This inclusion reaffirms KenGen’s commitment to delivering affordable and reliable energy solutions to the nation, fostering economic growth, and contributing to Kenya’s vision for a green energy future.
In statement responding to the news, the Nairobi Securities Exchange (NSE), said being part of the MSCI Frontier Markets Small Cap Index provides investors with a unique opportunity to invest in companies like KenGen which have strong growth prospects, solid governance, and a proven track record in the energy sector.
“The move will enable wider and deeper coverage of Kenya’s equity market increasing the visibility of companies listed on the NSE and enhance their attractiveness to global investors as the indices serve as benchmarks for institutional investors looking to gain exposure to frontier markets,” said Mr. Frank Mwiti, NSE Chief Executive Officer.
“This inclusion is a testament to KenGen’s consistent performance and strategic growth initiatives.
“We are thrilled to be recognized on such a prestigious global platform, which will undoubtedly attract more investment into our company and, by extension, make Kenya an attractive investment option,” said Eng. Peter Njenga.
The broader impact of KenGen’s inclusion in the MSCI Frontier Markets Small Cap Index extends beyond the company, contributing to the overall growth and stability of Kenya’s financial markets.
This move is anticipated to inspire confidence among international investors, thereby fostering an environment conducive to further foreign investment and economic development.
Source: https://energynewsafrica.com
