Ghanaian Energy Firm Springfield Hit With Sanctions In Discovery Fight
A Texas federal judge has slapped sanctions against an African energy company after finding that it lied in Ghanaian court about a discovery dispute related to a case in Ghana, saying attorney fees and costs are appropriate in relation to several proceedings.
U.S. District Judge Keith P. Ellison last Tuesday imposed the fees and costs sanctions against Ghanaian company Springfield Exploration & Production Ltd. following allegations lodged by Italian oil giant Eni’s Ghanaian unit, Eni Ghana Exploration & Production Ltd., claiming that Springfield misrepresented the nature of the related Texas dispute to the Ghanaian court.
“The court finds that the imposition of sanctions against Springfield pursuant to the court’s inherent powers to be appropriate based on [a] finding of bad faith,” the judge wrote.
The sanctions of attorney fees and costs are related to Eni Ghana’s motion to modify a protective order, a bid by Springfield’s counsel to withdraw from the proceedings, and the sanctions proceedings themselves.
On Tuesday, however, Judge Ellison declined to vacate the protective order while also finding that “modest sanctions are appropriate.” He asked Eni Ghana to submit a brief saying the amount of costs and fees it is owed, along with documentation.
Eni Ghana had instigated the Texas proceedings to procure production of a report prepared by Gaffney Cline & Associates Inc., which purportedly found that a Springfield oil field in Ghana had a large untapped reserve and thus proved the commercial viability of a joint undertaking that would unite two fields owned by Springfield and Eni Ghana, respectively, Judge Ellison said.
The original respondents in the Texas proceedings initiated by Eni Ghana were Gaffney Cline and its parent company, British oil services company Baker Hughes Co. Springfield later intervened. Judge Ellison granted Eni Ghana’s bid for production of the report in August 2022.
“However, Springfield refused to produce the Gaffney Cline report or the data the report relied on in reaching its conclusions, preventing Eni Ghana from challenging Springfield’s assertions,” the judge wrote.
Gaffney Cline and Baker Hughes eventually produced the report, but the judge said he issued a protective order because the resulting documents contained proprietary commercial information.
Eni Ghana had agreed to try to file the evidence under seal in any subsequent litigation, but the parties disagreed over what should happen if the Ghanaian courts rejected its motion to file under seal, Judge Ellison said.
“Eni Ghana contended it should be able to file the documents anyway, while Springfield argued that it should be prevented from filing the documents if they could not be sealed,” the judge wrote.
Judge Ellison ultimately sided with Springfield and issued the protective order in May 2023.
Just a month earlier, Eni Ghana had asked the Texas federal court not to stay its case seeking to compel Baker Hughes to hand over the records pertinent to the dispute over the oil reserved discovery in courts abroad, slamming the stay as “baseless” and “highly prejudicial.”
Eni Ghana and another oil company, Vitol Upstream Ghana Ltd., in April 2023 filed an opposition to Springfield’s emergency motion to stay pending its appeal over discovery of its documents. Judge Ellison denied the motion that same month, saying Springfield had not shown a likelihood of success on the merits.
In particular, Eni and Vitol had been trying to get access to the report prepared by Baker Hughes’ unit Gaffney Cline & Associates analyzing the commercial viability of the oil discovery central to the Ghanaian case.
Eni and Vitol said that the district court held that they’re indeed entitled to the discovery they’re seeking, but then Springfield intervened and appealed.
With its motion for a stay, Springfield is just trying to further delay production of those materials, a move that could render the court’s order moot, Eni and Vitol said.
Eni and Vitol lodged their petition in the Southern District of Texas in July 2022. They said they invested $6.2 billion to develop an offshore oil and gas project that includes the Sankofa Cenomanian Oilfield.
In the courts of Ghana, Eni and Vitol are fighting “purported directives” from Ghana’s Ministry of Energy ordering them to jointly develop, operate and share the proceeds from the Sankofa oilfield with a new offshore oil discovery they call the “Alina Discovery.”
They said the directives could mean a multibillion-dollar windfall upon the two owners of that discovery: Springfield and Ghana’s state-owned oil company, the Ghana National Petroleum Corp.
They added that there has yet to be any appraisal of the Afina Discovery, an essential component of establishing commerciality.
Eni and Vitol said in their April 2023 filing that it was “telling” how hard Springfield was fighting to withhold evidence about the Gaffney Cline report.
“The logical inference is that the undisclosed information is harmful to Springfield’s case on unitization,” they said.
Counsel for Eni Ghana and Vitol Upstream declined to comment Wednesday. Counsel for Baker Hughes, Gaffney Cline and Springfield didn’t immediately respond to requests for comment.
Eni Ghana Exploration and Vitol Upstream Ghana are represented by Luke A. Sobota of Three Crowns LLP.
Baker Hughes and Gaffney Cline are represented by Edwin S. Gault Jr. and Caroline Upchurch of Forman Watkins & Krutz LLP.
Springfield Exploration is represented by Jill Carvalho of Burke Law Group LLP.
The matter is In re: Ex Parte Application of Eni Ghana Exploration & Production Ltd., case number 4:22-mc-01285, in the U.S. District Court for the Southern District of Texas
Source: Law360.com
TotalEnergies Sells Its Shares In Total Parco In Pakistan
TotalEnergies has signed an agreement to sell its 50% stake in Total PARCO Pakistan Limited (TPPL) to Gunvor Group, a leading global commodities trading company.
The transaction reflects the selective strategy of TotalEnergies in Marketing & Services focused on core geographies with growth and transitioning opportunities.
TPPL is a 50/50 joint venture between TotalEnergies Marketing and Services and Pak-Arab Refinery Limited (PARCO) in Pakistan with a retail network of more than 800 service stations, fuel logistics, and lubricants activities.
The new entity will continue its retail business under the existing “Total Parco” brand, and its lubricants business under the “Total” brand for five years in Pakistan, continuing to serve its customers.
The acquisition remains subject to authorization by the relevant authorities and related agreements.
Source: https://energynewsafrica.com
Nigeria: NERC Transfers Regulatory Oversight Of Oyo Electricity Market To State Gov’t
The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring its regulatory oversight of the electricity market in Oyo State to the Oyo State Electricity Regulatory Commission.
In an order dated August 5 and signed by Sanusi Garba, its chairman, the NERC said the directive take effect from today August 6, 2024.
According to the commission, the order is to commence the process of the transfer of regulatory oversight for the intrastate electricity market in the state from NERC to Oyo State Electricity Regulatory Commission (OSERC), in accordance with the Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity of Act 2023 (amended).
“Ibadan Electricity Distribution PLC (“IBEDC”) is hereby directed to incorporate a subsidiary (“IBEDC SubCo”) under the Companies and Allied Matters Act for the assumption of responsibilities for intrastate supply and distribution of electricity in Oyo State fron IBEDC,” the order reads.
“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from the effective date of this Order and, IBEDC SubCo shall apply for and obtain a licence for the intrastate supply and distribution of electricity from OSERC.
“IBEDC shall identify the actual geographic boundaries of Oyo State and carve out its network in Oyo State as a standalone network with the installation of boundary meters at all border points where the network crosses from Oyo State into another state.”
According to the order, as part of the transition process, IBEDC is mandated to create an asset register of all its power infrastructure located within Oyo state.
The commission also said the DisCo would evaluate and apportion “contractual obligations and liabilities attributable to IBEDC’s operations of its subsidiary in Oyo State”.
IBEDC, according to NERC, would identify all the applicable trading points for energy offtake for the operations of IBEDC SubCo in Oyo.
NERC asked IBEDC to “confirm the number of employees that are required to provide service to Oyo State as a standalone public utility and transfer the identified assets for operations in Oyo State, contractual obligations, liabilities and employees to IBEDC SubCo”.
NERC said all transfers contained in the order would be completed by February 5, 2025.
On April 22, Enugu and Ekiti states received approval from NERC to regulate their electricity markets.
The regulator, on April 23, transferred oversight of the electricity market in Ondo to the state’s electricity regulatory bureau (OSERB).
On July 1, the commission transferred regulatory oversight of the power market in Imo to the state’s electricity regulatory commission (ISERC).
Source: https://energynewsafrica.com
Ghana: BOST Presents Laptops To Scholarship Beneficiaries At UMaT
The Bulk Energy Storage and Transportation Company Limited (BEST) formerly known as Bulk Oil Storage and Transportation Company (BOST) has presented laptops to 50 selected students at the University of Mines and Technology (UMaT), in Tarkwa, to support their studies as part of a four-year scholarship package program.
The beneficiary students are already part of the company’s scholarship programme, selected from across its host communities across the country.
The Deputy Managing Director of BOST, Joseph Kpemka, speaking at the presentation ceremony, highlighted the initiative as a corporate social responsibility effort aimed at empowering students from its impacted communities.
“The laptops will facilitate access to information, online research, and academic work,” Kpemka stated.
The Pro-Vice Chancellor of UMaT, Anthony Simmons who received the laptops on behalf the University, while lauding BOST for the initiative, he urged the beneficiaries to endeavour to complete their studies successfully in order to motivate the company to continue to support others in their impacted communities.
Source: https://energynewsafrica.com
Ghana: Star Oil To Develop Tank Farm In Tema…Invites Contractors And Financiers
Star Oil Ghana Ltd., one of the second leading oil marketing companies in the Republic of Ghana, has announced a plan to develop a Tank Farm in the Tema enclave to enhance its operational capacity and strategic autonomy
The company is looking at constructing a 40,000 Metric Tonnes fuel tank farm over three to five years.
In a statement, the company said this new facility would grant Star Oil direct control over its fuel storage in the Tema enclave, in line with its growth and sustainability objectives.
In line with this ambitious project, the company is inviting experienced contractors and financiers with proven track record in similar developments to express their interest.
South Africa: Motorists Expected To Get Some Relief At The Pumps Next Week
Motorists in South Africa will witness a drop in fuel prices by next Wednesday, according to a report by Sabcnews.com, citing data from the Central Energy Fund.
The data points to a price reduction of between nine and thirteen cents per litre, depending on the grade of fuel.
The price of a litre of diesel is expected to drop by between 14 and 26 cents, also depending on the grade.
The price of a litre of paraffin is expected to decrease by around 20 cents.
The Central Energy Fund’s anticipated decrease in fuel prices follows a stronger rand dollar exchange rate over the period under review.
A reduction in the price of Brent crude oil in July also contributed to the expected upcoming fuel price reduction.
The Department of Mineral Resources and Energy is expected to announce fuel price adjustments.
Source: https://energynewsafrica.com
Ghana: Petrol, and Diesel Prices Reduced At The Pumps
Oil Marketing Companies in the Republic of Ghana have reduced the pump prices of both petrol and diesel for the first pricing window of August, which runs from the 1st to the 15th of August.
As of Monday, leading OMCs such as GOIL, Shell, Star Oil and Zen Petroleum had adjusted their pump prices, with petrol selling between Gh¢14.42 and Gh¢14.02 per litre while diesel is selling between Gh¢14.99 and Gh¢14.48 per litre.
Unlike other parts of Africa where fuel prices are reviewed every month, in Ghana, fuel prices are reviewed every two weeks.
The reduction in fuel prices is a result of a reduction in refined petroleum products on the international market.
During the first pricing window which ended on July 31, a US dollar was exchanged for between Gh¢15.48 and Gh¢15.55.
Data from the National Petroleum Authority, the petroleum downstream regulator, showed that the price of refined petroleum products -petrol and diesel went down.
Petrol price decreased to US$817.75 from US$842.98 per metric tonne while diesel price decreased to Gh¢755.93 from US$792.32 per metric tonne for the first pricing window of August.
Crude oil prices also witnessed some decreases during the second window of July, with Brent falling from $87 to $80 per barrel and WTI falling from $84 to $73 per barrel.
Currently, GOIL is selling petrol (Ron 91) at Gh¢14.42 per litre while petrol (Ron 95) is sold at Gh¢15.52, with diesel being sold at Gh¢14.99 per litre.
Shell is selling petrol at Gh¢14.87 per litre while diesel is sold at Gh¢14.92 per litre.
TotalEnergies is selling petrol at Gh¢14.90 while diesel is sold at Gh¢14.90 per litre.
Star Oil is selling petrol at Gh¢13.65 per litre while diesel is sold at Gh¢14.02 per litre.
Petrosol Ghana is selling petrol at Gh¢14.39 while diesel is sold at Gh¢14.68 per litre.
Zen Petroleum is selling petrol at Gh¢13.65 per litre while diesel is sold at Gh¢14.02 per litre.
Puma is selling petrol at Gh¢14.45 per litre while diesel is sold at Gh¢14.60 per litre.
Allied is selling petrol at Gh¢13.65 while diesel is sold at Gh¢14.02 per litre.
Pacific is selling petrol at Gh¢14.39 per litre while diesel is sold at Gh¢14.79 per litre.
Engen Ghana is selling petrol at Gh¢14.65 while diesel is sold at Gh¢14.85 per litre.
Benab is selling petrol at Gh¢13.65while diesel is sold at Gh¢14.02 per litre.
Source: https://energynewsafrica.com
Ghana: Energy Experts Conclude Review Process On Regional Grid Code
Regional energy experts from the Ministries of Energy, National Regulatory Authorities, and power utilities from ECOWAS Member States have concluded the review of the West African Power Pool (WAPP) Grid Code, a document critical for the operations of the ECOWAS Regional Electricity Market.
The experts, members of ERERA’s Consultative Committees of Regulators and Operators (CCRO), an organ set up to assist ERERA’s Regulatory Council in its decision-making role, began their two-day meeting on July 22, 2024, in Accra.
The review process of the WAPP Grid Code included consideration of the practices in the electricity industry and harmonizing the contents of the Grid Code, such as the terminology, procedures and rules, with the existing reference documents of the Regional Electricity Market as approved by ERERA.
The Grid Code will enhance the transition to the second phase of the electricity market and clarify the rules relating to the main functions of the market in a single integrated document.
At the opening of the meeting, the Chairman of ERERA, Engr. Laurent Tossou emphasized the organization’s commitment to ensuring reliable and affordable electricity access for all ECOWAS Member States.
“Electricity security is paramount, and our role as regulators is to harmonize national policies to facilitate seamless electricity trade within the region,” he stated.
Engr. Tossou highlighted the progress made in regional electricity interconnections and stressed the need for robust regulatory frameworks to support further integration.
In his remarks, the Executive Secretary of Ghana’s Energy Commission, Mr. Oscar Amonoo-Neizer, underscored the region’s diverse energy potential including natural gas, solar, wind, and hydro.
He emphasized efficient resource utilization to achieve competitive pricing and dependable energy supply across West Africa.
For his part, the Executive Secretary of the Public Utilities Regulatory Commission of Ghana (PURC), Dr. Ishmael Ackah, emphasized the forum’s role in balancing national interests with economic principles in electricity trade.
“ERERA aims to foster dialogue among experts to ensure countries meet their energy needs while participating in cross-border electricity trade,” he noted.
The meeting of the Consultative Committees of Regulators and Operators precedes the organization of ERERA’s Regulatory Forum which will took place on July 24 and 25, 2024 in Accra.
Source: https://energynewsafrica.com
Deliver Energy Before The ‘Just Transition’ (Article)
In Africa, with a young demographic, a plethora of socioeconomic development requirements and energy poverty, amongst other pressing issues, meeting the population’s minimum energy requirements is crucial and existential.
These critical issues must be reconciled when mapping Africa’s development path and addressed before the drive to achieve Net Zero emissions.
With geopolitical tensions rising and growing pressures to eliminate hydrocarbons from the energy mix, the continent’s primary concern should be securing energy availability and affordability for its people. Currently, it is estimated that 600 million Africans lack access to electricity, creating significant barriers to health care, education, productivity, digital inclusivity, and, ultimately, job creation.
Therefore, the continent must focus on securing energy access from every source despite geopolitical tensions and increasing pressure to eliminate hydrocarbons. This natural resource is currently abundant but largely underdeveloped, a situation that applies to every country on the continent.
Balancing Decarbonisation and Energy Security
While decarbonisation is a critical global urgency, it should not be pursued at the expense of energy security, national security or economic stability. This is especially true for Africa, which, despite housing one-fifth of the world’s population, is responsible for less than 3% of global carbon emissions.
The continent also grapples with extreme energy poverty, with the International Energy Agency (IEA) reporting that 43% of its population lacks access to electricity despite significant untapped hydrocarbon resources. Balancing these two priorities and the need for molecules and electrons with the growth of the continent and its young population is a complex but necessary task.
Compared with the ageing demographics of developed regions, Africa’s youthful population is poised to drive a significant increase in energy demand in the coming years. This growth is not just necessary but also a source of hope, as it will accommodate the aspirations of its young populace. Therefore, it is unjust to expect Africa to forego developing its natural energy resources to mitigate environmental damage caused by 250 years of industrialisation by the Global North. This expectation leaves a whole generation behind and underscores the need for global equity in addressing climate change.
Ensuring a Just Transition
A truly equitable energy transition is not just a necessity but a moral imperative that meets the needs of all countries, necessitating extensive collaboration. It is crucial to strike a balance between traditional and renewable energy sources while considering the growth of Africa’s youthful population. While the continent recognises the necessity of decarbonisation, it also recognises that this cannot be achieved at the expense of its population’s development.
Africa’s unique energy needs must allow it to set its own energy transition pace. The first step is access to primary energy, clean cooking, and clean water – a just transition is both an obligation and a fundamental human right.
According to the UN Sustainable Development Goal 7, ensuring affordable, reliable, sustainable, and modern energy for all is crucial. It is estimated that urban homes should have 100kWh of energy for basic access, which is insufficient to operate a refrigerator. Hence, there are calls to set the modern energy minimum closer to 1,000kWh.
Discussing a just transition for those lacking basic energy access is futile. To reach that starting point, energy demand must rise. However, the current surge in global energy demand driven by Big Tech’s AI integration highlights the injustice of insisting that Africa leave its hydrocarbons in the ground for Net Zero despite having no energy access.
Minimum energy requirements for human development must also come from affordable, reliable, and lower-carbon power. While the move to renewables is noble and necessary, another vital energy transition is the move from no energy to “some energy.” The developing world asks that everyone have access to the same amount of energy required to power a refrigerator, which is not too much to ask.
Collaborative Efforts for a Just Transition
In conclusion, achieving a just energy transition while ensuring energy security and affordability for all necessitates historic levels of collaboration and partnerships.
Traditional energy companies must work with emerging clean-energy firms, and the Global North must align its energy transition demands with the Global South’s primary energy needs.
A truly just transition requires countries at different development stages to collaborate on understanding and addressing each other’s needs. International events such as the forthcoming Africa Oil Week (AOW) in Cape Town in October provide a platform for these critical dialogues so all stakeholders can navigate the path to net zero while ensuring energy security and affordability for all.
Celebrating its 30th year, AOW: Investing In African Energy, running from October 7 to 10 at the Cape Town International Conference Centre, will highlight opportunities across the energy transition value chain for the continent by the continent. The conference will focus on responsible exploration and production, gas monetisation, and future fuels. It will connect industry leaders, shape policy, and catalyse investment.
Source: Lamé Verre
Fellow of the Energy Institute | Member of the Global Future Council on Energy Transition at The World Economic Forum
Ghana: GNPC’s Operational Headquarters In Takoradi Will Create Numerous Job Opportunities – Says Akufo-Addo
The Ghana National Petroleum Corporation (GNPC) on Thursday, August 1, commissioned its $25 million state-of-the-art operational headquarters in Takoradi in the Western Region of Ghana.
GNPC has been operating from Tema in the Greater Accra Region, where its headquarters is located.
However, during the 2016 electioneering compaign, the presidential candidate of the New Patriotic Party (NPP), Nana Addo Dankwa Akufo -Addo, now President of Ghana, promised to relocate the operational headquarters of the corporation to the Western Region to reflect the region as the host of oil and gas resources of the country.
In fulfilment of this promise, President Akufo-Addo, in August 2020, cut the sod to begin the construction of the building.
In a post on Facebook on Thursday, August 1, 2024, after commissioning the facility, President Akufo-Addo wrote: “This state-of-the-art facility is not just a building; it represents the fulfilment of a promise I made during the 2016 elections to decentralise development and ensure that the benefits of our natural resources are felt by the communities that contribute so much to our nation’s wealth.”
He continued, “This headquarters is strategically positioned to enhance GNPC’s operational efficiency and serve as a catalyst for economic growth in the Western Region.
“The establishment of this facility will create numerous job opportunities and stimulate local businesses, contributing to the overall prosperity of the region,” he said.
“It also underscores our commitment to building a robust oil and gas sector that drives technological innovation, skills development, and sustainable economic growth.”
He expressed gratitude to all who played a part in bringing this project to fruition, from local leaders and contractors to the hard-working people of the Western Region.
“As we move forward, let us remain dedicated to managing our resources sustainably and promoting local content in the oil and gas industry.
“Together, we can harness the full potential of our natural resources for the benefit of all Ghanaians,” he concluded.
Source: https://energynewsafrica.com
Uganda: TotalEnergies Acquires Major Stake In Uganda’s Bujagali Dam
French energy giant TotalEnergies announced on Tuesday the expansion of its renewables portfolio with new deals in Africa.
The energy company bought 100% of SN Power, a subsidiary of Norwegian renewable energy company Scatec, the company said in a statement.
SN Power, in partnership with Norfund and British International Investment (BII), holds a 51% stake in renewable hydropower projects across Africa.
Upon completion of the deal, TotalEnergies will gain a 28.3% stake in Uganda’s operational Bujagali hydropower plant.
Electricity demand
With a capacity of 250 megawatts, the Bujagali hydropower plant covers more than 25% of the country’s peak electricity demand.
The company will also acquire minority stakes in two projects under development in Rwanda and Malawi, with a capacity of 260 megawatts and 360 megawatts, respectively.
Commenting on the deal, Patrick Pouyanne, chairman and CEO of TotalEnergies, said that this acquisition aligns with the company’s commitment to Africa’s energy transition, aiming to bring electricity to millions through renewable hydropower projects.
“In particular, we are delighted to be able to become a player in hydropower in Uganda, a country where we are also developing a major oil project,” Pouyanne said as carried by the Monitor.
To date, TotalEnergies has interests in a number of hydropower projects with a gross capacity of 3.7 gigawatts worldwide.
Source: https://energynewsafrica.com
Nigeria: AfDB Group Approves $500M Loan For Nigeria To Boost Electricity Access
The Board of Directors of the African Development Bank Group has approved a loan of $500 million to the Federal Republic of Nigeria, to finance the first phase of the Economic Governance and Energy Transition Support Program (EGET-SP)
EGET-SP, is a new program aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy.
The loan will help close the financing gap of the Federal Budget in the 2024/25 fiscal year, specifically supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan(link is external).
The Nigerian government launched the energy transition plan in August 2022, and in June 2023, passed a new Electricity Act decentralizing the electricity supply industry and setting the stage for increased investments by subnational governments and the private sector.
The energy transition plan envisions the development, by 2050, of 250 GW of installed electricity capacity, 90% of which will be renewable.
It will provide clean cooking access to the bulk of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves.
The Economic Governance and Energy Transition Support Program will also support the implementation of these policies, helping deliver much-needed upgrades of Nigeria’s electricity infrastructure, and fast-tracking the country’s efforts to transition millions of households and businesses to cleaner and renewable sources of energy.
The Bank Group’s $500m support to the Federal Government of Nigeria is the latest in a series of initiatives aimed at supporting the country’s economic growth, poverty reduction, and climate action efforts.
The Economic Governance and Energy Transition Support Program (EGET-SP) is in line with the Bank Group’s new Ten-Year Strategy 2024-2033, its High 5s priorities, and the New Deal on Energy for Africa which seeks to achieve universal access to modern energy by 2030.
As of July 2024, the African Development Bank Group’s active portfolio in Nigeria is valued at about $4.4 billion.
Source: https://energynewsafrica.com
Russia To Extend Ban On Gasoline Exports
Moscow has announced it will extend its ban on gasoline exports from August to October, in a bid to offset the growth in domestic demand in spring and summer.
“In order to avoid any problems in these months, there will be no lifting of the gasoline export ban in August.
It was also a fundamental decision for September-October that exports will be limited in order to be insured,” Russian Deputy Energy Minister Pavel Sorokin was quoted by the TASS news agency as saying.
Earlier, Bloomberg reported that Russia’s four-week average seaborne oil exports fell to 3.11 million barrels a day as of July 14, down by almost 600,000 barrels or 17% from their recent peak in April.
Russia’s seaborne crude shipments have declined to the lowest since January, thanks to a rebound of domestic refining rates to a six-month high.
China and India are likely to feel the export cuts most keenly since they buy more than 80% Russian seaborne crude sales.
However, the barrels that have been taken off the market represent a small fraction of their total crude purchases, meaning Chinese and Indian buyers could easily replace them with crude from other markets.
“The sharp drop in July isn’t a one-off event,” Viktor Kurilov, senior oil markets analyst at consultant Rystad Energy A/S, has told Bloomberg.
Rystad Energy has predicted that Russia’s seaborne crude flows will remain capped at around 2.7 million barrels a day in July and August but rebound slightly to 2.9 million barrels a day in September when Russian refineries are expected to begin their traditional autumn maintenance.
That’s a big drop from exports of 3.6 million to 3.7 million barrels per day recorded in April and May as repeated Ukrainian drone attacks disrupted domestic refining.
“The levels seen in April or May are not to be repeated in 2024, barring large-scale drone attacks that would debilitate even more refineries than the spring strikes,” Viktor Katona, lead crude analyst at intelligence firm Kpler, told Bloomberg.
Source: Oilprice.com
Ghana: Ghana Gas Announces Shutdown Of Its Gas Facilities For Maintenance Works
Ghana’s national gas aggregator, Ghana Gas, has announced that it will shut down its Gas Processing Plant and Offshore Gas Export Facilities in the Western Region effective tomorrow, August 1, to 17th August 2024.
The shutdown is to enable critical safety and essential maintenance works to enhance the plant’s operational efficiency and uninterrupted gas supply.
This was contained in a statement issued by the company on Wednesday, July 31, 2024.
The company said during this period, Lean Gas from Sankofa OTCP field would be available for delivery at the Takoradi Distribution Station (TDS).
“Ghana Gas deeply regrets any inconveniences that the shutdown may cause but assures the public that there will be uninterrupted power supply during the shutdown period,” it said.
Earlier this month energynewsafrica.com got the hint that Ghana Gas would shut down the plant for mandatory maintenance works.
Sources indicated that the government had made alternative arrangements to ensure that there was adequate fuel supply to power generation companies (GenCos) to enable them to continue to generate power.
Source: https://energynewsafrica.com