Angola, DRC Sign Oil Exploration Sharing Contract
Angola and the Democratic Republic of Congo (DRC) have signed a contract to share oil production in Block 14/22, which is located in an Area of Mutual Interest (AMI).
The historic contract comes 20 years after negotiations between the two countries.
According to a report by Angolan News Agency, the deal was signed by Diamantino de Azevedo, Angola’s Minister for Mineral Resources, Oil and Gas, and Didier Ntubuanga, the DRC Minister for Hydrocarbons.
The AMI which was created in 2007 would be operated by the Cabinda Gulf Oil Company Limited (CABGOC), Chevron’s subsidiary in Angola, with a 31 per cent stake, while Azule Energy, a British oil company (BP), and the Italian oil company ENI (20%), in a joint venture, ETU Energias (20%), the Portuguese energy company (GALP) (9%), Sonangol (10%) and Sonahydroc SA (10%) are the consortiums for this offshore block.
According to Diamantino Azevedo, the agreement demonstrates the realisation of a negotiation process that had been going on for 20 years, with the commitment of the government authorities of both countries.
“It’s not important to look at what has gone less well over the years, but it is necessary to look at the present and the future that is expected to be good for the economy of Angola and the DRC, contributing to improving the quality of life of their respective populations,” he emphasised.
He added that the sharing of oil exploration between the two countries is an example to demonstrate that African governments can carry out joint projects and, consequently, contribute to the economic cohesion of the continent.
He, therefore, hoped that the respective governments and the companies involved would work together to take better advantage of the AMI and compensate for the efforts made so far by producing sustainable oil and gas based on reducing atmospheric gases.
Diamantino Azevedo said that the next step would be the research phase to assess the oil potential of the Area of Mutual Interest and proceed with the production process if there are positive indicators of mineral resources.
On his part, the DRC’s Minister for Hydrocarbons, Didier Ntubuanga, praised the efforts of the Heads of State of the two countries and the companies that have accepted the challenge of taking on the risk of investing in the AMI.
Source: https://energynewsafrica.com
Nigeria: Is Continuous Subsidy On Electricity Tariff Sustainable- Adegbemle Asks
Historically, Nigerian Government has been paying electricity subsidy to the Nigeria Electricity Supply Industry. This means that there is the Cost Reflective Tariff of supplying 1kWh (kilowatt hour), and the Allowed Tariff that consumers are “allowed” to pay. This variance, otherwise called “subsidy” has now turned into an elephant in the chinaware shop.
The subsidy is as a result of Government policy consideration on (a) Welfarism: To support social welfare of consumers who might not be able to pay the high True Cost of the service, (b) Economic Stability: Ensuring a stable and affordable energy supply is essential for economic development, and (c) Political: to mitigate possible social unrest and create political instability
Nigeria’s Federal Government, in 2020, with the introduction of Service Based Tariff, decided to phase out subsidy on Electricity tariff, because of the strain it was putting on Government finances, and inefficiencies it promoted in the energy sector.
You will recall that the Minister of Finance, Budgets and National Planning under President Muhammadu Buhari, Mrs. Zainab Ahmed, had said that the Federal Government had quietly removed all subsidies in the power sector with a plan to gradually end subsidies on petrol.
This was necessitated by the fact that payment of Subsidy, both on petrol and electricity, had become an albatross on Government finances. Between 2015 and 2020, the shortfall in allowed tariff reportedly stood at about N2.4 trillion, averaging N200 billion yearly, and in 2022 alone, over N600bn has been paid in subsidies, and it has been estimated to skyrocket to at least N1trillion alone in 2024.
The question now is: with the present state of Government finances, is payment of subsidy on Electricity tariff sustainable?
In 2022, the Nigeria Electricity Regulatory Commission (NERC) rolled out the Multi Year Tariff Order that gradually phases out subsidy so that Nigerians can start paying Cost Reflective Tariff. For instance, in the MYTO 2022, the Cost Reflective Tariff, on the average, should be N68.42 per kilowatt hour (kWh), while the Allowed Tariff the DisCos were to charge was N59.89/kWh. With this, the Federal Government provided N8.53/kWh as subsidy. Between January and March 2023 alone (Q1, 2023), the total subsidy of N52.7bn was paid to the 11 Discos.
The rationale behind the MYTO 2022, as approved by the regulators was premised on the fact that DisCos that are in highly urban centres are allowed to charge tariffs that are near cost reflective due to evidence of high purchasing power and high consumption level in those areas, indicating that they are high-income consumers while Discos that are in areas with low income consumers are allowed to charge lower Allowed Tariff, therefore paying higher subsidy.
This makes the subsidy regime to impact more on low income bracket of consumers.
It means people living in places under Abuja Disco, Ikeja Disco and Eko Disco were paying tariff that is nearly Cost Reflective, while people living in places under Benin Disco, Yola and Ibadan Disco are paying much less
An example, as seen in the NERC Q1 Report shows that Eko Disco’s Cost Reflective Tariff was put at N62.04/kWh and the Allowed Tariff (AT) was N59.49/kWh, making the variance, or subsidy paid to Eko Disco just N2.55/kWh, totalling about N2.04bn. Similarly, for Abuja Disco, Cost Reflective Tariff was N65.67/kWh, and Allowed Tariff was N63.24/kWh, variance just being N2.43/kWh, again total of N2.15bn was paid in Subsidy to AEDC.
The reverse was the case in places like Yola, for instance, where Cost Reflective Tariff was N147.55/kWh and Allowed Tariff was N65.99/kWh, thus leaving the government to bear the burden of N81.56/kWh which amounted to N7.82bn.
In July 2023, the new Nigeria Federal Government which placed a Freeze on the Tariff Review, has greatly distorted the plan and skyrocketed the shortfall in the Electricity tariff shortfall, reversing the progress made in the MYTO 2022 to phase out the Subsidy in Electricity Tariff.
Interestingly, due to the changes in the Macro Economic indices(like Foreign Exchange, Inflation, the Unified Exchange Rate, the Cost of Electricity has also increased drastically, 80% of generation is gas-based and gas amounts to 30-40% of generation cost so the floating of the USD spiked cost of generation, the Naira-Dollar exchange rate rose from an average of N464.08/$ in Q1 to N798.40/$ in Q3 and the Nigerian inflation rate rose from 22% in Q1 to 24.10% in Q3, while the US inflation rate dropped from 5.58% to 3.20%.
The Weighted Average of Cost Reflective Tariff in Q3 of 2023 has therefore increased from N68.42 average to N111.12. This also means that the average subsidy has increased to about N51,23/kWh, totalling about N332.68bn in Q3 alone.
Another issue facing the Electricity market is the delay and bottlenecks associated with paying the electricity subsidy as well as the slow cycle of the electricity market.
The subsidy is funded from various pools such as the budget appropriation, FGN commitments domiciled at the Federal Ministry of finance, World Bank guarantees and loans, as well as CBN facilities.
Who are the beneficiaries of this subsidy?
The rate design provided that the subsidy paid by the government should have more benefit to the masses who are mostly low-income earners across the DisCos.
But, present data shows that Areas identified as high income areas are now benefitting more from the subsidy that other areas identified as low income consumers.
For instance, Government now has to pay N46.66/kWh in Subsidy to Abuja Disco, from the Q1 figures of N2.43/kWh, raising the subsidy figures to Abuja Disco to N43.26bn in Q3. This is a jump of 1,912% from N2.15bn in Q1 to N43.26bn in Q3, 2023. Similarly, Eko Disco that was N2.55/kWh in Q1 has seen a rise of 1, 676% in subsidy payment as at Q3, 2023.
Similar Data for Yola Disco shows only a 98% rise in Subsidy payment in Q3, 2023. For Yola Disco, Cost Reflective Tariff was N214.57/kWh but the Allowed Tariff remained at N65.99/kWh with government paying N148.58/kWh, amounting to N15.52bn in Q3 2023.
The data clearly shows that the high income consumers, or the Rich, are benefitting more from the subsidy than the low income consumers that the subsidy was designed for.
Data from National Bureau of Statistics, NBS, established that the rich/high income households have a higher electricity consumption pattern than their poor neighbors.
Further report from NERC also shows that the Subsidy payment for the poorest 20% in the Non-Maximum Demand Consumers, mainly residential, stands at measly N0.43bn, while the Richest 20% gulps N17.24bn in subsidy payment by Government in the Q1 2023.
The Middle income group also accounts for N3.36bn in Subsidy. By Q3, 2023, the Richest 20% accounts for N117.8bn, while the Poorest 20% benefitted only N2.97bn.
These figures shows clearly that the Electricity Tariff Subsidy has been disproportionately benefitting the Rich Nigerian Consumers, while excluding the Poor ones the Subsidy itself was designed for and this is to the detriment of the poor whom the FGN is looking out for as they form a higher proportion of the Nigerian populace and electricity consumers.
And it is also detrimental to Government Finances. The federal government is urged to take a quick decision before the situation spirals out of control like the petrol subsidy.
N2trn subsidy paid since 2015, there has been negligible investment in the NESI by private sector (except Azura), which is a clear signal that the commercial viability of the sector has left a lot to be desired.
Electricity Subsidy is not sustainable, and we need to start thinking of where else the Subsidy we are paying in Electricity tariff can be better applied.
The rationale behind the MYTO 2022, as approved by the regulators was premised on the fact that DisCos that are in highly urban centres are allowed to charge tariffs that are near cost reflective due to evidence of high purchasing power and high consumption level in those areas, indicating that they are high-income consumers while Discos that are in areas with low income consumers are allowed to charge lower Allowed Tariff, therefore paying higher subsidy.
This makes the subsidy regime to impact more on low income bracket of consumers.
It means people living in places under Abuja Disco, Ikeja Disco and Eko Disco were paying tariff that is nearly Cost Reflective, while people living in places under Benin Disco, Yola and Ibadan Disco are paying much less
An example, as seen in the NERC Q1 Report shows that Eko Disco’s Cost Reflective Tariff was put at N62.04/kWh and the Allowed Tariff (AT) was N59.49/kWh, making the variance, or subsidy paid to Eko Disco just N2.55/kWh, totalling about N2.04bn. Similarly, for Abuja Disco, Cost Reflective Tariff was N65.67/kWh, and Allowed Tariff was N63.24/kWh, variance just being N2.43/kWh, again total of N2.15bn was paid in Subsidy to AEDC.
The reverse was the case in places like Yola, for instance, where Cost Reflective Tariff was N147.55/kWh and Allowed Tariff was N65.99/kWh, thus leaving the government to bear the burden of N81.56/kWh which amounted to N7.82bn.
In July 2023, the new Nigeria Federal Government which placed a Freeze on the Tariff Review, has greatly distorted the plan and skyrocketed the shortfall in the Electricity tariff shortfall, reversing the progress made in the MYTO 2022 to phase out the Subsidy in Electricity Tariff.
Interestingly, due to the changes in the Macro Economic indices(like Foreign Exchange, Inflation, the Unified Exchange Rate, the Cost of Electricity has also increased drastically, 80% of generation is gas-based and gas amounts to 30-40% of generation cost so the floating of the USD spiked cost of generation, the Naira-Dollar exchange rate rose from an average of N464.08/$ in Q1 to N798.40/$ in Q3 and the Nigerian inflation rate rose from 22% in Q1 to 24.10% in Q3, while the US inflation rate dropped from 5.58% to 3.20%.
The Weighted Average of Cost Reflective Tariff in Q3 of 2023 has therefore increased from N68.42 average to N111.12. This also means that the average subsidy has increased to about N51,23/kWh, totalling about N332.68bn in Q3 alone.
Another issue facing the Electricity market is the delay and bottlenecks associated with paying the electricity subsidy as well as the slow cycle of the electricity market.
The subsidy is funded from various pools such as the budget appropriation, FGN commitments domiciled at the Federal Ministry of finance, World Bank guarantees and loans, as well as CBN facilities.
Who are the beneficiaries of this subsidy?
The rate design provided that the subsidy paid by the government should have more benefit to the masses who are mostly low-income earners across the DisCos.
But, present data shows that Areas identified as high income areas are now benefitting more from the subsidy that other areas identified as low income consumers.
For instance, Government now has to pay N46.66/kWh in Subsidy to Abuja Disco, from the Q1 figures of N2.43/kWh, raising the subsidy figures to Abuja Disco to N43.26bn in Q3. This is a jump of 1,912% from N2.15bn in Q1 to N43.26bn in Q3, 2023. Similarly, Eko Disco that was N2.55/kWh in Q1 has seen a rise of 1, 676% in subsidy payment as at Q3, 2023.
Similar Data for Yola Disco shows only a 98% rise in Subsidy payment in Q3, 2023. For Yola Disco, Cost Reflective Tariff was N214.57/kWh but the Allowed Tariff remained at N65.99/kWh with government paying N148.58/kWh, amounting to N15.52bn in Q3 2023.
The data clearly shows that the high income consumers, or the Rich, are benefitting more from the subsidy than the low income consumers that the subsidy was designed for.
Data from National Bureau of Statistics, NBS, established that the rich/high income households have a higher electricity consumption pattern than their poor neighbors.
Further report from NERC also shows that the Subsidy payment for the poorest 20% in the Non-Maximum Demand Consumers, mainly residential, stands at measly N0.43bn, while the Richest 20% gulps N17.24bn in subsidy payment by Government in the Q1 2023.
The Middle income group also accounts for N3.36bn in Subsidy. By Q3, 2023, the Richest 20% accounts for N117.8bn, while the Poorest 20% benefitted only N2.97bn.
These figures shows clearly that the Electricity Tariff Subsidy has been disproportionately benefitting the Rich Nigerian Consumers, while excluding the Poor ones the Subsidy itself was designed for and this is to the detriment of the poor whom the FGN is looking out for as they form a higher proportion of the Nigerian populace and electricity consumers.
And it is also detrimental to Government Finances. The federal government is urged to take a quick decision before the situation spirals out of control like the petrol subsidy.
N2trn subsidy paid since 2015, there has been negligible investment in the NESI by private sector (except Azura), which is a clear signal that the commercial viability of the sector has left a lot to be desired.
Electricity Subsidy is not sustainable, and we need to start thinking of where else the Subsidy we are paying in Electricity tariff can be better applied.
Source: Adetayo Adegbemle
He is the convener and Executive Director of PowerUpNigeria, a Power Consumer Advocacy Group.
Uganda: Nigerian Independent Oranto Petroleum Gets Extension Of Exploration Licenses
Oranto Petroleum, a Nigerian independent energy company founded by Prince Arthur Eze has been granted a two-year exploration license extension to its Ngassa Deep and Ngassa Shallow exploration contract areas in Uganda.
This extension allows Oranto to drill an exploration well and an appraisal well, depending on the success of the exploration well.
In 2017, Oranto was granted two petroleum exploration licenses for the Ngassa Deep and Ngassa Shallow contract areas by the Ministry of Energy and Mineral Development in Uganda.
Oranto signed this current extension and committed to maximize the additional time granted and ensure a successful outcome.
Oranto’s chairman, Prince Arthur Eze, said: “We thank the Ugandan government under the leadership of President Yoweri Museveni, the Ministry and the people of Uganda. This extension is very important, as it will contribute towards increasing Uganda’s oil volumes. We appreciate the extension, and want to assure the Ministry that we will fulfill the work program as planned within the designated period.”
The Ngassa Block is located in the Hoima District and spans the Albertine Graben.
Oranto and its sister company Atlas Petroleum are Africa’s largest privately-held exploration and production group by acreage.
Source: https://energynewsafrica.com
Nigeria: IBEDC Urges Nigerians To Observe Safety During The Festive Season
The Management of Ibadan Electricity Distribution Company (IBEDC) Plc has urged Nigerians to be safety conscious as they commemorate the birth of Jesus Christ.
Engineer Kingsley Achife, the Managing Director and Chief Executive Officer of IBEDC, in a statement emphasized the values of unity and goodwill during Christmas, calling on IBEDC customers to join hands in fostering a secure and harmonious environment.
“IBEDC reiterates its commitment to providing seamless service during the holiday season. The technical team will be on standby to address any electrical faults promptly. The company’s customer care line (07001239999) will remain active for quick responses to complaints and reports.”
In light of the festive celebrations, Engr. Achife appealed to customers not to assault IBEDC staff.
He explained that the commitment and hard work of the staff are essential for delivering quality service, and any grievances should be communicated through appropriate channels rather than resorting to violence.
He highlighted that the festive seasons often see an increase in electrical hazards, and as such, he advised IBEDC customers to exercise caution and avoid unsafe practices such as unauthorized tampering with meters or attempting to bypass the electrical system.
“Christmas is a time for joy and reflection. Let us not compromise the safety of ourselves and others by engaging in activities that could lead to electrical hazards. I implore our esteemed customers to refrain from energy theft, as it not only endangers lives but also hampers our collective progress,” says Engr. Achife.
“We also encourage our customers to utilize IBEDC ‘s hassle-free payment channels, including iRecharge, Quickteller, Payarena, Jumia, Watu, Buypower, and ATMs, for convenient bill settlement and vending to enjoy uninterrupted supply during the holiday.”
IBEDC’s offices will also remain open during the holiday from 9 a.m. to 3 p.m. to serve customers efficiently.
Cameroon: AfDB Grants EUR 74 Million Loan For Electricity Sector Reforms To Facilitate Universal Access To Power
The Board of Directors of the African Development Bank Group has approved a loan of EUR 74.25 million to Cameroon to implement the first phase of the Electricity Sector Recovery Support Programme (PARSEC).
The programme will support the Cameroonian government to implement the reforms necessary in the energy sector in 2024 and 2025 so that, in the long term, the country can produce enough electricity to cover its national requirements of 5,000 megawatts and build a reserve to export energy to neighbouring countries, particularly Chad.
“This programme allows the African Development Bank to provide added value in its support for the recovery of the electricity sector in Cameroon. It also offers significant leverage effects through its connection to various recovery plans in the electricity sector. The various actions implemented in the context of high-level dialogue with the government are such that they will raise the Bank to the rank of a preferred partner to Cameroon,” said Serge N’Guessan, Director General for the Central Africa region and head of the African Development Bank’s Country Office in Cameroon.
Among other things, the reforms will enable Cameroon to reduce its commercial losses on electricity, improve revenue collection and deal more efficiently with energy flows in distribution, by migrating metering from a post-paid to a pre-paid mode and installing smart meters, including in public buildings.
The programme will also help to develop and implement an information-education-communication plan aimed at the population, to publicize the new type of metering and introduce customers to pre-payment.
The Bank’s support will build human resource capacity so that Cameroon has a critical mass of qualified personnel to work throughout the electricity sector value chain, from production to knowledge distribution, with the aim of facilitating faster responses to technological, organizational, environmental, climate-related and financial needs in the sector.
The programme will also contribute to the development of a low-cost, integrated master plan to build planning capacity in the electricity sector, covering the whole of the electricity value chain in Cameroon and taking gender concerns into account.
The whole of the Cameroonian population will benefit from the programme, based on an improvement in quality of life.
The programme will also benefit small and medium-sized enterprises (SME), which will see several constraints on the development of their activities, including the irregularity of the energy supply, removed.
This will improve the business environment, allowing the Cameroonian economy to attract more national, regional and foreign capital.
Source: https://energynewsafrica.com
Ghana: NPA Revokes Licences Of 40 Oil Marketing Companies
Ghana’s petroleum downstream regulator, the National Petroleum Authority (NPA), has revoked the licences of 40 oil marketing companies in the West African nation for failing to comply with industry regulations.
In January this year, the regulator, in a statement, announced the revocation of 30 licences of oil marketing companies.
This means that from January to date, the NPA has revoked additional 10 licences.
Briefing the media about the operations of the Authority this year, the NPA’s Chief Executive, Dr. Mustapha Abdul-Hamid, said his outfit had revoked 40 licences between last year and this year, explaining that the said holders of the licences were engaging in illegalities.
“So, we’ve also been hard on people holding licences who didn’t have the correct requirements for holding those licences,” he said.
The NPA boss assured the industry players of the Authority’s commitment to continue to sanitise the industry by punishing those who do not comply with rules to ensure that those who obey the rules only operate.
Dr Abdul-Hamid stated that the NPA, with Support from EOCO, constituted a committee to go after OMCs who had defaulted in payment of margins and levies.
Dr Abdul-Hamid happily announced that since the formation of the committee, fund collection has increased and they have been able to even collect legacy debt.
“Today, we’ve been able to collect up to Gh¢73 million from people who were not paying or ready to pay this sum of money.”
The NPA boss further told the media that one of the things his outfit is seeking to do is amending the NPA Act 2005, Act 691 to reflect modern petroleum sector standards to help Ghanaians get the full benefits of their natural resources.
Source: https://energynewsafrica.com
Ghana: Petrol, Diesel Prices Drop Marginally
Oil Marketing Companies (OMCs) in the Republic of Ghana have adjusted their pump prices downward, with petrol selling at Gh¢12.39 per liter (maximum price) while diesel is sold at Gh¢12.99 per liter (maximum price).
Previously, petrol was sold at Gh¢12.80 per litre while diesel was sold at Gh¢13.80 per litre.
This follows the persistent decline in the cost of finished products on the international market and the relative stability of the local currency against the major international currencies.
Unlike other parts of Africa where fuel prices are reviewed monthly, in Ghana, fuel prices are reviewed every two weeks.
Given this, Oil Marketing Companies, this week, reduced their pump prices.
Leading Oil Marketing Companies like GOIL, Shell and TotalEnergies are all selling petrol at Gh¢12.39 per liter while diesel is sold at Gh¢12.99 per liter.
Star Oil sells petrol at GH¢11.69 per liter while diesel is sold at Gh¢12.69 per lire.
Engen is selling petrol at Gh¢12.33 per litre and diesel at Gh¢ 12.93
Pacific sells petrol at Gh¢11.98 per and diesel at GH¢12.78 per liter.
Duke’s Petroleum is selling petrol at GH¢11.64 per liter while diesel is sold at Gh¢12.64 per liter.
Goodness sells petrol at Gh¢11.93 per litre and diesel at Gh¢12.66 per liter.
Allied is selling petrol at Gh¢11.69 per litre and diesel at GH¢12.69 per litre.
Source: https://energynewsafrica.com
Tanzania: President Samia Dissolves Tanzania Electricity Supply Company Board Over Frequent Power Outages
Tanzanian President, Her Excellency Samia Suluhu Hassan, has dissolved the entire board of Tanzania Electricity Supply Company (Tanesco) over frequent power outages which are causing public outrage in the East African nation.
The country has been rationing power due to reduced generation caused by inadequate water levels in dams and repairing of electricity infrastructure.
This has resulted in a 400-megawatt shortfall.
Tanzanians have been expressing anger over the situation on both social media and traditional media and are demanding urgent efforts to address the situation.
Not satisfied with the poor performance of the Board, President Suluhu Hassan, on Thursday, December 21, 2023, showed the seven board members of Tanesco the exit.
The seven are Meja Jenerali Paul Kisesa Simali, Ambassador Mwanaibi Maajar, Eng Abdullah Hashim, Eng Cosmas Masawe, Mr Abubakar Bakhresa, Ms Zawadia Nanyaro, Christopher Gachuma, and Mr Leonard Mususa.
Dr Rhimo Nyanzaho, the Director of Business at Azania Bank, has been appointed to replace Simuli.
Tanzanians have been expressing their views following the dissolution of the board of Tanesco by President Samia Hassan.
According to Alfred, a Tanzanian reporter in the capital Dar es Salaam, who spoke to energynewsafrica.com via telephone, some people are happy about the decision while others are not.
He said those who are happy believe that replacing the board with a new crop of appointees could bring new ideas to turn the situation around while those who are not happy cited instances where some appointees were sacked for non-performance and replaced with others and yet the problems persisted.
Like Tanzania, Kenya recently experienced countrywide power outages.
President William Ruto recently said the blackouts were a result of faulty lines which his government is working hard to maintain.
The blackouts hit major installations, among them was the busy Jomo Kenyatta International Airport (JKIA).
Source: https://energynewsafrica.com
China’s Renewable Energy Capacity Tops 50% Milestone
Renewable energy generation capacity in China has surpassed 50% of the total this year, China Daily reported today, noting that share was in excess of 145 GW.
The report did not, however, go into detail about the energy sources included in the total renewable capacity and how much of each was in the mix.
However, in terms of production hydrocarbons still rule with a 70% of the total output, led by coal.
China is the world’s largest investor in wind and solar, but it is also investing heavily in hydropower and hydrocarbons as it pursues an “all of the above” approach to energy supply.
It became notorious earlier this year for approving the equivalent of two new coal power plants weekly, according to climate think tanks even as it also boosted it wind and solar generation capacity.
China itself says the approach is motivated by its prioritization of energy security over emission footprints.
Source: Oil Price
Angola: Africa’s Second Largest Oil Producer, Angola, Quits OPEC
Africa’s second-largest oil producer and a member of the Organisation of the Petroleum Exporting Countries (OPEC), Angola, has announced its decision to leave the cartel, claiming the group is not serving the interest of the Central African nation.
The decision to leave OPEC, according to Angolan News Agency, was taken at a meeting of the Council of Ministers led by the President of the Republic, João Lourenço on Thursday, December 21, 2023.
The Minister of Mineral Resources, Oil and Gas, Diamantino de Azevedo, said the decision to leave was because OPEC membership was not serving Angola’s interests.
“We feel that at the moment Angola does not gain anything by remaining in the organization and, in defense of its interests, it has decided to leave,” he said.
“When we are in the organizations and our contributions, our ideas, do not produce any effect, the best thing is to exit”, he added.
In a WhatsApp chat to find out whether Angola had notified OPEC about its decision to leave the group, Mr Shakir Mahmoud A. Al Rifaiey, Head of the Office of the Secretary-General, told energynewsafrica.com that they only heard about Angola’s decision via media report, and said that the group had not received any official document from Angola to that effect.
He could not tell whether the exit of Angola would affect the group or not.
Angola has been a member of OPEC since 2006, and produces about 1.1 million barrels of oil per day, compared with 28 million bpd for the whole group.
Last month, Azevedo’s office protested a decision by OPEC to cut its production quota for 2024.
Bloomberg also quoted Angola’s OPEC Governor Estevao Pedro as saying the country was unhappy with its 2024 target and did not plan to stick to it.
OPEC is an intergovernmental organization of 13 nations, founded on September 15, 1960 in Baghdad by the five founding members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela).
It has been headquartered since 1965 in Vienna, Austria, and as of September 2018, the 14 member countries accounted for 44% of global oil production and 81.5% of the world’s proven reserves.
Source: https://energynewsafrica.com
South Africa: ACWA Power Inks PPA For South Africa’s Largest Hybrid Renewable Project
Power generation developer ACWA Power has signed a Power Purchase Agreement (PPA) for its Project DAO – a 150 MW dispatchable renewable hybrid plant located in South Africa’s Northern Cape Province.
The $800-million hybrid plant is poised to become the country’s largest solar photovoltaic installation at 442 MW, complemented by around 1,200 MWh of battery storage.
Operations at the plant are scheduled to commence by Q2 2026 and promise a significant boost to national grid capacity.
The PPA was signed by a representative from South Africa’s power utility Eskom, Segomoco Scheppers, and ACWA Power Project DAO signatory, Ashley Singh, with South Africa’s Minister of Mineral Resource and Energy, Gwede Mantashe, signing the Implementation Agreement.
The consortium leading the project includes ACWA Power, Thebe Investment Corporation and Aventro Investments.
Beyond its role in delivering clean energy to the national grid, Project DAO aims to stimulate socioeconomic development in South Africa.
During its construction phase, the project targets roughly 50% local content in procurement and will generate over 1,000 construction jobs at its peak, with approximately 25% benefiting the local community.
ERERA, AfDB Launch US$2 Million Project To Improve Electricity Regulation In ECOWAS Member States
The ECOWAS Regional Electricity Regulatory Authority (ERERA), with the support of the African Development Bank (AfDB) has launched a US$ 2million project to Improve Electricity Regulation in ECOWAS Member States.
The principal objective of the initiative is to facilitate the efficient utilization of regional energy infrastructure to further enhance regional electricity trade.
Through the support of the AfDB, ERERA will assist national regulatory bodies in acquiring adequate knowledge that would enable them to carry out the necessary regulatory work in developing the regional market at the national level.
Specifically, the grant will fund technical assistance to promote the development and adoption of regional electricity regulatory principles, enhance capacity to monitor utility performance across the ECOWAS region, conduct a cross-border analysis of electricity tariffs, and develop a centralized database management system.
Entitled the “Regional Harmonization of Regulatory Frameworks and Tools for improved Electricity Regulation in ECOWAS”, the project consists of the following five components:
– Elaboration of Regulatory and Utility Key Performance Indicators (KPIs) for ECOWAS
– Harmonized Comparison of Electricity Tariffs (HCET) in ECOWAS and Cost Reflectivity Assessment
– Development of an Energy Information and Database Management System (EIDBMS)
– Assessment of investment bottlenecks and risks in ECOWAS Member States Electricity Sector, as well as- Programme management.
ERERA will be responsible for the project’s implementation, coordination, and monitoring.
In his address at the launch, ERERA Chairman, Engr. Laurent Tossou, thanked the African Development Bank for its “unwavering support and commitment” to the project, adding that the Bank’s “partnership is a strong example to the spirit of collaboration that is vital for overcoming the complex challenges facing our
region”.
“Together, we are not only building a more interconnected energy grid but also strengthening the foundations for sustainable development and shared prosperity”, Engr. Tossou said.
He assured that through the project, ERERA is committed to fostering the regional harmonization of regulatory frameworks and tools as the initiative “aims to create an environment that encourages cross-border collaboration, investment, and innovation, ultimately paving the way for a more reliable, affordable, and sustainable energy supply”.
He noted that the harmonization of regulations is a proactive step toward creating a unified energy market within the ECOWAS space.
Earlier in his address, the AfDB’s Manager for Energy Policy, Regulation and Statistics, Mr. Callixte Kambanda, described the launch of the project as timely, considering the “elevated calls for pooling of the diverse energy resources of Africa at regional and continental levels”.
He said that the African Single Electricity Market (AfSEM) initiative being championed by the African Union Commission (AUC) aims to integrate various regional markets into a continental power market to further boost electricity exchange.
According to him, “a consistent and coordinated approach to addressing key regional energy infrastructure deficits, particularly regional interconnections, supported by relevant institutional, policy and regulatory reforms at the regional level will be required to achieve a fully integrated, competitive, and harmonized electricity market in Africa as envisaged under the AfSEM”.
Mr. Kambanda explained that the Electricity Regulatory Index for Africa (ERI), which is the Bank’s flagship report, recommended intensified efforts at the regional level for regulatory harmonization.
This, he explained, was why the Bank has embarked on “this programmatic technical assistance to support regional entities to develop appropriate tools and frameworks and build capacities for harmonization of regulatory frameworks”
Source: https://energynewsafrica.com
Ghana: NPA Urges Ghanaian To Observe Gas Safety Tips
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has urged LPG users to adhere to safety measures to avoid gas-related explosions and resultant injuries and deaths.
The Head of the Department for Consumer Services, Mrs Eunice Budu Nyarko, made the call at a Cylinder Recirculation Model and Gas Safety sensitisation workshop at the Mt. Olivet Methodist Church in Dansoman, a suburb of Accra, on Sunday.
A team from the Corporate Affairs and Gas Directorates conducted the sensitisation exercise.
Mrs Budu Nyarko, who led the team, explained the rationale for its rollout and indicated that the policy would, among other things, improve access to LPG and ensure safety in its use.
She entreated the congregation to be abreast with LPG safety tips to prevent explosions and resultant damage to life and property.
After the presentation, the team interacted with the congregation and distributed leaflets and other educative materials on the subject to them.
The congregation expressed their desire to embrace the CRM.
Source: https://energynewsafrica.com/
Ghana: GOIL Upstream Secures Partner For Oil Block Abandoned By ExxonMobil
GOIL Upstream Ghana Limited, a subsidiary of GOIL PLC, a leading indigenous oil and gas player in the Republic of Ghana, has finally found a partner for the Deepwater Cape Three Point (DWCTP) oil block which was abandoned by US oil supermajor, ExxonMobil, in 2021.
For over two years, the Ghanaian oil firm searched for a partner for the oil block and luckily for them, they have found a Dubai- based Planet One Group as their partner.
ExxonMobil was controlled 80 per cent stake in the block while Ghana Petroleum Corporation (GNPC), the national oil company, held 15 per cent, with the remaining five per cent being held by GOIL Upstream.
However, after ExxonMobil’s withdrawal, GOIL Upstream Ghana was assigned the 80 per cent Participation Interest hitherto held by Exxon and directed to secure a farm in Partner.
The US oil supermajor invested close to US$50 million in the block, including acquiring seismic data before abandoning it.
On the sidelines of the COP28 in Dubai, UAE, recently, top officials of Planet One Group and officials of GOIL PLC, CEO of Petroleum Commission, Egbert Faibille Jnr, CEO of GNPC, Opoku Ahwenee-Danquah, and Ghana’s Minister for Energy, Dr Matthew Opoku Prempeh, held a brief ceremony, where the Minister supervised the signing of Farm-in and Joint Operating Agreements between Planet One Group and GOIL PLC.
The Group Chief Executive Officer and MD of GOIL PLC, Mr Kwame Osei-Prempeh, and the Chief Executive Officer of Planet One Oil and Gas Limited, Deepak Balaji, signed for their respective companies.
The agreement, which is subject to the approval of the Minister for Energy per the Petroleum (Exploration and Production) Act, 2016 (Act 919) and its Regulations would give Planet One Group rights in the Deep-Water Cape Three Points Block.
In an interview with energynewsafrica.com via the telephone, the Managing Director of GOIL PLC, Mr Kwame Osei Prempeh, expressed excitement that their search for a partner has been successful.
According to him, after approval of the deal by the Minister, Planet One Group would be assigned 75 per cent stake, with Ghana National Petroleum Corporation holding 20 per cent while GOIL Upstream would hold the remaining five per cent stake.
The Managing Director of Planet One, Deepak Balaji, on his part, expressed optimism that the approval processes would be completed soon for the block to be operated for the benefit of the two parties.
“What has happened here today is very simple –the first agreement signed was a Farm-in agreement which allows Planet One the rights in the operation of the block under the Petroleum Agreement in the Deep-Water Cape Three Point Block.
The second agreement was a Joint Operating Agreement that seeks to regulate how GOIL Upstream and Planet One will work together to meet the contractual obligations under the Petroleum Agreement” said Mr Thomas Manu, Board Member for GOIL Upstream Ghana Limited.
The Minister for Energy, Dr Mathew Opoku Prempeh, commended the efforts of GOIL in successfully finding a partner and urged the parties to work harder to achieve the DWCTP project goals.
He advised the parties to stay committed to the highest standards of Environmental Social Governance and take into consideration green energy solutions in the management of the DWCTP project.
Source: https://energynewsafrica.com