Ghana: GNPC CEO Quits Amidst Pressure From Power Brokers.. Joseph Dadzie Appointed New CEO
Ghana’s National Oil Company (GNPC) has made changes to its leadership after the Acting Chief Executive Officer, Mr Opoku-Ahweneeh Danquah, was allegedly forced to resign from his post by persons close to Ghana’s President, Nana Akufo-Addo.
Mr Opoku-Ahweneeh was appointed to act as the CEO of the national oil company in 2022 after the mandatory retirement of Dr. Kofi Koduah Sarpong, the former CEO.
Few days ago, this portal gathered that persons who facilitated the appointment of Mr Opoku Ahweneeh Danquah within the circles of President Akufo-Addo were angry and persuaded him to honourably resign to avoid being fired.
It was not clear what his crime was, but it appeared his fall out with the appointing authority had to do with performance and other issues.
There have been controversies at the oil company in recent times, with information from the company flying in the media frequently.
As a result of the controversies and tensions at the oil company, Mr Joseph Dadzie, who is the Deputy Chief Executive responsible for Commerce, Strategy and Business Development, went on an early retirement in December 2023, even though his retirement was due in August 2024.
In a letter addressed to the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, Mr Opoku- Ahweneeh Danquah, according to sources, expressed his respect for the office.
He described his tenure as an honour and emphasised his commitment to the evolution of Ghana’s energy sector.
He pointed out that an atmosphere of misinformation and misunderstanding surrounding the transformative policies he championed made it increasingly untenable for him to continue effectively in his role.
Opoku-Ahweneeh emphasised the importance of unequivocal support and trust from all stakeholders for GNPC to thrive and fulfill its mandate.
Mr Danquah extended his gratitude to the President of the Republic of Ghana, saying, “In the starch that has stiffened my efficacious tenure, the main ingredients have been your astute guidance and the support of the talented team at GNPC. I am truly grateful for the opportunities that I have been afforded.”
Opoku Danquah reassured his commitment to the progress and prosperity of Ghana, standing ready to support any transition efforts as deemed necessary by the administration.
Meanwhile, President Akufo-Addo has appointed Mr Joseph Dadzie, who went on early retirement in December 2023, to replace Mr Opoku-Ahweneeh Danquah.
“Pursuant to Section 10 (2) of the Ghana National Petroleum Corporation Act, 1983 (P.N.D.C.L. 64), I am pleased to inform you that the President has appointed you to act as the Chief Executive of Ghana National Petroleum Corporation (the “Corporation”) pending receipt of the required advice of the honourable Minister for Energy, given in consultation with the Public Services Commission,” his appointment letter signed by the secretary to the President, Nana Bediatuo Asante and dated Wednesday, 3rd April 2024 read.
“Your appointment is effective 2nd May 2024. I take this opportunity to congratulate you formally on your appointment. Kindly indicate your acceptance or otherwise of this appointment within 14 days of receipt of this letter. Please accept the President’s best wishes,” the letter copied to the Vice President, Chief of Staff at the Office of the President, Minister for Energy, the Chairman of the Public Services Commission and the Board Chairman of the GNPC further read.
Profile Of Dadzie
Mr Dadzie is a Banker, Energy and Communication Expert. He holds an MBA (Finance) and MSc (General Management) from the Nyenrode Business Universiteit, Netherlands, as well as a BSc (Chemical Engineering) from the KNUST, Ghana.
As a Banker, he worked as Director (Commodity Corporate), Head (Large Local Corporate & Parastatals), and Senior Manager (Financial Institution) all with the Standard Chartered Bank.
In communication, he was the Chief Operating/Finance Officer for Surfline Communication Limited.
Over the years, he has worked in the energy sector as an Assistant Operations Officer with TOR, Market Research Analyst with the GNPC, and CFO with Woodfields Energy Resources.
Source: https://energynewsafrica.com
Ghana: GECA Cautions PURC Against Granting ECG’s Request For Tariff Increase Over Forex
The Ghana Electrical Contractors Association (GECA) has cautioned the Public Utilities Regularly Commission (PURC) against granting ECG’s request for tariff increase due to depreciation of the cedi against the international currencies.
The Association is of the view that problems like poor implementation of effective and efficient revenue collection mechanisms should be attended by the ECG to rake in the needed revenues to deal with forex shortfalls facing the company.
A release issued and signed by GECA’s President, Mr Awal Sakib Mohammed, on Tuesday, April 2, 2024, pointed out that the deployment of a comprehensive loss reduction programme and the adoption of productive strategies for managing the company’s limited resources are critical in resolving the issues affecting the efficient and effective functioning of the organisation.
“We urge careful consideration of alternative strategies to mitigate the impact of forex challenges on ECG’s operations, emphasing the importance of sustainable solutions for the benefit of our nation,” said GECA.
It further stated that there is evidence that a significant portion of ECG’s losses stem from various factors, including non-payment for electricity usage by households and businesses, faulty metres and illegal connections, all accounting for inefficiencies in the sector.
Additionally, GECA noted that undue strain on transformers largely attributable to actions or inactions of some ECG personnel further contributes to losses.
“Prevalent practice of connecting premises requiring dedicated transformers to local distribution networks are also affecting the national electricity grid from working well,” the group stated.
GECA further expressed regret that some ECG personnel exploit this situation, colluding with applicants to connect them to already over-loaded transformers for personal gains.
“We advocate for a solution that addresses the root cause of system losses and illegal power theft, namely through rigorous monitoring, maintenance of networks and reinforcement of pertinent status governing power distribution in the country.”
Furthermore, the group proposed a third-party contractor maintenance programmes, expressing the belief that it would inject fresh energy to reduce losses in the ECG’s distribution.
Source: https://energynewsafrica.com
Nigeria: Tariff Increase Will Affect Only Customers Enjoying 20-Hour Power Supply — NERC
The Nigerian Electricity Regulatory Commission, NERC, says the increase in tariff will only affect customers enjoying 20 hour power supply across the country.
The commission said that other customers in Bands B, C and D are not affected by the increase
Musliu Oseni, Vice Chairman, Nigerian Electricity Regulatory Commission, NERC, said this at a press briefing in Abuja on Wednesday.
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According to him, the commission has approved the increase in electricity tariff paid by Band A customers from N68/KWh to N225KWh adding that the increase will not affect customers on bands B and C.
Mr Oseni said that the increase only affect about 15 per cent electricity consumers that have been proven to enjoy 20 hours power supply daily.
He said that other electricity customers not affected by the rate review would not be neglected as they would still continue to get service.
The vice chairman said that the commission had also downgraded some customers on the Band A to Band B due to the non-fulfillment of the required hours of electricity provided by the electricity distribution company.
“We currently have over 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent of the feeder now qualifies as Band A.
“The commission using technology discovered that many of the feeders that the Electricity Distribution Companies (DisCos) currently brandish as Band A are not meeting the required service and as such.
“The feeders were ordered to be downgraded immediately as a way of protecting consumers,” he said.
Mr Oseni said that customers hitherto classified as Band A customers would not be affected by the rate review.
He said that as part of enforcement mechanisms to ensure that areas affected by the review get the 20 hours supply, DisCos have been mandated to set up rapid response teams in locations where the feeders are located.
“This is to ensure that the customers can have access to the DisCos.
“They have also been mandated to publish the contact of the rapid response team where the customers are located.
“Failure to meet the commitment for seven consecutive days, the feeder will be downgraded immediately to the service level the DisCos is able to provide electricity to the feeder,” he said.
Mr Oseni said where a DisCo failed to meet the commitment for two days by the third day at 10am, the company must publish an explanation also via bulk SMS contacting the affected consumers on the feeder.
“They should explain why they could not meet the service for the two days and also submit the explanation to the commission,” he said.
Source: https://energynewsafrica.com
Ghana: Gov’t Withdraws Earlier Decision To Suspend Price Stabilisation And Recovery Levy On Fuel
The Government of Ghana has backtracked on its earlier decision that suspended the inclusion of Price Stabilisation and Recovery Levy (PSRL), one of the levies on petroleum products, for three months effective April 1, 2024.
The suspension of PSRL was intended to cushion consumers from paying high costs of fuel at the pumps due to rising global prices.
However, a letter signed by the Deputy CEO of NPA, Perry Okudzeto, to all the players in the oil marketing companies and Liquefied Petroleum Gas Companies (LPGMCs) mentioned that there has been a follow-up directive, hence, the PSRL has been revised.
“All Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Companies (LPGMCs) are to take note of the above revision of the PSRL and apply them in the Price Build Ups effective 4th April 2024,” a portion of the letter read.
The PSRL on petrol is 16 pesewas while that on diesel and LPG is 14 pesewas respectively.
Some OMCs on Wednesday began adjusting their pump prices upward.
TotalEnergies, Shell, Star Oil and Petrosol adjusted their pump prices
However, given the new development, all the companies would be adjusting their pump prices again today, Thursday.
Source: https://energynewsafrica.com
Ghana: AOMC Appoints Dr Riverson Oppong As New CEO
Dr Riverson Oppong, a petroleum economist and one of Ghana’s finest petroleum experts, has been appointed as the new Chief Executive Officer of the Association of Oil Marketing Companies in the Republic of Ghana.
Dr Oppong took over from Mr Kwaku Agyamang-Duah, who retired last Sunday, after serving for 17 years as the CEO and Industry Coordinator.
Before his appointment, Dr Oppong was a Manager for Commercial Operations in charge of Economics, Risks and Planning at the Ghana National Gas Company.
Dr Oppong brings over 15 years of global experience in the oil and gas industry, with a background in diverse projects across various countries.
Dr Oppong has worked on several oil and gas fields and projects, including the North Busachi Fields in Kazakhstan, the Independence Field in Cote d’Ivoire, the Djata Fields in Ghana and the West Quarna Gas Field in Iraq.
He also consulted for the Croatian Government on the Croatian LNG Project as a Project Economist.
Upon returning to Ghana, he has been playing an active role in Ghana’s Energy Sector Recovery Programme; a programme that gave birth to the Cash Waterfall Mechanism, Natural Gas Clearinghouse and P4R.
He worked tirelessly to ensure that the objectives of these programmes were holistically achieved.
Dr Oppong equally sat on Ghana’s National Energy Transition Technical Committee, where he contributed to writing policy documents to address Ghana’s energy transition roadmap.
He also played a dynamic role in the review of Ghana’s Gas Master Plan (GMP) and Natural Gas Pricing Policy (NGPP).
Dr Oppong holds adjunct lecturer positions at the Ghana Technology University College, University of Cape Coast, Ghana Institute of Management and Public Administration and KNUST.
He is also actively engaged in industry organisations, serving as the Africa Regional Director of the Society of Petroleum Engineers and a committee member of the International Gas Union.
Riverson holds a PhD and a Post Doctorate Degree in International Oil and Gas Management-Finance and Economics from the Gubkin University of Oil and Gas; a Diploma in Earth GeoScience from the Stanford University, USA; Master (with honours) in Petroleum Engineering from the Gubkin University of Oil and Gas, with Masters Exchange Programme in Arctic Development from the Norwegian University of Nordland; a Bachelors degree in Materials (Industrial) Science and Engineering from the K.N.U.S.T., Ghana; Diploma in Project Management from the Institute of Commercial Management, UK.
Source: https://energynewsafrica.com
Ghana: Koforidua Court Remands 27-Year-Old Man For Stealing ECG Cables
A Circuit Court in Koforidua in the Eastern Region of Ghana has remanded a 27-year- old man, Masaudu Fuseini, in prison custody for allegedly stealing cables belonging to the Electricity Company of Ghana Limited (ECG).
The court, presided over by Miss Asare Anima, on March 28, ordered the suspect to replace the stolen cables valued over GH¢9,000 and show prove of replacement on his appearance in court again on April 8, 2024.
Masaudu Fuseini pleaded guilty to stealing.
Police Inspector, Elorm Arku Klaye, the prosecutor, told the court that Fuseini was arrested at Klo-Agogo, a community in the Asesewa District of the Eastern Region, ans operational area of the ECG, on Monday, March 25, 2024.
The suspect, who resides at Nkurakan in the Asesewa District, was seen cutting some cables, belonging to the ECG.
He was nabbed by members of a watchdog committee set up by the Assembly member for the area.
The committee informed the police about the suspect’s activity and while carrying out a second operation, he was arrested.
He led the police to the spots he kept the stolen cables he cut from the poles.
His arrest has come at a time when the ECG is confronted with the challenge of transformer and cables thefts in the Eastern Region.
So far, nine transformers have been vandalised by suspected criminals this year.
The Eastern Region General Manager of ECG, Ing Sariel A. Etwire, expressed concern about the incidence of cable thefts and transformer vandalisation in the Region.
She commended the police for the swift response and the watchdog committee at Klo-Agogo for facilitating the arrest of Fuseini, and appealed to other communities to emulate the set example.
She said transformers and cables theft disrupt the mission of the company to supply reliable power supply services to customers.
She urged the communities to mobilise themselves and support the ECG to protect its installations.
Source: https://energynewsafrica.com
Biden May Lift LNG Export Ban To Win Ukraine Aid
Markets are impatiently awaiting a decision from the White House that could see the ban on new LNG export projects lifted as the Biden administration seeks leverage in winning Republican approval for an extensive aid package to Ukraine, Reuters reports.
Late on Tuesday, Reuters reported that the White House was considering a reversal of its late January decision to pause new LNG export projects, with two anonymous White House sources saying that lifting the ban could be rewarded with Congressional approval for new aid to Ukraine in its conflict with Russia.
The potential for such a trade-off was suggested during a Sunday interview that aired on Fox News with Republican U.S. House of Representatives Speaker Mike Johnson, who indicated that the Republican Party would be more likely to support Ukraine in the event of a reversal of the LNG project pause.
“We want to have natural gas exports that will help unfund (Russian President) Vladimir Putin’s war effort there,” Johnson told Fox News.
The Biden administration paused permit approvals for new LNG export projects in January citing uncertainty about the outlook for U.S. supply from the late 2020s onwards.
Last year, the U.S. overtook Qatar to become the world’s largest LNG exporter. Now, Qatar is stepping up investment and development, eyeing an 85% increase in its LNG export capacity by 2030 as it seeks to dominate the market.
Earlier this year, Qatar said it was adding another major LNG expansion project to its two ongoing projects, and is now proceeding with the North Field West project, after drilling appraisal wells at the world’s largest natural gas field, the North Field it shares with Iran, and finding “huge additional gas quantities” in the field.
On Sunday, QatarEnergy said it had signed long-term time charter party (TCP) agreements with four international shipowners for the operation of 19 new conventional-size LNG vessels, bringing the total of long-term chartered vessels for LNG exports to 104.
Source: Oilprice.com
South Africa Risks Thousands Of Deaths If Coal-Fired Power Plants Remain Open
South Africa could see additional up to 50,000 deaths due to air pollution and billions of U.S. dollars in health costs if a proposal to delay the decommissioning of coal-fired power plants goes through, a Finland-based research center says.
South Africa, one of the world’s largest coal producers and exporters, continues to rely on coal for a large part of its energy mix. Currently, some 85% of South Africa’s electricity is generated via coal-fired power stations.
Crippled by an energy crisis for several years, the country is now considering whether to extend the life of coal plants beyond 2030 and leave a substantial fleet still operational in 2050, to protect energy security.
But the proposal by South Africa’s energy department – if passed – could lead to the deaths of between 20,000 and 50,000 people, according to estimates by the Centre for Research on Energy and Clean Air (CREA) cited by Bloomberg.
“Given that the delayed retirement scenario leaves very substantial coal-fired capacity in place in 2050, there are going to be further health impacts beyond that year,” the research center told Bloomberg in emailed comments.
In a 2023 report, CREA said that if the rate of decommissioning in the 2030s and 2040s is not accelerated from current plans, further delays to the decommissioning of other units would multiply the health impacts of the delay to 32,300 deaths from air pollution and economic costs of $38.3 billion (721 billion South African rands).
“While Eskom plans to decommission coal-fired power plants, the exact pathways that will be followed are unclear and many of the plants have had their decommissioning delayed. Currently, the South African government plans to delay decommissioning even further,” CREA said at the end of last year.
Last week, South Africa’s energy minister Gwede Mantashe told Bloomberg that expecting the country to quickly give up on coal-fired power would be “very wrong.”
“This belief that you can leave coal and move to renewables: there’s a technical mistake, very wrong, it will never work,” Mantashe told Bloomberg.
Source: Oilprice.com
Ghana: My Memories With Wisdom Ahiataku -Togobo -The Renewable Energy Trailblazer As He Retires
The story of the renewable energy industry in Ghana would be incomplete without the mentioning of Mr Wisdom Ahiataku -Togobo.
Wizzy, as he is affectionately called, spent 35 years of his life working to promote the development of renewable energy policy and projects from cookstove through to biogas, wind, solar and hydro power in the country.
Mr Ahiataku-Togobo attained 60 years of age last Friday, March 29, 2024, and, therefore, retired from active public service.
On Sunday, Mr Ahiataku-Togobo went to the Global Evangelical Church, Adonai Chapel in Madina to thank the Almighty God for watching over him and protecting him for the past 60 years, out of which he spent 35 years championing renewable energy policy and development.
I was one of the people who were invited to join him at his residence to continue to celebrate him and appreciate God for making grace abound for him to leave indelible prints in the renewable energy industry in Ghana.
During the programme, guests gave testimonies about Wisdom’s selflessness, generosity, hard work, passion for renewable energy, tenacity and ability to get work done on time.
His schoolmates (Odadee) from the Presbyterian Boys’ Secondary School, Legon, Accra, recounted how Wisdom used to excel in mathematics and science-related courses.
Ing Seth Mahu, Deputy Director for Renewable Energy at the Ministry of Energy, and Mr Fredrick Appiah, Deputy Director for Renewable Energy and Energy Efficiency at the Energy Commission, gave testimonies about how Wisdom Ahiataku-Togobo helped them to secure a job and also introduced them to the renewable energy.
The duo testified about Wisdom’s determination to always get work done, teamwork spirit and readiness to share with the needy.
In a nutshell, Wisdom’s effort put them in the position they both occupy in the energy sector today.
I also got to know Wisdom Ahiataku-Togobo in 2019. Wisdom had been reading the stories I published about the energy sector, and seeing the quality of the stories, he managed to get my mobile number and called me and discussed his plans to visit some ongoing project sites in the northern part of Ghana.
I accepted his request to join him and we travelled to Bui in the Bono Region to inspect BPA’s site where preparation work was ongoing for the installation of a 200MW peak solar farm.
We spent a few days and continued the journey to Lawra and Kaleo to inspect VRA’s solar projects under construction by Elecnor SA.
We returned to Accra and Wisdom later facilitated a trip to the BPA’s Tsatsadu Mini Hydro Generation Station in the Hohoe District of the Volta Region. This project was then being constructed under the able leadership of Mr Fred Oware, the then CEO of Bui Power Authority (BPA).
Through Wisdom, I also had the opportunity to visit solar mini-grid sites in some island communities in the Ada District of the Greater Accra Region.
In 2020 Mr Ahiataku-Togobo did something that struck me.
The then Minister of Energy was scheduled to join His Excellency President Akufo-Addo to inaugurate the Lawra Solar Project and Wisdom arranged for me to join them at the Air Force Base for the Military Chopper to Wa.
I arrived at the Air Force Base early to wait for the Minister and his team to arrive for us to board the chopper.
It did not take long when the Minister arrived with member of the Ministry’s delegation.
At the reception, a message was communicated to the Honourable Minister, that I be excluded from joining the trip.
The reason was that I wrote about a case the Ministry of Energy reported to the police about the attempted withdrawal of about three million cedis from the Ministry’s account with NIB.
On hearing this, Mr Ahiataku-Togobo politely insisted that if I did not join them on the trip, he was not going to join them either.
Since Wisdom’s presence at the inauguration was necessary, they had to agree that i be allowed to join the the delegation to Wa for the inauguration of the project.
Anytime Wisdom needed my help, he would call me, and I gladly honor his request. I must say that he used the little resources meant for him to ensure that I was quite comfortable anytime I joined him on a trip.
After the 2020 election, a new Energy Minister was appointed, resulting in the reorganization of the Renewable Energy Directorate. As it is said, “New King New Law,” so Wisdom’s position was subsequently reassigned to the Bui Power Authority.
Mr Fred Oware, who had relied on the advice of the Renewable Energy Directorate headed by Wisdom and could testify about the expertise of Mr Ahiataku-Togobo in renewable energy, facilitated for him to join BPA till his mandatory retirement.
At BPA, he became the face of the company due to his level of expertise in renewable energy.
He represented BPA at many international forums, spoke to the hearts of audiences, and on many occasions received standing ovations and applauses from the gatherings.
My relationship with Wisdom continued even when he moved from the Ministry of Energy to BPA.
I had the opportunity to visit him on a few occasions to chat and discuss issues.
Two things that inspired me to write about Mr Ahiataku-Togobo was how the Lord used me to avert a spiritual attack on his life.
The first was sometime in 2021. The Lord revealed to me in a dream that I was having a conversation with Wisdom. After a while, we bade goodbye to each other and he drove off.
A few minutes later, I turned and watched Wisdom get involved in a terrible accident and was dashed to a Roman Catholic Hospital where his two legs were amputated.
I wept in the dream when I saw him in that state.
I prayed for him and communicated the dream to him.
He told me that the BPA was making arrangements to get him a vehicle but because it was not ready, he was still using the Ministry’s vehicle which he intended to travel with the following day.
Upon receiving my advice, Wisdom changed his plans and returned the vehicle to the Ministry.
The second thing was, one Thursday morning, I decided to call Wisdom on the telephone to check up on him since we had not spoken for weeks.
Surprisingly, Wisdom was not well and could not even breathe properly. I told him I would come over, called my prayer partner and we drove to his (Wisdom’s ) residence.
At the entrance to his house, we prayed before and God spoke.
When we entered the house, Wisdom was lying down with his wife beside him. There were a couple of medicines by him. I requested a bottle of anointing oil for prayer.
To the glory of God, Wisdom later recovered, and I am happy that God kept him safe and he has retired honourably and graciously.
God has a reason for bringing people close.
Jonathan, the son of Saul in the Holy Bible, became a good friend of David, and God used Jonathan to save David’s life when Saul developed hatred for David.
Let us show genuine love, care and compassion and create opportunities for people. The messenger could be your saviour tomorrow. That house help could be your saviour tomorrow. That schoolmate could be your saviour tomorrow.
God bless you, Wisdom Ahiataku-Togobo.
Writer: Pastor Michael Creg Afful,
Managing Editor, energynewsafrica.com
Writer: Pastor Michael Creg Afful,
Managing Editor, energynewsafrica.com Nigeria: NERC Announces Hike In Electricity Tariff
The Nigerian Electricity Regulatory Commission (NERC) has announced an increase in electricity tariff for customers within the Band A category to N225/kWh.
This follows the recent increase in the base price for natural gas from US$2.18 to US$2.42 per metric million British thermal units (mmbtu) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Addressing a press conference in Abuja, the capital of Nigeria, on Wednesday, the Vice Chairman of NERC, Musliu Oseni said power distribution companies (DisCos) would be allowed to increase electricity tariff from the current 66 Naira to 225 Naira per kilowatt-hour.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band-A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeder.
“The Commission has issued an order which is titled ‘April supplementary order’ and the commission allows a 235 kilowatt per hour,” he said.
Source: https://energynewsafrica.com
Oil Prices Climb Toward $90 On Geopolitical Risk And A U.S. Stock Draw
Brent crude ticked up closer to $90 per barrel today after the American Petroleum Institute reported a larger than expected draw in U.S. inventories and as geopolitical tensions remained intense.
The U.S. inventory report of the API showed draws across the board, with crude oil shedding 2.3 million barrels, with gasoline stocks down by 1.4 million barrels and middle distillate inventories down by 2.5 million barrels.
The geopolitical updates included yet another Ukrainian drone attack on a Russian refinery and Iran vowing to retaliate for Israel’s strike on the Iranian consulate in Damascus that killed five people.
Both developments are cause for worry about, first, oil supply from one of the world’s top three exporters, and, second, a significant escalation in the Middle East that could threaten the security of oil supply.
In addition to all this, Mexico’s Pemex said it would reduce exports of crude oil by over 400,000 bpd as it diverts barrels to local processing capacity, Bloomberg reported this week.
Citing unnamed sources, the publication wrote that Pemex had canceled several delivery contracts with U.S., European, and Asian clients to move more oil to the new Dos Bocas refinery aiming to boost domestic fuel production ahead of the presidential vote in June.
Now focus is on the OPEC+ meeting today, where members are expected to stay the course of limited oil production until the end of June, at least.
This means persistently tight supply that will likely push prices higher still, especially as neither Ukraine has any intention to stop droning Russian refineries nor Israel has any intention of changing course in what increasingly seems like a war on all anti-Israel groups in the Middle East.
Even so, some analysts still expect lower prices—because of Chinese demand.
“Brent oil futures should track closer to $75 to $80 a barrel in coming months given our view that China’s oil demand growth will disappoint,” Commonwealth Bank of Australia analyst Vivek Dhar told Bloomberg earlier today.
This is an interesting expectation given the latest manufacturing figures out of Beijing that showed a pickup in activity—for the first time in six months.
Source: Irina Slav
Ghana: NPA Issues Petroleum Products Guidelines…Sets Price Floors For BIDECs, OMCs
Ghana’s petroleum downstream regulator – National Petroleum Authority (NPA) – has amended its petroleum pricing guidelines to, among other things, prevent oil marketing companies (OMCs) and liquefied petroleum gas marketing companies (LPGMCs) from selling products below benchmark price.
The petroleum downstream sector of the West African nation is deregulated, that is, fuel prices are determined by factors including the cost of finished products on the global market and exchange rate.
However, the regulator, in a letter to industry signed by the Deputy Chief Executive, Curtis Perry Okudzeto, for the chief executive officer, said beginning from April 1, it shall set and communicate price floors for the deregulated products, namely gasoline (petrol), gasoil (diesel), kerosene, liquefied petroleum gas (LPG) and marine gas oil for each pricing window, which is 1st to 15th of each month and 16th to 30th of each month.
For the regulated products, namely premix fuel, residual fuel oil (RFO), aviation turbine kerosene (ATK), gasoil mines, gasoil rig and marine gasoil (MGO) foreign, the regulator said it shall determine their prices and communicate to stakeholders prior to the start of every pricing window.
The move is part of efforts to deal with concerns from industry players about serious price undercutting in the industry by some oil marketing companies in the country.
The National Petroleum Authority promised that it shall periodically furnish Petroleum Service Providers with the full pricing formula stating the specific taxes, levies, and margins applicable for each pricing window in excel format.
“Bulk import, distribution and export companies (BIDECs) will independently
determine suppliers’ premiums and exchange rates used in setting their ex-refinery prices, while Oil/LPG marketing companies (OMCs/LPGMCs) will
independently determine the marketers’ and dealers’ margins used in setting their ex-pump prices.
“The applicable pricing benchmarks are to be used as the reference for the FOB prices as well as the conversion factors for each product,” the letter said.
“OMCs and LPGMCs shall ensure that all retail outlets operating under their sponsorship always have a uniform ex-pump price, and that these prices are the same as those that have been communicated to the NPA.
The letter mentioned that notwithstanding the above, a retail outlet may offer discounts to consumers. However, this discount shall not exceed 2% of the prevailing ex-pump price of its sponsoring OMC or LPGMC.
“OMCs shall not sell products that are regulated above the prices communicated
by the NPA,” it said.
The NPA cautioned that Oil Marketing Companies that fail to comply with the guidelines could be fined from 5,000 to 20,000 Ghana Cedis thousand for violating any of the specific guidelines.
The National Petroleum Authority has given the firm assurance that it will not hesitate to sanction any Oil Marketing Company, Bulk Oil Distribution firm and Liquefied Petroleum Gas Marketing Company if they fail to comply with these new guidelines as they were based on recommendations from the various players in the industry.
Mechanism For Setting Ex-Refinery And Ex-Pump Price Floors
Ex-Refinery Price Floor:- Average FOB price for the window.
- All known fixed costs that apply to imports (excluding IOTC premium and BIDEC margin).
- BoG FX rate from the auction for the window.
- Ex-Refinery price floor for the window.
- Taxes, levies and margins in the PBU for the window (excluding OMC/LPGMC margin).
- IOTC premiums and BIDEC margins vary for each BIDEC hence they are considered as variable costs which they will independently determine. This allows for competitive pricing amongst them.
- The BoG FX rate for each window is to be used because its can easily be referred to and is general to all BIDECs. It is also mostly the least FX rate for each window.
- OMC/LPGMC margins are excluded to allow them to determine their own margins, and allows for competitive pricing amongst them.
Ukrainian Drones Hit Russia’s Third-Largest Oil Refinery
Ukrainian drones hit the primary refining unit of Russia’s third-largest refinery southeast of Moscow more than 800 miles from the front line, Reuters reported on Tuesday.
The Taneco refinery of Russian company Tatneft in Tatarstan, an industrialized region southeast of Moscow, was attacked by Ukrainian drones in the latest such attack from Ukraine on Russian refining infrastructure.
The refinery has a capacity to process 340,000 barrels per day (bpd) of crude. Its primary refining unit, with a capacity to process about 155,000 bpd, was hit in Tuesday’s attack, according to pictures seen by Reuters.
The unit caught fire, which was swiftly extinguished, Russian media report.
They also quote Ramil Mullin, the mayor of the city of Nizhnekamsk, where the refinery is located, as saying that there have been no injured people in the attack.
“There are no injuries or serious damage,” Mullin wrote on Telegram.
“The technological process of the enterprise has not been disrupted,” the mayor added.
A source with the Ukrainian intelligence in Kyiv told Reuters that Ukraine hit a major Russian oil facility in Tatarstan to reduce Russian oil revenues.
Ukraine has stepped up attacks on oil refineries in Russia in recent weeks, which have reduced Russian refining capacity, and which, reportedly, have the White House concerned about rising international prices.
The United States has repeatedly urged Ukraine to halt its drone attacks on Russian oil refineries due to Washington’s assessment that the strikes could lead to Russian retaliation and push up global oil prices, the Financial Times reported last month, citing sources familiar with the exchange.
According to Reuters estimates, the amount of Russian oil refining capacity that has been taken offline due to Ukrainian drone strikes is 14% of Russia’s total refining capacity.
Calculations show that 900,000 bpd of refining capacity have been taken offline by drone strikes, Reuters reported last week
Source: Oilprice.com
South Africa: Motorists Outraged By Yet Another Fuel Price Hike
Motorists in South Africa have expressed outrage over yet another fuel price hike which will take effect on Wednesday.
The Energy Department said the price of 93 unleaded petrol will increase by 65 cents per litre and 95 unleaded by 67 cents.
Diesel with higher sulphur content will go up by just more than three cents a litre while low sulphur diesel will decrease by one-point-seven-eight cents.
Some motorists who spoke to state broadcaster, SABC described the increment as unjust.
“Just when we thought this country couldn’t get any worse, we are seeing another fuel increase.
“It is just getting really difficult because we live month to month and our salary doesn’t even cover the basic stuff we need and here we are.
“The upcoming fuel prices makes me so frustrated because water and electricity is already so high and now the fuel is also going up, like the cost of living is so high and I am frustrated and tired and sick of this,” some motorists said as reported by SABC.
The prices take effect from midnight on Tuesday next week.
The department says the wholesale price of illuminating paraffin will decline by 29 cents a litre.
The increases are attributed to a slew of factors including an increase in the slate levy, higher carbon fuel levy and rising international oil prices.
Source: https://energynewsafrica.com