Saudi State Orders Aramco To Stop Oil Capacity Expansion
The Saudi state has ordered energy major Aramco to stop work on expanding its maximum sustainable capacity to 13 million barrels daily, instead keeping it at 12 million bpd.
The company said in a statement today that its maximum sustainable capacity is determined by the state under a law from 2017.
Aramco added that it would update its capital spending plans for the year in accordance with the new government directive in March when it announces its 2023 financial results.
Saudi Arabia’s state oil company said it was working to boost its production capacity to 13 million barrels daily back in 2021.
The capacity expansion will come fully online by 2027 and will come on in chunks, chief executive Amin Nasser said at the time.
The Saudi giant, the world’s biggest oil firm and the largest oil exporter globally, was working as fast as it could to reach that production capacity expansion, the executive said, noting that upstream investment has a long lead time.
Aramco’s CEO has often warned the market that the industry is under investing in new oil supply, which, regardless of many scenarios, will continue to be needed for decades.
Even so, the perception of oil demand among traders has failed to match these warnings. Despite extended and sizeable production cuts effected by Saudi Arabia and some of its fellow OPEC+ members, prices have remained stubbornly range-bound.
This may be the reason for the new order. Alternatively, the long-term outlook for oil demand in Riyadh may have changed.
Oil prices inched higher this week, following the latest news from the Middle East, which included a fuel tanker attack by the Yemeni Houthis and a deadly drone attack on U.S. troops.
However, their gains were pared by real estate news from China, believed to affect its oil demand prospects.
Source:Oilprice.com
Ghana: Gov’t To Dialogue With Organised Labour, Others After Massive Rejection Of VAT On Electricity Consumption
Ghana’s Ministry of Finance has announced plans to hold extensive dialogue on the proposed imposition of Value Added Tax (VAT) on electricity consumption, after a cross section of Ghanaians criticized government for seeking to inflict more pain on them.
The aim of the dialogue is to ensure buy-in by all stakeholders.
According to the country’s Minister for Finance, Ken Ofori-Atta, the imposition of VAT on electricity consumption beyond the lifeline threshold (0-30kwh) forms part of IMF-Supported Post Covid-19 economic recovery programme.
The directive by the Finance Minister, Ken Ofori-Atta to management of the two power distribution companies in the West African nation, ECG and NEDCo to charge VAT on electricity consumption beyond lifeline effective January 1, 2024 had been met with stiff opposition by various interest groups in the country.
Last week Organised labour, issued a 7-day ultimatum to the Finance Minister to withdraw the directive warning that failure to do so would compel them to mobilize themselves to protest.
In a statement issued by the Finance Ministry on Tuesday, January 30, 2024, it said “The Ministry of Finance has noted the concerns of Organised Labour on the implementation of VAT on the consumption of electricity by residential customers.
Extensive dialogue will be held with Organised Labour and other key stakeholders in the coming weeks, to ensure stakeholder buy-in.”
The statement appealed to Organised Labour, the Electricity Company of Ghana (ECG), and the Northern Electricity Distribution Company (NEDCO) to exercise restraint to “facilitate constructive dialogue towards a quick resolution of the impasse.”
“The Ministry, therefore, appealed to Organised Labour and all stakeholders, including ECG and NEDCO, to exercise restraint to facilitate a constructive dialogue towards a quick resolution of the impasse.
“We note the progress the country is making in the implementation of the Post COVID-19 Programme for Economic Growth (PC-PEG), including posting higher than programmed growth targets, declining inflation, improvement in fiscal and external positions, a more stable exchange rate, and the declining Monetary Policy Rate,” the statement concluded.
Source: https://energynewsafrica.com/
Ghana: ECG Adopts Online Application For Meters, Other Services Effective Feb. 1
Ghana’s southern power distribution company, Electricity Company of Ghana Limited (ECG) has announced that application for new meters and other services can only be done through its ECG Mobile App from February 1, 2024.
ECG said the migration forms part of its digital transformational agenda as well “as ECG’s quest to provide customers with a more efficient and hassle-free customer service.”
The company in a public notice urged customers to provide accurate and active contact details in the application process, as all corresponding responses will be done through the telephone numbers provided during the application.
“Customers should note that all responses regarding their applications will be communicated to them through their contact telephone numbers provided.
Customers are therefore advised to provide accurate information when applying for the service.”
Source: https://energynewsafrica.com/
Mauritania: AfDB Approves $289m Financing For Power Projects
The Government of Mauritania has signed an agreement with the African Development Bank (AfDB) for two energy sector projects worth a total of US$289.5 million, covering solar power generation, transnational electricity interconnection and rural electrification.
Mauritania’s Minister for Economy and Sustainable Development, Abdessalam Mohamed Saleh, initialed the agreement on behalf of Mauritania while Malinne Blomberg, AfDB’s Deputy Managing Director for North Africa, initialed for the bank.
The financing, made up of loans and grants, is intended to implement the 225 Kv Mauritania-Mali electricity interconnection and associated solar power plants development project (PIEMM) as well as the project to strengthen productive and energy investments for the sustainable development of rural areas (RIMDIR).
The first project, the PIEMM, involves building a 225 kV electricity interconnection to link Mauritania to Mali as part of the Desert to Power Initiative.
The program is aimed at developing solar power plants and a 1,373-kilometer high-voltage power line, with a transit capacity of 600 megawatts (MW) between the two countries.
The medium- and long-term objectives are to boost solar energy production and provide universal access to electricity in both countries.
The project is financed on the Mauritanian side by a $272 million loan from the African Development Fund — the concessional window of the Development Bank Group — and a $1.5 million grant from the Green Climate Fund.
This financing is the largest ever granted by the African Development Bank to Mauritania.
The second project, RIMDIR, is a $16 million grant from the Sustainable Energy Fund for Africa (SEFA) and concerns rural electrification for 40 localities in south-eastern Mauritania.
This involves the installation of hybrid mini photovoltaic power plants combining a photovoltaic park and a back-up electricity generator, as well as the construction of connecting lines to link the power plants to villages, in the form of a public-private partnership (PPP).
The project will also support value-creating activities, notably in the cold food chain (meat, milk, and vegetables) and agri-food processing.
The African Development Bank has been active in Mauritania for over fifty years in various strategic development sectors, including agriculture, governance, water and sanitation, energy, mining, private sector, transport and social.
“There can be no sustainable, diversified economic growth without high-quality, reliable electricity that is accessible to all.
Within this framework, the government has drawn up ambitious programs seeking to guarantee access to electricity for all citizens by 2030, and this requires the optimal exploitation of the energy sources available in the country, to which this financing from the African Development Bank will contribute,” Abdelssalam Mohamed Saleh said.
Commenting Mrs. Blomberg said, “Today we are signing financing agreements that pave the way for Mauritania’s energy transition.
The two projects will improve people’s daily lives with new opportunities for green growth, sustainable investment and jobs.
They attest to the excellence of our relations with Mauritania, which they help to strengthen.”
Source: https://energynewsafrica.com/
Nigeria: Jigawa Partners KEDCO To Deliver Stable Renewable Power
The Jigawa State Government, one of the States in the Federal Republic of Nigeria and the Kano Electricity Distribution Company (KEDCO) have signed an innovative partnership that will ensure stable electricity across the state.
Jigawa State in partnering with the new Core Investor in KEDCO (Future Energies Africa) is increasing its shareholding in KEDCO to 10 percent (from 7.5 percent), while also committing KEDCO to an electrification partnership.
The partnership will see KEDCO (and partners) invest to build up to 10MW of Solar Interconnected mini-grids in the key urban hubs of Dutse, Gumel, Hadejia, Kafin Hausa, Kazaure, and Ringim, to augment power supply and ensure stable electricity across the State.
According to the parties, the partnership will also see KEDCO complete the Gagarawa-Taura-Ringim line and connect the communities on the axis to the grid.
“The agreement between the Jigawa State Government and KEDCO will include the two parties partnering on joint electrification plans, to take access levels for electricity in the State to greater than 90 percent by 2030.”
The electrification plans will include grid expansion, embedded generation, solar hybrid mini-grids, and solar home systems across the State.
“This agreement is in line with Governor Umar Namadi’s dynamic agenda for the State dubbed “Greater Jigawa”.
“We believe with stable electricity across the State, the lives of our people will be improved, and we can sustain a consistent double-digit growth rate to exit more and more people from poverty and make Jigawa State a prime destination for investment and jobs in Nigeria,” Namadi said in a statement copied to energynewsafrica.com.
This multi-billion-naira agreement will catalyse the continued transformation of Jigawa into an Agri-Processing and Renewable Energy hub.
Ibrahim Gumel, the chairman of Kano DisCo, said the new Core Investor in KEDCO is focused on ensuring that KEDCO becomes the best DISCO in Nigeria in the next few years.
“We hope to unveil similar partnerships with Kano and Katsina States later this year as part of our broad recapitalisation exercise.
“We will make KEDCO the first Green Electricity Distribution Company in Sub-Saharan Africa while supporting the development agendas of the State Governments in our Franchise Areas,” he added.
Source: https://energynewsafrica.com/
Norway’s Natural Gas Production Hits Record High
Norway’s natural gas production beat forecasts and rose to a record high in December, preliminary figures from the Norwegian Offshore Directorate showed on Tuesday.
Norwegian gas production increased to an all-time high of 379 million cubic meters per day (mcm/day), up from November levels and up by 7.7% compared to the directorate’s forecast.
Oil production also beat forecasts, by 1.9%, and stood at 1.847 million barrels per day (bpd) last month, up from 1.805 million bpd in November.
Last year, Norway’s oil and gas production was slightly lower than expected, largely due to unplanned and extended maintenance shutdowns at multiple fields and onshore facilities during the summer, the Norwegian Offshore Directorate said in its annual report earlier this month.
Gas production resumed full force starting from early autumn, with November and December being particularly good months for gas exports, Norway said.
According to the directorate’s preliminary figures, a new export record for a single month was set in December, with just under 12 billion standard cubic meters of gas exported.
Oil and gas companies plan to boost exploration activity and spending offshore Norway this year as Western Europe’s top oil and gas producer looks to maintain production and raise exports to the rest of Europe.
Currently, most exploration efforts are focused on areas around existing infrastructure so discoveries can be tied back quickly and create value while the fields are still in operation, the Norwegian Offshore Directorate said.
While this is important for maintaining production levels in the near and medium term, the directorate said it “would like to see companies exploring actively in more frontier areas.”
The robust exploration and production activity of the past year is set to continue into 2024, it noted in the report.
This year, exploration activity will pick up, with 40 to 50 exloration wells planned by operators, up from 34 exploration wells spudded last year, according to the authority.
Source: Oil Price.com
The Gambia: NAWEC Announces Power Supply Interruption In Greater Banjul Area
The Gambia’s National Water and Electricity Company (NAWEC) has announced a temporary power interruption in the Greater Banjul Area (GBA).
The company said the interruption in power supply is as a result of Karpower engines undergoing diagnosis and possible repair works due to minor technical faults.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com Ghana: Ada District ECG Embarks On Anti-Bushfire Advocacy
As part of effort to prevent burning of high tension poles as the harmattan sets in, the Ada District of the Electricity Company of Ghana (ECG) has been sensitizing residents in Ada and surrounding towns to desist from bush burning to guarantee regular power supply in the area.
In collaboration with the media, Assembly members and other stakeholders, the District has been sensitizing the public to be aware of the dryness of the Harmattan weather and the susceptibility of bushes to uncontrolled fire outbreaks.
During harmattan some people set fire into bushes with the intention of clearing it but end up affecting other places as well, causing damage to property, animals and in the case of ECG, some wooden electricity poles in bushy areas.
In Ada District, the company has lost some electricity wooden poles in Koluedor Zongo, Tojeh, Hwakpo and Addo Kope from December 2023 till date.
The effect of these bush fires affect both customers and the utility service provider, in that, the customers being served with the part of the network with burnt poles will not have power for a while, as the damage caused must be rectified.
On the part of the company, resources meant for other developmental projects would have to be diverted to replace lost materials in order to restore power supply.
Speaking to the media , the District Manager for ECG in the Ada District, Ing. Louis Nutsugah, appealed to those engaged in these activities to consider the danger it poses to the stability of electricity supply to the communities in the district”.
Ing. Nutsugah also called for public support for all to be on alert and watchful in the communities “so that, hopefully, we can help to prevent as well as educate community members on the effects of bushfires.”
Ing. Nutsugah thanked all stakeholders who continually support the activities of the utility service provider and called for continuous collaboration to ensure better services.
Source: https://energynewsafrica.com
The effect of these bush fires affect both customers and the utility service provider, in that, the customers being served with the part of the network with burnt poles will not have power for a while, as the damage caused must be rectified.
On the part of the company, resources meant for other developmental projects would have to be diverted to replace lost materials in order to restore power supply.
Speaking to the media , the District Manager for ECG in the Ada District, Ing. Louis Nutsugah, appealed to those engaged in these activities to consider the danger it poses to the stability of electricity supply to the communities in the district”.
Ing. Nutsugah also called for public support for all to be on alert and watchful in the communities “so that, hopefully, we can help to prevent as well as educate community members on the effects of bushfires.”
Ing. Nutsugah thanked all stakeholders who continually support the activities of the utility service provider and called for continuous collaboration to ensure better services.
Source: https://energynewsafrica.com Nigeria: My Administration Will Provide Needed Intervention In Oil, Gas Sector–Tinubu
Nigeria’s President, Bola Ahmed Tinubu, has assured Nigerians that the administration will do everything possible to provide the needed interventions in the country’s oil and gas industry in line with the Petroleum Industry Act (PIA).
Tinubu gave the assurance last Tuesday when he received a delegation from the Chevron Corporation, led by Clay Neff, the President of Chevron International Exploration and Production.
He said Nigeria would strengthen its long-standing partnership with the multinational company in line with the evolving dynamics in the oil and gas industry.
According to a local report, Tinubu welcomed Chevron’s commitment to building on its investments in shallow and deep water operations in Nigeria and specifically mentioned the company’s ongoing 1.4 billion dollar drilling project with the Nigerian National Petroleum Company Limited (NNPCL).
He also commended Chevron for its dedication to reducing its carbon footprint in the country.
”You must see the PIA as a legacy law. We assure you of quick interventions and turnaround on any issue you may have in your operations in our country.
”Nigeria is proud of the 60-year partnership with Chevron, and we believe this partnership will be strengthened to a mutually beneficial value for the benefit of your shareholders as well as the living standards and economic opportunities of our population,” he said.
On his part, the President of Chevron International Exploration and Production, Mr Neff, pledged that the company would continue to operate in full adherence to the highest standards, even as it meets its investment commitments in Nigeria.
He highlighted the company’s contributions to domestic gas supply, noting the delivery of 25 per cent gas through a joint venture with NNPC Limited.
He also said Chevron was scaling up its investments in the country with its recent efforts in a new phase of development.
”We are also looking at other opportunities as well while operating with the best environmental practices.
“We will continue to grow our traditional oil and gas business because we know the countries where we operate need those products, and the world needs those products,” he said.
Source: https://energynewsafrica.com
Ghana: New SIGA Boss Holds Talks With Ghana Gas
The Ghana National Gas Limited Company (Ghana Gas) has hosted the newly appointed Director-General of the State Interests and Governance Authority (SIGA), Mr John Boadu, and discussed the company’s operations and strategic plan with him.
Mr. John Boadu, a former Board Member of the Tema Oil Refinery and currently serving as Board Member of GOIL PLC, was appointed as Director-General for SIGA recently after the retirement of the immediate past Director-General, Ambassador Edward Boateng.
During the meeting, Dr Ben K.D. Asante underscored the pivotal role of gas in industrialization, emphasizing its utilization not only for power generation but also for fertilizer production and other various industrial purposes.
He reiterated the significant contribution of the company to the success of the energy sector, particularly in minimizing power outages.
On the other hand, Mr. John Boadu pledged his unwavering commitment and readiness to initiate endeavours that would yield social profit not only for Ghana Gas but for all government agencies.
Source: https://energynewsafrica.com
On the other hand, Mr. John Boadu pledged his unwavering commitment and readiness to initiate endeavours that would yield social profit not only for Ghana Gas but for all government agencies.
Source: https://energynewsafrica.com Ghana: TOR Will Be Revamped–Akufo-Addo…But Ghanaians Grill Him
Ghana’s President, Nana Akufo-Addo, has assured the country that his administration will do everything possible to revive the ailing Tema Oil Refinery (TOR).
He gave the assurance when he commissioned Sentuo Refinery, a newly constructed Chinese-owned refinery in Tema in the Greater Accra Region.
“The challenges of another domestic oil refinery, the Tema Oil Refinery, are well documented. Nonetheless, I want to assure the Ghanaian people that the government remains committed to the full operationalization of TOR, and we will stop at nothing to bring it back on stream so that, together with Sentuo, more and more of our oil will be refined right here in Ghana,” the President said.
Tema Oil Refinery, a 45,000 per stream day capacity, was established in 1963 during the regime of late Dr. Kwame Nkrumah, Ghana’s first president, when the country was not a commercial oil producer.
The West African nation was, however, fortunate to discover oil in commercial quantity in 2007 and has since developed the upstream sector with a current production hovering around 150,000 barrels per day.
Unfortunately, the refinery is ill and Ghana continues to spend US$400 million monthly to import refined petroleum products from Europe and the Middle East, and this puts pressure on the local currency, the Cedi.
Since assuming office in 2017, the Akufo-Addo government has been making effort to revamp the ailing refinery but it has not yielded positive results.
In 2022, the Board of Tema Oil Refinery initiated a process to get a strategic partner to bring back the refinery but it has since been fraught with controversies due to a lack of transparency in the whole process.
Recently, the Board of TOR interdicted two executives of the General Transport Petroleum and Chemical Workers Union (GTPCWU) for speaking to the media over the issue.
Many Ghanaians have wondered if the refinery could be brought back on stream as President Akufo-Addo assured.
The citizens, thus, took to President Akufo-Addo’s Facebook page to question him about the fate of Tema Oil Refinery.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
U.S. Sanctions Strand 10 Million Barrels of Russian Crude For Weeks
About 10 million barrels of Russian crude oil have been stranded off the coast of South Korea thanks to U.S. sanctions, traders and shipping data told Reuters on Friday.
The 10 million barrels, carried by 14 tankers, are of the Sokol variety from Sakhalin-1 and remain unsold due to Western sanctions. That amount represents about 45 days’ worth of Sakhalin-1 production at its average rate of 220,000 barrels per day.
The vessels—including 3 VLCCs—carrying the Russian crude oil have been stranded near the port of Yosu in South Korea for weeks after the United States sanctioned multiple vessels and companies that were transporting the Sokol grade.
Reuters sources and shipping data courtesy of Kpler and LSEG indicate that the VLCCs, carrying 3.2 million barrels, have been acting like floating storage.
At least some of the Sokol crude oil was destined for Indian Oil Corp. The delays in delivery caused by payment problems have caused Indian Oil Corp to search for crude from elsewhere—mainly from its own storage and the Middle East.
The United States initiated sanctions and a price cap on Russian crude oil transiting by water more than a year ago.
The intent was not to disrupt the flow of oil, but to restrict revenues to Russia, who would otherwise use crude oil money to fund its military operations in Ukraine.
The Biden Administration has insisted that its sanctions and G7 price cap have been effective, despite the accusations from some that they have been largely ineffectual.
The Kyiv School of Economics estimated in December that Moscow would bring in $178 billion from oil sales in 2023—and predicted that this figure would rise in 2024.
According to the Centre for Research on Energy and Clean Air, the import ban and price cap have cost Russia $37 billion in export revenue. “The price cap has had an impact but has failed to live up to its potential” CREA analysts said last December.
Source: Oilprice.com
Ghana: VRA Holds Stakeholder Engagement On The Lower Volta Dredging Project And Aquatic Weeds Harvesting
The Volta River Authority (VRA), managers of the Akosombo and Kpong Hydroelectric power dams, have organized a stakeholders’ engagement at Dadome in the North Tongu District, Volta Region, to sensitize seven communities: Amekokorpe, Ahumakorpe, Titikorpe, Saikorpe, Husikorpe, Aklakpanu and Dadome along the Volta River, on the Lower Volta Dredging and Aquatic Weed Harvesting Project.
The project comprises dredging of the sand deposits from the lower Volta River to deepen the original river channel, enrich riverbanks, community supply or estate development as well as the harvesting of aquatic weeds and converting harvested weeds into commercially usable forms.
It further aims to improve the flood resilience of the Lower Volta Basin, reduce the prevalence of schistosomiasis, enhance water quality and improve the socio-economic status of the Lower Volta area.
Addressing the chiefs and people of the areas, the Volta Regional Minister, Dr Archibald Yao Letsa emphasised the importance of the Lower Volta Dredging Project and the need for all stakeholders to work together to ensure the success of the project.
According to him, the project would inure to the benefit of the people not only in the North Tongu District but the entire Lower Volta Basin.
The Project Coordinator, Mr Andreas Andoh, delivered a presentation on the overview of the project to the stakeholders.
He explained the project benefits, detailing the scope of work, where two contractors–JSC Mediterranean Ghana Ltd. (JSC) and Lower Volta Dredging Contractors Ltd. (LVDCL)–would dredge the entire stretch from Akuse to the Ada estuary.
JSC would dredge from Akuse to the Sogakope bridge while LVDCL would dredge from the Sogakope bridge to the Ada estuary, as well as harvest the weeds from Kpong Head Pond to the estuary.
Dignitaries present were the Member of Parliament of North Tongu, Hon Okudzeto Ablakwa; the Manklalo of Mepe Traditional Area, Togbe Kwasi Nego VI, District Chief Executives for South Tongu, Hon Seth Agbi and Central Tongu, Hon Thomas Moore.
The rest were the Paramount Queenmother, Mamaga Sreku IV and the chiefs of Mepe Traditional Area.
Recently, VRA undertook a controlled spillage from the Akosombo Dam to protect the integrity of the dam.
However, the exercise left many areas in the Eastern, Volta and Greater Accra Regions flooded.
Source:https://energynewsafrica.com/
Nigeria: Borno Governor Visits Power Minister, Seeks Collaboration Between FG And State
The Governor of Borno State in the Federal Republic of Nigeria, Professor Babagana Umara Zulum has visited the Minister of Power, Chief Adebayo Adelabu to explore areas of collaboration between the Ministry and the Borno State government.
According to Governor Zulum, his administration had spent over N500 million in the purchase of transformers for different communities in the State.
He said his visit was to explore more opportunities of working together with the Ministry of Power.
The Minister who expressed appreciation for the visit reiterated his call for collaboration between the State and the Federal government especially in the provision of power infrastructure.
He noted that Governor Zulum’s action has further confirmed the importance of a collaboration between the State and the Federal government in the provision of regular electricity supply to businesses and households in the country.
Adelabu further revealed that the Federal Government is embarking on significant expansion projects on the Transmission network to increase electricity supply to load Centres.
“These grid projects will strengthen the transmission network and create alternative transmission corridors to avoid grid collapse”, he said.
Commending the governor, the Minister said the provision of regular electricity in the country could be further strengthened with collaboration between State and the Ministry of Power.
The Minister also expressed the view that the Electricity act of 2023 has made provision for Sub Nationals (States) to participate in the electricity market, and he looks forward to creating an enabling environment for State’s participation in the electricity market.
“By investing in transformers and electricity poles which is about grid extension, the Governor has further confirmed our approach that the State needs to be involved in the provision of power infrastructure.
“We have further indicated to distribution companies that end-users must not be required to purchase equipment for the delivery electricity.
This infrastructure must be provided by the distribution companies while there will be interventions from Federal and State governments.
Agencies such as the Rural Electrification Agency will also intervene in electrifying communities that are not commercially viable for the distribution companies”, Adelabu said.
He urged Governor Zulum to look at the provision of security to protect power infrastructure in the State.
He particularly referred to the destruction of power towers recently in the North East zone which led to the death of a security personnel and disruption of electricity to some States in the zones.
“Although we immediately commenced the repair, it is quite discouraging when government spends so much and these assets are vandalized”.
Source:https://energynewsafrica.com/