Ghana: G4O Gasoline Is Not Laden With Manganese-BOST Replies Critics
The Bulk Energy Storage and Transportation Limited (BEST) formerly known as BOST, has rejected claims that gasoline imported under the Gold –For- Oil (G4O) programme is laden with high levels of manganese which is causing underperformance of vehicle engines.
Some car owners have been lamenting over the poor performance of their vehicles and blamed it on gasoline they bought from filling stations in the West African nation.
The regulator, National Petroleum Authority (NPA) picked up the issue and its investigation revealed that there was high level of manganese in some of the gasoline imported into the country.
The source of the product is, however, not known but some are alleging on social media that it is the one imported by BOST.
Responding to this claim, BEST, in a statement copied to energnewsafrica.com, rejected the attempt by detractors to dent their organization’s reputation.
The statement explained that the fuel they import is guided by specific regulations of the National Petroleum Authority.
It further stated that products from them are guided by specific product component tests which the Ghana Standards Authority (GSA), carries out before they are passed for discharge or off-loaded for Ghana’s fuel consuming public.
“We wish to state unequivocally that we have not imported any product under the policy which is off the specifications per the regulations of NPA and the product specifications of the GSA”, BEST said.
The company, therefore, implored the public to disregard the claims of their detractors.
“Grant the regulatory authority of the petroleum downstream the time and space to investigate the exact source of the said product and also to tighten the regime to clamp out the room for the importation of potentially problematic products onto the market,” BOST said.
BEST assured to continue to import products from safe sources without compromising on quality standards.
“We shall continue to import products from safe sources without compromising on quality standards and leverage the volumes to serve the market at reasonable prices to beat down the cost of living in the country.”
Source: https://energynewsafrica.com
OPEC Slams IEA Over ‘Moment Of Truth’ For Oil
The Secretary General for Organisation of the Petroleum Exporting Countries (OPEC) Haitham Al Ghais has condemned the International Energy Agency (IEA) for vilifying the industry and for playing down energy security and affordability.
Last week, the IEA published a report saying that a “moment of truth” is coming for the oil and gas industry as most companies are watching the energy transition from the sidelines, with oil and gas producers accounting for only 1% of total clean energy investment globally.
“Producers must choose between contributing to a deepening climate crisis or becoming part of the solution by embracing the shift to clean energy,” the IEA said.
Commenting on the report, OPEC Secretary General Haitham Al Ghais said in a statement on Monday,
“It is ironic that the IEA, an agency that has repeatedly shifted its narratives and forecasts on a regular basis in recent years, now addresses the oil and gas industry and says that this is a ‘moment of truth’.”
“The manner in which the IEA has unfortunately used its social media platforms in recent days to criticize and instruct the oil and gas industry is undiplomatic to say the least. OPEC itself is not an organization that would prescribe to others what they should do,” Al Ghais said.
OPEC also criticized the agency for describing carbon capture utilization and storage (CCUS) an “illusion”.
Regrettably, the IEA report now also calls technologies such as carbon capture utilization and storage (CCUS) an “illusion”, even though Intergovernmental Panel on Climate Change assessment reports endorse such technologies as part of the solution to tackle climate change.
“The truth that needs to be spoken is simple and clear to those who wish to see it. It is that the energy challenges before us are enormous and complex and cannot be limited to one binary question,” said Al Ghais.
“Energy security, energy access and energy affordability for all must go hand-in-hand with reducing emissions. This requires major investments in all energies, all technologies, and an understanding of the needs of all peoples. At OPEC, we repeat that we believe the world has to concentrate on the task of reducing emissions, not choosing energy sources,” he added.
Al Ghais concluded: “We do see a ‘moment of truth’ ahead. We need to understand that all countries have their own orderly energy transition pathways, we need an assurance that all voices are heard, not just a select few, and we need to ensure that energy transitions enable economic growth, enhance social mobility, boost energy access, and reduce emissions at the same time.”
Source: https://energynewsafrica.com
China Engineers Complete Largest Solar Farm On Earth In UAE Ahead Of Cop 28
The world’s largest single-site solar power plant – a flagship project under China’s Belt and Road Initiative– has been completed in the United Arab Emirates, ahead of the UN climate change conference Cop28 in Dubai later this month.
The two-gigawatt Al Dhafra Solar Photovoltaic Project covers 20 sq km (12.4 square miles) of desert outside Abu Dhabi and can power about 200,000 households, according to main contractor China National Machinery Industry Corporation.
The company said the plant was expected to help Abu Dhabi reduce carbon emissions by 2.4 million tonnes each year – the equivalent of taking more than half a million cars off the road – and take the proportion of clean energy to over 13 per cent of the emirate’s overall consumption.
“From the photovoltaic modules to tracking brackets and cleaning robots, the project embraced Chinese products and Chinese technologies,” said Che, who has worked with more than 5,000 colleagues from 19 countries in Abu Dhabi’s desert since 2020.
According to Che, the Al Dhafra plant has been operating at full capacity since April. “It will be crucial for the UAE to achieve its carbon neutrality goal by 2050, and promote regional energy transformation and sustainable development,” he said.
By mid-November, the solar farm had already produced 3.6 billion kilowatt-hours of clean electricity ahead of its official inauguration last Thursday. “As the UAE prepares to host Cop28, this pioneering project reflects the country’s ongoing commitment to raising its share of clean energy, reducing its carbon emissions and supporting the global efforts on climate action,” said Abu Dhabi’s deputy ruler, Sheikh Hazza bin Zayed Al Nahyan. Sheikh Hazza also expressed his gratitude and appreciation for the contractor’s “high standard, high quality work”, the company said on its official WeChat account. The plant consists of 4 million solar panels that can capture sunlight on both sides, according to the company, which was responsible for its design, civil engineering, equipment supply, installation and commissioning. It will also provide two years of operation and maintenance. Source: Ling XinGhana: VRA’s CEO Grabs Hall Of Fame Award
The Volta River Authority (VRA), managers of the Akosombo and Kpong Hydroelectric Power Dams, grabbed two awards at the 7th edition of the Ghana Energy Awards held in Accra, the capital of Ghana.
The Authority was adjudged the Corporate Social Responsibility of the Year 2023 while the CEO, Mr. Emmanuel Antwi-Darkwa, was named the GEA Hall of Fame after winning the Energy Personality of the Year (Male) Category three times.
He won the Energy Personality of the Year in 2018, 2021 and 2022.
A Civil Engineer by profession, Ing Antwi-Darkwa commenced his career with the VRA in 1985 and served in various capacities until he was appointed as Chief Executive Officer in 2017 by President Akufo-Addo.
With over 30 years of extensive experience in the energy industry, Ing Antwi-Darkwa has, among others, detailed knowledge of the functional and regulatory influences in Ghana’s energy sector and the dynamics of international power systems development.
This year’s awards ceremony which was on the theme: ‘Ghana’s Energy Transition Framework: Sector Institutions As Building Blocks For The 2030-2040 Targets’, brought together several industry players from Ghana and other West African nations.
The event was graced by the President of Ghana, H.E Nana Addo Dankwa Akufo-Addo, as the Guest Speaker
Source: https://energynewsafrica.com
Ghana: Petroleum Commission Signs Multi-client Survey Deal With PGS For Seismic Data Acquisition
Ghana’s petroleum upstream regulator, Petroleum Commission and Petroleum Geo-Services (PGS), a global oil and gas data acquisition company, have signed a three-year multi-client survey agreement for the acquisition of seismic data in the Tano Basin offshore the Republic of Ghana.
The agreement was signed at the closing ceremony of a two-day Data Acquisition Workshop organised by the Petroleum Commission, in collaboration with PGS, in Accra, the capital of Ghana.
Senior Vice President for Africa and Middle East at PGS, Mr Chris Drage, said the company would invest in reprocessing available data to improve the quality of the data to attract investors.
The multi-client survey which is called the Mega survey began in 2001 in the North Sea.
It has a large, modern dataset using public and PGS-owned 3D Systems.
The multi-client survey programme with the Petroleum Commission when completed would be used for road shows to promote the acreage to attract potential oil companies to take blocks in the Tano Basin.
Signing the agreement at the Upstream Petroleum Data Workshop in Accra, Mr. Chris Drage said PGS would invest two million dollars to reprocess the data.
“The improved quality of the data will be used to show potential investors the value and the opportunities in Ghana. And the quality of the data will mean they are more likely to invest. We will invest the best part of 2 million dollars to reprocess the data,” he said.
The Chief Executive of the Petroleum Commission, Mr Egbert Faibille, said the multi-client seismic data acquisition agreement is timely.
“Our decision to go with multi-client seismic data acquisition is not just lip service but also something very concrete, which we seek to use as a signpost to get more investments to Ghana’s upstream petroleum sector. Data, no matter when you acquire it, is good.
“However, because of time and also advances in technology, if you are not careful, data that you got a year or two ago, because of evolving technology when you look at it and want to decide as to where to drill, you would not have the feeling that you should drill, because it’s not been processed or reprocessed to the point where there is a lot of clarity,” he said.
The Upstream Petroleum Data Workshop provided an opportunity for geoscientists to discuss the importance of data acquisition and how to make it accessible to investors to enable them to make a decision
Source: https://energynewsafrica.com
Uganda: Government Vows To Resist Opposition To EACOP Project
Uganda has vowed to continue the ongoing construction of the East Africa Crude Oil Pipeline – EACOP despite pressure from environmental activists to halt the project.
The Energy and Mineral Development Minister, Dr. Ruth Nankabirwa Ssentamu has noted that the Uganda-Tanzania Crude Oil Pipeline – UTCOP has suffered blackmail since its inception in 2013.
The Minister emphasized the pressure and blackmail from activists will not distract the government and the project funders, adding that 40 percent of the total USD 3.04 billion, approximately 11.449 trillion has already been secured to deliver the long-awaited pipeline.
The Minister’s comment follows a report by GreenFaith, an international and multi-faith climate justice organization which accused French fossil fuel giant, TotalEnergies of disrespecting over 2,000 graves along the proposed 1,443-km-long underground oil pipeline.
In the “As If Nothing Is Sacred” report by GreenFaith, the affected families argued that they have suffered emotional and spiritual trauma due to the actions of the project developers.
Consequently, the Uganda and Tanzania clerics in a joint report called for an immediate halt to the project until the issues are resolved.
But according to Nankabirwa, Uganda’s hope to produce the first oil is on course and drilling has commenced at Kingfisher, the first commercial oil field in Kikuube, and Tilenga in Buliisa Districts.
The Kingfisher and Tilenga oil fields are anticipated to produce 40,000 and 190,000 barrels of oil every day respectively.
The Minister also revealed that the government has procured the services of a new developer for the oil refiner who has commenced work on the ground.
In spite of the delays, Dr Nankabirwa noted that Uganda’s first oil will be out latest in 2026.
The East African Crude Oil Pipeline Company Limited has a shareholding of 62 percent from Total Energies while 15 percent will come from the host Government of Uganda through the National Oil Company.
Equally, the Government of Tanzania owns 15 percent shares through the Tanzania Petroleum Development Corporation – TPDC, and 8 percent shares for China National Offshore Oil Company – CNOOC Uganda Ltd.
Source: https://energynewsafrica.com
Ghana: BPA Grabs Three Awards At The Ghana Energy Awards 2023
Ghana’s second largest state-owned power generation company, Bui Power Authority, received three prestigious awards at the 7th edition of Ghana Energy Awards held at the Labadi Beach hotel in Accra last Friday, November 17, 2023.
The power generation company won The Clean Initiative Award of the Year and Renewable Energy Infrastructure Project of the Year, highlighting the company’s ground-breaking strides in renewable energy.
The third award -Green Chief Trailblazer Award was won by Mr. Wisdom Ahiataku-Togobo, Director, and Renewable Energy Department. The award recognises his contributions in the green energy future of Ghana.
The Ghana Energy Awards was graced by His Excellency Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana.
Accompanying him was the Deputy Minister for Energy, Hon. Andrew Egyapa Mercer.
The awards bestowed upon the Authority serve as a significant validation of its pivotal role in the ongoing energy transition era.
These accolades specifically acknowledge the Authority’s exceptional leadership, commitment to sustainability, meaningful social interventions, and adherence to best business practices.
The CEO of Bui Power Authority, Hon Samuel Kofi Ahiave Dzamesi was accompanied by Hon. Salifu Saeed, Board Member and other senior management and staff from the Authority.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com Ghana: Ghana Gas CEO Grabs Two Prestigious Awards
Ghana’s oil and gas infrastructure expert and Chief Executive Officer of Ghana National Gas Company, Dr Ben K.D Asante, grabbed two prestigious awards at the 7th edition of the Ghana Energy Awards 2023 held recently in Accra, the capital of Ghana.
Dr. Asante received the ‘Energy Transition Most Valuable Player (MVP)’ and the ‘CEO of the Year (Petroleum category)’ awards.
This recognition is a testament to his strategic leadership, adept handling of challenges in the petroleum industry, and active advocacy for the sustainability of the petroleum sector.
This year’s awards ceremony was on the theme: ‘Ghana’s Energy Transition Framework: Sector Institutions as Building Blocks for the 2030-2040 Targets’.
The annual event, which attracted several industry players, policymakers and some civil society groups working in the extractive industry, was graced by the President of Ghana, H.E. Nana Akufo-Addo, as the Special Guest of Honour.
Organised by the Energy Media Group, the ceremony celebrated 34 individuals and companies, highlighting their outstanding contributions to the growth of Ghana’s energy sector.
Source: https://energynewsafrica.com
The annual event, which attracted several industry players, policymakers and some civil society groups working in the extractive industry, was graced by the President of Ghana, H.E. Nana Akufo-Addo, as the Special Guest of Honour.
Organised by the Energy Media Group, the ceremony celebrated 34 individuals and companies, highlighting their outstanding contributions to the growth of Ghana’s energy sector.
Source: https://energynewsafrica.com Ghana:PETROSOL Adjudged Brand Of The Year 2023 At The Ghana Energy Awards
PETROSOL Ghana Ltd, a leading Ghanaian Oil Marketing Company (OMC), was last Friday, November 17, 2023, adjudged the Brand of the Year 2023, at the Ghana Energy Awards, held at the Labadi Beach hotel in Accra, capital of Ghana.
The annual event, which brought several industry players and policy makers had the President of the Republic, H.E Nana Addo Dankwa Akufo-Addo, as the Special Guest of Honour.
The Ghana Energy Awards recognises companies and individuals in the entire energy sector who exhibit excellence in industry practice and make significant contribution to national development.
The Chief Executive Officer of PETROSOL, Michael Bozumbil, was very delighted about the recognition, especially given that it was coming from such highly respected energy sector awards organisers.
He said though the economic climate has been very challenging for businesses, the leadership of PETROSOL has stuck firmly to ethical business practices, with a focus on building a credible brand that serves its customers with quality fuel and lubricants; that complies with its regulatory and tax obligations and is also socially responsible.
He dedicated the award to their cherished customers across the country who have demonstrated incredible confidence in and loyalty to the PETROSOL brand over the years as well as their dedicated dealers and staff, whose hard work and commitment to duty have earned the company the award.
Mr. Bozumbil was also grateful to their regulators as well as other key stakeholders for their support over the years.
Mr. Bozumbil further indicated that he and his team believe in continuous improvement and thus would not rest on their oars but remain focused in ensuring that they enhanced their performance so as to continue to deliver value for money to their customers and contribute to national development.
PETROSOL, which operates several fuel stations across the country, has triple International Organization for Standardization (ISO) certification for Quality Management System; Environmental Management System; and Organisational Health & Safety Management System.
Source: https://energynewsafrica.com
South Africa: Electricity Minister Hopes For Eskom CEO With Energy Sector Understanding
South African Minister for Electricity Dr. Kgosientsho Ramokgopa says he’s hoping that the new Eskom CEO is someone who understands the energy sector and can support power stations.
Plans are at an advanced stage to appoint Eskom’s Group Chief Executive with three candidate names shortlisted for cabinet consideration.
The power entity has been operating without a CEO since the resignation of Andre de Ruyter last year.
The Minister in the Presidency responsible for Electricity continues with a series of follow-up visits to Eskom power stations.
He visited Lethabo power station in Vereeniging on Tuesday.
This is in order to advance the necessary interventions required to fix Eskom power stations and bring to an end load shedding.
The Minister also addresses workers and labour unions on the work done to ensure energy security.
Ramokgopa says support for performing power stations become pivotal.
“Lethabo in particular is a second-best performing power station.
Their energy availability factor is about 76% so their target for the year is 77%.
It’s important that in the midst of the challenges we go to our best performers, affirm them, and give the necessary support.
I will be going also to stations notorious for underperforming and urge the employees to better their performance but also understand what is the additional amount of support that is required.”
He says work is being done at the top to ensure Eskom leadership is stabilised so that power stations like Lethabo are supported and protected as it forms part of the country’s best-performing station alongside Medupi.
“The board has submitted 3 names of appointable people and it is from that pool of names that the minister Gordhan will take the names to Cabinet that will apply its mind and then we have a CEO of Eskom.
Hopefully, this will be someone with a great appreciation of how the system works, an appreciation of the internal working of the energy space, and will carry on with the work that we are doing to support power stations.”
The Lethabo power station suffered its breakdown this week.
The General Manager Karobo Rakgolela says the ministry’s support is critical.
“I normally joke and say when Lethabo coughs, South Africa catches flu and that’s what we saw today we had two units that tripped one after the other but we are already bringing them back, unit 4 should be back on load to support evening peak and by morning peak we will have unit 5.
I’ve told the minister that our biggest challenge is getting coal from mines to keep the mine going. What we do need is an investment into the mine.”
The minister also reveals that R390 billion is needed to expand the grid to accommodate new generation capacity and ensure the ultimate end to load shedding.
He is hopeful that the new CEO will be appointed at Eskom soon to ensure plans are realised and the economy is cushioned and stations like Lethabo are supported.
Source:sabcnews
Nigeria: We Have Robust PMS Supply To Last Beyond Yuletide- Kyari Tells Senate
The Nigerian National Petroleum Company Limited (NNPC) says it has put in place a robust plan for the supply of petroleum products especially Premium Motor Spirit (PMS), also known as petrol, sufficient to last beyond the ember months and the new year festivities.
Group CEO of NNPC Ltd., Mele Kyari disclosed this when he led an NNPC Ltd. delegation on a courtesy visit to the Senate President, Senator Godswill Akpabio, at the National Assembly in Abuja, on Wednesday.
“By the creation of the National Assembly, NNPC Ltd. is saddled with the responsibility of guaranteeing Nigeria’s energy security which is critical to national security.
We have made a robust plan for the forthcoming end of the year festivities and beyond. We do not see any shortages in the petroleum products supply for the period,” the GCEO added.
While lauding the National Assembly for the critical role it played in the enactment of the Petroleum Industry Act (PIA) 2021, Kyari said that this legislative endeavour had given birth to a new commercially oriented National Oil Company (NOC) that is governed by the Company & Allied Matters Act (CAMA) principles.
Speaking further, Kyari stated that with the passage of the PIA 2021, NNPC Ltd’s profitability margins have significantly risen, growing from a loss position of N803billion in 2018 to a profit position of N674billion in 2021.
Kyari noted that NNPC Ltd. is targeting a profit increase of N2trillion when the 2022 Audited Financial Statements (AFS) are released, adding that since July this year, the Company has started paying dividends to its shareholders.
He also said that the NNPC Ltd. is involved in the entire value-chain of the oil and gas business and controls about 30% of the nation’s petroleum downstream retail market.
While identifying crude oil theft and pipeline vandalism as major challenges to the Company’s business, Kyari said the recent collaboration with the nation’s security services as well as third-party security contractors has been yielding results, mostly in the area of increased crude oil production.
The GCEO said NNPC Ltd. is investing in several gas and power projects across the country, aimed at supporting the Federal Government’s power generation and industrialisation aspirations.
He further assured that NNPC Ltd. is working assiduously to revamp local refining of petroleum products and collaborating with indigenous refiners to ensure that Nigeria becomes a net exporter of petroleum products.
In his response, the Senate President, Godswill Akpabio assured the GCEO of the 10th Senate’s support, saying that the Nigerian Parliament appreciates the Kyari-led Management for its commitment to ensuring robust petroleum product supply during the yuletide period.
“Nigerians always want to hear good news. We are glad that you have made robust plans to provide sufficient product supply this coming festive period and beyond,” Akpabio stated.
The Senate President also lauded the rehabilitation of the nation’s three refineries, saying that their restreaming will cause a multiplier effect on Nigeria’s economy, in line with this administration’s Renewed Hope Agenda,” Akpabio observed.
African NOCs Strengthen Cooperation With Multi-Deals Signed
Several African National Oil Companies (NOC) have inked multiple agreements to enhance collaboration on the expansion of the energy industry as well as oil and gas development and capacity building.
The agreements were facilitated by the African Petroleum Producers Organization (APPO), with all NOCs as members.
The agreements- signed in the Republic of Congo last week – include three memoranda of understanding signed by Congo’s NOC, Société Nationale des Pétroles du Congo (SNPC), two of which with Algerian NOC Sonatrach and one with Niger’s NOC Société Nigérienne des Produits Pétroliers République du Niger (SONIDEP).
Under the terms of the agreement, SNPC and SONIDEP will partner on oil and gas exploration and production while sharing best practices to enhance industrial and operational activities.
Additionally, the agreements signed with Sonatrach cover training and the optimization of human capital, with the parties’ expanding cooperation in these areas.
Sonatrach also entered into agreements with the National Hydrocarbon Company of Benin; the Ghana National Petroleum Corporation; and the Democratic Republic of Congo’s NOC, SONAHYDROC, details of which are yet to be announced.
“These specialized conventions in the field of oil and gas complete a process of formalization of training actions initiated by the Algerian Petroleum Institute of SONATRACH with other oil companies that are members of APPO,” stated SONATRACH in a press statement.
Ghana: Special Prosecutor Orders Suspension Of TOR-Torentco Partnership Deal
The Office of Special Prosecutor in the Republic of Ghana has ordered managers of Ghana’s premier oil refinery, Tema Oil Refinery (TOR) to immediately suspend the ongoing processes to lease the refinery to a recently formed private company Tema Energy and Processing Limited formerly Torentco Asset Management Company.
A letter signed by the Special Prosecutor, Kissi Agyabeng and addressed to Daniel Osei Appiah, the Acting Managing Director said the anti-corruption body has commenced an analysis of the risk of corruption in respect of the proposed partnership.
The letter directed the company to furnish the OSP with all relevant documents in connection with the proposed agreement by 5 December.
“You are directed to immediately suspend the proposed partnership agreement, ongoing negotiations, operations and all other ancillary activities arising out of and consequent upon the proposed partnership agreement until you are otherwise advised by the Special Prosecutor.”
“You are further directed to furnish the OSP with all necessary documents in respect of the proposed partnership agreement. This directive should be complied with on or before the close of business on Tuesday 5 December 2023,” the letter said.
The order follows a petition submitted by the umbrella body of transport, petroleum and chemical workers union in which they accused the Board of TOR and Management of side-stepping qualified entities and rather opting for a company with no track record to run the refinery.
The petition by the General Transport, Petroleum, and Chemical Workers Union of the Trades Union Congress (TUC) Ghana dated October 19, 2023, narrated how Decimal Capital which was selected as strategic partner of TOR kept changing its name to Tema Energy and Processing Limited.
“We wish to request that your highly esteemed office investigates and intervenes in the ongoing lease arrangement of Tema Oil Refinery to Torentco Asset Management Limited, now Tema Energy and Processing Limited, with the same individuals involved.”
The Union argued that “the actions of the individuals behind Tema Energy and Processing Limited seek to induce workers of TOR with 20% of its shares through misrepresentation of workers in an entity by the name “TOR Workers Charity Trust” that never existed nor heard of at TOR, apart from the five individual directors and direct beneficiaries of this trust.”
The workers group noted that besides the due diligence report that described Torentco Asset Management Limited as not having the requisite capacity and credibility to undertake that which they sought to do, the report also established their lack of partners with the requisite capacity and credibility.
They expressed fear that the country might be short-changed because the Board of Directors of TOR has been compromised in the deal.
“We are tempted to believe the BoDs have been compromised to short-change the country, Ghana.
Otherwise, why will the BoDs be adamant in the face of all these red flags even when entities such as Falcon American Oil and Legacy Capital have also approached the management of TOR with very lucrative and compelling proposals, the BoD and Management have been resolute in ensuring that regardless of all the red flags, they will lease TOR to Torentco/TEPL for six (6) years.”
They added, “In the spirit and letter of the whistle-blowers’ Acts, we want to officially petition your outfit as our last option, having written to the Ministry of Energy, the Parliamentary Select Committee on Mines and Energy, SIGA, the Public Procurement Authority, the Ministry of Justice and the Attorney General department and the Ministry of Finance for their respective intervention for the prevention of a possible replica of ECG/PDS scandal.”
Meanwhile, speaking to the acting Managing Director of TOR, Daniel Appiah via phone he explained that Torentco Asset Management Limited now Tema Energy Processing Limited put together a technical team to facilitate the leasing arrangement.
He said TOR Board has only approved the preparatory activities of the technical team of TEPL because of limited time explaining that there are conditions precedent which have to be fulfilled before the signing of the lease agreement.
Source: https://energynewsafrica.com
Ghana: Upstream Regulator Seeks Review Of Fiscal Regime To Make E&P More Attractive To Investors
Ghana is undertaking a comprehensive review of its fiscal regime in the upstream petroleum industry as part of plans to make oil exploration and production more attractive to investors.
This is due to the energy transition which is limiting investment in the oil and gas sector across the world.
The West African nation began commercial oil production in 2010 and produces around 150,000 barrels per day from three oilfields.
In 2018, the country organised the first licensing bid round for six oil blocks and it attracted several international oil companies but could not hit a deal as most of the International Oil Companies(IOCs) pulled out in a move that surprised most industry watchers.
With lessons learned from the bid rounds, Ghana has revised its notes and taken several steps including investing in seismic data acquisition, to guide investors and engaging potential investors in direct negotiations.
Currently, Ghana has six oil blocks available for grabs and the upstream regulator says three of the blocks are for direct negotiations while the remaining three are for farm-in.
Addressing industry players at a two-day data management workshop in Accra on November 16 &17, 2023, the Chief Executive Officer of the Petroleum Commission, Egbert Faibille, outlined some of the issues that have arisen following the implementation of the existing fiscal regime.
He mentioned nuisance Front- End Load Elements, complex additional oil entitlement, size fits all regime, fixed and regressive royalty, strict ring-fencing rules, uncapped cost recovery, and difficulties in administration as some of the issues.
To address the challenge of the non-flexible and regressive nature of Ghana’s royalty regime, Mr. Faibille said a two-tier royalty rate scheme has been proposed.
He explained that the two-tie scheme adopts some carefully calibrated flexible and progressive sliding scale royalty rates which are, at the same time, sensitive to risk factors such as water depth, production volume and crude oil price.
“As opposed to a fixed royalty scheme, a sliding scale royalty scheme is progressive and incentivizes fixed development of all sizes, water depth, and in volatile price environment without having to re-negotiate fiscal terms. These two royalty schemes are proposed to replace AOE,” Mr. Faibille told the gathering.
Mr. Faibille said his outfit had forwarded their proposal to the Ministry of Energy for discussion and the way forward.
Source: https://energynewsafrica.com