ERERA’s Consultative Committees of Regulators and Operators – two main organs that assist the institution’s Regulatory Council in its decision-making – will hold their joint 21st session on July 17 and 18 2023 in Niamey, Niger to discuss issues related to the status of essential documents for the ECOWAS regional power market.
The documents include the Tariff Methodology and Regional Transmission Pricing Model Procedures as well as the development of Market Surveillance Rules.
The transmission tariff methodology for the West African Power Pool (WAPP) will be used by the Regional System and Market Operator (SMO) to develop a clear, transparent and predictable model for the calculation of transmission prices.
In addition, it will help define rules that will govern transmission pricing between parties involved in cross-border exchange transactions in the regional electricity market.
For its part, the Market Surveillance Rules have been developed by ERERA to provide transparent procedures and processes to monitor the regional electricity market, in accordance with its powers to prevent abuse and distortions as well as sanction defaulters.
They will also specify the roles to be played by the various stakeholders in the region to facilitate effective monitoring of the market.
The Consultative Committees which comprise experts drawn from the national regulatory authorities and operators from ECOWAS Member States will be briefed on the development of the rules for determining regional market fees and levies.
These experts will also receive updates on the activities planned to enhance synergy with sub-regional energy organizations.
They include The Gambia River Basin Development Organization (OMVG) with four countries States – The Gambia, Guinea, Guinea Bissau and Senegal; the Communauté Electrique du Bénin (CEB), composed of Benin and Togo; Transco CLSG, involving Cote d’Ivoire, Liberia, Sierra Leone and Guinea; and the Organization for the Development of the Senegal River (OMVS).
The sub-regional energy organizations, which will be affected by the market rules, will be integrated in the approval process of the WAPP Grid Code.
Members of the joint Consultative Committees will further be briefed on ERERA’s gender mainstreaming activities, including ERERA’s collaboration with the ECOWAS Gender Development Centre and development of guidelines for gender mainstreaming for electricity regulators in Member States.
PETROSOL Ghana Ltd, a leading privately-owned Ghanaian Oil Marketing Company (OMC), has paid a total of two hundred and forty-one million, four hundred and ninety-two thousand, one hundred and seventy-five Ghana Cedis (GHS241,492,175) to the Ghana Revenue Authority (GRA), the National Petroleum Authority (NPA) and the Bulk Oil Storage and Transportation (BOST) Ltd as petroleum taxes, levies and regulatory margins in 2022.
Ms. Lawrencia Himans, the Head of Finance & Planning of PETROSOL, in making this disclosure, indicated that though the current economic challenges are adversely affecting the company’s operations, the leadership of the company has committed itself to maintaining the company’s ethical business practices by ensuring that it dutifully meets its tax and regulatory margins payment obligations to the state.
In this regard, Ms. Himans disclosed that though the first half of 2023 continued to be very challenging due to the country’s economic challenges, PETROSOL has maintained its tax compliance record as it had successfully paid all its petroleum taxes, levies and regulatory margins obligations to the state agencies totalling over one hundred and seventy million Ghana Cedis (GHS170,000,000).
Mr. Michael Bozumbil, the Chief Executive Officer of PETROSOL, also indicated that besides PETROSOL’s tax compliance, it also continues to operate in compliance with the regulations of the NPA in terms of its fuel stations infrastructure standards and health and safety requirements; as well as meeting the standards of the Ghana Standards Authority (GSA) as it continues to deliver quality fuel in full quantity to its consumers through its licensed fuel stations across the country.
He also said the company’s lubricants are of very high quality suitable for both new and old vehicles and equipment.
Mr. Bozumbil expressed his appreciation to the company’s customers for their loyalty to the brand over the years.
He said a nationwide brand-health survey conducted early this year for the company by a reputable research firm has shown growth in customer loyalty to the brand.
He said he and his team would not rest on their oars but would continue to improve upon their operations to meet the needs of their customers.
He also expressed his appreciation to the hardworking and dedicated dealers and the staff of PETROSOL and urged them to continue to work diligently and ethically, notwithstanding the economic challenges.
Again, he expressed his gratefulness to the regulatory agencies, especially the National Petroleum Authority, for their support and cooperation.
Mr. Bozumbil urged all state agencies to identify Ghanaian companies such as PETROSOL, that strive to operate by the rules, notwithstanding the challenges, and provide them with the needed support to grow and do more for the state.
PETROSOL has over the years demonstrated remarkable tax and regulatory compliance.
The company’s tax compliance was acknowledged last year by the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Amishaddai Owusu-Amoah, when he congratulated PETROSOL for its tax compliance.
Besides meeting the requirements of the regulatory agencies in Ghana, PETROSOL has also stepped up its compliance level higher by receiving triple international certification from the International Organisation for Standardisation (ISO) for Quality Management; Occupational Health and Safety Management; and Environmental Management.
With 120 fuel stations spread across the country, PETROSOL is currently ranked among the top-10 Oil Marketing Companies (OMCs) by the NPA and has won numerous awards for its commitment to best industry practices.
Petrofac, an international energy services company has been awarded a facilities management contract by CNR International (CNRI) offshore the Ivory Coast, West Africa.
The initial three-year, multi-million-dollar contract will see Petrofac’s Asset Solutions business providing integrated services for the Espoir Ivoirien Floating Production Storage and Offloading (FPSO) vessel.
Around 110 personnel currently supporting the FPSO, including those onshore and on the vessel, will transition to Petrofac from BW Offshore following the recent sale of the vessel to CNRI.
The transition of people and operatorship is expected to complete before the end of July.
The contract will be managed from Petrofac’s technical hub in Aberdeen, using decades of experience in the mature and highly regulated UKCS market.
Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said, “We bring our considerable global FPSO experience to the Ivory Coast, adding to our portfolio of service contracts in Africa. Petrofac is expanding across the continent, providing local jobs, developing local skills and collaborating with local partners.
This latest award builds on contract successes achieved throughout 2022, including decommissioning in Mauritania for Tullow Oil, operations and maintenance for Tullow Oil in Ghana and the provision of offshore operations services for bp’s Greater Tortue Ahmeyim (GTA) Project, including an FPSO, in Mauritania and Senegal.
Turkey has raised its special consumption tax on fuels by 200%, which resulted in 21% more expensive gasoline and diesel at the pump, as Recep Tayyip Erdogan looks to raise budget revenues after massive spending for rebuilding from the February earthquake and for the May presidential elections that saw the Turkish President securing another five years in office.
Turkey’s public finances have deteriorated as the country has had to pay much higher prices for energy imports and has earmarked funding for rebuilding the areas hit by the devastating earthquake in Turkey and Syria in early February.
Erdogan also splurged on spending ahead of the presidential election in May.
Overall, the rebuilding from the earthquake is estimated to cost Turkey around $100 billion.
The country, however, has been struggling with finances in recent years and has seen double-digit inflation rates, and even 85% inflation at the end of last year.
Turkey has tried to prevent its currency from collapsing and has spent a lot of its foreign currency reserves to do that.
The fuel consumption tax, which was tripled this weekend, is the latest move to collect revenues for an increased budget.
This tax, together with the value added tax, will see gasoline and diesel prices for consumers surge by 21%, which would further stoke inflation.
In June, Turkey’s inflation rate was at 38.21% compared to June 2022, slightly lower than expected, but the collapse of the Turkish lira continues to be a concern for government finances.
Despite the soaring inflation, Turkey’s Erdogan insisted until recently to keep interest rates as low as possible, running in the May elections on a platform of low interest rates.
Days after he was re-elected, Erdogan replaced the central bank governor with an economist with U.S. finance background.
In June, the central bank raised the key interest rate from 8.5% to 15%, as it decided “to begin the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior.”
Source: Oilprice.com
Oil production at the Jubilee Field offshore Republic of Ghana has surpassed 100,000 barrels per day, the lead operator of the field, Tullow Oil Plc, has said.
The field dwindled in gross production to about 74,300 barrels per day in 2021.
However, to revive the field and spur production, Tullow introduced what it described as Value Maximum Plan (VMP) and invested heavily in infrastructure and the development of new wells.
Last week, Tullow announced the start-up of the Jubilee South-East (JSE) and was hopeful that this would help to sustain gross production of 100,000 barrels per day.
In a statement issued Monday and copied to energynewsafrica.com, Tullow said it is delighted to provide an update on production from its Jubilee field following the recent start-up of the Jubilee South East (JSE) Project, offshore Ghana.
“Gross production from the field has surpassed 100,000 bold, after a second JSE production well was brought onstream. Both of the JSE wells are performing in line with expectations. Two further wells are on track to be tied in during the remainder of the year.”
Rahul Dhir, Tullow’s Chief Executive Officer, commented today: “Reaching production of over 100,000 bopd from the Jubilee field is a major milestone for Tullow, our partners and for Ghana.
“I look forward to working with our partners to sustain these higher levels of production for several years and to realise the full potential of the Jubilee resource base.
“For Tullow, delivery of this step up in production is a key part of our business plan, in line with our commitment to deliver over $800 million of free cash flow between 2023 to 2025.”
Source: https://energynewsafrica.com
Oil Marketing Companies (OMCs) in the Republic of Ghana have begun reviewing their pump prices in response to rising crude oil prices on the international market.
As of Monday, July 17, 2023, leading oil marketing companies GOIL Plc., Shell and TotalEnergies adjusted their pump prices upward.
Both GOIL Plc. and Shell adjusted their pump prices for both petrol and diesel by 10 and 15 pesewas respectively.
By this, a litre of petrol is sold at Gh¢12.40 while diesel is sold at Gh¢12.45 per litre.
TotalEnergies adjusted both petrol and diesel by 15 pesewas and currently selling both petrol and diesel at Gh¢12.45 per litre.
PETROSOL adjusted both petrol and diesel prices to Gh¢12.19 per litre. Previously, Petrosol sold petrol at Gh¢ 11.99 per litre while diesel was sold at Gh¢12.05 per litre.
Engen adjusted both petrol and diesel prices and is selling petrol at Gh¢12.25 per litre while diesel is sold at Gh¢ 12.35. Previously, Engen sold both petrol and diesel at Gh¢12.15 per litre.
Star oil has also adjusted both petrol and diesel prices and selling petrol at Gh¢11.49 per litre while diesel is sold at Gh¢11.79 per litre. Previously, it sold petrol at Gh¢11.39 per litre while diesel was sold at Gh¢ 11.69 per litre.
Unlike in other parts of Africa where fuel prices are reviewed monthly, in Ghana, fuel prices are reviewed every two weeks.
During the first pricing window on July 1, the crude oil price was hovering around $74 per barrel.
As of Monday afternoon, WTI traded at $74.94 while Brent is sold at $79.34 per barrel.
Source: https://energynewsafrica.com
Power distribution companies in the Federal Republic of Nigeria have written to the country’s electricity regulator, NERC, seeking a review of electricity tariffs to reflect changes in macroeconomic parameters.
The power distribution companies cited changes in factors including the increase in the exchange rate, which is about N785/$1, and the inflation rate at 22.41 per cent in May 2023 among others, stating that these should be reflected in the tariff as the last tariff increase was benchmarked on N400/$1 being the official exchange.
Consequently, the regulator, Nigeria Electricity Regulatory Commission (NERC), has issued a notice to stakeholders inviting comments on the request by the distribution companies.
“Under Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (“DisCos”) have applied for rate review with the Nigerian Electricity Regulatory Commission.
“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.
“The Commission hereby invites the general public for comments on the rate review applications by the distribution licensees.
“Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees.
“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the Commission shall conduct a Rate Case Hearing on the applications before making a ruling.”
According to the Commission, the request to participate shall include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and a description of the party’s concerns, observations comments and/or objections to the application.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to [email protected] before the close of business on July 20, 2023.”
Source: https://energynewsafrica.com
The World Nuclear Association and the African Energy Chamber (AEC) have signed a Memorandum of Understanding (MoU) to drive nuclear energy adoption in Africa.
The MoU will also see the parties collaborate on the African Energy Week (AEW) conference – taking place in Cape Town from October 16-20 this year.
This collaboration reflects the shared commitment of both organizations to promoting clean, affordable and reliable nuclear energy as a crucial component of Africa’s energy mix, to support economic growth, a just transition and sustainable energy development.
As part of this partnership, World Nuclear Association, the organization representing the global nuclear industry, will be a leading participant in the upcoming AEW 2023 conference.
Commenting on the partnership, Dr Bilbao y León, Director General of World Nuclear Association said, “I am excited about participating at AEW 2023 again this year and engage with policy-makers, developers, NGOs and the finance community on the essential role of nuclear energy for the African energy transition, towards abundant affordable 24/7 clean energy for everyone.”
Nuclear energy has great potential to support sustainable growth and development in Africa’s energy landscape.
Currently, South Africa relies on two nuclear reactors, which contribute approximately 5% of its electricity generation.
The government has shown strong commitment to nuclear energy, with plans announced in 2019 to build 1 GW of new nuclear capacity by 2030 and extend the lifespan of existing plants.
Egypt has recently taken significant steps, commencing with the construction of a nuclear power plant in El Dabaa with four large reactors.
This plant aims to generate electricity while also providing substantial desalination capacity.
Meanwhile, many African countries, including Ethiopia, Nigeria, Ghana, Senegal, Kenya, Uganda, Tanzania, Zambia, Namibia, Rwanda, are exploring the deployment of nuclear energy as part of their strategy to meet urgent energy demand.
Dr Bilbao y León added that, “I believe that nuclear energy offers a golden opportunity to build a cleaner, more equitable world, in which everyone has access to clean abundant affordable 24/7 energy and a high quality of life, and I look forward to working with NJ Ayuk and his team at the AEC to help Africa make the most of this opportunity by deploying nuclear energy.”
The partnership between AEC and World Nuclear Association will bring African leaders and nuclear industry stakeholders together at AEW 2023 to advance nuclear energy development.
AEW will serve as a valuable opportunity for knowledge sharing and networking, fostering exchanges between global nuclear industry and African countries, ultimately driving collaboration and progress in the field of nuclear energy.
“The Chamber is delighted to have Dr Bilbao y León, the Director General of World Nuclear Association, as a distinguished speaker at AEW. Her extensive experience and expertise in the nuclear industry will undoubtedly enrich the discussions and inspire African leaders to explore the immense potential of nuclear power. Her presence reinforces the commitment of AEW to foster dialogue and cooperation in shaping Africa’s energy future,” states NJ Ayuk, Executive Chairman of the AEC.
The World Bank has warned Ghana that the country’s power situation will worsen if the government fails to tackle it within the shortest possible time.
The Bank wants Ghana to put together an emergency action plan to immediately tackle the energy sector problems to prevent escalation.
World Bank’s Managing Director for Operations, Anna Bjerde, who made the call at a press conference in Accra, the capital of Ghana, noted that although Ghana’s energy challenges are not unique, they require urgent attention.
According to her, failure to address the issues promptly would exacerbate the situation and impose greater financial burdens on the state, diverting resources from other crucial areas.
“The problems that Ghana is experiencing are not unique to Ghana, but they are very serious because if they are not addressed, they will get worse and worse. If not arrested and addressed with really an emergency action plan, it will get worse and it will cost the state more to keep the energy sector running at a time when they need to spend money on other things.
“The World Bank is providing, first of all, technical advice on what needs to be done, so the metering, the billing, the collection and making sure that you have an account set up so from which all the different flows of the revenues collected flows to where it needs to go so that those who are generating the electricity are paid,” she said.
The West African nation’s energy sector is saddled with huge debts and it is making it difficult for the sector to operate efficiently.
Recently, Independent Power Generators threatened to suspend operations by July 1,2023, as a result of $1.7 billion owed them by the Electricity Company of Ghana (ECG).
The ECG’s last-minute commitment which is less than the 30 per cent demand by the IPPs saved the situation.
Apart from the monies owed the IPPs, the West Africa Pipeline Company (WAPCo) was also owed US$13 million for the transportation of gas from Atuabo and, they too, threatened to suspend gas transportation until GNPC and ECG mobilised to pay US$6 million out of the total figure.
The development has forced ECG to undertake a series of revenue mobilisation exercises across its operational areas to recover monies owed by its customers.
The West African Gas Pipeline Company Limited (WAPCo) has shut down its Tema Regulating and Metering Station for the emergency regulatory test today, Sunday, July 16, 2023.
The exercise is expected to last for about seven hours from 9:00 am to 15:00 GMT.
WAPCo is required by its regulatory authority, the West African Gas Pipeline Authority (WAGPA), to carry out a periodic Emergency Shut Down, as part of measures to ensure safe and reliable operations of the pipeline.
“This Emergency Shut Down is part of WAPCo’s 2023 Scheduled Maintenance activities and planned collaboratively with stakeholders and sanctioned by WAGPA.
“The date for this exercise was coordinated with the national grid operator, Ghana Grid Company Ltd (GRIDCo), in consultation with the Volta River Authority (VRA), the Ghana National Petroleum Corporation (GNPC), Electricity Company of Ghana (ECG) and other key stakeholders to minimise its impact on communities that rely on power generated from cleaner and more efficient gas transported through the West African Gas Pipeline (WAGP). All relevant stakeholders were informed in advance to ensure minimal disruption,” WAPCo said in a statement issued by Dr. Isaac Adjei Doku, General Manager Corporate Affairs and copied to energynewsafrica.com.
WAPCo apologised to customers in Tema for the inconvenience that may be caused by the planned shutdown, which is a regulatory requirement.
Source: https://energynewsafrica.com
By NJ Ayuk
The petroleum industry is one of the mainstays of Angola’s economy, accounting for more than a third of the country’s GDP and more than 90% of its exports. It also generates about 70% of the government’s total budget revenues and is the biggest source of foreign direct investment (FDI).
Moreover, its importance is not likely to diminish any time soon. Angolan crude oil production levels have been trending downward for some time due to the maturation of existing fields, but the country was still extracting more than 1.1 million barrels per day (bpd) as of May 2023, and it is encouraging foreign investors to search for new reserves in the untapped sections of its offshore zone. Additionally, Angola has been paying closer attention to its natural and associated gas resources and is working to increase production in a bid to take advantage of rising demand, especially in Europe.
These are the kind of circumstances that make resource nationalism — a policy approach under which governments, acting in the name of their constituents, assert and retain control over natural resources rather than allowing private-sector entities to become full stakeholders — attractive. But Angola has not succumbed to this temptation. Instead, its government, under the direction of President João Lourenço, is pursuing a remarkable reform program designed to allow Sonangol, the national oil company (NOC), to represent local interests while also working cooperatively with outside investors.
First Step: Shifting Sonangol’s Mission
The government began laying a foundation for these reforms in 2019, during Lourenço’s first term as president. In February of that year, the president signed a decree establishing the National Agency for Oil, Gas, and Biofuels (ANPG). The decree stated that ANPG would act as the country’s concessionaire for oil and gas projects, thereby making the new agency solely responsible for regulating, supervising, and monitoring activities related to oil and gas exploration and production.
In so doing, it stripped Sonangol of this function. The company had previously served as a national concessionaire while also acting as a partner or shareholder in oil and gas development projects. Once ANPG took over the role of concessionaire, though, it was no longer responsible for regulatory tasks and could focus on operational matters.
It is true that the NOC was already taking steps in this direction anyway. It had been working since mid-2017 to divest non-core units — that is, subsidiaries focusing on other types of economic activity, such as finance, real estate, travel, and food services. But it was the creation of the new agency that truly set the stage for Sonangol to function more like an oil company and less like a government bureaucracy.
Next Step: Partial Privatization
It’s no wonder, then, that the Lourenço administration took things further. In September 2021, Diamantino Azevedo, Angola’s Minister of Mineral Resources, Petroleum, and Gas, announced that Sonangol was preparing for an initial public offering (IPO), an event that would allow outside investors to become shareholders in the company.
That announcement was not immediately followed by a stock exchange listing. Instead, the NOC worked to formulate a concrete plan for partial privatization, and in September 2022, shortly after Lourenço’s election to a second term as president, the government began unveiling its new roadmap.
Initially, that roadmap was incomplete. It provided for the sale of up to 30% of Sonangol’s stock but did not specify exactly how that process would unfold. That is, it did not say when or on what terms the shares might be offered to potential buyers.
Since last September, though, Angola’s government has clarified its intentions. It has stated that the IPO will only move ahead once Sonangol meets a number of key milestones. In November 2022, Sebastião Gaspar Martins, the company’s chairman and CEO, listed the following requirements:
Bringing the share of total oil and gas output coming from fields operated by Sonangol up to 10%
Increasing domestic refining capacity to reduce the country’s dependence on imported fuels
Developing and constructing at least one petrochemical plant
Expanding and monetizing fuel distribution and marketing networks, as well as logistics networks
Increasing domestic storage capacity for petroleum products
Reducing carbon dioxide emissions by at least 20% in exploration, production, and refining operations
Launching renewable energy projects and increasing carbon capture
Martins explained that Sonangol would have to meet all of these targets in order to proceed with the IPO, as they had been formulated to make the company stronger and more self-sustaining. He said the government had not set a firm deadline for the launch of the stock issue and added that he expected the company to work toward these aims through 2027.
End Goal: A National Oil Company Focused on Core Activities
Then, in January 2023, Martins indicated that Angolan authorities had finalized the IPO roadmap. He stated that the government was planning to sell up to 30% of the NOC’s stock and noted that shares would be listed in two venues — first on the Angola Debt and Stock Exchange (BODIVA) and then on an international exchange. He reiterated that Sonangol would have to meet certain criteria prior to the listing and said he expected the company to hit its targets by 2027.
Additionally, he noted that the NOC was working to assess its projected future valuation in comparison to its current declared share capital of USD12 billion. The process will help the company assess its own value accurately in light of the changes that will be made in 2023-2027 and optimize the results of the IPO, he said.
All of these planned changes are designed to further the process of transforming Sonangol from an instrument of the state, an entity with regulatory as well as operational functions, into a corporate-style organization focused on operational matters and not bogged down by peripheral concerns. This transformation, in turn, should allow Sonangol to work more smoothly together, not just with foreign partners such as Chevron (U.S.), Shell (UK), and Azule Energy — the joint venture formed last year by BP (UK) and Eni (Italy) — but eventually with the outside investors that will gain stakes in the company via the IPO.
At the same time, though, Sonangol will continue to serve Angola’s own interests. The company will continue to be majority government-owned, and it will work to expand local capacity with respect to upstream, midstream, and downstream projects. Moreover, it will represent the country in projects involving foreign investment — as it has been doing, but more competently and efficiently, thanks to its divestment of regulatory functions and non-core assets.
The African Energy Chamber commends Angola’s government for following this course and expects Sonangol’s future achievements to serve as a testament to the foresight of the Lourenço administration.
The Bui Power Authority (BPA) has been inaugurated as an active member of the Association of Power Utilities of Africa (APUA).
The inauguration took place at the recent 57th Annual Meeting Of COEs of power utilities in Lilongwe, the capital of Malawi.
In Ghana, power sector agencies that are active members of APUA are the Volta River Authority (VRA), the Electricity Company of Ghana (ECG) and Ghana Grid Company (GRIDCo).
APUA is a continental, non-profit organisation that brings together power utilities in Africa, as well as African or foreign organisations whose activities contribute to the development of the African electricity sector.
Created in 1970 and headquartered in Cote d’Ivoire, APUA currently has about 58 members.
The mission of APUA is to bring together all of Africa’s power utilities and all stakeholders to make electricity more accessible, reliable and affordable for people.
The Director for Renewable Energy at Bui Power Authority (BPA), Wisdom Ahiataku -Togobo who represented the CEO, Samuel Kofi Dzamesi, at the annual meeting of APUA made an inaugural speech and presentation on the theme: ‘The Energy Transition: Expectations and Realities in Africa’.
Justice Barnor Kyere (Left), Deputy Director for Power Operations, Mr. Pascal Kanbonnabah (Middle), Director for commercial Services and Wisdom Ahiataku-Togobo (Right), Director for Renewable Energy, Bui Power Authority. This photograph was taking during the 57th Annual Meeting of APUA in Malawi.
Africa-focused independent oil and gas firm, Tullow and its joint venture partners have announced the successful start-up of the Jubilee South East (JSE) Project, offshore, in the Republic of Ghana, West Africa.
According to Tullow, the first production well at the Jubilee South-East has been brought onstream and expects additional two production wells and one water injector to come on onstream this year to help sustain gross Jubilee production of over 100,000 barrels of oil per day (bopd).
The company, in a statement issued on Friday and copied to energynewsafrica.com, hinted that a ceremony would be organised to celebrate First Oil in Ghana during the third quarter of 2023.
“Tullow and its partners have invested US$1 billion over the last three years on the JSE Project to drill wells and install the infrastructure needed to bring previously undeveloped reserves to production.
“The project has advanced the use of local suppliers and the majority of the complex offshore infrastructure has been fabricated by local companies in Ghana, with more than 90% local workforce.
“This demonstrates the evolution of the Ghanaian supplier base that can now support substantial elements of its oil and gas industry and is a testament to Tullow and its partners’ commitment to developing local capacity,” Tullow said.
Tullow said its CEO, Rahul Dhir, who was excited about the new development, commented that the “successful start-up at Jubilee South-East is a significant milestone for Tullow and Ghana and I would like to thank all those who have played a role in bringing this near-field Ghanaian development into production. Through our strong project management and operating capability, we have delivered a complex offshore development which is one of the key catalysts to unlock value for our business. We are well-positioned for future growth with production ramping up in the second half of 2023 that will generate significant free cash flow. This marks the start of material deleveraging as we continue our transition into a low-debt business with the financial flexibility to pursue value accretive opportunities.”
On his part, Dr Matthew Opoku Prempeh, Ghana’s Minister for Energy, also said: “At the Ministry of Energy, we are delighted by this important milestone and wish to congratulate Tullow and the Jubilee partners who have contributed in diverse ways to this journey.
“The approval of the Greater Jubilee Full Field Development Plan by the Ministry in October 2017 paved the way for investment in the development of the JSE project, which has now culminated in the delivery of the First Oil from the JSE area. The government of President Nana Addo Dankwa Akufo-Addo will continue to work with all our strategic partners to leverage our God-given resources for the ultimate benefit of our people.”
Source: https://energynewsafrica.com
Tanzania has announced plans to produce 48 Megawatts of electricity from solar in Zanzibar by 2024.
The move is in response to growing demand of electricity supply in the East African nation.
“We are aiming to solve the power shortage in the country and have reliable supply for our investors and citizens,” Mr. Joseph Juma Kilang, Principal Secretary in the Ministry of Water, Energy and Minerals, Joseph Juma Kilangi said.
Mr. Kilangi said this during the signing of the agreement between his ministry and the German company- International Energy Consultants GmbH (GOPA) for the power production, to be implemented under the ongoing Zanzibar Energy Sector Transformation and Access (ZESTA) project.
He said that the 48 megawatts of electricity that will be produced from solar power will help improve power reliability, required to promote the economy of Zanzibar.
PS Kilangi mentioned the areas that will be served by solar electricity include Makunduchi, Ubago and Matemwe.
He said the doors are still open for other investors to come and set up their investments in the energy sector because more electricity will be required.
He said that the electricity that is expected to be produced by the GOPA is a catalyst for increasing the economic activities in the country.
The PS asked the investors to speed up the project, as the electricity service is important for the country and it also brings benefits in the development of the country.
The Zanzibar Electricity Company ZECO General Manager, Engineer Mshenga Haidar Mshenga, said that through the project, they will do additional work to produce solar electricity during that period.
In addition, he promised “ZECO will ensure that the project is realised as per agreement.
The Executive Director of GOPA Mr Paul Freunscht thanked the Zanzibar government for the cooperation and accepting the project aimed at increasing productivity.
Source: https://energynewsafrica.com
