Nigeria: Fuel Subsidy Removal Will Not Take Effect Immediately – President Tinubu

Nigeria’s new President Bola Ahmed Tinubu has stated that the removal of subsidy on fuel will not take effect immediately. He has therefore urged Nigerians to desist from resorting to panic-buying as it is being witnessed in some parts of the West African nation. Delivering his inaugural speech on Monday, May 29, 2023, after being sworn into office, the new Nigerian leader declared that the era of fuel subsidy is gone. Following his statement queues surfaced immediately at some fuel stations in Lagos, Port Harcourt, Abuja and other places  , with fuel prices going up as high as N350 per litre. Several interest and civic groups have called on Tinubu not to begin his administration on a draconian note for Nigerians but should be circumspect on the fuel subsidy removal. In a tweet, Bola Tinubu through his media centre said the fuel subsidy removal was not immediately but a process that had been on. The tweet reads: “The public is advised to note that President Bola Tinubu’s declaration that “subsidy is gone” is neither a new development nor an action of his new administration. “He was merely communicating the status quo, considering that the previous administration’s budget for fuel subsidy was planned and approved to last for only the first half of the year. “Effectively, this means that by the end of June, the Federal Government will be without funds to continue the subsidy regime, translating to its termination. “The panic-buying that has ensued as a result of the communication is needless; it will not take immediate effect. “Furthermore, President Tinubu was clear about his plans to re-channel the funds previously devoted to the payment of subsidies into better investments that will cushion the effects of the removal on the general public, especially the poor of the poor. This includes but is not limited to investments in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions of Nigerians and increase their earning potential.”         Source: https://energynewsafrica.com

South Africa: Court Castigates Gwede Mantashe On Axing Of Anti-Nuclear Activist, Denies Leave To Appeal

The Western Cape High Court in South Africa has refused applications by Mineral Resources and Energy Minister Gwede Mantashe and the National Nuclear Regulator (NNR) for leave to appeal against the same court’s decision on the sacking of anti-nuclear activist Peter Becker. The applications were for leave to appeal against Western Cape High Court Judge Babalwa Mantame’s scathing judgment on 19 January which found Mantashe’s decision to discharge Becker from the NNR board was “unlawful, unconstitutional and invalid”. On Friday, 26 May, Judge Mantame ruled that Mantashe and the NNR, in their respective applications, had failed to convince the court that there was any reasonable prospect of success in an appeal and that there were compelling reasons why an appeal should be heard. They were ordered to pay the costs of the application. “The test applied in an application for leave to appeal amongst others, suggests that there must be a sound and rational basis for the conclusion that there are prospects of success on appeal. “The respondents have not taken this Court into its confidence and identified the compelling reasons why this matter should be heard by an appeal court, other than to give this Court’s judgment their own meaning. The fact that they preferred their own interpretation to the comments and findings of the Court could not be said to be a justifiable reason/s for the matter to be heard by an appeal court,” concluded Judge Mantame. Both respondents received a thorough dressing-down from the judge, who criticised their apparent decision on reading her initial judgment “selectively. The respondents cannot substitute the Court’s analysis with their own convenient censure,” she said. The judgment coincided with President Cyril Ramaphosa’s move to finally bestow his new minister of electricity, Kgosientsho Ramokgopa, with real power — transferring responsibility for procuring new electricity generation to Ramokgopa from Mantashe. At first glance, the loss of such procurement powers appears to be a blow to Mantashe. Becker, the spokesperson of the Koeberg Alert Alliance (KAA) — a civil society organisation opposed to the further building of reactors at Koeberg Power Station and extending its lifespan — was appointed to the NNR board in June 2021, to represent communities affected by nuclear activities. In February 2022, he was fired by Mantashe, who alleged Becker was guilty of “misconduct” and was “conflicted”, after he gave an interview in his capacity as KAA spokesperson, in which he raised concerns about the use of nuclear power in South Africa, and after he convened a meeting with civil society organisations. Becker’s initial suspension from the board in January 2022 was on the same day that the steam generators in unit two were approved for replacement, which is one of the steps required before any life extension could be granted. Members of civil society have since questioned the timing of his suspension. Becker launched a court bid to challenge his axing last year. In his first court application, he argued that Mantashe had an ulterior motive to get rid of him because of the challenging questions he may have raised. In her judgment on 19 January, Judge Mantame concluded that Becker’s public statements, his requests for information and the meeting with members of his constituency could not be construed as misconduct. Additionally, even if there was a perception of conflict of interest, it was capable of being mitigated. In Friday’s judgment, Judge Mantame reiterated: “Similarly, in this matter, in light of the finding that there was no evidence of misconduct on the part of the applicant, it then follows that there is no rational or sound basis for his discharge. In the circumstances, the conclusion that there are prospects of success on appeal or that there are compelling reasons for the appeal to be heard is without merit.” This raises the question of what the minister’s motivation had been to axe Becker. The reasons and decision of Mantashe to discharge Becker from his office as a director of the board, Judge Mantame ordered in January, were reviewed and set aside. However, Becker is currently in limbo and is excluded from the NNR board and board processes. The Western Cape High Court’s refusal to grant leave to appeal to Mantashe and the NNR doesn’t mean it’s the end of the road, as they can still petition the Supreme Court of Appeal directly for leave to appeal.   Source: Daily Maverick

Ghana: Increases In Tariffs Will Help Utilities Recover Cost—PURC

Ghana’s Public Utilities Regulatory Commission (PURC) has justified the recent increase in electricity and water tariffs effective June 1, 2023, saying the hikes are to enable utilities to recover the cost. According to PURC’s Executive Secretary, Dr. Ishmael Ackah, the power sector currently has a deficit of Gh¢1.314 billion from generation, transmission and distribution. He stressed that the power sector needs to be financially viable to survive the next quarter. “The 2nd quarter tariff decision of 18.36% for electricity helps to fully recover 100% of the inflationary effect, 100% of the gas price effect and 50% of the exchange rate effect,” Dr Ackah stated. Speaking at a media training programme over the weekend, Dr Ishmael Ackah noted that the recent electricity tariff should have been 27.51 per cent but the commission noted that only GH¢877,70 million was recovered, leaving a balance of GH¢437.22 million. On the waterside, Dr Ackah said the amount yet to be recovered was Gh¢650,267,162 million. Touching on gas supply, Dr Ackah said the Jubilee Field contributed 32.7 per cent of gas, which is about 51.8 per cent while Nigeria Gas (N-Gas) contributed 15.1 per cent for the period. He added that the price of gas from the Jubilee Field was US cent 0.5, similarly, Sankofa was US Dollars amounting to 6,6272 and N-Gas was US Dollars (8,1510). He explained that the contribution of the Jubilee Fields reduced marginally to 32.25 whilst Sankofa increased from US$8.1510, which changed the dynamics in the variable cost determinants. Touching on the price of N-Gas, he said it has also increased from US$8.1510/MMBtu to US$8.6641MMBtu and it is reflected in the changes in the prices. “The overall implications are the weighted average cost of gas was US$6.0952/MMBtu in the first quarter and has now increased to US$65.5165/MMBu in the second quarter, representing a 6.9% increase. “Other factors crucial for determining the prices in the sector he said, include exchange rates which were not stable for the period. In addition to this, he said the Hydro-thermal mix for the period of June to August was significantly affected. “The third viable was the projected inflation figure for the year, which was 29.01 per cent, thus, 42.63 per cent. “Divided for the period, the PURC noted that it averaged 50.47 per cent quarter,” he explained.           Source: https://energynewsafrica.com  

Nigeria: Petrol Queues Resurface After President Tinubu Announced Removal Of Fuel Subsidy

Petrol stations in Lagos and Abuja started witnessing queues on Monday few hours after Nigerian new President Bola Tinubu announced that fuel subsidy has ended.

Some NNPC Limited stations in Lagos and Abuja were crowded by motorists who rushed to buy the product.

During his inaugural speech at Eagle Square in Abuja on Monday after being sworn into office Bola Tinubu announced the removal of fuel subsidy.

He said he was informed that there was no provision for fuel subsidy, adding that it could no longer be justified.

He said, “Fuel subsidy is no more. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources.

“We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions. “No provision for fuel subsidy.”

He said there would be a “thorough house cleaning,” adding that the interest rate would be reduced.

 

 

Source: https://energynewsafrica.com

GOIL PLC MD Adjudged Petroleum Downstream CEO Of The Year

The Group CEO and Managing Director of GOIL PLC, Mr.  Kwame Osei-Prempeh has been crowned as the outstanding CEO in the Petroleum downstream sector at the just ended Ghana CEO Summit in Accra, capital of Ghana. The 7th Ghana CEO Summit was attended by Chief Executive Officers of Companies, Business Executives, Captains of industry and major decision and policy makers who discussed topical business strategies to sustain and grow their businesses while influencing and impacting society. This year’s summit discussed economic sovereignty, sustainable corporate governance, and Digital industrial Transformation. A key feature of this year’s summit was how to transform state-owned enterprises for growth and prosperity and fostering a high-level public-private sector dialogue. Mr. Osei-Prempeh expressed gratitude for the award and indicated he shared it with the entire team of GOIL whose efforts and expertise contributed to it. “It was an honour done me to be recognized as the best CEO in the Downstream oil sector in Ghana and I do not take it lightly. My team of Board members, Management and staff in general have all made this successful,’’ he said as carried by Myjoyonline.com. He urged customers to continue to patronize GOIL fuels and lubricants and enjoy all the goodness they offer. Since Mr. Osei Prempeh’s assumption of the position of Group CEO and MD in 2019, GOIL has steadily maintained its leadership position as the market leader in the highly competitive industry.       Source: https://energynewsafrica.com  

Petrobras Launches New Commercial Portfolio For Natural Gas

Brazilian national oil company Petroleo Brasileiro SA has launched a new commercial portfolio for natural gas in a move that will see the company expand and diversify deadlines, benchmarks and places of delivery in a bid to become more competitive. Petrobras will also resume using Henry Hub benchmark prices for gas in addition to Brent oil prices, while offering distributors more options for contract deadlines and delivery locations. Using the new portfolio, Petrobras, which currently has contracts with more than 14 suppliers, will become more competitive in the public calls being made by the state distributors and in the commercialization via the Free Market. Earlier, Petrobras reported that its Q1 2023 revenue and profits decreased which it attributed to lower commodity prices. Q1 net income fell to 38.16B reais (~$7.7B) from 44.6B reais in the prior-year period, but well above the 31.96B reais analyst consensus estimate. Q1 adjusted EBITDA fell to 72.5B reais from 77.7B reais a year ago but also topped the consensus estimate of 67.36B reais. Meanwhile, revenues fell 1.8% Y/Y to 139.07B. Thankfully, PBR continues paying out hefty dividends to shareholders, with payouts for the quarter clocking in at 24.7B reais ($4.94B). Petrobras has been at the center of a major corruption scandal over the past decade, due to large political appointments in its senior management. Last year, the oil and gas supermajor announced that it will increase 2023-2027 investments by about 15% to $78 billion over the company’s 2022-2026 projected spending. Of the $78 billion planned for capex, 83% or $64 billion is earmarked for E&P activities while 67% of the E&P capex budget will go to pre-salt activities. The company also plans to boost spending to reduce carbon emissions to ~6% of the total compared with 4% in the previous plan, and will see its decarbonization fund more than double the current $248M. PBR shares underperformed badly last year but have gained 26% year-to-date.     Source: Oilprice.com  

Nigeria: New President Declares Removal Of Fuel Subsidy

Nigeria’s new President, Bola Ahmed Tinubu has told Nigerians that the era of subsidy payment on fuel has ended. The Buhari administration planned to end subsidy on fuel next month as a result of pressure on government coffers. To this end, the Buhari administration only made payment of fuel subsidy covering half year 2023. In August last year, the Minister for Finance Zainab Ahmed disclosed that the Federal Government will be incurring about N6.4 trillion annually if the policy remains. Delivering his inaugural address on Monday after he was sworn in as the 16th President, the new Nigerian leader declared that “the fuel subsidy is gone.” Tinubu said his government shall instead channel funds into infrastructure and other areas to strengthen the economy, adding that a “unified exchange rate” is guaranteed under his administration. “We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the millions of lives,’’ the President said.     Source: https://energynewsafrica.com

Ghana: GECA Urges GSA, Energy Commission To Speed Up Passage Of Law On Electrical Accessories

The Ghana Electrical Contractors Association (GECA) has urged the Ghana Standards Authority (GSA) and the Energy Commission to speed up the process for the passage of the law on electrical accessories.

According to the Association, when the law comes into force, it would help to weed out unscrupulous dealers from the Ghanaian market.

“As we await the passage of the proposed law, we encourage certified electrical engineering inspectors to enforce the use of materials approved by GSA,” the Association said in a press statement issued on Friday.

The statement comes after the Ghana Standards Authority had identified that about 6,000 fake electrical products were on sale in the Ghanaian market.

The GECA noted that identifying good electrical products is a daunting task and, therefore, cautioned electrical wiring practitioners and the general public to be wary.

It encouraged all to buy their electrical materials from credible, tried and tested dealers as they are likely to offer quality and value for money.

 

 

 

 

Source: https://energynewsafrica.com

Ghana: GECA Cautions Consumers Against Fake Electrical Materials On Sale

The Ghana Electrical Contractors Association (GECA) has cautioned consumers about the fake electrical products currently on sale on the Ghanaian market. According to the association, the worrying development was recently confirmed by a report by the Ghana Standards Authority that it had identified about 6,000 fake electrical products on sale. The GECA noted that identifying good electrical products is a daunting task and, therefore, cautioned electrical wiring practitioners and the general public to be wary. It encouraged the public to purchase their electrical materials from credible, tried and tested dealers as they are likely to offer quality and value for money.       Source: https://energynewsafrica.com  

Nigeria: Electricity Supply Boosted As 700MW Zungeru Hydroelectric Power Connected To Grid

Nigeria has connected the recently completed 700 Megawatts Zungeru Hydroelectric Power Plant to the National Grid to boost electricity. “Today the Zungeru Hydroelectric Power Plant has become a reality; we have as of today joined the grid with 700MW. Testing started Wednesday night. “Information has reached us with the pictorial view of the meters showing us that the 700MW has gone on the grid,” the outgoing Minister for Power Abubakar Aliyu said during a farewell party for him and the Minister of State, Mr. Goddy Jedy-Agba by the Ministry of Power on Friday in Abuja. The minister said that the Kashimbila Hydroelectric Power Project, a joint project with the Ministry of water resources had been completed. He said phase one of the project which is the line taking electricity to Yandev in Benue over 240 kilometers, had been completed and inaugurated last week. On the Siemens project, Mr Aliyu said that the ministry had installed transformers in Abuja, Ajah, Lagos, adding that 10 massive mobile substations had been cleared. “We have 10 of them at the port and the first one is in Ajah sub-station and some are also on the sea coming, ‘’ he said. Mr Aliyu also said that the ministry of power on Wednesday presented to the Federal Executive Council (FEC), a contract for over 13, 000kilometers distribution line. He said that the contract was approved for the Presidential Power Initiative (PPI). “One thing we should have in our minds is that these things don’t happen just at once, it is a process. These bring about delays of some of the projects, ‘’he said. The minister urged all players in the industry to continue to work together in synergy to be able to achieve the desired results. According to him, electricity is a value chain from generation to distribution, urging players to work in synergy. Aliyu commended members of staff of the ministry and stakeholders in the sector, for the cordial working relationship. He said that the ministers would not have achieved what they achieved without the support of the staff of the ministry. Also speaking, the Minister of State for Power, Jedy-Agba also thanked the staff for the working relationship that existed between them. “It is a long journey but I enjoyed working with you all as you took directives from us and you implemented them, ‘’ he said.

Nigeria: Dangote has Paid Back 70% Of Loans For Refinery Project-CBN Boss Announces

The Dangote Group has paid back 70 per cent of the loans it took from the Central Bank of Nigeria to finance the group’s 650,000 barrels per day oil refinery located in Lekki, Lagos State, Governor of CBN, Mr Godwin Emefiele, has revealed. Dangote Refinery, which is Africa’s largest crude oil refinery, was officially commissioned by President Muhammadu Buhari, on Monday, May 22, at a ceremony attended by many oil and gas leaders. The refinery was initially estimated to cost just about $9 billion but the project cost escalated and was eventually completed with a total of $18.5 billion. Speaking at the commissioning of the refinery, Godwin Emefiele said the amount constituted 50 per cent equity investment by Dangote and 50 per cent debt finance by banks. According to him, the commercial loan component of the project was financed majorly by domestic banks while the rest was provided by foreign banks. He added that the CBN also partnered with the Dangote Group to ensure the successful completion of the project by providing about N125 billion for domestic currency requirements while also ensuring the availability of foreign exchange (FX) to pay for imported equipment. “We have it on good authority that the Dangote Group has paid off some portion of these commercial loans even before this commissioning today,” Emefiele said. “Today, total loans outstanding have dropped from over $9 billion when this project started to $2.7 billion. This reflects the astute credit worthiness and commercial capability of the group and its chairman, Alhaji Dangote. “I must, at this juncture, appreciate all the participating local Nigerian banks, which did not only partner with the project through effective financing but were keenly aware of the importance of the project for our nation. “They provided immense support and exceptional understanding, even when interest payments and principal repayment had fallen due,” Emefiele stated. Emefiele further expressed optimism that Nigeria, under the incoming administration, would cease importing petroleum products, fertiliser and petrochemicals and save the country over $26 billion.     Source: https://energynewsafrica.com

Uganda: Gov’t Bans Charcoal Production In A Bid To Protect Environment

Uganda has banned charcoal production and business in the North and North-Eastern part of the country. This directive was contained in Executive Order Number 3 of 2023 dated May 19, which the state house made public on Wednesday. According to a report by Uganda-based Monitor, the regions where the ban applies are Karamoja, Tesco, Lango, Acholi and West Nile where security forces especially commanders of Uganda People’s Defence Forces, are accused of aiding destroyers of the environment by guarding charcoal producers and transporters. “In order to save the environment and also the reputation of the NRM, I, therefore, hereby ban the cutting of trees for charcoal burning,” President Yoweri Museveni stated in the order, citing extinction threats to valued Shea-butter trees according to Monitor. The ban on charcoal production has been welcomed by some Members of Parliament and environmentalists.   Source: https://energynewsafrica.com

ARDA Congratulates Dangote Group…Says Refinery Will Reduce Import Of High-Sulphur Fuel To Africa

African Refiners and Distributors Association (ARDA) has congratulated Nigerian businessman, Aliko Dangote, and his Dangote Group for the successful commissioning of their 650,000 barrels per day refinery and petrochemicals facility located in Lekki, Lagos, State. ARDA President and Chief Executive of the National Petroleum Authority of Ghana, Dr Mustapha Abdul-Hamid said in a release that while the Association continues to work alongside the African Union Commission (AUC) to harmonise fuel specifications across Africa, the Dangote Refinery was designed to produce cleaner AFRI-6 (10 ppm Sulphur) fuels from the onset. Dr. Abdul-Hamid said the refinery was a game-changer for Africa’s clean fuels journey as its start-up will reduce the import of high-Sulphur fuels into the continent while meeting climate commitments and reducing public health challenges. According to Dr. Abdul-Hamid, “This strategic move by the Alhaji Dangote and the Dangote Group will also assure Africa’s energy security even as the continent’s growing energy needs are met sustainably while reducing foreign exchange expended on petroleum products imports, providing employment and promoting a strong market for African crude oil on the continent amidst the global push away from fossil fuels.” ARDA Executive Secretary and former NNPC COO Refining & Petrochemicals, Mr Anibor Kragha also commended Alhaji Dangote and said the refinery has highlighted the viability of large-scale downstream industry investments that are fundamental for Africa to refine its crude oil and create a robust, intra-African energy market amidst the global geopolitics and energy transition concerns. Kragha also said that successful investments like the Dangote Refinery would positively impact the petroleum products supply chain dynamics of various African countries and would be critical for the continent to develop and implement a unique, integrated, sustainable African Downstream Energy Transition Roadmap that would prioritise cleaner, low-sulphur fuels and carbon emissions reduction efforts in the near-term and mature, cost-effective renewable energy solutions later. In November last year, an ARDA delegation including the Executive Secretary and top executives from refineries and storage & distribution companies in Senegal (SAR, SENSTOCK and Elton Oil), Cote d’Ivoire (SIR and SMB), Gabon (SOGARA) and Zambia (Indeni) as well as the Department of Hydrocarbons in the Ministry of Cote d’Ivoire and ARSE, the downstream regulator in Niger Republic toured the Dangote Refinery site and had commended the intense efforts to bring the refinery on stream. Kragha said, “The commissioning of the Dangote Refinery about six months after the ARDA delegation visit last November, serves as a testimony to the vision and doggedness of the excellent Dangote team to deliver a world-class ‘Refinery of the Future’ that prioritises cleaner fuels and maximises value addition via petrochemicals facilities while reducing its carbon footprint in line with global best practices.”     Source: https://energynewsafrica.com

Norway: Aker BP Makes “Significant” Oil Discovery Offshore

Aker BP is nearing completion of drilling the Øst Frigg Beta/Epsilon exploration well, situated in the Yggdrasil area of the Norwegian North Sea. The well has resulted in a significant oil discovery. Preliminary estimates indicate a gross recoverable volume of 40-90 MMboe, surpassing the previously communicated pre-drill estimate of 18-45 MMboe. The discovery enhances the resource base for the Yggdrasil development, which was previously stated at 650 MMboe (gross). The Plan for Development and Operations (PDO) was submitted to Norwegian authorities in December 2022, with production scheduled to commence in 2027. “We are extremely pleased with the results of this well. The discovery will be evaluated as a potential addition to the Yggdrasil development. We see further upside potential around Yggdrasil and, in collaboration with our partners, will continue active exploration in the area,” says Per Øyvind Seljebotn, SVP Exploration & Reservoir Development in Aker BP. The oil discovery is located within production licenses 873 and 442. In license 873, the partnership consists of Aker BP (operator, 47.7% interest), Equinor (40% interest) and PGNiG Upstream Norway (12.3% interest). In license 442, the partnership comprises Aker BP (operator, 87.7% interest) and PGNiG Upstream Norway (12.3% interest).       Source: Worldoil.com