South Africa: Eskom Under Siege
Eskom chairman Mpho Makwana says Eskom’s staff morale is very low, with employees struggling to make friends and their children getting bullied at school.
Makwana made these comments during an interview with Newzroom Africa’s Xoli Mngambi, focusing on problems at the power utility.
Irvin Jim, the general secretary of the National Union of Metalworkers of South Africa (NUMSA), said Eskom workers are permanently under siege.
“They are presented as thieves by the government because of shenanigans that take place around power stations where they work,” Jim said.
“We are dealing with a workforce with very low morale”, which Jim said impacts the ability of the government to fix Eskom and resolve load-shedding.
Makwana agreed with Jim, saying it can be expected that there is low staff morale among Eskom employees.
“The average Eskom employee, unionised or not, is under siege. Irvin Jim is correct,” he said.
“Their children get bullied at school. Their wives and husbands struggle to mingle in communities because they are seen as letting the country down with load-shedding.”
The Eskom chairman urged union leaders to reach out to the acting Eskom CEO and seek a partnership to address the problems.
“Rather than go on national TV and bemoan the situation, let’s sit around the same table as partners,” Makwana said.
“As partners, we can discuss how we turn this place around. Let’s go back to 2001, when Eskom was power utility of the year, and say how we can revive that.”
“We must find out how we can rekindle Eskom as a great place to work and which deliver electricity with pride to the nation.”
Former Eskom CEO Andre de Ruyter left the power utility “with immediate effect” following his explosive interview on ENCA.
Eskom said the decision followed the convening of a special Board meeting on 22 February 2023.
“The Eskom Board and Group Chief Executive (GCE) Andrè de Ruyter had reached a mutual agreement to curtail his notice period to 28 February 2023,” Eskom said.
Revelations in the interview and the CEO’s sudden departure added further fuel to the Eskom fire, which Makwana said they are addressing.
“We’ve had three virtual conversations with our staff after De Ruyter’s departure. I’ve also had a leadership talk,” he said.
The leadership talked centred around what is right at Eskom. “To have the energy to fix what is wrong at an organisation, you also have to celebrate what is working,” Makwana said.
The focus is to inspire the top leadership at Eskom, which the board hopes will filter down to other employees.
He highlighted that the responsibility of staff engagement lies with the chief executive and that the board always comes as guests of Eskom executives.
Source: dailyinvestor.com
Ghana: Africa Refiners And Distributors Association Elect NPA CEO As President
The Africa Refiners and Distributors Association (ARDA) has elected Dr Mustapha Abdul-Hamid, Chief Executive of Ghana’s National Petroleum Authority (NPA), as its new President.
The election took place in Cape Town, South Africa, where the Association is holding its five days annual conference.
The Executive Committee of the continental body approved the nomination of Dr Abdul-Hamid as put forth by the Executive Secretary on Sunday 12th March 2023.
The General Assembly at its meeting on Thursday 16th March 2023 unanimously endorsed the nomination to make Dr Abdul-Hamid the President of ARDA for the period, 2023-2024.
The Presidency of ARDA is for one year and renewable for another year.
In submitting Dr Abdul-Hamid’s nomination, the Executive Secretary of ARDA, Anibor Kragha said, “Dr Abdul-Hamid has brought a lot of dynamism and change to the petroleum downstream in Ghana.
“The nominee’s integrity and honesty in public life are qualities that ARDA needs at this time” he added.
Before the vote by the General Assembly, the immediate past President of ARDA, Madame Marieme Ndoye Decraene, asked Dr Abdul-Hamid to address the assembly and say why his nomination should be approved.
Addressing the assembly, Dr Abdul-Hamid said, “I have been Chief Executive of the National Petroleum Authority (NPA) since July 2021 and I believe that in my time at the NPA, we have put in place reforms that are transforming the landscape of the downstream petroleum industry in Ghana.
“Secondly, I have been in leadership for most of my adult life, including serving as Minister for Information for the Republic of Ghana and also as Minister responsible for Inner City and Zongo Development.
“I, therefore, believe that I can bring my wide experience in leadership to bear on ARDA and ensure its growth and development for the betterment of the downstream petroleum industry in Africa.”
When the question was put, Dr Abdul-Hamid’s nomination was unanimously endorsed.
Addressing the General Assembly, the newly sworn-in President of ARDA, Dr Mustapha Abdul-Hamid, promised to work closely with the Executive Secretary and the Abidjan secretariat to ensure the growth and development of ARDA.
Dr. Abdul-Hamid thanked the out-gone President, Madame Marieme Decraene, for her good work and promised to further improve the fortunes of ARDA.
The next annual conference of ARDA takes place in March 2024 in Abidjan, Cote D’Ivoire.
ARDA is the association of all downstream petroleum operators in Africa and the voice for all downstream petroleum stakeholders.
The organisation is made up of members who share a common interest in matters about the refining, storage, distribution and regulation of petroleum products in Africa.
ARDA has a membership of 74 organisations from 52 African countries.
ARDA has its legal headquarters in Geneva, Switzerland, and its operational headquarters in Abidjan, Cote D’Ivoire.
Source: https://energynewsafrica.com
South Africa: Ghana’s Petroleum Downstream Regulator Talks About Ghana’s Success Story At Africa Refiners Week
Ghana’s petroleum downstream regulatory institution, National Petroleum Authority (NPA) boss, Dr. Mustapha Abdul-Hamid has highlighted regulatory measures the Authority has implemented to ensure stability across the West African nation’s petroleum downstream sector, following the global oil and gas market volatility caused by the Russian-Ukraine war and energy transition-related policies.
Speaking during a presentation at Africa Refiners and Distributors Association (ARDA) Week 2023, which is currently taking place in Cape Town, South Africa, Dr Abdul-Hamid called for increased cooperation between African countries and players within the downstream sector, and between private and public sector institutions to ensure the security of energy supply and affordability.
“For the first time in 30 years, we have installed fuel caps as a measure to intervene and to control market instability,” he said.
This has helped restrict uncontrolled increases in fuel and energy prices at the height of the global market instability since the conflict between Russia and Ukraine started, he stated.
The regulator also spoke about the ‘Gold for Oil’ programme, whereby the country is leveraging its vast gold resources to buy petroleum from international markets.
“We exchange gold directly for petroleum products from international firms. We buy the gold directly from large and small mining firms and exchange it for petroleum. This has stabilised our industry and kept energy prices affordable,” he said.
In addition, the Ghanaian government, through the NPA, has also removed energy subsidies, with Dr Abdul-Hamid stating that “we have removed subsidies and deregulated our markets. Industries were shutting down because the government was finding it hard to find the money to provide subsidies and to this day, the industry is being powered by investments in the private sector and there are no complaints of supply. We are ensuring affordability and security for the vulnerable consumers through the removal of energy subsidies.”
With the lack of adequate refinery capacity being one of Ghana’s key challenges restricting the exploitation of local oil and gas resources to drive energy sector growth, the NPA has also created a special fund to help refineries to boost their capacity to reach 50bbl and be able to meet the country’s growing demand.
“Ghana has also ensured the NPA is a one-stop-shop for everything required for firms to participate in the country’s oil and gas industry. By so doing, we have the time spent in registering and getting projects and firms up to the ground,” he said.
Dr Hamid highlighted the roles of the Gas Master Plan, the Renewable Energy Plan and the Trade Policy in maximizing the country’s energy mix diversification and the exploitation of liquefied petroleum gas, as well as natural gas to boost electricity generation and consumer access to clean cooking while ensuring environmental sustainability.
“There must be a healthy balance of energy equity, accessibility and environmental sustainability in driving energy market growth. “We want to transform through natural gas which is the cleanest form of energy to date while accelerating local content development.
“We also want to use carbon credits to innovate our financing mechanisms,” he noted.
Source: https://energynewsafrica.com
Kenya Signs Oil Deals With ADNOC And Saudi Aramco To Curb FX Pressure
Kenya has signed deals with UAE’s ADNOC and Saudi Aramco for the supply of petroleum products with a six months credit period.
The deals were signed last Friday, according to the energy minister Davis Chirchir, who addressed journalists after two firms were picked from seven bidders.
The move is designed to curb demand for dollars that has weakened the local currency.
The East African nation is switching to the longer payment period from settlement on delivery, to remove the need for importers to spend hundreds of millions of dollars every month.
Foreign currency traders have cast doubt on the ability of the plan to stem the pressure on the shilling currency, saying it merely amounts to a postponement of demand.
The plan is also being challenged by some private petitioners at the High Court.
Ghana: Petrosol Reduces Petrol And Diesel Prices To Cushion Consumers
Petrosol Ghana Limited, one of the leading indigenous Oil Marketing Companies (OMCs) in the Republic of Ghana, has announced a reduction in prices of both gasoline and gasoil across its service stations effective Friday, March 17, 2023.
According to a release by the company, a litre of petrol is selling at Gh¢12.68 while diesel is selling at GH¢13.24.
During the first pricing window which ended on Wednesday, March 15, 2023, Petrosol sold petrol at Gh¢13.49 per litre while diesel was sold at Gh¢13.57
Per today’s announcement, petrol price has been reduced by 81 pesewas while diesel saw a reduction of 33 pesewas.
This means petrol saw a 6.0 per cent reduction while diesel saw a 2.43 per cent reduction.
Fuel prices have been falling in the West African nation as a result of two key factors notably the fall in crude oil prices on the international market and the stability of the local currency, the cedi.
Crude oil prices were hovering around US$83 per barrel last week but on Wednesday, March 15, 2023, both WTI and Brent, the international benchmark crude, tumbled.
Source: https://energynewsafrica.com
This means petrol saw a 6.0 per cent reduction while diesel saw a 2.43 per cent reduction.
Fuel prices have been falling in the West African nation as a result of two key factors notably the fall in crude oil prices on the international market and the stability of the local currency, the cedi.
Crude oil prices were hovering around US$83 per barrel last week but on Wednesday, March 15, 2023, both WTI and Brent, the international benchmark crude, tumbled.
Source: https://energynewsafrica.com Ghana: GOIL Renames Refurbished Kaneshie-Odorkor Service Station
Ghana’s leading Oil Marketing Company, GOIL Plc, has commissioned its refurbished Kaneshie-Odorkor service station in Accra, the capital of Ghana, and renamed it Atico Junction Service Station.
The newly renovated station now has two pump islands with four nozzles each to serve customers with GOIL’s high-grade fuels, Super XP RON 95 and Diesel XP.
The station is also equipped with an ultra-modern lube bay, a GO Cafe and a cafeteria serving as a one-stop shop for customers.
Speaking at the commissioning, the Group CEO and Managing Director of GOIL, Mr Kwame Osei Prempeh appealed to Ghanaians to patronise GOIL fuels and lubricants to benefit quality products at the best prices.
The Zonal Manager for the South Marketing area comprising Accra and its environs, Helen Kyeremanteng, highlighted the add-on services at GOIL’s service stations and encouraged customers to utilise the GOCafes and lube bays for a complete customer experience.
In attendance were the Assistant Chief Fire Officer and Regional Commander for Greater Accra, Mrs Roberta Eva Ganson, Divisional Commander of the Ghana Police Service, Odorkor, Mr Apenteng, General Secretary of the Kaneshie-Takoradi Drivers’ Association, Mr Philip Rockson, the Chairman of the Kaneshie Drivers’ Association, Mr Samuel Boadu, and GPRTU representatives at Kaneshie.
The Zonal Manager for the South Marketing area comprising Accra and its environs, Helen Kyeremanteng, highlighted the add-on services at GOIL’s service stations and encouraged customers to utilise the GOCafes and lube bays for a complete customer experience.
In attendance were the Assistant Chief Fire Officer and Regional Commander for Greater Accra, Mrs Roberta Eva Ganson, Divisional Commander of the Ghana Police Service, Odorkor, Mr Apenteng, General Secretary of the Kaneshie-Takoradi Drivers’ Association, Mr Philip Rockson, the Chairman of the Kaneshie Drivers’ Association, Mr Samuel Boadu, and GPRTU representatives at Kaneshie.
Ghana: GOIL Announces Big Reductions In Fuel Prices
Ghana’s leading indigenous Oil Marketing Company (OMC), GOIL PLC, has announced reductions in both gasoline and gasoil prices at the pump effective Thursday, March 16, 2023.
According to a release by Robert Kyere, Public Relations Manager at GOIL PLC, a litre of petrol is selling at Gh¢12.95 while diesel is selling at GH¢13.49.
During the first pricing window which ended on Wednesday, March 15, 2023, GOIL sold both petrol and diesel at Gh¢13.80 per litre.
Per today’s announcement, petrol price has been reduced by 85 pesewas while diesel saw a reduction of 31 pesewas.
This means petrol saw a 6.1 per cent reduction while diesel saw a 2.24 per cent reduction.
Other oil marketing companies are likely to adjust their pump prices later today or Friday.
Fuel prices have been falling in the West African nation as a result of two key factors notably the fall in crude oil prices on the international market and the implementation of the government’s ‘gold for oil’ programme.
Crude oil prices were hovering around US$83 per barrel last week but on Wednesday, both WTI and Brent, the international benchmark crude, tumbled.
WTI tumbled to $67.62 per barrel while Brent tumbled to $73.71 per barrel.
Since the implementation of the government’s ‘gold for oil’ programme, BOST has taken delivery of five cargoes of fuel comprising two petrol and three diesel.
Source: https://energynewsafrica.com
Ghana: ECG To Close Offices On March 20 For Nationwide Revenue Mobilisation Exercise
Ghana’s southern power distribution company, Electricity Company of Ghana Limited (ECG), has announced plans to embark on a month-long Nationwide Revenue Mobilisation exercise, commencing March 20 to April 20, 2023.
The company, in a statement, indicated that “this massive revenue mobilisation exercise will focus on all categories of customers in arrears including State-Owned Enterprises (SOEs), and will be monitored by special teams who will apprehend and prosecute customers who attempt to interfere with the exercise, and/or undertake illegal self-reconnection after disconnection.”
The statement said under this exercise, the Head Office, Regional and District offices of ECG would be temporarily closed during the revenue mobilisation period, except for Customer Service Centres, to enable total participation by top management and staff.
“Management wishes to notify the General Public that recalcitrant customers who have refused to redeem their indebtedness to the company after they have been served with Final Demand Notice will be arraigned before the court of law,” the statement said.
It, therefore, urged all customers in arrears to pay their bills now to avoid disconnection and payment of reconnection fees.
Source: https://energynewsafrica.com
The Immediate Shift Away From Fossil Fuels Is Not The Way To Go (Opinion)
By: NJ Ayuk
Following the release of his third bestselling publication, A Just Transition: Making Energy Poverty History with an Energy Mix, African Energy Chamber (AEC) Executive Chairman, NJ Ayuk delivered a strong gas-focused speech during the Oxford Business Africa Forum, which took place under the theme, Africa’s Case for Energy and a Just Energy Transition.
In his address, Ayuk made clear the need for a pragmatic approach to the energy transition, in which the path that will get African countries to net zero emissions should not, cannot and must not be the same path that European countries travel. Citing natural gas as the best way forward, Ayuk brought attention to Africa’s biggest challenge: energy poverty, while putting forward a strategy that would enable the continent to transition to a cleaner energy future, however, not at the risk of socioeconomic development.
Kicking off his presentation, Ayuk emphasized that with over 600 million people without access to energy in Africa, it only makes sense that the continent harnesses all of its natural resources to alleviate energy poverty, and more specifically, its natural gas. According to Ayuk, “Natural gas, affordable and abundant in Africa, has the power to spark significant job creation and capacity-building opportunities, economic diversification and growth. Why shouldn’t Africa capitalize on those opportunities?”
As noted in his book, Ayuk recognized that the climate crisis represents a major challenge worldwide. In fact, Africa faces the worst impacts of the crisis, with environmental disasters threatening the livelihoods of populations. However, immediately transitioning away from oil and gas will not bring the economic relief the continent needs.
“I am not saying that African nations should continue oil and gas operations indefinitely, with no movement towards renewable energy sources. I am saying that we should be setting the timetable for our own transition, and we should be deciding how it’s carried out. What I’d like to see, instead of Western pressure to bring African oil and gas activities to an abrupt halt, is a cooperative effort. Partnerships, relationships rooted in respect, open communications and empathy. What does that look like? It begins with the belief that when African leaders, businesses and organizations say the timing is not right to end our fossil fuel operations, that we have a point. That when we are discussing our own countries, we know what we are talking about.”
Throughout his presentation, Ayuk provided in-depth insight into energy poverty in Africa, detailing how lack of energy triggers challenges regarding cooking, air pollution, health, education, employment and many more. However, Africa has the solution to addressing energy poverty: natural gas.
“A comprehensive approach to battling energy poverty, one that includes gas-to-power initiatives, is absolutely necessary. And we are seeing movement in that direction. More than a dozen African countries are already using natural gas they produce themselves or import from other countries to generate electricity. And new projects are on the way. Ghana, for example, is preparing to launch sub-Saharan Africa’s first LNG-to-power plant before the end of the year. Cameroon plans to convert an oil-fired power plant at Limbé to a natural gas-fired facility and expand production capacity. In Ivory Coast, a new combined cycle power plant is coming to Jaqueville. These projects will change African lives for the better. Reversing direction now would be a serious mistake.”
In addition to energy poverty, Ayuk went on to describe the economic benefits associated with oil and gas utilization in Africa. While renewable energy resources have and will continue to play a role in electrifying the continent – particularly across remote areas of the continent where grid connection is not feasible – oil and gas is the only way to kickstart industrialization. In this scenario, Ayuk proposes an alternative solution to the trend evident in investing in Africa. Rather than continue with financial aid, Ayuk emphasizes that investment and partnerships represent the only way of addressing energy poverty and driving economic progress.
“We don’t need help or quick fixes. We don’t need aid. We need partners and investors. We need free-market solutions that contribute to long-term stability and economic growth. Strategically harnessing our oil and gas resources, natural gas in particular, puts those objectives within our reach. The idea is to use our natural gas as a feedstock to create other value-added products, like petrochemicals, from fertilizers to ammonia. Then we take the revenues to build infrastructure, from pipelines to ports and roadways. And we open the door to economic diversification.”
As such, Ayuk made a strong case for an African-focused approach to the energy transition, citing energy poverty, economic development and investment as primary concerns. By establishing its own path to transitioning, Africa will be well equipped to make energy poverty history, mitigate climate change while at the same time driving long-term and sustainable socioeconomic growth.
“Why not, instead, take a strategic approach to Africa’s energy transition? Why not set aside a portion of fossil fuel revenues to help fund the infrastructure we need? Why not continue investing in African oil and gas projects, natural gas projects in particular, to move Africa closer to achieving a successful energy transition? And why not share your technologies with us, so we can employ solutions like carbon capture, to keep carbon emissions to a minimum? Africa needs an energy transition that takes a pragmatic approach to resolving energy poverty: by making our natural gas resources part of the solution.”
The writer is the Executive Chairman of African Energy Chamber
Kenya: Gov’t Is Not Taking Over Importation Of Petroleum Products—EPRA Boss
The Kenyan Government says it has no intention of taking over the importation of petroleum products into the East African country as is being speculated.
According to the government, it is rather stepping in to facilitate long-term contracts with suppliers through their government on an extended credit period of 180 days instead of the current 30 days.
Last week, Ndegwa and Ndegwa Associates filed a suit on behalf of some oil marketing companies against the government’s planned nationalisation of petroleum products importation.
The nationalisation of oil imports “amounts to unfair practice as an unconscionable representation that is excessively one-sided” and favours the supplier rather than the consumer, the court documents said.
However, responding to queries filed by energynewsafrica.com, Mr. Daniel Kiptoo Bargoria, Director General of the Energy and Petroleum Authority of Kenya, argued that with the government’s proposed plan, payment of petroleum products would now shift from US dollars to Kenya shillings with an expected Letter of Credit (LC) maturity of 180 days instead of the 30 days.
In his view, the step being taken by the government would reduce pressure on the country’s USD liquidity.
Below are the queries and responses by the Director General of Energy and Petroleum Authority of Kenya Daniel Kiptoo Bargoria:
Question: Why has the Government of Kenya decided to import all petroleum products instead of allowing the private sector to continue with fuel importation?
Answer: The Government will not be importing the petroleum products but rather it has stepped in to facilitate long term contracts with Suppliers through their Governments on extended credit period of 180 days instead of the current 30 days.
Question: How is the gov’t sure that taking over the importation of petroleum products would address the forex crunch and ensure the availability of fuel?
Answer: First, the payment of petroleum products by Oil Marketing Companies under the Open Tender System (OTS) will shift from USD to Kenya Shillings with an expected Letter of Credit maturity of 180 days. This therefore reduces pressure on the country’s USD liquidity. The normal demand projection and import planning under the Open Tender System will continue and this will assure security of supply of petroleum products to the country.
Question: Did the gov’t arrive at this option because there is no other way to address the forex issue?
Answer: This option was found to be the best among the considerations that were made.
Question: Now that Ndegwa & Ndegwa Associates has filed a lawsuit against the gov’t, would the gov’t consider a different option or abandon the plan or it would still go ahead?
Answer: It’s hard to comment on this matter since it’s now before Court.
Question: In Ghana, there were forex issues and this drove fuel prices higher. What the gov’t considered doing was introducing a programme called ‘Gold for oil’, and in doing so, the government decided to use BOST to import 10 per cent of fuel importation and the Bulk Oil Companies (BDCs) are still doing 90 per cent. This has resulted in a decline in fuel prices. Would the Gov’t of Kenya revise its stance and go the way of the Government of Ghana? If not, what would the government do in the face of the legal suit?
Answer: The Government of Kenya will play a facilitative role in securing long term supply contracts with potential suppliers on extended credit terms. This will be facilitated through signing of Memorandum of Understanding with potential supplier Governments. Licensed Oil Marketing Companies will still import and pay for the products.
Further, the Petroleum (Importation) Regulations of 2023 allows for duality in the importation of petroleum into the country; i.e. through a Government to Government arrangement or through the current OTS process. Therefore, the current process has not been done away with and there’s room to revert.
Source: https://energynewsafrica.com
Ghana: Vice President Touts Achievements Of BOST As He Commissions Head Office
Ghana’s Vice President, Dr Mahamudu Bawumia, has commissioned the ultra-modern head office of the country’s strategic fuel stock-keeping company, BOST, at Shiashi, a suburb of Accra.
The head office project was started in 2014 under the previous administration of the National Democratic Congress (NDC) and was to be completed in 24 months, but it suffered delay due to some issues which triggered audits and investigations by the BNI.
The project continued after all issues were addressed.
Addressing the gathering, Vice President Dr Mahmud Bawumia noted that BOST was in a chaotic and dismal state upon the assumption of the Akufo-Addo administration.
He said the company had a trading liability of about $624 million with several of the company’s assets being dysfunctional.
“I have been informed that as of 2017, BOST was saddled with liabilities of $624 million comprising legacy loan of Gh¢284 million, BDCs’ claims of $37 million, Capex $100 million and GRA tax liability of Gh¢47 million. “Additionally, 30% of BOST tanks have been decommissioned with three out of the six depots also being non-operational. Four river barges were out of commission. A total network of 361 kilometres of the pipeline was out of service and 77 kilometres of 12-inch pipelines had been detained in Houston, USA, for over 10 years as a result of contractual issues.
“So you see a picture of a company that was being run down. To complicate the dismal and chaotic state, the BOST account had not been audited for the past three years, making it difficult to determine the company’s financial position,” he said.
To address the sordid state of the company, Vice President Bawumia said BOST Board approved a five-year strategic turnaround policy drafted by management from 2020 to 2025 to prevent the company from insolvency and make it profitable.
“Between 2017 and now, 13 out of the 15 defective tanks have been repaired. All four river barges have been fixed. All pipelines repaired whilst obsolete pumps, meters and loading arms have been replaced,” he revealed.
Dr Bawumia said Management’s decision to revive their assets has increased the company’s revenue-generating assets from 34 per cent in 2019 to about 97 per cent to date.
He said the company has moved from being a loss-making entity, saying that in 2021 alone, the company recorded a profit of Gh¢164 million.
He praised the Management, Board and staff of the company for working hard to revive the company.
The Minister for Energy, Dr Matthew Opoku Prempeh, in a speech read for him by the Deputy Minister-designate for Energy, Hebert Krapah, said BOST is dependable as far as Ghana’s fuel security and availability are concerned.
He stated that the government plan has been to keep the light on and keep the transportation sector moving.
He said although many countries had been hit by fuel shortages with long queues and price hikes, Ghana had managed to contain the situation and made fuel available to consumers.
He said the government’s decision to introduce the ‘Gold for Oil’ programme is driving fuel prices downward, assuring the public that “we will continue to do everything to cushion Ghanaians.”
Source: https://energynewsafrica.com
He said the company had a trading liability of about $624 million with several of the company’s assets being dysfunctional.
“I have been informed that as of 2017, BOST was saddled with liabilities of $624 million comprising legacy loan of Gh¢284 million, BDCs’ claims of $37 million, Capex $100 million and GRA tax liability of Gh¢47 million. “Additionally, 30% of BOST tanks have been decommissioned with three out of the six depots also being non-operational. Four river barges were out of commission. A total network of 361 kilometres of the pipeline was out of service and 77 kilometres of 12-inch pipelines had been detained in Houston, USA, for over 10 years as a result of contractual issues.
“So you see a picture of a company that was being run down. To complicate the dismal and chaotic state, the BOST account had not been audited for the past three years, making it difficult to determine the company’s financial position,” he said.
To address the sordid state of the company, Vice President Bawumia said BOST Board approved a five-year strategic turnaround policy drafted by management from 2020 to 2025 to prevent the company from insolvency and make it profitable.
“Between 2017 and now, 13 out of the 15 defective tanks have been repaired. All four river barges have been fixed. All pipelines repaired whilst obsolete pumps, meters and loading arms have been replaced,” he revealed.
Dr Bawumia said Management’s decision to revive their assets has increased the company’s revenue-generating assets from 34 per cent in 2019 to about 97 per cent to date.
He said the company has moved from being a loss-making entity, saying that in 2021 alone, the company recorded a profit of Gh¢164 million.
He praised the Management, Board and staff of the company for working hard to revive the company.
The Minister for Energy, Dr Matthew Opoku Prempeh, in a speech read for him by the Deputy Minister-designate for Energy, Hebert Krapah, said BOST is dependable as far as Ghana’s fuel security and availability are concerned.
He stated that the government plan has been to keep the light on and keep the transportation sector moving.
He said although many countries had been hit by fuel shortages with long queues and price hikes, Ghana had managed to contain the situation and made fuel available to consumers.
He said the government’s decision to introduce the ‘Gold for Oil’ programme is driving fuel prices downward, assuring the public that “we will continue to do everything to cushion Ghanaians.”
Source: https://energynewsafrica.com Ghana: Critics Of ‘Gold For Oil’ Policy Are Bleeding—Dr Bawumia
Ghana’s Vice President Dr Mahamudu Bawumia has described critics of the government’s ‘Gold for oil’ programme which is aimed at addressing the exchange rate depreciation and rising fuel prices as people with an impossibility mindset and bleeding.
“Some people said it will not work. Ghana doesn’t have enough gold. How can you say that? We have been mining gold for 200 years. They keep taking it out and it cannot work for us. It doesn’t make sense.
“There are people who are disappointed that it is working but bleeding is allowed. We have an impossibility mindset. You can keep to it. For us, all things are possible by the grace of God,” Dr Bawumia said during the commissioning of the head office of the Bulk Oil Storage and Transportation Company (BOST) Limited in Accra on Wednesday, March 15, 2023.
According to Dr Bawumia, the introduction of the policy has helped to stabilise the Ghanaian cedi and triggered a fall in fuel prices in the West African nation.
“I am happy to note that the ‘Gold for Oil’ policy is the first policy of its kind in Ghana since independence to address this type of balance of payment crisis that we face. In my humble opinion, this is the most important macroeconomic policy intervention to deal with the exchange rate depreciation, fuel prices, food prices and inflation nexus that we have had.
“As a result of the policy, we have not only seen a decline in the price from 23 cedis per litre to around 12 cedis per litre, we have also seen stability in the exchange rate as we predicted. I say all thanks should go to the Ministry of Energy, BOST, NPA, the Bank of Ghana, the Ministry of Lands and Natural Resources and the PMMC who rose to the occasion when we faced those crises of rapidly depreciating currency along with rapidly increasing fuel, transportation and food prices.”
The Vice President, in November last year, announced that the government would use Ghana’s gold reserves to exchange for oil to stem the situation where oil importers rush for US dollars just to import, and thereby, putting pressure on the local currency.
Some Ghanaians, however, raised concerns over the lack of transparency in the policy.
Source: https://energynewsafrica.com
Ghana: Bui Power Authority Hands Over Classroom Block, Nurses’ Quarters To Communities
Ghana’s second largest state power generation company, Bui Power Authority, has handed over a six-unit classroom block to the Bongase District Assembly Primary School in the Bono Region.
Heavy rains ripped it off, and caused extensive damage to the classroom block, but the power generation company intervened and renovated the facility at the cost of GH¢250,000.
Mr. Samuel Kofi Dzamesi, the Chief Executive Officer of BPA also inaugurated three-bedroom nurses’ quarters for the Bui Community-based Health Planning Service Compound (CHPS).
The Banda District Assembly constructed the quarters and the BPA extended electricity into the facility.
Speaking at separate ceremonies at Bongase and Bui in the Banda District of the region, Mr Dzamesi stressed the authority’s commitment to facilitate the development of the communities within the Bui dam enclave.
He, therefore, advised the people to ensure proper maintenance of the facilities, saying that would inspire the BPA to do more for the people, and thereby improve their socio-economic livelihoods.
Mr Emmanuel Koney, the Banda District Chief Executive commended the BPA for taking the lead in the development of the district, saying with support from the authority, many communities have benefited from development projects.
He said the Authority had supported the drilling of boreholes, provision of classroom blocks and health facilities, and expressed the hope that the relationship between the assembly, the local people and the BPA would be deepened.
Mrs. Alimatu Amadu, the Banda District Girl Child Officer, said many of the schools in the area needed desks, tables and chairs to facilitate effective teaching and learning and appealed to the authority to come to their aid.
Mr. Abubakari Abudu, the Assistant Headmaster of the Bongase D/A Primary and Junior High School said the school had a population of 560 students and pupils and expressed appreciation to the BPA for the support.
At Bui, Nana Kwadwo Wuo II, the Chief expressed concern about the crime wave in the area and appealed to the BPA to support them with the construction of a Police Station project being undertaken there.
He also expressed appreciation to the authority for championing the development of the area and appealed to the authority to help create jobs for the youth in the communities.
Source: https://energynewsafrica.com
US: Biden Administration Approves Massive Willow Oil Project In Alaska
The Biden administration is approving a scaled-back version of ConocoPhillips’ (COP.N) $7 billion oil and gas drilling Willow project in Alaska, the U.S. Department of Interior said on Monday, drawing cheers from Alaskan officials and the oil industry but criticism from environmental advocates.
The decision follows an aggressive eleventh-hour campaign from opponents who had argued the development of the three drill sites in northwestern Alaska conflicts with President Joe Biden’s highly publicized efforts to fight climate change and shift to cleaner sources of energy.
Alaska’s elected officials say the project will create hundreds of jobs and bring billions of dollars in revenue to state and federal coffers.
The state relies heavily on revenue from oil production, but output there has declined dramatically from its peak in the 1980s.
“I feel the people of Alaska have been heard,” U.S. Representative Mary Peltola, a Democrat from Alaska, said on a call with reporters.
“The state of Alaska cannot carry the burden of solving our global warming issues alone.”
The fate of the project has been closely watched as Biden seeks to balance his goals of decarbonizing the U.S. economy and restoring U.S. leadership on climate change while also increasing domestic fuel supplies to keep prices low.
The United Nations, which has urged nations to accelerate the transition away from fossil fuels, criticized the move.
“These are not projects that move us in the right direction,” spokesperson Stephane Dujarric told reporters when asked about the Willow approval.
The Interior Department approved the project with three drill pads after saying last month it was concerned about the greenhouse gas impacts of Willow.
ConocoPhillips had sought to build up to five drill sites and project infrastructure including dozens of miles of roads and pipelines and seven bridges.
The administration also announced late on Sunday sweeping new protections for undisturbed Alaskan lands and waters that would keep nearly 3 million acres of the Beaufort Sea in the Arctic Ocean “indefinitely off limits” for oil and gas leasing, effectively closing off U.S. Arctic waters to oil exploration. It also issued protections for 13 million acres of “ecologically sensitive” special areas within Alaska’s petroleum reserve.
Environmental groups, however, criticized the Biden administration, saying it was trying to have it “both ways” on climate change.
“Promoting clean energy development is meaningless if we continue to allow corporations to plunder and pollute as they wish,” Food & Water Watch Executive Director Wenonah Hauter said.
Green groups have said they would challenge Willow in court. U.S. Senator Dan Sullivan of Alaska said the congressional delegation is expecting an imminent legal challenge and is preparing an amicus brief to defend the project.
Houston-based ConocoPhillips welcomed Monday’s decision, having already endorsed the trimmed-down version of the project.
“This was the right decision for Alaska and our nation,” ConocoPhillips Chief Executive Ryan Lance said in a statement.
U.S. Senator Lisa Murkowski, an Alaska Republican, on Monday welcomed the “good news,” saying “this will mean jobs and revenue for Alaska” by bringing upwards of 180,000 barrels of oil per day into the Trans Alaska Pipeline.
Source: Reuters