Ghana: Petrol, Diesel Consumption Declined Drastically In 2022
The consumption of petroleum products declined significantly in the Republic of Ghana in 2022 as compared to the 2021 consumption, energynewsafrica.com can report.
According to data sourced from the National Petroleum Authority (NPA), petrol consumption declined by 154,314,742 litres in 2022 while diesel consumption declined by 153,278,300 litres.
Kerosene consumption declined by 741,000 litres while premix fuel consumption fell by 64,516,500 litres.
The data showed that Residual Fuel Oil consumption went down by 26,857,700 while Heavy Fuel Oil consumption declined by 84,346,397 litres.
However, the consumption of AGO (diesel for mines) increased by 13,112,600 in 2022.
In 2021, petrol consumption was 2,226,994,900 litres while consumption in 2022 was 2,112,680,158 litres.
In the same year, diesel consumption was 2,074,134,000 litres while consumption in 2022 was 1,920,855,700 litres.
Kerosene consumption in 2021 was recorded at 5,688,000 litres while consumption in 2022 was 4,947,000 litres.
Premix consumption in 2021 stood at 104,098,500 litres while consumption in 2022 was pegged at 39,582,000 litres.
Fuel prices shot up astronomically in 2022 with diesel sold at Gh¢23.89 per litre while petrol sold at Gh¢18 per litre in October.
The high cost of fuel in 2022 forced many private car owners to park their cars and patronised public transport.
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Source: https://energynewsafrica.com
Ghana: Gold For Oil: Only OMCS With Not Less Than 45 Outlets Will Receive Products – NPA Boss
The Chief Executive of the National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid, has said the NPA in consultation with the Association of Oil Marketing Companies (AOMCs) has come up with a criteria for the distribution of the next consignment of petroleum products that has been imported under the Gold for Oil (G4O) programme.
According to him, this is to ensure that the impact of the G4O programme is felt by consumers across the country, while addressing the concerns of the AOMCs regarding a lack of clarity regarding the allocation of products supplied under the programme to its members.
The criteria takes into consideration the top 25 OMCs who distributed petrol and diesel in 2022 with not less than 45 retail outlets across the country.
He touted the implementation of the G4O as it has slightly lowered prices of petroleum products and reduced forex risk.
Speaking at the meet-the-press in Accra on Wednesday, the NPA Boss said the country had received three cargoes so far, comprising 41,000 metric tonnes (MT) of diesel in January, and another 40,000MT of diesel and 35,000MT of petrol which have just arrived and being discharged.
He stressed that “better results are expected as more G4O cargoes arrive.”
The meet-the-press under the auspices of the Ministry of Information that featured the NPA, focused on developments in the downstream petroleum industry on the theme: “Petroleum Downstream: Retrospect and Prospect.”
Tracing the situation before the implementation of the G4O programme, Dr Abdul-Hamid said average monthly petroleum product import bill ranged from $350 million to $400 million.
He said the petroleum downstream dollar demand accounted for 20 percent of national demand.
The NPA Boss noted that Bank of Ghana (BoG) commenced a special exchange rate auction programme for the petroleum downstream in April 2022, and indicated that the special auction programme could not meet 100 percent of forex demand in the country.
“Inadequacy of BoG supply pushes BIDECs to speculate forex rates arbitrarily based on proposed rates from commercial banks”, he said, and explained that the gold payment was mooted as a solution to the pressure that petroleum downstream put on the cedi.
Dr. Abdul-Hamid said the NPA regulates G40 products prices on the interim (Ex-ref price and Ex-pump prices).
He stated that the Authority had intensified price monitoring activities with penalties for defaulting service providers.
Touching on activities undertaken to ensure product quality and integrity, the NPA Boss mentioned the supply of low sulphur fuels (cleaner fuels), a maximum of 50ppm for imports and a maximum of 1500ppm for domestic production.
The NPA also undertakes periodic petroleum product monitoring exercises, conducts fuel marker monitoring and quality monitoring of fuel standards (Quality Control) including checking of water in fuel and collaborates with security agencies to prevent illegal imports, exports and product dumping.
Dr. Abdul-Hamid said the Authority used technology (Electronic Cargo Tracking System (ECTS), National Fuel Monitoring System (NFMS) and the Automatic Tank Gauge system) to ensure intended delivery of petroleum products along the petroleum downstream value chain.
He mentioned the revocation of licenses and publication of the names of defaulting Petroleum Service Providers (PSPs) and Laycans allocation and monitoring to ensure adequate supply as some of the activities undertaken to ensure order in the downstream petroleum industry.
Source: https://energynewsafrica.com
He touted the implementation of the G4O as it has slightly lowered prices of petroleum products and reduced forex risk.
Speaking at the meet-the-press in Accra on Wednesday, the NPA Boss said the country had received three cargoes so far, comprising 41,000 metric tonnes (MT) of diesel in January, and another 40,000MT of diesel and 35,000MT of petrol which have just arrived and being discharged.
He stressed that “better results are expected as more G4O cargoes arrive.”
The meet-the-press under the auspices of the Ministry of Information that featured the NPA, focused on developments in the downstream petroleum industry on the theme: “Petroleum Downstream: Retrospect and Prospect.”
Tracing the situation before the implementation of the G4O programme, Dr Abdul-Hamid said average monthly petroleum product import bill ranged from $350 million to $400 million.
He said the petroleum downstream dollar demand accounted for 20 percent of national demand.
The NPA Boss noted that Bank of Ghana (BoG) commenced a special exchange rate auction programme for the petroleum downstream in April 2022, and indicated that the special auction programme could not meet 100 percent of forex demand in the country.
“Inadequacy of BoG supply pushes BIDECs to speculate forex rates arbitrarily based on proposed rates from commercial banks”, he said, and explained that the gold payment was mooted as a solution to the pressure that petroleum downstream put on the cedi.
Dr. Abdul-Hamid said the NPA regulates G40 products prices on the interim (Ex-ref price and Ex-pump prices).
He stated that the Authority had intensified price monitoring activities with penalties for defaulting service providers.
Touching on activities undertaken to ensure product quality and integrity, the NPA Boss mentioned the supply of low sulphur fuels (cleaner fuels), a maximum of 50ppm for imports and a maximum of 1500ppm for domestic production.
The NPA also undertakes periodic petroleum product monitoring exercises, conducts fuel marker monitoring and quality monitoring of fuel standards (Quality Control) including checking of water in fuel and collaborates with security agencies to prevent illegal imports, exports and product dumping.
Dr. Abdul-Hamid said the Authority used technology (Electronic Cargo Tracking System (ECTS), National Fuel Monitoring System (NFMS) and the Automatic Tank Gauge system) to ensure intended delivery of petroleum products along the petroleum downstream value chain.
He mentioned the revocation of licenses and publication of the names of defaulting Petroleum Service Providers (PSPs) and Laycans allocation and monitoring to ensure adequate supply as some of the activities undertaken to ensure order in the downstream petroleum industry.
Source: https://energynewsafrica.com Nigeria: Mainstream Energy Win Bid For Zungeru Hydroelectric Power Plant
Nigeria’s National Council on Privatisation (NCP) has approved Mainstream Energy Solutions Limited (MESL) as the preferred bidder for the concession of the Zungeru Hydroelectric Power plant (ZHPP) for a fee of US$70million per year for 30 years.
The Council, chaired by the Vice President, Prof Yemi Osibanjo (SAN), announced the approval of Mainstream Energy Solutions at its 2nd meeting for the year 2023, held on Tuesday, February 21, 2023, at the Presidential Villa, Aso Rock in Abuja.
The Council directed the Bureau of Public Enterprises (BPE) to commence the negotiations and execution of the concession agreement with the preferred bidder.
MESL (the preferred bidder) scored 1,142 marks (94.3%) of the total 1,200 marks, thus, surpassing the minimum benchmark score of 75 per cent of 1,200 marks, having offered the highest concession fee of US$70million to beat Africa Plus Partners Nigeria Limited Consortium (APPNLC) which scored 742 points.
It would be recalled that the NCP, at its 7th meeting for the year 2020, held on December 21, 2020, approved the concession of the ZHPP, consequent which the Federal Ministry of Power (FMOP) donated an irrevocable Power of Attorney to the BPE on June 30, 2021, for the implementations of the NCP’s decision.
Based on this, the BPE published the Requests for Qualifications (RfQ) for the concession of the power plant in three national newspapers on October 27, 2022, when at the close of the deadline, 11 firms submitted bids.
Three of them, namely Africa Plus Partners Nigeria Limited Consortium (APPNLC), Mainstream Energy Solutions Limited (MESL and North-South Power Consortium (NSP) were prequalified.
In another development, the NCP has approved a scheme of External Restructuring proposed by KEPCO Energy Resources Nigeria Limited (KERNL), the core investor in the Egbin Power Plant.
The approval is to enable the entity to boost its capacity to raise the required capital to double the existing capacity of the plant to 2640MW.
Source: https://energynewsafrica.com
Ghana: Six Armed Robbers Attack Benab Filling Station At Gomoa Ojobi
Six suspected armed robbers invaded the Benab Filling Station at Gomoa Ojobi on the Accra-Cape Coast Highway at the weekend and robbed the station and customers who were at the station to buy fuel.
The masked wearing robbers invaded the station and started shooting indiscriminately, according to a report filed by Accra-based Adom FM.
The robbers made away with mobile phones, the station’s mobile money phones and an undisclosed amount of money.
Police sources said after the robbers succeeded with their operation, they attempted to snatch a Range Rover from a driver identified as Michael Kojo Afful who was heading towards Accra.
According to the police, the driver exhibited an act of bravery and knocked down one of them, killing him on the spot.
The deceased, believed to be a Fulani, according to information gathered, faced the driver violently with a gun.
The accomplices, however, managed to pull their colleague from the road and took all items on him and fled into a bush near Sakom Stone Quarry.
Meanwhile, some customers who were also robbed said they thought that was going to be the end of their lives due to the violent shooting.
Gomoa Dominase Police visited the scene and took the lifeless body to the Winneba Trauma and Specialist Hospital for preservation.
No arrest has been made yet.
Source: https://energynewsafrica.com
Ghana: TOR Workers Lace Their Boots For Massive Protest
Workers of Ghana’s premier refinery, Tema Oil Refinery (TOR), are lacing their boots for massive protests against the management of the refinery and the government for failing to ensure the availability of crude oil for the refinery to process.
At a meeting organised by Petroleum Workers Union, the workers resolved among other things that they would no longer stay quiet for the refinery to rot and, thus, would do everything possible to ensure that the refinery started operations.
According to them, they cannot continue to sit idle when the reason for being in the refinery is to work.
“Let’s send a strong message to the board. We are ready to work. Let’s put on a red armband to warn them. We will follow up with mass action,” one of the staff said.
Present at the meeting was the National Chairman of the General Transport Petroleum and Chemical Workers Union, Mr. Bernard Owusu.
Addressing the workers, Mr. Owusu said it is baffling that the government is mobilising gold for refined petroleum products but cannot make similar arrangements for crude oil for TOR to refine.
“Some of us find it difficult to understand why the government is doing gold for the oil programme and going for finished products. Why can’t we do the same for TOR?” he quizzed.
Mr. Owusu, who responded to several pressing issues by the workers, assured the leadership of the union that their leadership is not resting and would do everything possible to ensure that TOR restarts operations.
Some of the workers also called on the Secretary-General of the Trades Union Congress (TUC) to ensure that government revamps TOR.
Source: https://energynewsafrica.com
UK Energy Consumers Brace For Hefty Hike Despite Falling Gas Prices
Households face a hefty hike to their energy bills in April, predicts Cornwall Insight, after it warned that the price cap would not fall below the reduced subsidy rate in time for Ofgem’s next update later.
Cornwall Insight expects the price cap to fall from its current record rate of £4,279 per year to £3,294 for the three-month window.
This would be a steep drop off from current levels, but would still be historically very high – with the price cap moving between £1,000-£1,200 per year prior to the industry crisis that saw 30 suppliers collapse and Russia’s invasion of Ukraine which drove gas prices to record highs.
The energy specialist expects the price cap to drop heavily in the second half of the year, when the fall in gas prices will be reflected in season-ahead contracts and hedging – which is how suppliers typically buy energy for customers.
However, this will not be in felt in time for the second quarter update, meaning a challenging period awaits households this spring.
Ofgem is set to announce the cap for the second quarter of the year on February 27, establishing the maximum price for an average energy user on a standard variable tariff from April to June.
With the price cap expected to remain above the subsidy rate of £3,000 per year for the Energy Price Guarantee (EPG) – with Chancellor Jeremy Hunt hiking the protection levels for average bills from £2,500 per year for the next 12 months – many customers will have no choice but to swallow the £500 hike.
Households are also set to lose out on the £400 saving provided by the Energy Bill Support Scheme, meaning an average £900 per year hike in energy bills is on the way.
Dr Craig Lowrey, principal consultant at Cornwall Insight said: “Regrettably the forecast for April looks set to leave the price cap above the increased Energy Price Guarantee level, meaning average annual consumer bills will effectively jump 20 per cent.
“However, this is before we take into account the end of the £400 energy rebate scheme in March, meaning that the cost of energy for households will increase by even more. While tumbling cap projections are a positive, unfortunately, already stretched households will be seeing little benefit before July.”
Cornwall Insight calculates that the lessened support from the EPG will save the government £2.6bn across the entire scheme.
Based on projected gas prices, if the EPG were to increase to £3,000 per year as planned, the estimated package total would be £26.8bn while if it were to remain at £2,500 per year, the predicted cost for the energy support policies would be £29.4bn.
This is because when the EPG is lower than the price cap, the government has to pay suppliers the difference.
It is currently calculating the price cap will fall to £2,362 in the third quarter and remain lower at £2,389 per year in the winter.
Source: CityAM
Ghana: Vivo Energy Partners With United Way Ghana To Promote Environmental Sustainability In Schools
Vivo Energy Ghana, the exclusive marketer and distributor of Shell branded fuels and lubricants in partnership with the United Way Ghana has launched the first-ever Vivo Energy Environmental Club under its umbrella initiative, Cyclean, to promote environmental sustainability in schools.
The initiative which is in line with the Vivo Energy Sustainability Framework seeks to inculcate the habit of good environmental practices among pupils as their contribution to supporting the government’s efforts towards achieving the Sustainable Development Goal (SDG) 12 – target 12.5 of substantially reducing waste generation through prevention, reduction, recycling, and reuse.
The programme is critical to Vivo Energy Ghana as it forms part of the company’s overall business efforts to support the achievement of the 2030 SDGs Agenda by investing in the communities where it operates and working with successive governments to support the development of these communities.
The Human Resources Manager of Vivo Energy Ghana, Mrs. Mercy Amoah stated this in her remarks during the launch of the Club at the La Enobal School in the La Dade-Kotopon Municipality.
“We believe that creating public awareness and educating people, especially children on how to preserve the environment is the foundation for a sustainable world for us and future generations. For this reason, we are pleased to be launching this programme and donating cleaning tools, handwashing facilities and other toiletries to support the club and the students with access to adequate resources for proper waste collection and disposal, tools to recycle waste items from the environment and ignite their creativity to beautify the school environment” she said.
As the main implementers of the programme, the Executive Director of United Way Ghana, Mr. Felix Kissiedu expressed his excitement at the launch of the programme and said it will provide the opportunity for pupils to be engaged in lessons and green activities, facilitated by teachers trained with a multi-stakeholder validated Ghana Education Service (GES) curriculum and relevant learning materials.
“Over the initial period of one academic year, our pupils from La Enobal Basic School will have the opportunity to expand their eco-consciousness and gain knowledge about the environment, help to solve local environmental problems, learn about green technology and compete in Environmental Club Competitions,” he said.
The Municipal Director of Education for La Dade-Kotopon Municipality, Madam Habiba Kotomah, was full of praise for Vivo Energy and United Way Ghana for selecting the La Enobal School as the first to benefit from this initiative.
“This programme is one that we have always yearned to initiate in the schools within this municipality, and I am tremendously excited about the launch of this important programme which I hope and know will transform not just individual lives but the community as well,” she said.
She also appealed to Vivo Energy Ghana and other corporate bodies to assist in building WASH facilities for the municipality’s underserved schools.
IEA’s Birol Warns Of Tighter Energy Supply Next Winter
The Executive Director of International Energy Agency (IEA) Fatih Birol has warned of possible energy shortages next winter as relatively little new liquefied natural gas (LNG) is coming to the market while China’s consumption is set to rise this year.
European governments made many correct decisions over the last year to ensure energy supply, such as building more LNG terminals to replace pipeline deliveries of Russian gas, Birol told Reuters on the sidelines of the annual Munich Security Conference on Saturday.
But they also got lucky, he said, with a mild winter dampening demand while economic weakness in China led to the first drop in consumption there for 40 years.
“For this winter it is right to say that we are off the hook. If there are no last-minute surprises, we should get through…maybe with some bruises here and there,” said Birol. “But the question is…what happens next winter?”
“Even though we have enough LNG import terminals, there may not be enough gas to import and therefore it will not be easy this coming winter for Europe,” he said, noting this would likely push prices up again.
“It is not right to be relaxed, it is not right now to celebrate”.
”Even with a renewed push to develop new gas fields, it would be years before they came online, he said.
Households and firms therefore need to continue efforts to reduce gas usage while renewable energy output needs to expand faster, he said.
Klaus Mueller, head of the German network agency which regulates gas and electricity markets, in an interview with Deutschlandfunk on Sunday also said he could not exclude possible gas shortages next winter, especially as Germany would now have to fill storage facilities without Russian pipeline gas.
“We can manage it but will have to really make a big effort,” he said, adding that it would be good not to let storage levels drop too far below the current 71.52%.
In the interview, Birol also warned countries that had decided to phase out nuclear energy to reconsider if this was the best time to do so, saying the temporary extension of Germany’s last nuclear plants until April for example was a step in the right direction.
“We need all energy sources to help us for the next winter,” he said.
Source: Reuters
Cuba Says Blackouts To Return As Aging Power Plants Overhauled
Rolling blackouts will resume in Cuba and last until May, the Minister of Energy and Mines Vicente de la O Levy said, while the country overhauls decades-old oil-fired power plants ahead of the energy-intense summer season.
According to him, they will last three hours on average late on Thursday.
Repair and maintenance work on the plants will continue throughout the year to “continue incorporating power and increasing the reserve to reach June, July and August in better conditions than the previous year”, he added.
During Cuba’s sultry summer, residents and businesses tend to close their windows and switch on the air conditioning.
It was not immediately clear how the blackouts will be distributed across the country.
Blackouts in communist-run Cuba – a country already suffering from severe shortages of food, fuel and medicine – touch a political nerve and are widely seen as the tipping point that led to anti-government protests in July 2021, the largest since Fidel Castro’s 1959 revolution.
Cuba’s electrical grid collapsed following the passage of Hurricane Ian in late September, plunging the entire country into darkness and sparking scattered protests in Havana.
The energy minister said unexpected problems with generation could flare up again in coming months, causing more severe blackouts, “but nothing like the 10-hour average of October 2022.”
Cuban officials have blamed fuel shortages, deferred maintenance and difficulties processing heavy sour Cuban crude, also burned at its plants, for hobbling power generation.
Source:Reuters
Ghana: Energy Minister Drags NEDCo Staff To National Labour Commission
The National Labour Commission has summoned irritated staff groups of Northern Electricity Distribution Company (NEDCo) to a meeting in Accra on Monday afternoon, February 20, 2023.
The NLC’s summons, energynewsafrica.com understands, follows a complaint lodged against them by the Ministry of Energy headed by Dr Matthew Opoku Prempeh.
NEDCo staff groups have been agitating for the removal of their Managing Director, Mr Osman Aludiba Osman.
They made several claims against him including poor performance.
However, the Managing Director, in a 14-page response submitted to the Board of NEDCo, denied all the claims.
At a meeting last Thursday, February 9, 2023, at the Ministry of Energy, which was attended by the Board Members, CEO of VRA and NEDCo staff groups Energy Minister Dr Matthew Opoku Prempeh, has described as hollow claims advanced by the irritating NEDCo staff groups.
According to Dr Matthew Opoku Prempeh, the claims by the staff are not strong enough to trigger the removal of Mr. Ayuba.
Sources within the Energy Ministry told energynewsafrica.com that the Minister was appalled by the action of the NEDco staff groups during the meeting which lasted for several hours.
According to the sources, the Minister made the staff groups understand that organisational performance is a collective responsibility and if they are asking for the removal of their Managing Director, then, all the Directors, Managers and supervisors must also go.
After stating his views to the staff groups, energynewsafrica.com understands that the Minister asked the aggrieved groups to formally submit their resolution to him for onward submission to President Nana Akufo-Addo to decide on their demand.
The group formally submitted their petition to the Minister last Monday, February 13, 2023.
Source: https://energynewsafrica.com
Ghana: Cargo Carrying 40,000 Metric Tons Of Diesel Under Gold For Oil Arrives At Tema Port
A cargo-carrying 40,000 metric tons of gasoil (diesel) under the government’s ‘Gold for oil’ programme has arrived at the Tema Port, energynewsafrica.com can confirm.
The sampling of the product is currently ongoing.
The product was procured by the Bulk Oil Storage and Transportation Company (BOST) from LITASCO, an oil and gas dealer.
According to sources at BOST, another cargo-carrying 35,000 metric tons of petrol would arrive at the Tema Port on Sunday, February 18, 2023.
The arrival of the products is expected to drive the price of diesel and petrol further downward.
The Managing Director of Bulk Oil Storage and Transportation Company (BOST), Edwin Alfred Provencal, last Monday, announced that four cargoes of gasoil and gasoline had been procured and would arrive in the West African nation within this month.
Mr Provencal said he expected fuel prices to fall upon the arrival of the products.
Source: https://energynewsafrica.com
Ghana: Petrol, Diesel Prices Drop Significantly
Oil Marketing Companies (OMCs) in the Republic of Ghana have adjusted their pump prices downward with some reducing petrol by 80 pesewas while diesel saw a 35 pesewas reduction.
Unlike other parts of Africa where fuel prices are reviewed monthly, in Ghana, fuel prices are reviewed every fortnight.
Given this, Oil Marketing Companies, on Thursday, started reducing their pump prices.
A litre of petrol is now selling between Gh¢13.99 and Gh¢14.50 while diesel is sold between Gh¢14.59 and Gh¢14.90.
Leading Oil Marketing Companies, GOIL, Shell and TotalEnergies are all selling petrol at Gh¢14.50 per litre while diesel is sold at Gh¢14.90 per litre.
Petrosol, one of the best indigenous Oil Marketing Companies, is selling petrol at Gh¢14.45 per litre while diesel is being sold at Gh¢14.79 per litre.
This means Petrosol has reduced its petrol price by 80 pesewas while diesel price reduced by Gh¢1.11.
Cash Oil is selling petrol is sold at Gh¢13.99 per litre while diesel is sold at Gh¢14.59 per litre.
Star Oil is selling petrol at Gh¢13.99 per litre while diesel is sold at Gh¢14.59 per litre.
Zen petroleum is selling petrol at Gh12.87 per litre while diesel is sold at Gh15.69.
Alinco oil is selling petrol at Gh¢13.83 while diesel is being sold at Gh¢14.37
Duke’s petroleum is selling petrol at Gh¢13.89 per litre while diesel is sold at Gh¢14.38 per litre.
Goodness selling petrol at Gh¢ 13.95 per litre while diesel is sold at Gh¢14.50 per litre.
Allied is selling petrol at Gh14.26 per litre while diesel is selling at Gh¢14.56 per litre.
Pacific is selling petrol at Gh¢14.39 per litre while diesel is sold at Gh¢14.76 per litre.
Lucky Oil is selling petrol at Gh¢13.98 per litre while diesel is sold at Gh¢14.50 per litre.
Source: https://energynewsafrica.com
Ghana: ECG Tema North District Supports Remar Home
The Tema North District of the Tema Region of the Electricity Company of Ghana has donated to the Remar Ghana Orphanage in Tema as part of their corporate social responsibility.
The items included assorted food items and water valued at GHC3,000 and were presented to the Management of the Home on 14th February 2023.
The gesture also included fully- paid two months’ electricity bills. As the donation was made on Ghana’s Chocolate Day, the children received bars of chocolate from the donors.
Leading the Tema North District for the donation, the District Manager, Mrs. Tamara Asomanin-Wiafe said, “The Management of the Home had appealed to Ato of Accra-based Metro TV, calling for support from benevolent organisations and individuals come to their aid as their situation was getting critical. This donation was, therefore, in response to the appeal made.”
She added: “We work within a jurisdiction. Rhema Home operates within the same jurisdiction. We, therefore, thought it prudent to provide this support as part of our social responsibility in the interest of the public.”
To the children, she told them that they have a bright future ahead of them regardless of their current situation and that they should always remember to be thankful to the Lord.
She also made a promise of continued assistance to the orphanage.
Receiving the items, the Director of the Home, Mr. Edward Gasper thanked the team for the donation.
“On behalf of the Home, I, the Director, want to use this opportunity to let you know that you and your team have solved some months’ worth of expenses and we are truly grateful.”
The Management of the Tema North District was supported by the District’s representatives of the Junior and Senior Staff Unions and the Power Queens Club. These are identifiable groups in the organisation.
The Electricity Company of Ghana has a policy on corporate social responsibility which outlines the various areas where such must be focused on.
The areas include health, education, social welfare and community and national development.
Source: https://energynewsafrica.com
Equatorial Guinea’s New Minister Of Mines & Hydrocarbons Is A Competent Leader –NJ Ayuk
By: NJ Ayuk, Executive Chairman, African Energy Chamber
Equatorial Guinea’s cabinet has seen a changing of the guard. Antonio Oburu Ondo, former Managing Director of national oil company, GEPetrol, has been named Minister of Mines and Hydrocarbons. He is succeeding well-respected leader Gabriel Mbaga Obiang Lima, who assumed the role of Ministry of Economy and Planning.
We at the African Energy Chamber are confident that Minister Ondo will do an excellent job. He brings years of industry experience to the table and has worked extremely hard to strengthen Equatorial Guinea’s national oil company. We do not doubt that Minister Ondo will be successful in fostering growth in the energy sector and the national economy as a whole provided that energy industry stakeholders — from international oil companies (IOCs) to the government to other African energy ministers — join us in supporting him.
We Need A Strategic Response To Natural Decline Of Maturing Oil Fields
It’s no secret that Equatorial Guinea’s energy industry faces some challenges. For one, production in existing oil and gas fields has been in decline. It is not because of the action, or the inaction of anybody: This is a natural decline and to be expected in any production site.
What is needed right now is reinvestment in energy growth. And to achieve that, Equatorial Guinea will need to create an enabling environment for new oil and natural gas exploration projects. Equatorial Guinea must remember that it is competing for capital and investment with Gabon, Guyana, and other countries that offer attractive fiscal terms to entice IOCs. If Equatorial Guinea can’t match that alluring environment, it will be difficult to sustain oil and gas production.
Consider this: There have been no major discoveries in Equatorial Guinea since the introduction of the 2006 hydrocarbon law. In late 2021, Obiang Lima said Equatorial Guinea was revising that law. He recognized that fact that the country needed to give greater consideration to the needs of, and current challenges, facing energy companies if it was going to convince them to make significant investments there.
“Our hope is that it will enable us to attract more regional and international energy participants and incentivize investment across the entire value chain,” Obiang Lima said at the time. “That will allow us to realize the potential of our offshore natural gas industry and become increasingly competitive in the gas sector.”
The decision to revise the law was the right choice. I encourage Equatorial Guinea to complete those efforts promptly. Meanwhile, the Ministry of Hydrocarbons and Mines should be taking practical steps to demonstrate that Equatorial Guinea is investor friendly. Oil majors will notice, for example, how the ministry handles the upcoming departure of ExxonMobil, which has announced plans to leave the country, and West Africa, after its license expires in 2026.
While it may be hard to watch the departure of this excellent partner for the country, it is equally important that Minister Ondo recognize the value of a clean break and an orderly transition to their successor. A diplomatic response will enhance Equatorial Guinea’s reputation as a good country for energy companies.
What’s more, while there’s no question of sun setting wells, let’s not overlook the successful producers in the country who are working to ensure the longevity of aging fields and investigating new finds. Trident Energy and Kosmos Energy, for instance, continue to have successful output in the Ceiba conventional oil field: Although production peaked in 2002 at 51.7 thousand barrels per day (bpd) of crude oil and condensate, the field continues to account for some 4% of the country’s daily output. Meanwhile, U.S.-based VAALCO Energy and Atlas Petroleum are successfully proceeding with the development of the Venus discovery in Block P and there is no longer an exclusive operation. All signs point to a promising yield: The results of its initial discovery well and reservoir modeling anticipate 15,000 bpd from the two development wells and injector well.
Minister Ondo must continue to establish and promote fiscal incentives for investors like these to drive up further production in Block P and other promising hydrocarbon-rich zones. Creating and maintaining ongoing positive relations with these and other companies can go a long way toward developing a reputation as a country serious about its hydrocarbon industry.
Gas Is the Way Forward
I believe Equatorial Guinea’s 1.5 trillion cubic feet of natural gas will become the driving force in the country’s energy industry. To enable natural gas production and monetization to lead to economic development and industrialization, Minister Ondo needs to embrace a pragmatic approach to welcoming credible investors, eliminating red tape, and making good deals.
With this in mind, Minister Ondo will likely find that closing the deal with Chevron regarding a joint development of the YoYo and Yolonda natural gas fields in Equatorial Guinea and Cameroon is going to be critical. Developing this cross-border gas mega-hub could truly transform the economy of both the nation and the region. The LNG market continues to be important and Equatorial Guinea is well positioned to be an active player.
Let’s also consider Golar LNG and the Fortuna floating liquefied natural gas (FLNG) vessel owned by New Fortress Energy. The partners are negotiating about EG-27 (formerly Block R) to develop an easier, fast-tracked system for moving LNG into the market. This is a difficult project and requires really highly skilled companies and deep financial pockets to make this work. The discussions center around bringing LNG from Nigeria or Cameroon to be processed in Equatorial Guinea. Such developments are critical now more than ever, and the ministry would be wise to do everything in its power to make them happen.
Keep It Local… But Balanced
Another challenge Minister Ondo faces is to prioritize keeping markets stable, taking a very market-driven approach both at home and abroad. It’s a delicate balancing act: creating an atmosphere where companies will want to invest in Equatorial Guinea while, at the same time, advocating for the needs of local people and businesses.
This is not the time to leave local content behind. Minister Ondo will want to make it certain that his country establishes a platform that develops its homegrown businesses and businesspeople. This is more than just enabling the local residents and businesses to take commissions from service companies – it is about ensuring that they become an integral part of the industry. Indeed, local content should be seen more as enterprise building and management.
At the same time, Minister Ondo will be wise to follow in his predecessor’s footsteps in denouncing the currency control rules that the Bank of Central African States (BEAC) adopted in June 2019. While the BEAC’s intention was to promote financial transparency and ensure that oil revenues stay within local economies and local banks, these stringent restrictions create a very unwelcoming environment for foreign investors by causing transaction delays and preventing the repatriation of proceeds. These are job killing regulations and it is bad for jobs, bad for local companies and bad for investments.
“The FX regulations adopted in June 2019 make it very difficult for our companies to compete and create employment, and render our business environment very unattractive for foreign investors,” Obiang Lima said shortly after their enactment, while calling on the industry to take immediate action to encourage a reversal of the regulations.
Perhaps a collaboration of the Ministry of Mines and Hydrocarbons and the Ministry of Economy and Planning is in order – a collaboration of outgoing and incoming ministers who can use their expertise and political savvy to overcome these kinds of job-killing and industry-damaging regulations.
I am confident that Minister Ondo has what it takes to make it work. Companies can rest assured: He may be new to the office, but he’s not new to the game. We have all grown accustomed to his predecessor, and now we all need to welcome new ideas from the new minister. Let’s offer him our full support as he works to help Equatorial Guinea’s energy industry get its groove back.
Source: https://energynewsafrica.com