Security operatives in the Republic of Ghana, on Thursday at 7.30pm, arrested four Chinese nationals for allegedly stealing quantities of electricity cables.
It is unclear which company owns the cables but media reports suggested that the cables bore the seal of the country’s Ministry of Energy.
According to a report filed by Accra-based Kasapa FM, Ghana’s national security operatives in the Eastern Region arrested the suspects after the former picked intelligence that the suspects were smuggling 30 bundles of electricity cables and some unbundle cables at CK Aluminium Company Limited at Nsawam Adoagyiri to an unknown destination.
The suspects are Liu Lianwei, 38, Su Meng, 55, Tuan Xiuwei, 41, and Zhang Chenming, 55.
The suspects are currently at the Eastern Regional Police headquarters assisting in investigations.
The Regional Police Public Relations Officer, DSP Ebenezer Tetteh was quoted as saying: “Investigation is ongoing and the media will be briefed after that.”
Source:www.energynewsafrica.com
A Singaporean court has sentenced an Indian national and his Malaysian colleague to over six years’ jail term for siphoning more than 300,000 tonnes of gas oil worth, at least, 200 million Singapore dollars (USD150 million approximately) in 2017-18 at the Royal Dutch Shell’s Singapore refinery.
According to media reports, the Indian, Sadagopan Premnath, 40, was jailed for six years and eight months while his Malaysian colleague, Muhammad Ashraf Hamzah, 39, received nine and a half years’ jail term for the heist that is said to be the largest in marine gas oil at Royal Dutch Shell’s Singapore refinery.
Sadagopan had earlier pleaded guilty to four counts of criminal breach of trust, with another five charges taken into consideration for sentencing, the report said.
He was involved in the scheme between 2017 and 2018, aiding in the misappropriation of USD36 million (about 49.1 million Singaporean dollars) worth of gas oil.
He conviction is said to have received about USD 150,000 from the criminal proceeds.
The duo had followed instructions to open and close valves so that ships could receive the stolen gas oil without being detected.
According to a Singaporean newspaper, Today, two others–a Vietnamese ship captain Doan Xuan Than and another ship officer, Dang Van Hanh were also jailed for receiving between 3.5 million Singaporean dollars and 7.7 million Singapore dollars of gas oil.
In early 2015, Shell began observing significant unidentified gas oil loss at the refinery on Pulau (island) Bukom.
A 2015 review did not turn up anything suspicious. Shell then implemented various measures to improve processes but the misappropriation continued.
In early 2017, it engaged a third-party consultant to conduct a review, but the investigation did not yield a conclusive explanation for the high losses.
It soon experienced its highest hydrocarbon loss since 2015. Shell then hired a global team of analysts, who detected the misappropriation, and a police report was made.
Shell had since taken various measures to improve its systems and processes, including developing monitoring software to detect potential thefts.
So far, Shell has incurred about six million Singapore dollars in costs to manage the consequences of the misappropriation.
For each charge of criminal breach of trust as an employee, each man could have been jailed for up to 15 years and fined.
Source:www.energynewsafrica.com
The Chief Executive Officer of Reroy Cables Limited, Kate Quartey-Papafio, has been acquitted and discharged by the Commercial Court 7 Division of the High Court in Accra, Republic of Ghana.
The businesswoman, together with the Managing Director of the defunct Capital Bank William Ato Essien, Tettey Nertey and Fitzgerald Odonkor, was charged with conspiracy to steal, stealing and laundering of stolen money in the case involving the collapse of Capital Bank.
According to report by Citinewsroom.com, Justice Eric Kyei Baffour, who presided over the case in a ruling on a submission of no case on Thursday, July 8, 2021, described the accused person’s role in the events leading up to the collapse of Capital Bank as childish rather than criminal.
The judge reportedly said as a businesswoman, she did not exercise her business acumen in relation to her dealings.
That notwithstanding, the court observed that the law only recognised a person who acts in bad faith.
Consequently, the court ruled that the Republic had not made a sufficient case to warrant it to invite the businesswoman to answer questions.
Kate Quartey-Papafio was accordingly acquitted and discharged.
Source:www.energynewsafrica.com
Equatorial Guinean Minister for Mines and Hydrocarbons, H.E Gabriel M. Obiang Lima, has criticised organisers of Africa Oil Week for deciding to host the continent’s flagship oil and gas event in Dubai instead of its usual location, South Africa.
Obiang Lima, who expressed disappointment in the organisers, was quick to state that his country is not going to participate in the event.
According to him, he would send a letter to all IOCs and service companies operating in Equatorial Guinea, strongly encouraging them not to attend the Africa Oil Week in Dubai.
He urged his fellow ministers and other industry stakeholders to cancel their participation in the Dubai initiative.
Obiang Lima stated his country’s stance at a meeting in Malabo, the nation’s capital, where he said: “This is not the time to abandon Cape Town, South Africa and Africa.”
In addition to this, the Minister looked forward to seeing Gwede Mantashe, Minister for Mineral Resources in Cape Town, to further promote the African energy agenda through development and deal-making participation.
According to H.E Gabriel Obiang, Duncan Clarke’s vision and love for Africa and its oil industry should not be forgotten.
He credited Duncan Clarke for helping so many countries showcase their resources and attract investments, and urged the African Energy Chamber to continue that legacy as it is more critical now than ever.
Minister Gabriel would engage in an aggressive investment drive over the next six months and would be in Cape Town, Houston, Doha and other cities to promote investment opportunities in Equatorial Guinea.
He pledged to work with other ministers from the CEMAC region and the African Energy Chamber on finding solutions concerning the Central Bank’s (BEAC) new currency regulations.
According to him, IOCs and Independents have to be welcomed in the region and “we must create an enabling environment.”
The African Energy Chamber thanked the Minister for his strong support for South Africa and Africa.
“Many Africans got into oil and gas because of Duncan Clarke. He opened doors for so many. That legacy must be respected and preserved,” stated Leoncio Amada Nze, President of the African Energy Chamber, CEMAC Region
“When you’re dealing with an issue like this, you don’t need everyone. You just need to be effective and we thank Minister Gabriel Obiang for his effective advocacy for Africa in times of crisis,” added Mr. Amada Nze.
“Our work to support the African oil and gas sector will lead to a lot of changes on how Africa is viewed and how we respect this continent and its people. We must be patient, whatever temporary inconvenience there may be, in the long run, it will be better for everybody,” concluded Mr. Amada Nze.
Source:www.energynewsafrica.com
Bui Power Authority, the second largest state power generation company in the Republic of Ghana, is partnering with Energy Commission, the country’s electricity regulator, for the 2021 edition of the High School Renewable Energy Challenge competition.
The High School Renewable Energy Challenge was introduced by the Energy Commission in 2019 as a result of the global push for transition from the use of fossil based energy generation to renewable energy sources due to the impact of climate change.
The aim of the SHS Renewable Energy Challenge is to encourage young students to generate innovative ideas and turn the ideas into renewable energy prototypes.
The SHS Renewable Energy Challenge takes place in all regions of Ghana and the winning school from the regional level competes at the zonal level.
From the zonal level, the winning schools move to the grand finale which takes place at the Accra International Conference Centre.
According Myjoyonline.com, Mfantseman Girls’ School in the Central Region, on Wednesday, emerged winner for the second edition of the Senior High Schools’ Renewable Energy Challenge in the region after beating Adisadel College, St. Augustine’s College, Mankessim Secondary Technical School and Academy of Christ.
The girls reportedly presented a project on road power where speed humps could be erected on the country’s busy highways that could convert the motions or movement of the vehicles into energy to power street lights and other small power-consuming projects.
Speaking at the 2021 SHS Renewable Energy Challenge at Adisadel College in Cape Coast on Thursday, Deputy Chief Executive Officer of Bui Power Authority, Dr George Tettey expressed how happy the BPA was in partnering with the Energy Commission for the 2021 SHS Renewable Energy Challenge which, in his view, would enable the students discover their hidden potentials.
“We can promise you that, this year’s challenge will be very exciting with fantastic packages for the top three winners of the competition,” he announced.
He used the occasion to inform the gathering about some of the energy projects they have executed.
He said the Authority is constructing 250MW peak solar plant, explaining that the project is being executed in phases with the first 50MW peak completed and connected to the national grid.
He added that BPA has also installed a one Megawatt floating solar on the Bui reservoir, which is the first of its kind in the West African sub-region.
Additionally, he indicated they are expanding this to a 5MW peak.
He explained, “We also constructed the first-ever mini hydropower plant at Tsatsadu in the Volta Region, which was commissioned last year by President Akufo-Addo.”
Dr Tettey went on to explain that the negative effect of greenhouse emissions is mainly due to the production of carbon dioxide from the burning of fossil fuel (for electricity and transportation) far beyond the rate at which the green vegetation can absorb and convert to oxygen through photosynthesis.
“The result is what we are experiencing today: global warming, rising sea levels, floods, change in rainfall patterns among others, which we call climate change,” he explained.
According to him, the deployment of renewable energy to meet the growing energy demand of future generations was crucial and an excellent approach to help mitigate climate change.
He further stressed that even though some modest efforts to deploy renewable energy technologies have been made, they (BPA) believe the bulk of the ideas to increase the share of renewable energy in the country was hidden in the students’ participation in the renewable energy contest.
The Director, Renewable Energy, Energy Efficiency and Climate Change at the Energy Commission, Kofi Agyarko, on his part, said his outfit remained committed to scientific innovations through science, technology, engineering and mathematics (STEM).
He said efficient energy was the key to achieving the national industrialisation drive, bridge the academia-industry gap with new crop of engineers, researchers and scientists who will usher Ghana into low carbon emissions.
He said the Energy Commission was borne of the Commission’s quest to lead and drum the essence of renewable energy benefits.
Source:www.energynewsafrica.com
Energy media group, organisers of Ghana Energy Awards (GEA), has officially opened nominations for its 2021 edition of the prestigious energy event.
This year’s awards ceremony is under the theme: ‘Digitalised Energy Sector: The Key For a Resilient Economic Future’.
The 5th national Energy Awards features 19 competitive categories; Energy Personality of the Year (male and female), Chief Executive of the Year (Petroleum and Power), Energy Institution of the Year, Brand of the Year, Energy Company of the Year, Rising Star Award, Excellence in Power Generation, Emerging Energy Company of the Year, Innovation Project of the Year, Energy Reporter of the Year, Corporate Social Responsibility of the Year, Clean Energy Initiative of the Year, Off-Grid Energy Solution of the Year and Energy Consultancy Service Organisation of the Year.
The characteristic of the awards’ scheme, each year, sees the introduction of new categories that cater for the changing scenes in the industry.
This year has five new categories added, which are the Digital Impact Leadership Award, Outstanding Contribution to Digitalisation, Exceptional Digital Management Award, Digitalisation Project of the Year, and Excellence in Digital Service Delivery.
Speaking at the launching of the event, Mr Kwame Jantuah, an Energy Consultant and Chairman of the awards panel, noted that a huge fallout of the pandemic has been the global inventiveness of computerisation and digitalisation which are constantly changing how business is presently being conducted.
“Equally, this is beginning to have a huge impact on the [energy] industry worldwide in terms of its operations with new technology, and specifically we observe in the power sector new forms of generating, recording and monitoring power, a case in point being how the renewable sector is fast overtaking the conventional generation and delivery of power,” he said, adding that advanced technologies including [Electric vehicles and AI] are contributing to such monumental change.
In Ghana, the government has focused its strength on promoting digitalisation and related technologies across all industries within the economic spectrum, consequently, putting together programmes for digitalisation of the energy sector.
The need to acknowledge how the energy industry in the country is embracing these crucial changes is why the GEA is dedicating this year’s awards to recognise digitalisation efforts in the country.
The Ghana Energy Awards is an industry-accepted initiative that recognises the innovation and excellence of institutions within the energy sector and also celebrates the hard work of players who compete under various categories of the awards.
The scheme is fully endorsed by the Ministry of Energy and the World Energy Council Ghana, with firm support from industry partners; VRA, Bui Power, Ghana Gas, Energy Commission, CBOD, Petroleum Commission, AOMC, NPA, COPEC-Ghana and validating partners Mazars.
Ing. Henry Tenior, the event organiser, at the launch, said it had been an interesting journey since the first event in 2017.
“We have come this far by the grace of the Almighty God, and on the wings of a dedicated Secretariat and Awards Panel, a transparent awards process, staunch support from the Ministry and allied agencies as well as our devoted sponsors who understand our vision and purpose.”
From now toward the closing of nominations, the Awards Secretariat would pay courtesy calls on various stakeholders in the industry for briefing on their activities for the 2020-2021 review period.
The Awards Panel would also be going round to inspect projects and innovative solutions cited by the nominees at their project sites.
This activity is to acquaint the panel with the nature of these projects and the magnitude of their impacts.
Within this period also, there would be the Energy Personalities Outreach Programme, which is a key activity of the GEA that provides the highest awardees; that is the Energy Personality of the Year (both male and female) the opportunity to interact with students of selected academic institutions to share their experiences with the younger generation.
Nominations would last from the 6th of July until the 20th of October, 2021.
Further information on the application process is available on www.ghanaenergyawards.com.
Source: www.energynewsafrica.com
Italian oil and gas firm, Eni, lead operator of the Offshore Cape Three Point (OCTP) in the Republic of Ghana has announced a significant oil discovery with the potential to produce 700 million barrels of oil equivalent (Mboe).
The company, in a statement, said the discovery was made on the Eban exploration prospect in Cape Three Points Block 4, offshore Ghana, and production testing data shows a well deliverability potential estimated at 5,000 barrels of oil per day, similar to the wells already in production from the Sankofa Field.
“The Eban – 1X well is located approximately 50 kilometers off the coast and about eight kilometers Northwest of Sankofa Hub, where the John Agyekum Kufuor FPSO is located. It was drilled by the Saipem 10000 drilling ship in a water depth of 545 meters and reached a total depth of 4179 meters (measured depth). Eban – 1X proved a single light oil column of approximately 80m in a thick sandstone reservoir interval of Cenomanian age with hydrocarbons encountered down to 3949m (true vertical depth),” the statement said.
“The new discovery has been assessed following comprehensive analysis of extensive 3D seismic datasets and well data acquisition including pressure measurements, fluid sampling and intelligent formation testing with state-of-the-art technology. The acquired pressure and fluid data (oil density and Gas-to-Oil Ratio) and reservoir properties are consistent with the previous discovery of Akoma and nearby Sankofa field. The production testing data shows a well deliverability potential estimated at 5000 bopd, similar to the wells already in production from Sankofa Field.
“The estimated hydrocarbon in place between the Sankofa field and the Eban-Akoma complex is now in excess of 1.1 Bboe and further oil in place upside could be confirmed with an additional appraisal well.”
The statement further disclosed that due to its proximity to existing infrastructures, “the new discovery can be fast-tracked to production with a subsea tie-in to the John Agyekum Kufuor FPSO, with the aim to extend its production plateau and increase production. The Eban discovery is a testimony to the success of the infrastructure-led exploration strategy that Eni is carrying out in its core assets worldwide.”
The Joint Venture of CTP Block 4 is operated by Eni (42.469 percent), on behalf of partners Vitol (33.975 percent), GNPC (10 percent), Woodfields (9.556 percent), GNPC Explorco (4.00 percent).
Eni has been in Ghana since 2009 and currently accounts for a gross production of about 80,000 barrels of oil per day.
Press Release – Eni announces a significant oil discovery in Block 4, offshore GhanaSource: www.energynewsafrica.com
Embattled electricity distribution company, PDS Ghana Limited, is heading to London-based International Trade Arbitration for settlement after the Ghana-government terminated the concession agreement signed with the country’s southern electricity distribution company, ECG, energynewsafrica.com can report.
The company has almost completed its documentation and will, in the next few days, serve a notice to the London arbitration court to adjudicate the matter, sources close to PDS has hinted energynewsafrica.com.
PDS filed a suit at the commercial division of the Accra High Court to challenge revocation of their licences by the country’s electricity regulator, Energy Commission.
However, the court, on Friday, dismissed the application by Power Distribution Services (PDS), challenging the cancellation of its operation licences.
The court, presided over by Justice Akua Sarpomaa Amoah, threw out the application after dismissing all the reliefs which the applicant sought and upheld the opposition to the application by the Attorney-General (A-G), Mr. Godfred Yeboah Dame.
Justice Amoah, however, did not give full reasons for her decision which, she said would be in her ruling filed at the court’s registry.
P
Background
In July 2018, the Electricity Company of Ghana (ECG), on behalf of the Government of Ghana, signed a concession agreement with Power Distribution Services Ghana Limited led by Meralco, a Philippine-based company, to take over the operations and management as well as undertake the requisite investments in the electricity distribution business of the Electricity of Company of Ghana.
The PDS was issued with a lease assignment agreement which allowed PDS to manage the assets of ECG, worth more than $3 billion and a bulk supply agreement for PDS to take over the distribution of electricity in the southern distribution zone of the country.
The Power Distribution Services, which was a consortium of Ghanaian and foreign entities, had 51 percent Ghanaian stake while the remaining 41 percent was for Meralco and its partners.
The conditions precedent of the agreements made it mandatory for PDS to secure a payment security to serve as a form of insurance for the assets of the ECG which it was managing.
The government said PDS presented a payment security in the form of demand guarantees from Al Koot Insurance, a Qatar-based insurance firm.
The government, however, started raising red flags in 2019 after accusing PDS of securing a fake demand guarantee.
According to the government, its checks revealed that Al Koot had not issued any demand guarantee for PDS.
The government, subsequently, terminated the concession agreement with PDS in October 2019.
Source: www.energynewsafrica.com
The Gambian Minister for Petroleum and Energy, Fafa Sanyang, has paid a working visit to Ghana to understudy the West African nation’s downstream petroleum sector.
The Minister was in Ghana with senior management staff of the ministry, as well as heads of some of their key agencies in the petroleum downstream sector.
The team met with officials of Tema Oil Refinery (TOR), National Petroleum Authority (NPA), Oil Marketing Companies (OMCs), and Chamber of Bulk Oil Distribution Companies where they understudied Ghana’s methods of regulating the downstream industry, particularly with respect to lessons from the NPA.
The Gambian Minister and his team concluded their visit by meeting Ghana’s Minister for Energy, Dr Matthew Opoku Prempeh.
In a Facebook post sighted by energynewsafrica.com, Dr. Matthew Opoku Prempeh said during the meeting, The Gambian Minister said he and his team were very impressed with the systems Ghana has put in place to improve the quality of services customers receive and are returning to The Gambia with a lot of notes.
“I was happy to hear their study tour was beneficial and assured them that my doors are always open should they require any other assistance. I took the opportunity to also remind the delegation of the long-standing relationship between Ghana and The Gambia especially in the area of education. I advised the team to begin the process of joining the Africa Petroleum Producers Organisation (APPO) to enable Africa speak with one voice on petroleum-related issues in the global space.
“I thanked the team once again for their visit and wished them well,” his post concluded.
Source:www.energynewsafrica.com
Credible information available to energynewsafrica.com indicates that a company owned by Ghanaian mining mogul, Sir Sam Jonah, was selected by US oil and gas super major, ExxonMobil, as its partner for the Deepwater Cape Three Points oil block offshore Republic of Ghana.
However, the Akufo-Addo-administration rejected ExxonMobil’s joint venture with Sam Jonah’s company.
According to sources, Sam Jonah’s company was selected after a rigorous selection exercise in London but the Government of Ghana did not like the idea, claiming that the company did not represent the larger interest of Ghanaians.
Energynewsafrica.com’s sources indicated ExxonMobil was not happy about Government of Ghana’s position.
The company was compelled by the circumstances to choose Ghana’s leading oil marketing company, GOIL, as its partner.
GOIL’s partnership with ExxonMobil, according to energynewsafrica.com’s sources, was in the view of government, serves the larger interest of Ghanaian since Ghanaians are shareholders of the company.
ExxonMobil signed petroleum agreement with Ghana National Petroleum Corporation (GNPC) on behalf of Ghana for the development of Deepwater Cape Three Point oil block.
However, barely three years after the signing of the agreement, ExxonMobil has relinquished its 80 percent stake in the block.
Dr Sam Jonah
Speaking to energynewsafrica.com, Dr Jide Agunbiade, a Director at National Oil Varco Inc. and Vice President of the NOV Subsea Production Business Unit based in Houston, Texas, USA, said there were speculations that GOIL was forced on ExxonMobil by political powers.
Dr Agunbiade explained that apart from the fact that ExxonMobil was unhappy about its joint venture, other issues such as the nearly $20 billion write down in the value of its oil and gas assets globally, its biggest-ever impairment, also influenced the company’s decision to leave Ghana.
“Reports have it that GOIL, ExxonMobil’s partner, was forced on them by the political powers. This seemingly forced collaboration of two partners with entirely different development objectives and political interference is another reason Exxon is leaving. After the 2000-2008 presidential regime, it was frequently alleged that the initial zeal from Exxon to pursue the exploration of their assets in Ghana had reduced due to some unknown political reasons. The above factor, plus the fact that they have only made modest investments of US$60 million on some seismic work which would be easily recovered once they sell the asset, are the reasons.
Dr. Babajide Agumbiade, Director at National Oilwell Varco
“IOCs in Ghana are generally exempted from VAT. So it is pretty strange that Exxon was asked to pay a substantial amount in VAT. It is alleged that this payment was made before the VAT exemption law was passed. In Ghana, VAT reimbursement, especially from a different ruling government, is extremely difficult. This can drag for years sometimes. Aside from this, Exxon was also not happy about many things, including the alleged fact that they were not satisfied with their J.V. setup in the country,” Dr. Agunbiade said in a response to question posed by energynewsafrica.com.
Below is an excerpt of the interviews
U.S. oil and gas supermajor ExxonMobil has relinquished its 80 percent in the Deepwater Cape Three Point oil block offshore Ghana.
Since 2018 the company has spent close to $60Million, including acquiring seismic data on the oil block.
The work done so far included processing about 2,200 square kilometers (850 square miles) of seismic data, but Exxon didn’t drill any exploration wells.
When reached, ExxonMobil said it is “prioritizing near-term capital spend on the most advantaged assets with the lowest cost of supply in the portfolio, including developments in Guyana, Brazil and the U.S. Permian Basin.”
1. What is your initial comment on the issue?Response: My initial comment is that this is consistent with Exxon’s recent decision to take nearly $20Billion Write down in the value of its oil and gas assets globally, its biggest-ever impairment, and slash project spending next year to its lowest level in 15 years to put focus on Brazil, Guyana, Permian. From the above, ExxonMobil’s comment that they prioritize near-term capital spend on the most advantaged assets with the lowest cost of supply looks tenable. The other thing that might be driving their decision is that Exxon has been unusually reluctant and slowly pacing this project for a while now, even before the write downs after rumors surfaced that they were not working with their preferred local partner in Ghana. Reports have it that GOIL Ghana Limited (ExxonMobil’s partner) was forced upon them by the political powers. This seemingly forced collaboration of two partners with entirely different development objectives and political interference is another reason Exxon is leaving. Remember that after the 2000-2008 presidential regime, it was frequently alleged that the initial zeal from Exxon to pursue the exploration of their assets in Ghana had reduced due to some unknown political reasons. The above factor, along with the fact that they have only made modest investments of 60 million USD on some seismic work which would be easily recovered once they sell the asset, are the reasons.
2. What does this mean if they say they are “prioritizing near-term capital spend on the most advantaged assets with the lowest cost of supply in the portfolio including developments in Guyana, Brazil and the U.S. Permian Basin.”Response: This statement can be attributed to these main reasons:
a) The estimated discoveries in these countries are not only more significant but also a great deal of investments has been put into these assets until reaching their current development phases. This poses less financial exposure on Exxon’s capital investment and makes it more worthwhile to channel their resources there. There was a lot of back and forth between Exxon and the government when Exxon was ready to invest in their Ghana asset. Unfortunately, at the moment, investment in the Deepwater Cape Three Point oil block offshore Ghana will be long-term capital spend, something Exxon is getting away from globally. This caused them to focus on these other locations.
b) Time zones and proximity of assets more favorable to Exxon’s operations. For that matter, Guyana, Brazil, and the U.S. Permian Basin are all closer to home than Africa and Ghana. Fewer resources to be spent on logistics and other cost-related activities.
c) Exxon has a better relationship and control at the highest level of political authority in the locations mentioned above than in Ghana.
d) It can also be alleged that extreme local content laws, security concerns and negative political influence also led to this decision. Guyana, for instance, is still discovering itself as an oil-laden country. This implies Exxon will have more authority in making first-hand decisions to maximize revenue and profit.
3. Our checks indicated that ExxonMobil was unhappy about tax exemptions that the Gov’t of Ghana was failing to implement, which limited cash flow to the Ghana office, thus making it difficult to run the office…Can an IOC like ExxonMobil decide to move out of a country it has initiated exploration activities if part of the agreement is not being enforced or if one party doesn’t want to respect the agreement?Response: IOCs in Ghana are generally exempt from VAT, so it is pretty strange that Exxon was asked to pay a substantial amount in VAT. It is alleged that this payment was made before the VAT exemption law was passed. In Ghana, VAT reimbursement, especially from a different ruling government, is extremely difficult. This can drag for years sometimes. Aside from this, Exxon was also not happy about many things, including the alleged fact that they were not satisfied with their J.V. setup in the country.
4. Can this situation scare investors? If yes, what should Ghana do to attract oil and gas investors?
This situation can scare some investors new to the Ghanaian/African terrain but can also be an opportunity for another IOC to take over and build upon the already existing seismic work that Exxon has executed. An example is a case where Springfield, a local indigenous operator, took over Kosmos’ relinquished asset in Ghana.
Source:www.energynewsafrica.com
Oil major ExxonMobil has failed to find commercial hydrocarbons at its Jabillo-1 located on the Canje Block offshore Guyana and will be moving on to drill the next well in the campaign in August.
ExxonMobil restarted drilling the Jabillo-1 well in early June 2021, using the Stena Carron drillship.
The Canje Block is currently operated by an ExxonMobil subsidiary, Esso Exploration & Production Guyana with Total Energies, JHI, and Mid-Atlantic Oil & Gas as partners. Eco Atlantic has also recently entered the block through the acquisition of an interest from JHI Associates.
Eco Atlantic said in an update on Monday that the Jabillo-1 well reached its planned target depth and was evaluated but did not show evidence of commercial hydrocarbons. Jabillo-1 will now be plugged and abandoned.
The well was positioned offshore Guyana, approximately 265 km northeast of Georgetown, in 2,903 meters of water and was drilled to a total depth of 6,475 meters.
The Stena DrillMax rig is currently operating in the ExxonMobil-operated Stabroek Block in Guyana and is expected to move on to drill the Sapote-1 well, in the eastern portion of the Canje Block. The Sapote-1 Well is expected to be spud in mid-August 2021 with an estimated drilling time of up to 60 days.
The Sapote-1 prospect is located in the southeastern section of Canje and is a separate and distinct target from Jabillo.
Sapote-1 lies approximately 100 km southeast of Jabillo and approximately 50 km north of the Haimara discovery in the Stabroek Block, which encountered ~207 feet (63 meters) of high-quality, gas-condensate bearing sandstone reservoir and approximately 60 km northwest of Suriname’s Maka Central discovery in Block 58, which encountered ~164 feet (50 meters) of high-quality, oil-bearing sandstone reservoir.
Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, commented: “While today’s update from JHI is disappointing, this is the nature of oil exploration”.
Holzman added: “The next well in the program, Sapote-1, is located adjacent to existing discoveries and it is expected to be spud in mid-August 2021. The targets in the region have proven to hold some hundreds of millions of barrels of oil and oil equivalent and we look forward to similar scaled results from this upcoming well”.
The Minister for Energy for the Republic of Ghana, Dr Matthew Opoku Prempeh, on Friday, introduced his three Deputy Ministers to the management of the ministry.
They are Dr. Mohammed Amin Adam, MP for Karaga Constituency, William Owuraku Aidoo, MP for South Afigya Kwabre, and Andrew Kofi Egyapa Mercer, MP for Sekondi Constituency.
Dr. Mohammed Amin Adam and William Owuraku Aidoo previously served as deputy ministers for Energy in charge of Petroleum and Power respectively.
Some industry watchers were of the view that the duo would be made to serve in their previous portfolios but credible information available to energynewsafrica.com pointed to the contrary.
Dr. Mohammed Amin, who is a petroleum economist with many years of experience, has been assigned as the Deputy Minister in charge of Power while William Owuraku Aidoo has been put in charge of Infrastructure and Finance, with
Andrew Kofi Egyapa Mercer, a lawyer, put in charge of Petroleum sector.
In a Facebook post sighted by energynewsafrica.com, Dr Matthew Opoku Prempeh noted that the three would be assisting him in various capacities to run the day-to- day activities of the ministry and ensure the utmost efficiency of the sector.
During the meeting, Dr Matthew Opoku Prempeh said: “I took the opportunity to update them on the newly restructured organogram and urged them to be diligent in executing their duties to ensure that we collectively resolve the issues in the energy sector as well as meeting all the targets as promised in the NPP 2020 manifesto.
“I look forward to working with these brilliant men,” he concluded.
The governing New Patriotic Party NPP stated in its 2020 Manifesto: “Our priority in the energy and petroleum sector is to increase efficiency and ensure value-for-money for all activities, including reliable and affordable power generation and distribution, and further development of the oil and gas sector, as well as renewable sources.”
The party promised to pursue this goal through the following measures:
1. Enforcing competitive procurement of power, the least cost fuel procurement, and
2. minimizing excess capacity charges through the ongoing renegotiation exercise to
3. improve upon the financial health of the sector
4. reducing losses, particularly in power distribution, by ensuring ECG and NEDCo implement
5. incentive-based loss reduction targets for all District Managers
6. significantly improving revenue collection with the implementation of remote sensing technology which is currently being piloted by ECG
7. completing ongoing rural electrification projects to ensure transformation of our rural economies
8. continuing the Auction-Based Licensing strategy for exploratory Oil Blocks to ensure value for money, and
9. Enforcing Local Content policies for the Upstream and Downstream sub-sectors.
Source: www.energynewsafrica.com
Sixteen Ministers of Energy and Petroleum from across Africa have confirmed their participation in this year’s Africa Oil Week, orgnisers of the continent’s flagship oil and gas event, Hyve Group Plc, has said.
Several CEOs and Directors of National Oil Companies, as well as former Presidents of Nigeria and Malawi, have also confirmed their participation.
The annual event, which usually takes place in Cape Town, South Africa, has been moved to Dubai, UAE, due to rising cases of covid-19 in South Africa.
It would start and end from November 8-11, 2021.
The initial line-up consists of two former African Presidents, Commissioner for the African Union Commission, Secretary General for AfCFTA and Ministers from Ethiopia, Kenya, Sierra Leone, Somalia, Republic of Congo, The Gambia, Mali, Burkina Faso and Djibouti. This initial line-up suggests governments’ presence at the Africa Oil Week 2021 would be as strong as ever.
Paul Sinclair, VP of Energy and Government Relations for Africa Oil Week, said: “Governments are an integral part of Africa Oil Week and we are delighted to be able to provide the sector with much needed direct access to these leaders. Discussions onsite will take the form of 15+ National Energy Showcases, ministerial panel discussions and pre-arranged 1-2-1 meetings and will help to drive investment and advance energy projects in to, and across Africa.”
Africa Oil Week is known for gathering vast numbers of African and international energy ministers and acts as a deal-making platform for the most senior stakeholders within the African upstream industry.
Foday Mansaray, Director General for Sierra Leone’s Petroleum Directorate who has also confirmed his participation said “We are very much looking forward to attending Africa Oil Week in Dubai in November. We look forward to participating in the event and presenting opportunities that Sierra Leone has.”
The following Ministers and government leaders are among those who have confirmed to attend Africa Oil Week 2021:
H.E. Olusegun Obasanjo, Former President of Nigeria
H.E. Dr. Peter Arthur Mutharika, Former President of Malawi
H.E. Amani Abou-Zeid, Commissioner for Infrastructure and Energy, African Union Commission
H.E Wamkele Keabetswe Mene, Secretary General of the African Continental Free Trade Area (AfCFTA)
Hon. Jean-Marc Thystere Tchicaya, Minister of Hydrocarbons, Republic of Congo
Hon. Abdirashiid Mohamed Ahmed, Minister of Petroleum & Mineral Resources, Republic of Somalia
Hon. Timothy Kabba, Minister of Mineral Resources, Republic of Sierra Leone
Hon. Hon. John Munyes, Cabinet Sec Ministry of Petroleum & Mining, Republic of Kenya
Hon. Dr. Koang Tutlam, State Minister of Mines, Petroleum & Natural Gas, Republic of Ethiopia
Hon. Fafa Sayang, Minister of Energy and Petroleum, Republic of Gambia
Hon. Lamine Seydou Traore, Minister of Energy and Water, Republic of Mali
Hon. Dr. Alexandre Dias Monteiro, Minister of Industry Trade and Energy, Cape Verde
His Excellency Abdesselam Ould Mohamed Saleh, Minister of Petroleum, Mines and Energy Mauritania
Hon. Tom Alweendo, Minister of Mines and Energy Republic of Namibia
His Excellency Samou Seidou Adambi, Minister of Water & Mine Republic of Benin
Hon. Bachir Ismael, Minister of Energy, Republic of Burkina Faso
Hon. Yonis Ali Guedi, Minister of Energy, Republic of Djibouti
Atty. Saifuah-Mai Gray, CEO, National Oil Company of Liberia
Hon. Archie Donmo, Director General, Liberia Petroleum Regulatory Authority
Francis Gatare, CEO, Rwanda Mining Petroleum and Gas Board
Proscovia Nabbanja, Ag. Chief Executive Officer, Uganda National Oil Company
Ms. Asha Omar, CEO, Somalia Petroleum Authority
Foday Mansaray, Director General, Petroleum Directorate of Sierra Leone
Maixent Raoul Ominga, Head, SNPC, Republic of Congo
Jerreh Barrow, Commissioner for Petroleum, Ministry of Petroleum & Energy, Republic of Gambia
Dr. Solomon Kassa, Director for Petroleum Exploration, Ministry of Mines and Petroleum, Republic of Ethiopia
Ibrahim Djamous, Director Gen Hydrocarbon, SHT, Republic of Chad
Mr. Famourou Kourouma, Director General ONAP, Republic of Guinea
Alem Kibreab, Director General of the Department of Mines at the Ministry of Energy and Mines, Eritrea
Source: www.energynewsafrica.com
Mohamed Ghanem, the son of a Libyan oil minister during Muammar Gaddafi’s rule, has to pay $1.5 million after he was found guilty of bribery, a Swiss court ruled on Friday.
In one of the rare corruption cases tried internationally against officials from the Gaddafi regime, the Federal Criminal Court of Switzerland found Ghanem “guilty of passive bribery of foreign public officials,” and ordered him to pay the sum to the Swiss government, Reuters reports.
Libya’s National Oil Corporation (NOC) was the plaintiff in the corruption case and was seeking the $1.5 million as compensation. The Swiss court, however, dismissed NOC’s claim and ordered Ghanem to pay the sum to the government of Switzerland.
Mohamed Ghanem is the son of Shukri Ghanem, who was oil minister at one point during Gaddafi’s rule in Libya.
Shukri Ghanem’s body was found floating on the Danube in Vienna in 2012.
At the time, Austrian prosecutors ruled out foul play and said he died of a heart attack before falling into the river. Ghanem had fled Libya in 2011 after the uprising in the country started.
The uprising ended in October 2011 when Gaddafi was captured and killed in Sirte.
The bribery case tried in Switzerland is one of the rare international cases bought against Gaddafi-era senior state officials.
Jean-Marc Carnicé, the lawyer of Shukri Ghanem’s son Mohamed, told Reuters he planned to appeal the Swiss court ruling from Friday, saying Mohamed Ghanem was not involved in corruption. Ghanem is now based in Bahrain and is a senior bank executive.
“For me it is a judgement based on mistaken findings. And I consider this verdict to be unjust since there is no incident of corruption,” Carnicé told Reuters.
Back in 2016, a Norwegian court convicted the former chief legal officer of Norway-based fertilizer maker Yara, Kendrick Wallace, but acquitted the former CEO Thorleif Enger, on bribery charges, including bribes allegedly paid to the family of Shukri Ghanem.
The bribery case tried in Switzerland involved an alleged payment made by Yara into Ghanem’s Swiss bank account, a source with knowledge of the case told Reuters.
Source:Oilprice.com
In Ghana, the government has focused its strength on promoting digitalisation and related technologies across all industries within the economic spectrum, consequently, putting together programmes for digitalisation of the energy sector.
The need to acknowledge how the energy industry in the country is embracing these crucial changes is why the GEA is dedicating this year’s awards to recognise digitalisation efforts in the country.
The Ghana Energy Awards is an industry-accepted initiative that recognises the innovation and excellence of institutions within the energy sector and also celebrates the hard work of players who compete under various categories of the awards.
The scheme is fully endorsed by the Ministry of Energy and the World Energy Council Ghana, with firm support from industry partners; VRA, Bui Power, Ghana Gas, Energy Commission, CBOD, Petroleum Commission, AOMC, NPA, COPEC-Ghana and validating partners Mazars.
Ing. Henry Tenior, the event organiser, at the launch, said it had been an interesting journey since the first event in 2017.
“We have come this far by the grace of the Almighty God, and on the wings of a dedicated Secretariat and Awards Panel, a transparent awards process, staunch support from the Ministry and allied agencies as well as our devoted sponsors who understand our vision and purpose.”
From now toward the closing of nominations, the Awards Secretariat would pay courtesy calls on various stakeholders in the industry for briefing on their activities for the 2020-2021 review period.
The Awards Panel would also be going round to inspect projects and innovative solutions cited by the nominees at their project sites.
This activity is to acquaint the panel with the nature of these projects and the magnitude of their impacts.
Within this period also, there would be the Energy Personalities Outreach Programme, which is a key activity of the GEA that provides the highest awardees; that is the Energy Personality of the Year (both male and female) the opportunity to interact with students of selected academic institutions to share their experiences with the younger generation.
Nominations would last from the 6th of July until the 20th of October, 2021.
Further information on the application process is available on www.ghanaenergyawards.com.
Source: www.energynewsafrica.com
“I look forward to working with these brilliant men,” he concluded.
The governing New Patriotic Party NPP stated in its 2020 Manifesto: “Our priority in the energy and petroleum sector is to increase efficiency and ensure value-for-money for all activities, including reliable and affordable power generation and distribution, and further development of the oil and gas sector, as well as renewable sources.”
The party promised to pursue this goal through the following measures:
1. Enforcing competitive procurement of power, the least cost fuel procurement, and
2. minimizing excess capacity charges through the ongoing renegotiation exercise to
3. improve upon the financial health of the sector
4. reducing losses, particularly in power distribution, by ensuring ECG and NEDCo implement
5. incentive-based loss reduction targets for all District Managers
6. significantly improving revenue collection with the implementation of remote sensing technology which is currently being piloted by ECG
7. completing ongoing rural electrification projects to ensure transformation of our rural economies
8. continuing the Auction-Based Licensing strategy for exploratory Oil Blocks to ensure value for money, and
9. Enforcing Local Content policies for the Upstream and Downstream sub-sectors.
Source: www.energynewsafrica.com
