Our new report, “The State of African Energy: 2023 Outlook,” describes this trend in detail, noting recent acquisitions — especially in West Africa — by such independents as Somoil, Nigeria-based Seplat Energy, and U.K.-based Afentra, among others.
As I’ve said in the past, the steady stream of international oil companies (IOCs) divesting African oil and gas assets is not a welcome development. Still, it has been encouraging to see how many independent companies have recognized this pattern as a huge growth opportunity. These independents will be well worth watching.
A Major Presence
To be clear, international majors like Italian energy company Eni, TotalEnergies of France, and U.S.-based ExxonMobil — along with the African national oil companies (NOCs) they frequently partner with — still have a considerable part to play in African oil and gas production. Together, they were responsible for nearly 75% of the continent’s hydrocarbon output during the last decade, our report notes. That likely won’t be changing overnight, or at least during the next year or two.
Independents, meanwhile, will probably continue to be responsible for about 8% of Africa’s overall oil volumes through 2023. Exploration and production (E&P) companies and international NOCs will contribute small percentages as well.
However, with the mergers and acquisitions (M&A) activity the continent’s oil and gas sector has been seeing, independents could very well be making a far greater contribution to Africa’s overall volumes as the decade continues.
African oil and gas industry M&A activity hit record levels in 2022, with $21 billion worth of deals announced in the first nine months of the year, Energy Capital & Power reported in late September. That’s three times the $7 billion in deals made in 2021 and four times the $5.5 billion worth of deals that took place in 2020, according to Rystad Energy.
Deal Drivers
Why the flurry of activity? As I mentioned, international oil and gas companies, driven by environmental, social, and corporate governance (ESG) objectives, are at least part of the equation. As a June 2022 article for McKinsey explains, majors around the globe are feeling pressure from the public and their investors to deliver higher returns more sustainably.
To comply, some are scaling back on exploration and production in Africa. ExxonMobil, for example, has been exiting its shelf water depth portfolio in Nigeria to decrease its high emissions oil and gas portfolio. Shell began talks with the Nigerian government in 2021 about selling its stake in the country’s onshore fields as part of a global drive to reduce its carbon emissions.
Other decisions are based on security concerns: Some majors, in hopes of making their operations less vulnerable to theft and vandalism, have been shifting their focus to deepwater and selling their shallow-water and onshore assets. And in other cases, majors have simply decided to sell mature fields to pursue more lucrative projects.
Large, international companies aren’t the only ones divesting assets in Africa, by the way. NOCs have been doing the same. During African Energy Week in Cape Town, Angola’s Sonangol, announced they are freeing up assets to allow them to focus on other priorities. Others, like Malaysia’s Petronas, have announced plans to divest some of their assets in Africa and Asia as part of global reorganization efforts.
Growing numbers of independents, meanwhile, have decided that the benefits of operating in Africa outweigh the risks. These companies are interested in capitalizing on higher oil and gas prices — along with increasing global energy demands — and they’ve been enthusiastically grabbing up the majors’ divested assets.
Some companies, looking for ways to remain resilient to market uncertainty as they pursue upstream opportunities, have been open to mergers and strategic partnerships. In mid-June 2022, for example, in an $827 million deal, the U.K.’s Tullow Oil signed an all-stock merger agreement with U.K.-based E&P company Capricorn Energy. The resulting new firm will own 1 billion barrels worth of resources and is expected to produce 100,000 bpd by 2025.
Seizing Opportunities
As for the independents acquiring assets from majors — and NOCs in some cases — many appear poised for long-term production success in Africa.
Earlier this month, British independent Savannah Energy announced it had entered a share purchase agreement (SPA) with Malaysian state oil and gas company Petronas International Corp. Ltd. to purchase Petronas’ entire oil and gas business in South Sudan for up to $1.25 billion.
Through the deal, Savannah will obtain interests in three joint operating companies (JOCs) that operate three blocks in South Sudan with a gross output of 153,000 bpd. The purchase is conditional on several conditions, including approval by South Sudan’s government.
As I said when the SPA was announced, this deal is a win-win for South Sudan and Savannah Energy, which has a strong presence in Africa’s oil and gas industry, a growing portfolio of renewable energy projects, and a track record of social impact programs that help promote economic self-sufficiency in host communities. Savannah Energy’s presence in South Sudan will provide the country with more jobs and business opportunities, sustainable energy development, opportunities for women, and an aggressive turnaround of declining fields.
Savannah’s announcement about South Sudan came only a week after it purchased ExxonMobil’s operations in Chad and Cameroon for $407 million. The deal includes ExxonMobil’s 40% stake in the Doba oil project in southern Chad, which comprises seven producing oilfields with a combined output of 28,000 bpd. Savannah also will obtain ExxonMobil’s 40% indirect interest in the Chad-Cameroon export transpiration system, which includes a pipeline and a floating storage and offloading facility offshore Cameroon.
Other promising deals by independents include Seplat Energy’s plans to acquire ExxonMobil’s shallow water business in Nigeria, Mobil Producing Nigeria Unlimited (MPNU), for $1.28 billion. Earlier this fall, the deal received a green light from Nigerian President Muhammadu Buhari.
Seplat is acquiring fields that produced 95,000 barrels of oil equivalent per day (boepd) in 2020 and are projected to bring Seplat’s total production up to 142,000 boepd once the deal is complete. Seplat Energy also will gain control of the Qua Iboe oil terminal and a 51% interest in the Bonny River oil terminal, along with natural-gas-to-liquids plants at two fields.
Also described in our report is U.K.-based Afentra, an independent that stands to do well in Africa while making a positive social impact. Last August, the company secured a 20% stake in Sonangol’s producing shallow water Block 3/05, Lower Congo Basin, 50 kilometers offshore Angola, as well as a 40% interest in Block 23 in the Kwanza basin. Around the same time, Afentra made it clear that it was interested in more West Africa purchases.
A small group of former Tullow Oil executives founded Afentra in 2021 specifically to capitalize on the opportunities being created by majors leaving West Africa. The company’s corporate strategy report, published that year, said the company would establish and meet high ESG standards.
“The Global Energy Transition will take time, the strategy report stated. Hydrocarbons are part of the transition and will continue to remain important in the overall energy mix… The socio-economic impact of the energy transition needs to be considered alongside the climate impact. Afentra was formed to deliver this balance and create significant value for shareholders.”
I applaud Afentra’s perspective and resolve.
And, I applaud the many other independents willing to invest in our continent. This is their moment, and their spirit, determination, and willingness to make a positive impact are just what our continent needs.
Opinion: Independent Oil Companies Becoming Increasingly Larger Presence In Africa’s Oil And Gas Industry
By: NJ Ayuk, Executive Chairman, African Energy Chamber
It took less than 20 years for Somoil to become one of Angola’s largest private oil companies, but the company is hardly resting on its laurels.
Somoil, like many independents operating in Africa today, is moving forward with ambitious plans for continued growth.
Based on its current trajectory, Somoil’s chances of achieving its goals look good. The company operates three blocks with the capacity to produce as much as 50,000 barrels per day (bpd) of crude oil.
In April, Somoil and London-headquartered Sirius Petroleum entered a $336 million deal with Angolan national oil company Sonangol to acquire participating interests in Angolan Deep Water Blocks 18 and 31, which are operated by British multinational BP.
Somoil also acquired interests in Angola’s oil-producing Blocks 14 and 14K from TotalEnergies in 2022, and as CEO Edson dos Santos recently said, Somoil is very open to more partnerships and deals going forward.
“I believe Somoil is the ideal partner for any company entering the oil and gas business in Angola,” Dos Santos told The Energy Year. “We are private and relatively small, but more importantly – agile… with a clear plan to grow and expand our presence in Angola and beyond.”
Somoil is a fantastic success story, but it’s also a strong example of the gradually changing face of Africa’s oil and gas sector. Increasingly, international oil and gas majors have been divesting their African interests — many have been tweaking their portfolios in attempts to decrease their overall emissions — and independents have been stepping up to fill the gap.
Our new report, “The State of African Energy: 2023 Outlook,” describes this trend in detail, noting recent acquisitions — especially in West Africa — by such independents as Somoil, Nigeria-based Seplat Energy, and U.K.-based Afentra, among others.
As I’ve said in the past, the steady stream of international oil companies (IOCs) divesting African oil and gas assets is not a welcome development. Still, it has been encouraging to see how many independent companies have recognized this pattern as a huge growth opportunity. These independents will be well worth watching.
A Major Presence
To be clear, international majors like Italian energy company Eni, TotalEnergies of France, and U.S.-based ExxonMobil — along with the African national oil companies (NOCs) they frequently partner with — still have a considerable part to play in African oil and gas production. Together, they were responsible for nearly 75% of the continent’s hydrocarbon output during the last decade, our report notes. That likely won’t be changing overnight, or at least during the next year or two.
Independents, meanwhile, will probably continue to be responsible for about 8% of Africa’s overall oil volumes through 2023. Exploration and production (E&P) companies and international NOCs will contribute small percentages as well.
However, with the mergers and acquisitions (M&A) activity the continent’s oil and gas sector has been seeing, independents could very well be making a far greater contribution to Africa’s overall volumes as the decade continues.
African oil and gas industry M&A activity hit record levels in 2022, with $21 billion worth of deals announced in the first nine months of the year, Energy Capital & Power reported in late September. That’s three times the $7 billion in deals made in 2021 and four times the $5.5 billion worth of deals that took place in 2020, according to Rystad Energy.
Deal Drivers
Why the flurry of activity? As I mentioned, international oil and gas companies, driven by environmental, social, and corporate governance (ESG) objectives, are at least part of the equation. As a June 2022 article for McKinsey explains, majors around the globe are feeling pressure from the public and their investors to deliver higher returns more sustainably.
To comply, some are scaling back on exploration and production in Africa. ExxonMobil, for example, has been exiting its shelf water depth portfolio in Nigeria to decrease its high emissions oil and gas portfolio. Shell began talks with the Nigerian government in 2021 about selling its stake in the country’s onshore fields as part of a global drive to reduce its carbon emissions.
Other decisions are based on security concerns: Some majors, in hopes of making their operations less vulnerable to theft and vandalism, have been shifting their focus to deepwater and selling their shallow-water and onshore assets. And in other cases, majors have simply decided to sell mature fields to pursue more lucrative projects.
Large, international companies aren’t the only ones divesting assets in Africa, by the way. NOCs have been doing the same. During African Energy Week in Cape Town, Angola’s Sonangol, announced they are freeing up assets to allow them to focus on other priorities. Others, like Malaysia’s Petronas, have announced plans to divest some of their assets in Africa and Asia as part of global reorganization efforts.
Growing numbers of independents, meanwhile, have decided that the benefits of operating in Africa outweigh the risks. These companies are interested in capitalizing on higher oil and gas prices — along with increasing global energy demands — and they’ve been enthusiastically grabbing up the majors’ divested assets.
Some companies, looking for ways to remain resilient to market uncertainty as they pursue upstream opportunities, have been open to mergers and strategic partnerships. In mid-June 2022, for example, in an $827 million deal, the U.K.’s Tullow Oil signed an all-stock merger agreement with U.K.-based E&P company Capricorn Energy. The resulting new firm will own 1 billion barrels worth of resources and is expected to produce 100,000 bpd by 2025.
Seizing Opportunities
As for the independents acquiring assets from majors — and NOCs in some cases — many appear poised for long-term production success in Africa.
Earlier this month, British independent Savannah Energy announced it had entered a share purchase agreement (SPA) with Malaysian state oil and gas company Petronas International Corp. Ltd. to purchase Petronas’ entire oil and gas business in South Sudan for up to $1.25 billion.
Through the deal, Savannah will obtain interests in three joint operating companies (JOCs) that operate three blocks in South Sudan with a gross output of 153,000 bpd. The purchase is conditional on several conditions, including approval by South Sudan’s government.
As I said when the SPA was announced, this deal is a win-win for South Sudan and Savannah Energy, which has a strong presence in Africa’s oil and gas industry, a growing portfolio of renewable energy projects, and a track record of social impact programs that help promote economic self-sufficiency in host communities. Savannah Energy’s presence in South Sudan will provide the country with more jobs and business opportunities, sustainable energy development, opportunities for women, and an aggressive turnaround of declining fields.
Savannah’s announcement about South Sudan came only a week after it purchased ExxonMobil’s operations in Chad and Cameroon for $407 million. The deal includes ExxonMobil’s 40% stake in the Doba oil project in southern Chad, which comprises seven producing oilfields with a combined output of 28,000 bpd. Savannah also will obtain ExxonMobil’s 40% indirect interest in the Chad-Cameroon export transpiration system, which includes a pipeline and a floating storage and offloading facility offshore Cameroon.
Other promising deals by independents include Seplat Energy’s plans to acquire ExxonMobil’s shallow water business in Nigeria, Mobil Producing Nigeria Unlimited (MPNU), for $1.28 billion. Earlier this fall, the deal received a green light from Nigerian President Muhammadu Buhari.
Seplat is acquiring fields that produced 95,000 barrels of oil equivalent per day (boepd) in 2020 and are projected to bring Seplat’s total production up to 142,000 boepd once the deal is complete. Seplat Energy also will gain control of the Qua Iboe oil terminal and a 51% interest in the Bonny River oil terminal, along with natural-gas-to-liquids plants at two fields.
Also described in our report is U.K.-based Afentra, an independent that stands to do well in Africa while making a positive social impact. Last August, the company secured a 20% stake in Sonangol’s producing shallow water Block 3/05, Lower Congo Basin, 50 kilometers offshore Angola, as well as a 40% interest in Block 23 in the Kwanza basin. Around the same time, Afentra made it clear that it was interested in more West Africa purchases.
A small group of former Tullow Oil executives founded Afentra in 2021 specifically to capitalize on the opportunities being created by majors leaving West Africa. The company’s corporate strategy report, published that year, said the company would establish and meet high ESG standards.
“The Global Energy Transition will take time, the strategy report stated. Hydrocarbons are part of the transition and will continue to remain important in the overall energy mix… The socio-economic impact of the energy transition needs to be considered alongside the climate impact. Afentra was formed to deliver this balance and create significant value for shareholders.”
I applaud Afentra’s perspective and resolve.
And, I applaud the many other independents willing to invest in our continent. This is their moment, and their spirit, determination, and willingness to make a positive impact are just what our continent needs.
Our new report, “The State of African Energy: 2023 Outlook,” describes this trend in detail, noting recent acquisitions — especially in West Africa — by such independents as Somoil, Nigeria-based Seplat Energy, and U.K.-based Afentra, among others.
As I’ve said in the past, the steady stream of international oil companies (IOCs) divesting African oil and gas assets is not a welcome development. Still, it has been encouraging to see how many independent companies have recognized this pattern as a huge growth opportunity. These independents will be well worth watching.
A Major Presence
To be clear, international majors like Italian energy company Eni, TotalEnergies of France, and U.S.-based ExxonMobil — along with the African national oil companies (NOCs) they frequently partner with — still have a considerable part to play in African oil and gas production. Together, they were responsible for nearly 75% of the continent’s hydrocarbon output during the last decade, our report notes. That likely won’t be changing overnight, or at least during the next year or two.
Independents, meanwhile, will probably continue to be responsible for about 8% of Africa’s overall oil volumes through 2023. Exploration and production (E&P) companies and international NOCs will contribute small percentages as well.
However, with the mergers and acquisitions (M&A) activity the continent’s oil and gas sector has been seeing, independents could very well be making a far greater contribution to Africa’s overall volumes as the decade continues.
African oil and gas industry M&A activity hit record levels in 2022, with $21 billion worth of deals announced in the first nine months of the year, Energy Capital & Power reported in late September. That’s three times the $7 billion in deals made in 2021 and four times the $5.5 billion worth of deals that took place in 2020, according to Rystad Energy.
Deal Drivers
Why the flurry of activity? As I mentioned, international oil and gas companies, driven by environmental, social, and corporate governance (ESG) objectives, are at least part of the equation. As a June 2022 article for McKinsey explains, majors around the globe are feeling pressure from the public and their investors to deliver higher returns more sustainably.
To comply, some are scaling back on exploration and production in Africa. ExxonMobil, for example, has been exiting its shelf water depth portfolio in Nigeria to decrease its high emissions oil and gas portfolio. Shell began talks with the Nigerian government in 2021 about selling its stake in the country’s onshore fields as part of a global drive to reduce its carbon emissions.
Other decisions are based on security concerns: Some majors, in hopes of making their operations less vulnerable to theft and vandalism, have been shifting their focus to deepwater and selling their shallow-water and onshore assets. And in other cases, majors have simply decided to sell mature fields to pursue more lucrative projects.
Large, international companies aren’t the only ones divesting assets in Africa, by the way. NOCs have been doing the same. During African Energy Week in Cape Town, Angola’s Sonangol, announced they are freeing up assets to allow them to focus on other priorities. Others, like Malaysia’s Petronas, have announced plans to divest some of their assets in Africa and Asia as part of global reorganization efforts.
Growing numbers of independents, meanwhile, have decided that the benefits of operating in Africa outweigh the risks. These companies are interested in capitalizing on higher oil and gas prices — along with increasing global energy demands — and they’ve been enthusiastically grabbing up the majors’ divested assets.
Some companies, looking for ways to remain resilient to market uncertainty as they pursue upstream opportunities, have been open to mergers and strategic partnerships. In mid-June 2022, for example, in an $827 million deal, the U.K.’s Tullow Oil signed an all-stock merger agreement with U.K.-based E&P company Capricorn Energy. The resulting new firm will own 1 billion barrels worth of resources and is expected to produce 100,000 bpd by 2025.
Seizing Opportunities
As for the independents acquiring assets from majors — and NOCs in some cases — many appear poised for long-term production success in Africa.
Earlier this month, British independent Savannah Energy announced it had entered a share purchase agreement (SPA) with Malaysian state oil and gas company Petronas International Corp. Ltd. to purchase Petronas’ entire oil and gas business in South Sudan for up to $1.25 billion.
Through the deal, Savannah will obtain interests in three joint operating companies (JOCs) that operate three blocks in South Sudan with a gross output of 153,000 bpd. The purchase is conditional on several conditions, including approval by South Sudan’s government.
As I said when the SPA was announced, this deal is a win-win for South Sudan and Savannah Energy, which has a strong presence in Africa’s oil and gas industry, a growing portfolio of renewable energy projects, and a track record of social impact programs that help promote economic self-sufficiency in host communities. Savannah Energy’s presence in South Sudan will provide the country with more jobs and business opportunities, sustainable energy development, opportunities for women, and an aggressive turnaround of declining fields.
Savannah’s announcement about South Sudan came only a week after it purchased ExxonMobil’s operations in Chad and Cameroon for $407 million. The deal includes ExxonMobil’s 40% stake in the Doba oil project in southern Chad, which comprises seven producing oilfields with a combined output of 28,000 bpd. Savannah also will obtain ExxonMobil’s 40% indirect interest in the Chad-Cameroon export transpiration system, which includes a pipeline and a floating storage and offloading facility offshore Cameroon.
Other promising deals by independents include Seplat Energy’s plans to acquire ExxonMobil’s shallow water business in Nigeria, Mobil Producing Nigeria Unlimited (MPNU), for $1.28 billion. Earlier this fall, the deal received a green light from Nigerian President Muhammadu Buhari.
Seplat is acquiring fields that produced 95,000 barrels of oil equivalent per day (boepd) in 2020 and are projected to bring Seplat’s total production up to 142,000 boepd once the deal is complete. Seplat Energy also will gain control of the Qua Iboe oil terminal and a 51% interest in the Bonny River oil terminal, along with natural-gas-to-liquids plants at two fields.
Also described in our report is U.K.-based Afentra, an independent that stands to do well in Africa while making a positive social impact. Last August, the company secured a 20% stake in Sonangol’s producing shallow water Block 3/05, Lower Congo Basin, 50 kilometers offshore Angola, as well as a 40% interest in Block 23 in the Kwanza basin. Around the same time, Afentra made it clear that it was interested in more West Africa purchases.
A small group of former Tullow Oil executives founded Afentra in 2021 specifically to capitalize on the opportunities being created by majors leaving West Africa. The company’s corporate strategy report, published that year, said the company would establish and meet high ESG standards.
“The Global Energy Transition will take time, the strategy report stated. Hydrocarbons are part of the transition and will continue to remain important in the overall energy mix… The socio-economic impact of the energy transition needs to be considered alongside the climate impact. Afentra was formed to deliver this balance and create significant value for shareholders.”
I applaud Afentra’s perspective and resolve.
And, I applaud the many other independents willing to invest in our continent. This is their moment, and their spirit, determination, and willingness to make a positive impact are just what our continent needs.
Ghana: Tullow Donates 4,000 Bags Of Cement Towards Appiatse Reconstruction
Tullow Ghana Limited, the lead operator of Ghana’s Jubilee and TEN Oil Fields, has donated 4,000 bags of cement to the Appiatse Disaster Relief Committee to support the reconstruction of the mining community near Bogoso in the Western Region of Ghana.
The donation follows an explosion in the Appiatse Township in January 2022, leading to injuries, loss of lives and infrastructure.
The reconstruction project began on the 14th of September 2022 and would see the development of accommodation and critical community-wide infrastructures such as a health centre, market and other community spaces for the people.
Receiving the items on behalf of Appiatse, the Municipal Chief Executive for Prestea-Bogoso Municipality, Dr Isaac Dasmani lauded Tullow Ghana for the gesture and acknowledged that Tullow’s presentation was the largest in terms of building materials the committee had received.
Dr. Dasmani was very impressed that Tullow had decided to assist Appiatse, although its operations do not cover the area.
As a socially responsible organisation, Tullow Ghana was moved with compassion for the people of Appiatse following the disaster.
In line with its commitment to supporting the development of its host nations, Tullow Ghana donated to help the Appiatse Disaster Relief Committee in its efforts at rebuilding the Appiatse township.
Source: https://energynewsafrica.com
Ghana: BPA CEO Conferred With Honorary Doctorate Degree
The Chief Executive Officer of the Bui Power Authority, Samuel Kofi Ahiavi Dzamesi was, on Saturday, conferred with a Doctor of Professional Studies in Engineering by Azteca University, Mexico.
He was conferred with the doctorate award at a colourful ceremony in Accra, the capital of Ghana.
The ceremony, which was organised by MG Business Solutions and M-GIBES College, also saw some Ghanaians who have made significant contributions to the business environment receive Honorary Doctorates.
According to the university, Mr Samuel Kofi Dzamesi was nominated for the prestigious award due to his diligence and excellence in leadership and engineering brilliance in Ghana.
The award would serve as a recognition of the exemplary work done in the respective sectors Mr. Dzamesi has worked to date.
At the same event, Mr. Dzamesi was named the ‘Global Excellence Business Leader of the Year (Engineering)’.
This recognition would serve as a source of inspiration for aspiring professionals.
In his acceptance speech, Mr. Dzamesi thanked Azteca University and the event’s organisers for recognising the good contributions made by professionals from diverse fields.
The CEO was accompanied by his son, Mr. Eli Dzamesi, Board Members, Dr Rebecca Acquah-Arhin and Salifu Saeed, Mr. Kevin Wu and spouse and the Corporate Affairs Manager, Akua Sakyi.
The Board, Management and Staff of BPA congratulated Mr. Samuel Kofi Ahiavi Dzamesi on his award of an Honorary Doctorate.
Source: https://energynewsafrica.com
Ghana: Fuel Spillage At Maame Water Was Waste Fuel—BOST Clarifies
Ghana’s strategic stock keeping company, Bulk Oil Storage and Transportation Company, has allayed the fears of the public about the possibility of the company losing money due to a video capturing residents of Maame Water near Akosombo allegedly siphoning fuel from its pipeline.
According to BOST, the reported liquid was actually sludge consisting of water, dirt and fuel residue it had spilled during testing of the integrity of a pipeline being refurbished.
In a video sighted by this portal, residents of Maame Water were seen scooping fuel from an underground tunnel.
While some filled their gallons with fuel, others were heard calling out to get more gallons to fill them.
However, a statement from BOST has explained what occurred.
The company said its 71-kilometre pipeline which stretches from the Accra Plains Depot at Kpone in Tema to the Akosombo Depot at the banks of the Volta Lake had been decommissioned since 2015 due to vandalism by unknown assailants.
As a result, the company said it has since resorted to the use of Bulk Road Vehicle, popularly known as tankers in the haulage of petroleum products, from the Tema to Akosombo depots for onward transmission using badges to the Bui Depot.
BOST stated that repair works on the pipeline was commenced a year ago and was expected to be completed by the third quarter of 2022.
Unfortunately, the exercise delayed due to the impact of the construction of the railway line from Tema to Mpakadan in the Eastern Region, forcing them to re-route the pipeline.
As a further boost, the company said it commissioned the installation of an intrusion & leak detection system on the line for the safety and security of its operations when it is recommissioned.
“For a proper assessment of the degree of damage at the commencement of the repair works, water was pumped up the line to help with the full detection of all leakages for repairs.
“After the repair works, the company carried out a pressure testing of the line to be sure all the intrusions detected has been perfectly worked out. It is this pressure testing which resulted in the push out of a sludge in the Maame Water area which is been reported in the media. The sludge is a combination of water, dirt and fuel residue formed in the pipeline which was pushed out in the pressure testing,” the company explained in the statement.
The company emphasised that the tanks at the Maame Water depot have been empty over the last couple of years and BOST has not pumped products up the pipeline since the repair works are yet to be fully completed for a hand-over and recommissioning.
According to BOST, the exposed content of the line due to the testing has been foamed by the BOST team, with support from the Ghana National Fire Service and works are underway to ensure a clean-up of the area of the spillage.
The content with emphasis is water, dirt and fuel residue.
“We are satisfied with the level of work done and look forward to mending this single section of the 71-kilometre pipeline as we get ready to recommission it for utilisation by the first quarter of the year 2023.
“We wish to assure the public that the situation is under control and there are no financial cost implications of the said spillage since same was carried to check the integrity of the repaired pipeline.”
BOST said it would continue to serve the interest of the government and people of the Republic of Ghana by ensuring that the pipeline is put to use to reduce the cost of transportation of products in the country.
Source: https://energynewsafrica.com
Ghana: PURC, GIMPA Partner To Set Up Regulatory Centre Of Excellence
The Public Utilities Regulatory Commission (PURC) has signed a Memorandum of Understanding (MoU) with the Ghana Institute of Management and Public Administration (GIMPA) for the setting up of the Regulatory Centre of Excellence.
The MoU, signed on Friday at GIMPA, Accra, the capital of Ghana, was witnessed by Mr. Piesie Asante Darko, Council Chairman of GIMPA.
Executive Secretary of PURC, Dr Ishmael Ackah initialed on behalf of the Commission while Prof Samuel K. Bonsu, Rector of GIMPA, did the same on behalf of the institution.
Executive Secretary of PURC, Dr. Ishmael Ackah said the Commission through its research found that there was the need for them to do further studies to understand the dynamics of regulating utilities due to new technologies.
He added that they found out that there was the need to build the capacity of regulatory institutions in Ghana and the West African subregion for them to be abreast with the changing trend.
Touching on why PURC decided to partner GIMPA, Dr. Ishmael Ackah said his outfit noted that GIMPA has been undertaking research work in the area of regulation and therefore decided to partner them so they can bring their expertise in research and together with PURC’s technical expertise in regulation to achieve a common goal of cutting edge research that will inform policy on regulatory development and build capacity of regulators around Africa.
According to Dr Ackah, the Regulatory Centre will not only be used to build capacity of regulators in the energy sector but covers every sector of the economy that is regulated.
“Beyond even teaching we will also encourage peer learning so National Petroleum Authority (NPA) and others can also come here and groom other regulators. So it is the centre of excellence that is looking at General Regulations,” Dr Ishmael Ackah added.
Asked how the centre’s activities will be funded, Dr Ishmael Ackah said they are looking at four main funding sources stating that they are looking at funds from the Commission, GIMPA, fees and also donor support.
Dr Ackah revealed that the centre will be launched in February 2023.
Commenting on the partnership, Council chairman for GIMPA, Mr Piesie Asante Darko hailed the initiative and commended the PURC for enforcing rules and regulations covering utilities notably water and electricity.
Rector of Ghana Institute of Management and Public Administration (GIMPA), Professor Samuel K. Bonsu said he was happy that PURC was partnering his outfit to enable them use their store of knowledge to empower regulators in the country and beyond.
He said his outfit is fully committed to the partnership and will ensure that they do their best to ensure the successful operation of the Regulatory Centre of Excellence.
Source: https://energynewsafrica.com
Executive Secretary of PURC, Dr. Ishmael Ackah said the Commission through its research found that there was the need for them to do further studies to understand the dynamics of regulating utilities due to new technologies.
He added that they found out that there was the need to build the capacity of regulatory institutions in Ghana and the West African subregion for them to be abreast with the changing trend.
Touching on why PURC decided to partner GIMPA, Dr. Ishmael Ackah said his outfit noted that GIMPA has been undertaking research work in the area of regulation and therefore decided to partner them so they can bring their expertise in research and together with PURC’s technical expertise in regulation to achieve a common goal of cutting edge research that will inform policy on regulatory development and build capacity of regulators around Africa.
According to Dr Ackah, the Regulatory Centre will not only be used to build capacity of regulators in the energy sector but covers every sector of the economy that is regulated.
“Beyond even teaching we will also encourage peer learning so National Petroleum Authority (NPA) and others can also come here and groom other regulators. So it is the centre of excellence that is looking at General Regulations,” Dr Ishmael Ackah added.
Asked how the centre’s activities will be funded, Dr Ishmael Ackah said they are looking at four main funding sources stating that they are looking at funds from the Commission, GIMPA, fees and also donor support.
Dr Ackah revealed that the centre will be launched in February 2023.
Commenting on the partnership, Council chairman for GIMPA, Mr Piesie Asante Darko hailed the initiative and commended the PURC for enforcing rules and regulations covering utilities notably water and electricity.
Rector of Ghana Institute of Management and Public Administration (GIMPA), Professor Samuel K. Bonsu said he was happy that PURC was partnering his outfit to enable them use their store of knowledge to empower regulators in the country and beyond.
He said his outfit is fully committed to the partnership and will ensure that they do their best to ensure the successful operation of the Regulatory Centre of Excellence.
Source: https://energynewsafrica.com Ghana: NPA Impounds Gallons Of Illegal Fuel At Hamile
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA) has in collaboration with the army and security intelligence impounded a commercial vehicle loaded with illicit petroleum products in the Lambussie Karni District of the Upper West Region.
The products contained in jerry cans popularly known as “Kufuor Gallons” are suspected to be smuggled from the neighboring Burkina Faso.
The vehicle with registration number UW113-14, which was plying an unapproved route with the said unwholesome petroleum products on board, was impounded on Tuesday the December 13, 2022.
The vehicle and the products are currently in custody pending further investigations.
Speaking to the media, the Upper West Regional Manager of the NPA, Mr. Bashiru Natogma, cautioned petroleum consumers to desist from buying such smuggled petroleum products.
He said the only facilities authorized to sell petroleum products are the fuel filling stations.
Mr. Natogma urged commercial transport owners to caution their drivers against using their vehicles in transporting such illicit products “because it is illegal and also puts the lives of the public at risk.”
Source: https://energynewsafrica.com
Ghana: Consumers Happy Over Drastic Drop In Fuel Prices
Consumers of petroleum products have expressed happiness over the continuous fall in prices of fuel across various filling stations in the Republic of Ghana.
Fuel prices shot up astronomically in the West African nation with diesel being sold at Gh¢23.49 per litre while petrol sold at Gh¢17.89 per litre.
The increment in fuel prices which was triggered by the weak Ghanaian cedis against major international currencies and rise in crude oil prices pushed goods and services upward.
Fuel consumers lamented over the situation due to unbearable hardships it brought on them.
Interestingly, since November fuel prices have been dropping significantly bringing some form of relief to consumers.
As of December 1, which was the first pricing window, petrol was selling at Gh¢15.41 per litre while diesel sold at Gh¢18.86.
On Friday 16th December 2022, which was the beginning of the second pricing window, most oil marketing companies adjusted their fuel prices downward due to fall of crude oil prices and the stability of the local currency, the cedi.
Leading indigenous Oil Marketing Company, GOIL, is selling petrol at Gh¢13.40 per litre while diesel is sold at Gh¢16.10 per litre.
This represents Gh¢2 drop in price of petrol while diesel price dropped by Gh¢2.79 per litre.
Shell is selling petrol at Gh¢13.49 per litre while diesel is sold at Gh¢16.49 per litre.
TotalEnergies is selling petrol at Gh¢13.40 per litre while diesel is sold at Gh¢15.85 per litre.
Petrosol is selling diesel at Gh¢13.15 per litre while petrol is being sold at Gh¢15.79 per litre.
Star Oil is selling petrol at Gh¢12.55 per litre while diesel is sold at Gh¢15.39 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¢12.40 while diesel is being sold at Gh¢15.40
Dukes petroleum is selling petrol at Gh¢12.50 per litre while diesel is sold at Gh¢15.50.
Comments monitored by energynewsafrica.com on social media platforms show consumers are happy.
Mr. Frank Asare, a banker, said he was hopeful that GH¢400 worth of fuel would now be enough for him to commute to work weekly.
“On Monday, I bought GH¢500, but I have been informed that it has been reduced and with the new rate, I am hopeful that GH¢400 will be enough for me,” he said.
Mr. Evans Kwakye, a taxi driver, said the continuous rise in fuel prices in the last few months took a heavy toll on his business, compelling him to purchase fuel on credit, which attracted interest.
“Previously I used to roam in search of passengers, but I had to join a station because I could not afford fuel. The drop in prices will help us a lot and we hope that it will drop further in the coming days,” he said.
Source: https://energynewsafrica.com
Ghana: Dr Ben Asante Elected Onto Global Gas Centre Board
A renowned Ghanaian oil and gas engineer and Chief Executive Officer (CEO) of Ghana National Gas Company, Dr Ben K.D Asante, has been elected to the board of the Global Gas Centre (GGC).
The Global Gas Centre is a non-profit organisation based in Geneva, Switzerland, and is dedicated to executives and experts of natural gas companies, sharing views and best practices in a neutral, independent and inclusive organisation.
The GGC is a unique platform to promote sustainable energy with a particular focus on issues related to the natural gas sector.
Dr Asante’s election onto the board of the Center is an indication of his expertise in the oil and gas sector and his good leadership as the Chief Executive Officer at the nation’s gas company.
Since the assumption of office in 2017, Dr Asante and the management of Ghana National Gas Company have worked hard to propel the company to its current strong and enviable level in the country and beyond.
Last Saturday in Accra, the capital of Ghana, Dr Ben K. D. Asante was adjudged CEO of the Year (Upstream) at the ninth edition of the Ghana Oil and Gas Awards.
He was given the honour for his incredible and transformative work at Ghana National Gas Company which has seen the company become the foremost service provider in the country.
For Dr Ben Asante, Ghana National Gas Company would continue to become the leading gas processing, transportation, marketing and sale of gas company in Ghana and internationally.
Source: https://energynewsafrica.com
Ghana: Transport Fares To Be Reduced By 15.3% By Monday
Transport fares in the Republic of Ghana will be reduced by 15.3 per cent effective Monday, 19th December 2022.
The Road Transport Operators communicated this on Friday, 16th December 2022 in a statement signed by the General Secretaries of GRTCC and GPRTU.
The planned reduction follows a petition by a group calling itself Association of Passengers Ghana to the Transport Ministry and Parliamentary Select Committee on Roads and Transport calling for reduction in transport fares due to the fall in fuel prices at the pump.
Fuel prices started dropping for about a month but the transport operators in Ghana did not show any sign to reduce fares to relieve Ghanaians.
“With the recent reductions in the price of petroleum products, it became necessary to engage stakeholders to consider a review of the fares in line with the administrative instrument.
“Following these negotiations and in consideration of the plight of drivers, commuters and the general public, we have resolved to reduce the existing transport fares by 15.3%,” the Road Transport Operators said in the statement.
The body made up of the biggest transport union—Ghana Private Road Transport Union (GPRTU) and the Ghana Road Transport Coordinating Council (GRTCC)—called on all drivers to “comply with the new fares and post same at their loading terminals.”
Meanwhile, the Association of Passengers Ghana is urging commuters to stay calm following statement by Road Transport Operators announcing 15.3% reduction in transport fares effective Monday, 19th December 2022.
The Association said it will issue an official statement hopefully by Monday.
Below is the full statement:
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com No Power In Ukraine’s Second City After Russian Strikes
Russia has launched another wave of air strikes at Ukraine’s energy infrastructure – leaving the country’s second city, Kharkiv, completely without power.
Kharkiv’s mayor says there’s been “colossal… destruction” of infrastructure in the city and has urged residents to be “patient.”
Two people have died in the central city of Kryvyi Rih, and another has been killed in Kherson in the south, officials said on Friday.
“About nine” power stations have been hit across the country, says Ukraine’s energy minister.
Sixty out of 76 missiles were shot down before hitting their targets, according to the head of Ukraine’s armed forces.
Russia has been targeting the Ukrainian energy grid as winter temperatures plummet – leaving millions with no power, water or heat
Meanwhile, Ukraine has accused its enemy of planning a wide-ranging ground offensive for early in the New Year – despite recent setbacks on the battlefield.
The Biden administration has condemned the new barrage of strikes from Russia into Ukraine, with National Security Council coordinator for strategic communications John Kirby saying the attacks hit “largely civilian infrastructure.”
Kirby said Russia is “again trying to put fear into the hearts of the Ukrainian people and to make it that much harder on them as winter is now upon them.”
He declined to announce any details on the next security assistance package for Ukraine, but said that there “will be another one” and that additional air defense capabilities should be expected. Conversations with Ukraine on needs continue “in lockstep.”
Kirby also announced that the first tranche of $53 million in energy-related equipment “has arrived in Ukraine coming from the United States.”
“It includes the kinds of equipment that they need to make emergency repairs,” he said, adding that “there will be more coming” to fulfill the US’ $53 million pledge.
Tesla Launches ‘Tesla Electric’ To Become An Electricity Retailer
Tesla has launched “Tesla Electric” to become an electricity retailer through its Powerwall owners – starting with some markets in Texas.
After gaining experience through its virtual power plants (VPPs), Tesla is taking things a step further with the launch of “Tesla Electric.”
Instead of reacting to specific “events” and providing services to your local electric utilities, like Tesla Powerwall owners have done in VPPs in California, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.
It’s a special electric plan for Powerwall owners.
“Solar and Powerwall can help you and your community accelerates the transition to sustainable energy. With Tesla Electric, your Powerwall automatically decides when to charge and when to sell electricity to the grid. Together with other Tesla Electric members, you can maximize the value of your solar energy while using your Powerwall storage to add more renewable electricity to the grid. You can also achieve your own sustainability goals when importing electricity from the grid, as Tesla Electric offsets your usage with energy from 100 percent renewable sources,” Tesla wrote on its website.
The company notes that Tesla Electric’s retail plan is currently only available by invitation to select customers in Texas.
Tesla has been working on this new product for a while now, and it is a big step toward the company’s goal to become a “global distributed clean electric utility,” and it is starting in Texas, a place that badly needs an electric utility revolution.
In May, there was a report in the media that Tesla was lobbying for any homeowner with solar and batteries to participate in Texas’s energy market.
The company was asking for a rule change with the Electric Reliability Council of Texas (ERCOT), an organization operating Texas’s electrical grid, that would enable electric utilities with customers with behind-the-meter solar and batteries, meaning people with residential solar, to bid on the extra capacity.
Earlier this week, we reported that Tesla received approval from ERCOT for “a statewide market design pilot for small distributed energy resources to provide grid service exports.”
Kenya: EPRA Announces New Fuel Prices
Kenya’s Energy and Petroleum Regulatory Authority (EPRA) has announced new prices for fuel.
The prices of Super petrol remain unchanged and will retail at Ksh177 ($1.44), diesel at Ksh162 ($1.32) and kerosene at Ksh145.9 ($ 1.18)per litre.
The prices took take effect from midnight of December 15, 2022.
“In the period under review, the maximum allowed petroleum pump prices for Super petrol, diesel, and kerosene remain unchanged,” EPRA announced on Wednesday, December 14.
In addition, EPRA noted that the diesel price had been cross-subsidised with that of Super petrol while a subsidy of Ksh25.07 per litre was maintained for kerosene to cushion consumers from the otherwise high prices.
In Nairobi, Super petrol will retail at Ksh177.30, diesel at Ksh162.00 and kerosene will retail at Ksh145.94, while in Kisumu, Super petrol will retail at Ksh177.50, diesel at Ksh162.70, and kerosene at Ksh146.66.
In Nakuru, motorists will part with Ksh172.62 for Super petrol, Ksh161.83 for diesel and Ksh145.79 for kerosene.
Their counterparts in Eldoret will part with Ksh177.50 for Super petrol, Ksh162.72 for diesel and Ksh146.67 for kerosene.
Motorists in Mombasa will pay Ksh174.98 for Super petrol, Ksh159.76 for diesel and Ksh143.69 for kerosene.
“The government will utilise the Petroleum Development Levy to compensate oil marketing companies for the difference in cost,” EPRA affirmed.
“EPRA wishes to assure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors,” EPRA Director General Daniel Kiptoo Bargoria added.
In the past months, Kenyans lamented over the high cost of fuel prices after the new administration removed the fuel subsidies put in place by retired President Uhuru Kenyatta.
President William Ruto argued that his administration would remove the subsidies that cost taxpayers billions.
“If the subsidy continues to the end of the financial year, it will cost the taxpayer Ksh280 billion, equivalent to the entire national government development budget,” Ruto stated on September 13, 2022.
Following the removal of the subsidies, the Treasury saved an estimated Ksh14.7 billion of taxpayers’ money.
Fuel prices hit an all-time high in September 2022 with Super petrol retailing at Ksh179.30 while diesel at Ksh165 and kerosene at Ksh147.94 a litre.
Some parts of the country, in September 2022, were parting with Ksh250 for a litre of petrol. The high prices were attributed to acute shortages in the country.
Source: https://energynewsafrica.com
Ghana: ECG To Close Its Offices For 4 Days
Ghana’s southern power distribution company, Electricity Company of Ghana (ECG), has announced plans to close its offices across its operational areas for four days during Christmas and New Year.
In a public notice issued on Thursday, 15th December 2022, the power distribution company said: “In observance of the statutory holidays during the Christmas and New Year Seasons, our offices will not be opened for business.
“The ECG’s offices will be closed on Monday, 26th December 2022, Tuesday, 27th December 2022, Monday, 2nd January 2023 and Monday, 9th January 2023.
“However, customers and the general public can purchase electricity credits through the ECG Mobile App (Power App), or a private vending point.
“It further advised prepaid customers to “purchase enough electricity credits to carry them through the Christmas and New Year holidays.”
Source: https://energynewsafrica.com
South Africa: Eskom Will Pursue De Ruyter’s JUST Transition Plan—Pravin Gordhan
South Africa’s Minister for Public Enterprises, Pravin Gordhan says the JUST energy transition plans developed under the immediate past CEO of Eskom, André De Ruyter, will remain in place.
De Ruyter played a pivotal role in forming the JUST Energy Transition partnership with wealthy nations.
Gordhan said that the country remains committed to reducing emissions.
The minister was speaking at a media briefing on Thursday about De Ruyter’s resignation.
De Ruyter told the media that his position had become untenable.
His resignation followed reports of Mineral Resources and Energy Minister, Gwede Mantashe, accusing Eskom of “actively agitating for the overthrow of the state” by not dealing with load shedding.
Mantashe has also been openly critical of De Ruyter’s skills which he does not believe are fit to lead the utility.
“Given recent media reports, I am, unfortunately, currently in a position where I do not regard that position as being tenable,” De Ruyter said.
Gordhan and Board Chairperson, Mpho Makwana, however, expressed their gratitude for De Ruyter’s service to the utility.
During his term, De Ruyter promoted a vision for Eskom that supported the rollout of renewables and a JUST transition.
“The plans developed under André’s leadership about the JUST energy transition remains in place, and it will continue to be implemented and the first changes as far as Komati power station is concerned … will continue to happen,” said Gordhan.
De Ruyter was pivotal to the formation of the Just Energy Transition Partnership with wealthy nations—the UK, the US, France, Germany and the EU.
The former head of the Eskom JUST Energy Transition Office, Mandy Rambharos said De Ruyter was “a very important figure” that lenders placed “credibility” on.
Alex Lenferna, secretary of the Climate Justice Coalition, pointed out that compared to past chief executives at the utility, De Ruyter was “leaps and bounds ahead” when it came to pursuing renewables.
Lenferna said that both De Ruyter and Rambharos were instrumental in getting Eskom to move toward shutting down coal-fired power stations and make way for renewables that are coupled with just transitions.
Lenferna said there is a big worry about who might replace De Ruyter and whether his successor would follow the same path.
Rambharos similarly pointed out that while renewables and the just transition are part of Eskom’s corporate strategy, a lot depends on what a new chief executive would do.
“It depends on the leadership change and whether they support our vision for the JET,” said Rambharos.
Makwana said that the board would “stay the course” of the dual strategy to maintain and service the existing fleet while improving the energy availability factor (or the performance) of the plants – all while continuing to embark on the just energy transition.
Gordhan said that the country as a whole is committed to reducing emissions – as outlined in its Nationally Determined Contribution that was presented at the UN climate conference COP26, and reaffirmed at COP27
Source: https://energynewsafrica.com