Ghana: I’m Not Responsible For $134M GCGP Judgment Debt (Video)– Boakye Agyarko
A former Minister for Energy in the Republic of Ghana under the first term of President Akufo-Addo, Boakye Agyarko says he cannot be held responsible for the termination of the Emergency Power Agreement with GCGP Limited which has led to a $134 million judgment debt slapped on the West African nation.
According to him, he had no power to do that on his own when he was in office and, therefore, finds it surprising that he has been linked to the development.
Boakye Agyarko was the first Energy Minister under the first term of President Akufo-Addo’s administration.
He was relieved of his post in 2018 and replaced with Mr. John Peter Amewu, who is now representing the people of Hohoe constituency as MP in Ghana’s Parliament.
The GCGP Limited’s power agreement was signed in 2015, under the erstwhile John Dramani Mahama’s administration.
However, the current administration, upon assumption of office in 2017, caused a review of a number of Power Purchase Agreements the previous administration had signed, resulting in a number of them being terminated while others were also rescheduled to be implemented in years to come.
Per the explanation offered by the government at that time allowing those PPAs to be implemented would only go to further lead to the ballooning of the energy sector debt.
However, the decision by the government did not sit well with
GCGP Limited who proceeded to the International Court of Arbitration and secured a ruling in its favour.
The Court awarded $134 million in judgment debt and US$30 million in interests from the Government of Ghana over the cancellation of the contract.
Commenting on the development on an Accra-based Oman FM’s ‘Boiling Point’ programme, Boakye Agyarko explained that he only implemented a decision taken by Cabinet and so could not be held responsible for the judgment debt.
“I just realised that they filed for arbitration on August 11, 2018. This was after I had left the ministry. I never knew they had gone for arbitration. I am told that the government presented itself at the arbitration. How would someone accuse me of cancelling the contract? I have not cancelled any contract. I don’t have the power or the need or desire to cancel it. I am for what will help Ghana,” he said.
While admitting that the contract was cancelled during his tenure, he said all the actions taken at the time concerning the various renegotiated power deals were decisions of Cabinet.
“It was during my tenure [but] don’t say I cancelled the contract. Let me say emphatically that I, Boakye Kyeremanteng Agyarko, I did not use my will or power to cancel anyone’s contract.
“The decision was that we should negotiate them out. We sent the report to Cabinet and I presented to Cabinet. Cabinet accepted the report with all recommendations. I was asked as sector minister to implement the report,” he said.
Source: www.energynewsafrica.com
India Has The Opportunity To Build A New Energy Future
India’s ability to ensure affordable, clean and reliable energy for its growing population will be vital for the future development of its economy, but avoiding the kind of carbon-intensive path previously followed by other countries will require strong policies, technological leaps and a surge in clean energy investment, according to a new report released today by the International Energy Agency.
The India Energy Outlook 2021 – a special report in the IEA’s World Energy Outlook series – examines the opportunities and challenges faced by the planet’s third-largest energy consuming country as it seeks to recover from the Covid-19 crisis.
India is set to experience the largest increase in energy demand of any country worldwide over the next 20 years as its economy continues to develop and bring greater prosperity to its citizens. The combination of a growing and industrialising economy and an expanding and increasingly urban population will drive energy use higher, raising the question of how best to meet that swelling demand without exacerbating issues like costly energy imports, air pollution and greenhouse gas emissions.
“India has made remarkable progress in recent years, bringing electricity connections to hundreds of millions of people and impressively scaling up the use of renewable energy, particularly solar,” said Dr Fatih Birol, the IEA Executive Director.
“What our new report makes clear is the tremendous opportunity for India to successfully meet the aspirations of its citizens without following the high-carbon pathway that other economies have pursued in the past. The energy policy successes of the Indian government to date make me very optimistic about its ability to meet the challenges ahead in terms of energy security and sustainability.”
The rapid expansion of solar power combined with smart policy-making are transforming India’s electricity sector, enabling it to provide clean, affordable and reliable power to a growing number of households and businesses, the report finds. However, as is the case in economies around the world, the transport and industrial sectors – areas like road freight, steel and cement – will prove far more challenging to develop in a sustainable manner.
More than that of any other major economy, India’s energy future depends on buildings and factories that are yet to be built, and vehicles and appliances that are yet to be bought. Based on India’s current policy settings, nearly 60% of its CO2 emissions in the late 2030s will be coming from infrastructure and machines that do not exist today.
This represents a huge opening for policies to steer India onto a more secure and sustainable course.
If India goes down this path, it would need to address the critical challenge of the industrial sector through efforts like more widespread electrification of processes, greater material and energy efficiency, the use of technologies like carbon capture, and a switch to progressively lower-carbon fuels.
Electrification, efficiency and fuel switching are also the main tools for the transport sector, alongside a determined move to build more sustainable infrastructure and shift more freight onto India’s soon-to-be-electrified railways.
These transformations – on a scale no country has achieved in history – require huge advances in innovation, strong partnerships and vast amounts of capital. The additional funding for clean energy technologies required to put India on a sustainable path over the next 20 years is $1.4 trillion, or 70%, higher than in a scenario based on its current policy settings.
But the benefits are huge, including savings of the same magnitude on oil import bills.
India faces a range of evolving energy security challenges. Based on today’s policy settings, India’s combined import bill for fossil fuels is projected to triple over the next two decades, with oil by far the largest component.
Domestic production of oil and gas continues to fall behind consumption trends and net dependence on imported oil rises above 90% by 2040, up from 75% today. This continued reliance on imported fuels creates vulnerabilities to price cycles and volatility, as well as possible disruptions to supply. Energy security hazards could arise in India’s domestic market as well, notably in the electricity sector in the absence of significant increases in system flexibility, improvements to the financial health of many electricity distribution companies, and other reform efforts.
“Government policies to accelerate India’s clean energy transition can lay the foundation for lasting prosperity and greater energy security. The stakes could not be higher, for India and for the world,” said Dr Birol. “All roads to successful global clean energy transitions go via India.”
“The IEA is committed to supporting India as it makes its sovereign choices on how to build a brighter energy future,” he added. “We are fortunate to have a close working relationship, which is growing stronger by the day thanks to the recent historic decision by the Government of India and IEA members to enter into a Strategic Partnership less than four years after India joined the IEA family as an Association country. This new major milestone could eventually lead to full IEA membership for India, which would be a game-changing moment for global energy governance.”
Nigeria: Federal Government Spends Over 50 Billion Naira On Electricity Monthly
The Federal Government of Nigeria has been spending over 50 billion naira on monthly as subsidies for electricity consumers, Power Minister Eng. Sale Mamman has revealed.
The funds are provided to augment the shortfall by the distribution companies that have failed to defray the cost of bulk electricity supplied to them by the generating companies.
However, following a minor increase in the tariff regime, the subsidy has now decreased by half, but still constitutes a serious drain on the nation’s economy.
Receiving members of the Hausa Guild of Actors & Film Producers, otherwise known as Kannywood, the Minister for Power, Engr. Sale Mamman expressed serious concern over the failure by the distribution companies to stabilise their operations to meet their financial obligations to other players in the sector.
He said it was in response to that unfortunate development that the Federal Government has been forced to partly subsidise the sector so as not to price the cost of electricity out of the reach of the common man.
Engr. Sale Mamman explained that as part of the measures to assist ordinary Nigerians over their frustration in receiving adequate electricity supply, the Federal Government was forced to categorise electricity supply into various bands between highbrow areas and low income earners to enable everyone cope with the cost of electricity.
“Nigerians must understand that these companies were privatised long before the advent of this administration but the government has no alternative than to continue managing the sector before a final solution is secured,” he said.
“Through the Presidential Power Initiative and other intervention measures, the government is diligently working to massively resolve all these inherited problems that have continuously frustrated the success of the sector.”
The Minister noted that most of the DisCos were sold off and managed as family businesses which had made it difficult to be professionally managed, but that despite this apparent difficulty, the government cannot roll back the privatisation process.
Engr. Sale Mamman expressed regret that while some of those problems persist, remarkable performance and progress had been achieved by the Federal Government as the supply of electricity had stabilised at over 5,000 Megawatts, up from less than 4,000 Megawatts before President Muhammadu Buhari came to power.
He emphasised that Nigerians now enjoy stable power supply from fifteen to twenty four hours daily.
The Minister blamed the shortfall or interruptions on supply to some quarters on faulty equipment and supply lines and called on consumers to report such developments to their distribution offices.
He also pointed out that it was the responsibility of the DisCos to replace faulty transformers, electricity poles and cables whenever they occur and warned the Distribution Companies (DisCos) to stop tasking ordinary Nigerians with these responsibilities before they would restore power interruptions.
While commending Nigerians on their efforts to pay for electricity despite the present economic and social problems facing them, he advised them to minimise their usage of electricity by switching off their appliances when they were not at home or when they were not immediately needed in order to reduce pressure on equipment supplying them power.
On metering, Engr. Sale Mamman explained that although it was the responsibility of the Distribution Companies to provide the meters, the Federal Government has stepped in, in view of the public outcry over estimated billings.
He said the Federal Government was committed to supplying over six million meters free of charge to Nigerians.
About one million meters have already been delivered for distribution while the rest is being awaited.
The Minister called on the DisCos to expedite the distribution of meters free of charge to their consumers as a way of lessening their problems.
Earlier, the Head of the Kannywood producers and actors, Mandawari Ibrahim said they had decided to avail their services to the Ministry of Power in order to adequately enlighten Nigerians on the achievements of the Buhari-administration under the power sector.
He stated that Kannywood has a vested interest in the success of the Buhari-administration because they also played a major part in canvassing votes for his re-election.
Mr Mandawari noted that despite the huge progresses made by the current government, many Nigerians have remained grossly uninformed.
“Before Buhari came into power, many local government areas especially in the North-East recorded high insecurity challenges as well as bombings in Abuja, Kano, Kaduna and other cities. But these major security challenges were tackled and the areas liberated, but Nigerians seem to have forgotten,” he lamented.
“In addition, the Federal Government has been providing reliefs, palliatives and social investments to ordinary Nigerians as well as providing huge financial support and assistance to the State Governments to meet up with their financial obligations in salary payments and infrastructures to their citizens.”
Mr Mandawari stated that Nigerians could only appreciate these efforts if they were well-informed, hence the decision by Kannywood to step in by way of films, jingles, songs and billboards on the achievements of the Federal Government.
He vowed that as stakeholders, kannywood will go to every length to ensure that Nigerians were fully informed about the Buhari revolutionary strides in Nigeria so as to protect his legacies.
Source:www.energynewsafrica.com
Trina Solar 660w+ Series Modules In World First With Certification From TÜV Rheinland
Trina Solar, the world leading PV and smart energy total solution provider has announced that its Vertex 660W+ solar power modules have received IEC 61215 and IEC 61730 certification for their performance and safety from TÜV Rheinland. This series generates power of 675W with a conversion efficiency of 21.7%.
It is the world’s first IEC certification for 660W+ modules issued by a highly authoritative international certifying body. It is also another major breakthrough in terms of the reliability of Trina Solar’s Vertex 210 modules. This industrial milestone was marked at a certification ceremony in Changzhou.
The Vertex 210 family covers five power types of modules, namely 400W, 500W, 550W, 600W and the new 660W, each of them suitable for all-around application, including household and commercial rooftops, power plants and agricultural and fishing lighting.
Zhao Mengyu, Senior Director of the Quality Department of Trina Solar, said at the ceremony that since Trina Solar was founded, it has been driven by innovation, reliability and a strong focus on customer needs. The Vertex 660W+ modules have greater scope for reducing BOS costs and photovoltaic power LCOE, and this will help accelerate the PV industry’s development, and in particular Trina Solar’s endeavors to build a zero-carbon world that will benefit all mankind, Zhao said.
Chris Zou, Vice President of Solar Services, TÜV Rheinland Greater China, congratulated Trina Solar, saying that “high power and high efficiency are the inevitable direction for module development and the most effective measure to reduce LCOE”.
“IEC certification for the Vertex 660W+ modules is another major breakthrough by Trina Solar following certification gained for its 550W/600W+ modules in September. It’s not only a great innovation for Trina Solar, but also signals the tremendous prospects for large power plants to reduce BOS costs and LCOE while increasing revenue.”
Norway Averts Oil Strike At Its Largest Refinery
Representatives of a trade union and employer organization Norwegian Oil and Gas Association reached an agreement early on Tuesday, averting an oil workers’ strike at Norway’s largest refinery at Mongstad.
The dispute over pay between the Norwegian Oil and Gas Association and trade union SAFE was settled early on Tuesday after a state mediator was called in to help with the talks.
Equinor had warned last week that due to the dispute and the possibility of a strike, the industrial action could affect not only operations at the Mongstad refinery and its terminal, but also oil and gas production from major oil and gas fields on the Norwegian Continental Shelf (NCS).
“A potential strike could reduce crude storage and harbour capacity at the terminal at Equinor Mongstad refinery, which could affect the production at several Equinor operated fields on the NCS, including Johan Sverdrup and Troll and it could be necessary to shut down production there until further notice,” Equinor warned on Friday.
“A possible strike could also impact gas exports from the Troll area, and could also impact the Kvitebjørn, Visund, Byrding, Fram and Valemon fields,” the Norwegian major said.
Ghana: COVID-19 Outbreak At FPSO John Agyekum Kufuor Has Not Affected Operations-ENIFollowing the mediated settlement in the talks between the trade union and the employers’ association, the strike is now averted and doesn’t threaten production at some of Norway’s largest oil and gas fields, such as the giant Johan Sverdrup or Troll. “We’re satisfied that the two sides have reached agreement on a new collective pay settlement for the next period,” lead negotiator Elisabeth Brattebø Fenne, acting director of organization and employer policy at Norwegian Oil and Gas, said today. A few months ago, Norway wasn’t able to avert an oil workers’ strike caused by disagreements over a new pay deal for offshore workers. In early October, 8 percent of Norway’s oil and gas production, or 330,000 barrels of oil equivalent per day (boepd), was shut in because of the strike, and there were fears that oil output at Johan Sverdrup may also have to be reduced. The strike ended after ten days and didn’t escalate as much as to cut off nearly 25 percent of Norway’s oil and gas production, as feared. Source: Oilprice.com
Ghana: COVID-19 Outbreak At FPSO John Agyekum Kufuor Has Not Affected Operations-ENI
ENI Ghana, a subsidiary of Italy’s oil and gas major, ENI, has stated that the recent outbreak of Covid-19 at the company’s operated FPSO John Agyekum Kufuor in the Western part of the Republic of Ghana has not affected its operations.
Three workers of Eni tested positive for COVID-19, following a mass testing exercise undertaken by the company.
According to the Local Content and Sustainability Manager of ENI Ghana, Baluri Buakari, the affected persons have been sent to Takoradi for management while others have been isolated pending their results.
“Yes, that is true we have recorded some infections onboard and those confirmed are three and not four. We did a routine test on the workers. Apart from that, before you go onboard or visit any of our facilities, we make sure that you’re quarantined and tested twice before you go. We also do sample testing on the facility just to make sure that there is no spread. So we did similar exercise over the weekend where we had three confirmed cases and nine suspected cases. We brought them to Takoradi and currently in isolation because they are asymptomatic and those suspected cases are awaiting results but isolated,” he told Akwesi Agyei Annim of Citi FM.
“Our operations have not been affected at all because we often have two crew changes so, actually, at the time this happened, we had mobilised a second crew to go and switch, so it has not affected us,“ he added.
ENI’s FPSO John Agyekum Kufuor has about 106 occupants being both expatriates and Ghanaians and currently produces 190 million standard cubic feet of gas daily for power generation through its Sanzule Onshore Gas Receiving Facility in the Ellembelle District.
Source: www.energynewsafrica.com
Nigeria: KEDCO Meets Aggrieved Electricity Workers, Pledges Commitment To Workers’ Welfare
Officials of Kano Electricity Distribution Company (KEDCO), one of the electricity distribution companies in the Republic of Nigeria, has met with agrieved staff and resolved all 13-point issues raised by the two in-house unions, i.e, Senior Staff Association of Electricity and Allied Company (SSAEAC) and National Union of Electricity Employees (NUEE).
According to the management, the speedy resolution of issues raised was as a result of the willingness from all parties to work together in the interest of the company and workers’ welfare.
“We are committed to the wellbeing and welfare of our staff; this is why as an organisation that believes in dialogue, we invited the unions and found a common ground to improve performance as well as smoothen relations with the unions,” the company said in a statement.
Electricity workers, on Monday, began picketing at KEDCO premises and served noticed to stay away from work until about 13 points grievances were addressed.
Nigeria: Electricity Consumers Want NERC To Put In Place Compensation RegimeThe workers accused the authorities for failing to pay their 2019/2020 (13 months) salary, mileage allowances, shift allowance, selective implementation of conditions of service, as well as failure to provide adequate working tools or logistics. In a statement signed by Comrd. Raji A. R of SSAEAC and Comrd. Pukat B. Ayuba of NUEE of ZOS 1Northwest, they said they would not work until their grievances were resolved. The statement urged workers to remain at home and commence immediate prayers while they awaited further directive. The workers’ action forced officials of KEDCO to meet the workers to address their grievances. In a statement signed by Ibrahim Sani Shawai,Head, Corporate Communications at KEDCO, after the meeting, said: “We are using this medium to reassure all KEDCO staff that we would continue to look after their welfare as well as motivate them to impact on their jobs towards the satisfaction of our numerous customers.” Source: www.energynewsafrica.com
U.S. Energy Crisis Leaves Millions Without Power in Big Freeze
The energy crisis crippling power grids across the U.S. showed no sign of abating on Tuesday morning as blackouts left almost 5 million customers without electricity during unprecedented cold weather.
To prevent the collapse of their networks, suppliers from North Dakota to Texas are having to institute rolling power cuts to limit demand. The severe shortages are likely to continue throughout Tuesday and the deep freeze is forecast to remain until Wednesday at least.
Officials have reported two people dead, likely from cold, according to the AP news agency. Medical centers are rushing to administer vaccines before they go bad. Flights are grounded. More than a million barrels a day of oil and 10 billion cubic feet of gas production are shut and massive refineries have halted gasoline and diesel output.
President Joe Biden approved an emergency declaration for Texas, the worst affected state, making more resources available to help.
“I’ve been following energy markets and grid issues for a while, and I cannot recall an extreme weather event that impacted such a large swath of the nation in this manner — the situation is critical,” said Neil Chatterjee, a member of the U.S. Federal Energy Regulatory Commission.
The cold blast is just the latest in a chain of severe weather events that have shaken power grids and upended energy markets globally from Japan to France in recent months. They’ve all underscored how vulnerable the world has become in the face of increasingly unpredictable weather brought on by climate change and it’s raising questions about the global push to electrify everything from transportation to heating and cooling.
Almost 4 million homes and businesses were without power across Texas on Tuesday, based on utility outage data compiled by Poweroutage.us. Another 400,000 were down in a swathe of states stretching from Louisiana to Ohio and Virginia. Almost 250,000 were without power in Oregon.
In Mexico, over 4.7 million homes and businesses went dark after Texas’s shortages triggered cascading failures. But about 65% of those affected in Mexico had seen their power restored by midday, according to grid operator Cenace.
While temperatures are forecast to rise, the weather across the central U.S. will remain bitingly cold this week. Dallas, which was forecast to see a low of 2 degrees Fahrenheit (minus 17 degrees Celsius) late Monday, will reach a high of 29 by Wednesday, the National Weather Service said. But by late Thursday, readings will drop back into the teens.
Such drastic weather conditions are rare, especially in parts of Texas. In Houston, the state’s largest city, roads were iced over and people braved long lines to refill household propane canisters. Traffic and street lights are down. Firewood is selling out. Grocery stores have run out of essentials including milk.
This week’s cold front caught Texas’s highly decentralized power market especially by surprise. The region’s grid is designed for hot summers, not ice-cold winters, but many households rely on electricity to heat their home. Utilities there haven’t had to carry out rolling blackouts since 2011.
Extreme weather events are happening more frequently, a shift that’s attributed to the changing climate. In response, electrifying sectors like transport and heating to use green power is seen as vital to elminating harmful emissions, but the world’s grid infrastructure may not be ready.
As electricity demand rises and grids rely more on wind and solar power, where supply oscillates with the weather, networks will have to increase access to back-up generation. In Texas, where both wind and gas-fired generation was hit by the cold snap, there wasn’t enough reserve power to keep the lights on.
Besides the impact on households, the cold is wreaking havoc on the energy industry itself. U.S. oil production has dropped by well over a million barrels a day, helping U.S. crude prices trade above $60 a barrel for the first time in more than year. The region’s refining complex — which produces almost half of the nation’s fuel — is struggling to limp along without power and gas supplies. Some of the largest oil refineries have shut altogether, threatening to reduce supplies of gasoline and diesel across the country.
Natural gas production has also been curtailed just as the cold caused demand to jump. At the Waha hub in Texas gas changed hands at $500 per million British thermal units on Monday, more than 100 times the price at the Henry Hub, the benchmark for the wider U.S.
Power plants with a combined capacity of more than 34 gigawatts were forced offline on Monday, including nuclear reactors, coal and gas generators and wind farms, Dan Woodfin, a senior director for grid manager Electric Reliability Council of Texas said. It’s not yet clear why. Early on Tuesday, power generation in Texas had yet to stage any significant recovery.
Wind power generators were among the victims of the cold weather, with turbine blades rendered inoperable due to ice — a phenomenon that reduces efficiency and can ultimately stop them from spinning. Texas estimated that more than half of its wind power capacity had come offline.
Source: Bloomberg.com
US Administration Cancels Gulf Of Mexico March Oil & Gas Lease Sale
The Bureau of Ocean Energy Management (BOEM) has rescinded the Record of Decision for the oil and gas lease Gulf of Mexico planned for March, effectively canceling this auction as part of the Biden Administration’s review of new drilling activities on federal land and in offshore waters.
The lease sale would have offered 78.2 million acres for a region-wide Gulf of Mexico lease in March 2021, or 14,594 unleased blocks – all of the available unleased areas in federal waters of the Gulf of Mexico.
However, President Joe Biden directed in an executive order last month the Secretary of the Interior to pause new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review and reconsideration of Federal oil and gas permitting and leasing practices.
“Cancelling this huge offshore Gulf oil auction helps protect our climate and life on Earth. President Biden understands the urgent need to keep this oil in the ground,” Kristen Monsell, oceans legal director with the Center for Biological Diversity, said in a statement.
UAE Targets Carbon-Capture Hydrogen To Reduce Greenhouse EmissionsThe American Petroleum Institute (API) has said in a report last year that a ban on new federal oil and gas development would result in job losses, weaker energy security, and increased reliance on oil imports. According to API, U.S. offshore oil production would drop by 44 percent by 2030, while offshore natural gas production would fall by 68 percent. “A ban on new leasing, if permanent, would mean that by 2035 US offshore oil and gas production would be about 30% lower than if lease sales had continued,” Wood Mackenzie said in a snapshot overview of the Biden Administration effect on the U.S. energy sector. Referring to the suspension of permitting for new drilling on federal land and waters, Chevron’s CEO Michael Wirth said on the Q4 earnings call last month that “the risks are probably greater in the Gulf of Mexico.” “If conditions in the U.S. become so onerous that it really disincentivizes investment, we’ve got other places where we can take those dollars,” Wirth noted. Source:Oilprice.com
Nigeria: Electricity Workers Commence Indefinite Picketing Against KEDCO
Electricity sector workers in the Republic of Nigeria, on Monday, began picketing at the premises of Kano Electricity Distribution Company (KEDCO) and its facilities.
The industrial action, which was announced by the senior staff Association of Electricity And Allied Company and National Union of Electricity Employees, is intended to get some staff’s grievances resolved.
The workers are accusing the authorities for failing to pay their 2019/2020 (13 months) salary, mileage allowances, shift allowance, selective implementation of conditions of service, as well as failure to provide adequate working tools or logistics.
Nigeria: Electricity Consumers Want NERC To Put In Place Compensation RegimeIn a statement signed by Comrd. Raji A. R of SSAEAC and Comrd. Pukat B. Ayuba of NUEE of ZOS 1Northwest, they said they would not work until their grievances were resolved.
Ghana: Gov’t Slapped With $134m Judgment Debt For Abrogating GCGP’s Power Agreement
The International Court of Arbitration has awarded a cost of $134 million and an interest of $30 million against the Government of Ghana over the cancellation of an Emergency Power Agreement with GCGP limited.
According to sources, GCGP Limited acquired a land at the Free Zones enclave in Tema, Republic of Ghana, to put up a power plant but the Akufo-Addo-administration terminated the agreement alongside other power purchasing agreements signed by the erstwhile Mahama-administration on the basis that the country did not need those power agreements.
The ruling by the International Court of Arbitration ordered the Government of Ghana to pay to “GPGC the full value of the Early Termination Payment, together with mobilisation, demobilisation and preservation and maintenance costs in the amount of US$ 134,348,661, together also with interest thereon from 12th November, 2018, until the date of payment, accruing daily and compounded monthly, at the rate of LIBOR for six-month US dollar deposits plus six per cent(6%).”
The Government of Ghana was also to pay GPGC an amount of “US$ 309,877.74 in respect of the Costs of the Arbitration, together with US$ 3,000,000 in respect of GPGC’s legal representation and the fees and expenses of its expert witness, together with interest on the aggregate amount of US$ 3,309,877.74 at the rate of LIBOR for three-month US dollar deposits, compounded quarterly.”
Senegal: President Sall Calls For Better Industry Communication, Local Content Amendment
Senegalese President H.E. Macky Sall, has directed that information exchange in the oil and gas sector be improved, in order for all participants to be equally well informed.
The President made this announcement in a meeting he chaired on 9 February 2021, in which talks were held to assess the state of oil and gas project execution in Senegal.
“We need increased vigilance from the State, especially with regard to the men and women in the public sphere engaged in the execution and monitoring of oil contracts. We must understand that we are there to serve. There is a chain which turns with links, and each link in the chain plays its own important role,” he said.
Additionally, in the meeting, the President called for the local content law to also be applied to the mining sector, and that the National Oil and Gas Institute (INPG) take on the function of issuing certifications.
Marathon Oil Lays Off Around 100 Employees In The U.S.
Houston-based oil and gas company Marathon Oil has laid off around 100 employees in the U.S. or around five per cent of its total workforce.
The lay-off of the workers came only two weeks after the oil and gas producer cut salaries of top executives and board members by 25 per cent.
The company’s actions were part of its “commitment to continuously optimise our cost structure“.
The company had about 2,000 full-time employees worldwide at the end of 2019, according to its latest available employment figures, with 74 per cent working in the United States.
Although oil prices have raced back above the pre-pandemic level of $60 per barrel in recent months, producers are focusing on improving balance sheets instead of raising output, as demand forecasts hinge on vaccine rollouts.
World oil demand in 2021 will rebound more slowly than previously thought, the Organization of the Petroleum Exporting Countries (OPEC) said on Thursday, adding to a series of downgrades as the impact of the pandemic lingers.
Angola’s Oil And Gas Industry Can Thrive Alongside Its Rich Biodiversity
(By Verner Ayukegba)
Last month, reports that Angola was drafting legislation to permit oil, gas and mining activities in 14 national conservation areas, including the Luengue-Luiana National Park, which represents part of the Kavango-Zambezi Transfrontier Conservation Area stretching across Angola, Namibia, Botswana, Zambia and Zimbabwe led to protests by environmentalist groups. Local environmentalists were outraged; likely weary of test drilling that had begun days earlier on the Namibian side of the Okavango Delta, an internationally recognized biodiversity hotspot.
On January 21, Angola’s Minister of Mineral Resources, Petroleum and Gas, H.E Diamantino Pedro Azevedo responded, providing clarifications in which he noted that, Angola’s existing stringent environmental legislation would be complied with and the interests of local populations would be safeguarded, as the country holds an upcoming public tender for the assessment of several onshore interior basins. Further clarifications have also been provided by Angola’s industry regulator, the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG).
“It was necessary to review the legislation on protected areas, but this does not mean the end of biodiversity,” said Minister Azevedo. “There is a need to explore these resources – the solution is balance. We are sensitive to environmental issues, but we are also rational. There are those who, for political interests, defend extreme positions, but it is necessary in politics to be rational.”
As sub-Saharan Africa’s second-largest oil producer, Angola has taken one of the most balanced approaches to global Environmental, Social and Governance (ESG) standards in the region when it comes to oil and gas exploration, placing environmental protections and continued hydrocarbon production on equal footing within its constitution and national agenda. Angola’s 2010 constitution in Articles 12 and 24 explicitly outline protection for the environment, providing a basis for the country’s Environmental Framework Act. According to Article 12, The State shall promote the protection and conservation of natural resources guiding the exploitation and use thereof for the benefit of the community as a whole. …and as per Article 24, All citizens shall have the right to live in a healthy and unpolluted environment. The State shall take the requisite measures to protect the environment and national species of flora and fauna throughout the national territory and maintain ecological balance. Acts that damage or directly or indirectly jeopardise conservation of the environment shall be punishable by law.
Offshore exploration, especially during the boom years of 2002 to 2008 made Angola one of the most prized destinations for the oil and gas industry globally. Output rose to nearly 2 Million barrels per day, providing Angola with much needed resources for its post-conflict reconstruction and making the country Africa’s second largest oil producer. These boom years, were also only possible, because Angola provided and continues to provide an environmental framework that is second to none globally. It is industry standard, particularly in a country that is home to all major International Oil Companies, that the highest environmental standards are adhered to when companies engage into exploration projects in Angola. Environmental Impact Assessment (EIA) plans mandated by Angola’s regulator (Currently the ANPG), are of the highest industry standards, when compared to other basins like Brazil and Mexico. In Angola, these assessments have to comply with a plethora of decrees and regulations that include mandatory public consultations, environmental auditing, restrictions on biodiversity, water and waste management. It is worth mentioning, that no major environmental disasters were registered, and some of the new technologies and exploration techniques developed in Angola under these stringent regulations were exported to other basins for the betterment of the entire industry.
Of the approximate 520,000 km² of sedimentary inner basins of Kassanje and Etosha/Okavango – the two regions in question – only 20% are in protected areas and as little as five percent of protected areas are being considered for responsible exploration and production activities, following the completion of environmental due diligence.
Yes – the proposed law will have implications for protected areas. It is intended to further ensure their protection whilst advancing oil and gas activity in the country in a responsible manner and in accordance with Angola’s constitution., The Environmental Impact Assessment (EIA) – carried out in coordination with the Ministry of Culture, Tourism and Environment – aims to ensure that Angola’s rich biodiversity is protected. By identifying and assessing the impact of potential projects on the given ecosystem, as well as presenting appropriate mitigation measures, the EIA serves as a tool for making environmentally informed decisions regarding the division, allocation and development of resource-rich basins. Furthermore, exploration activities will be prioritized in areas outside of environmental protection zones and drilling will only be undertaken if no or minimal impact to the ecosystem is found.
It is worth noting that surface samples of crude oil and gas have been already collected in certain parts of the inner basins of Kassanje and Etosha/Okavango, in which there is a high probability that hydrocarbons are present.
To deny the acquisition of further geological knowledge of the area not only erodes the basic tenet of resource sovereignty – that each State has the right to know of the existing resources in its territory – but also attempts to make a unilateral decision on behalf of the wider population.
The foundation for the draft legislation has been laid in both the National Development Plan 2018-2022 and revised Hydrocarbon Exploration Strategy 2020-2025 – authorized by Presidential Decree 282/20 – which seeks to intensify, research and geologically evaluate concessions and free areas of sedimentary basins.
In this respect, Angola’s regulator is ensuring stability and transparency, which lies in stark contrast to other major hydrocarbon producers where regulation is politically driven and does not always ensure environmental considerations. For example, former U.S. President Donald Trump authorized the lease to the Arctic National Wildlife Refuge – 1,790 km² of protected ecosystem in Alaska – two weeks before leaving office, while newly elected President Joe Biden countered with an immediate moratorium on new oil and gas leases on federal land. Angola is seeking to establish a long-term, institutional framework that provides for environmental considerations and ensures that hydrocarbon exploration is executed in a socially responsible manner as it happens, when it happens.
Given the growing role of ESG criteria in reducing risk and attracting global investors – coupled with rising pressure on energy firms to “green” their portfolios – oil and gas multinationals and Angola’s National Oil, Gas and Biofuel’s Agency are acutely aware of the implications of fossil fuel investments for both their firms and the country.
As a result, the ANPG, under the leadership of industry veteran Paulino Jerónimo, and multinationals have strengthened their commitment to ensure environmental due diligence, conducting impact assessments, implementing stricter environmental preservation measures and preventing or eliminating oil spills, water pollution, carbon emissions and habitat disruption associated with oil and gas drilling. In other words, the decision to develop any acreage will not be taken lightly, nor will Angola pursue any development without taking into consideration local community interests and the environmental impact of such a development.