Ghana: Gov’t Cuts Fuel Coupons To Appointees By 50%
The Government of Ghana has announced that fuel coupons to all appointees will be cut by 50 per cent beginning from April 1, 2022.
Ghana’s Minister for Finance, Ken Ofori Atta, who announced this last Thursday, said the difficult economic times the country finds itself require stringent actions to alleviate the hardship on Ghanaians.
Addressing the nation on measures being taken by the government to curb the economic challenges, Ofori-Atta said the decision would also affect heads of state-owned enterprises (SOEs).
“These times call for very efficient use of energy resources. In line with this, there will be a 50 per cent cut in fuel coupon allocations for all political appointees and heads of government institutions, including SOEs, effective 1 April 2022.”
Source: https://energynewsafrica.com
Ghana: Gov’t Announces 15 pesewas Reduction On Fuel
Government of Ghana has cushioned the citizenry by reducing the margin of taxes on fuel beginning April 1, 2022, Finance Minister, Ken Ofori Atta has announced.
Addressing the press at the conference room of the Ministry of Information on Thursday, Ghana’s Finance Minister, Ken Ofori Atta announced the reductions in BOST, Unified Petroleum Price Fund, Primary Distribution and Fuel Marking Margins.
According to him, BOST Margin will see 2 pesewas reduction, UPPF will be reduced by 9 pesewas, Fuel Marking Margin by 1 pesewas and Primary Distribution Margin by 3 pesewas.
These reductions, he said, are expected to translate to 15 pesewas reduction of margins on fuel.
He explained that these reductions are for a period of three months.
The Finance Minister added that government will in the coming days engage with Oil Marketing Companies to plead with them to reduce their margins.
Ghanaians have been lamenting on social about the rising cost of petrol and diesel.
A litre of petrol and diesel currently sells at between GHS9.99 and GHS11.70 respectively at the pump.
More details soon.
Source: https://energynewsafrica.com
Tullow Appoints Jonathan Swinney As CFO
Tullow Oil plc has appointed Jonathan Swinney as Chief Financial Officer (CFO) and an Executive Director of the firm.
Jonathan is currently CFO of EnQuest PLC and will join Tullow later this year, a statement issued by Tullow said.
The London-listed oil-and-gas company said Richard Miller, who is currently the Group Financial Controller, will act as interim CFO until Jonathan arrives at Tullow.
Jonathan brings extensive oil & gas and capital markets experience to Tullow having served as EnQuest’s founding CFO since 2010. In this period, EnQuest has developed its business in the UK and in Malaysia and undertaken a number of asset acquisitions and major capital markets transactions. Jonathan is a chartered accountant and a qualified solicitor.
He joined Petrofac as the head of Mergers and Acquisitions in 2008 before joining EnQuest and previous to that worked in investment banking.
Phuthuma Nhleko, Chairman of Tullow Oil plc, commented today: “I am delighted to welcome Jonathan Swinney to Tullow. Jonathan has a proven track record in the oil & gas sector of working in complex operating environments and driving capital discipline and efficiency. He has the right mix of sector and corporate finance experience that Tullow needs and I am looking forward to working with Jonathan and Rahul as we build Tullow as a leader in the African oil & gas sector. I would also like to thank Les Wood, who is stepping down from the Board at the end of this month, for all his hard work and dedication to Tullow over the past five years as CFO.”
EnQuest said separately Thursday that Mr. Swinney will step down from his role at the company at a date to be determined in due course, and that Salman Malik would assume the CFO role upon the departure of Mr. Swinney.
Tullow Oil Appoints South African As Non-Executive ChairmanSource: https://energynewsafrica.com
Nigeria: We’ll End Oil Theft-Timipre Sylva
Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, has assured the citizenry that the Federal Government is determined to end illegal oil bunkering in the country.
“We are actually determined to stop it because we know that we cannot afford the continuation of this insecurity in the oil industry,” Timipre Sylva said during an on-the-spot assessment of some pipelines impacted by activities of oil bunkers in Emeoha local government, Rivers State, on Wednesday.
“I want to just let everybody know that these criminals have their days numbered.
“We are here to ensure that this problem is finally resolved to reclaim this industry for the country because this country has lost so much from the activities of these criminals, and the government and the country can no longer afford these activities and that is why we are here,” he stated as reported by thecable.ng.
According to him, insecurity was a major issue bedevilling the sector, and proactive steps were taken to tackle the issue.
“The single biggest problem in our industry today is the problem of security,” he said.
“This has come to the attention of everyone including Mr. President has directed myself and the CDS and also the GMD of the NNPC to ensure that this problem is handled once and for all.”
Sylva added that the host communities, the government and operators must play their part to completely eradicate the menace in the industry.
“I agree with you completely. There are three elements to the solution of this problem,” he said.
“The communities must be involved because these people who are engaged in these illegal activities are not ghosts. They are from communities – so the communities have to be involved.
“You the security must be involved also because you are the law enforcement arm of the government.
“And of course, we also as part of government must be involved.
“And then, the third arm is the operating companies. All the elements are complete now. We are here as government, the operating companies are here and of course, we are going to the communities so I believe that finally this problem will be resolved.”
Oil producers in Nigeria had decried the illegal activities of oil vandals, saying these oil bunkers cashed in ‘petrodollars’ while Nigeria is bedevilled by low production.
Austin Avuru, former chief executive officer of Seplat Energy Plc, had said a major proportion of Nigeria’s oil production was lost to theft
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had said the country loses more than 115,000 barrels per day to oil theft and vandalism.
Source: https://energynewsafrica.com
EU Considers $100 Billion Energy Relief Package For Companies
Europe faces an unprecedented energy crisis that requires extraordinary policy action, such as a possible 100 billion euro in relief funds to businesses hit the hardest by soaring energy prices.
Bloomberg cites MF daily that said the European Union is considering a massive 100 billion euro bond issuance for a new relief program that would provide relief funds to businesses hit hardest by rising gas and electricity prices, as criticism soars about out of control commodity inflation and the bloc’s inability to tame prices.
MF didn’t cite sources, though it said the issuance could be approved within the next 15 days.
The news comes as the European Commission has proposed a plan to make Europe independent from Russian fossil fuels following the invasion of Ukraine.
Even before the invasion, many European countries were facing extraordinarily high natural gas, electricity, and fuel costs.
There’s even risk of a diesel shortage emerging. The latest developments from Ukraine have exacerbated the situation.
On Tuesday, a working group of Germany’s coalition parties agreed on a relief package to strengthen Germany’s energy independence and help alleviate the burden of high energy costs sources, told Reuters. This comes as Europe’s biggest economy is attempting to decouple from Russian gas and oil due to the invasion of Ukraine.
Italian Premier Mario Draghi recently said the invasion of Ukraine had sparked high volatility for the markets for commodity markets, which were already at elevated prices before the conflict. He said, “We must intervene right away.”
Spanish Prime Minister Pedro Sanchez said, “committing ourselves to diversify energy sources as fast as possible” is necessary. He said “small businesses and citizens can’t bear” soaring gas and electricity costs.
European politicians are awakening to the fact that high energy costs could “re-awakening the nightmare of populism” on the European continent, Greek Prime Minister Kyriakos Mitsotakis warned.
That’s why the European Union is likely to pass some kind of energy relief package for businesses and households in the near term.
Source: Oilprice.com
Sierra Leone: Electricity Access To Improve As Masiaka Mini-Grid Commissioned
Sierra Leone has commissioned a mini-grid at the strategically important town of Masika.
The country’s Minister for Energy, Alhaji Kanja Sesay, who commissioned the project recently, reiterated the commitment of the government to substantially increase national access to energy.
Welcoming the Minister and others, the Regent Chief of Koya Chiefdom, Saidu Mohamed Conteh, described the occasion as “a dream come true” for the people of Koya, adding that with Masiaka being a strategic town, it was always an imperative that the town was illuminated.
He said the people of Masiaka were more than happy for the novel facility and called on authorities to provide a similar facility for the town of Songo.
He said the electricity would set in motion a train of social and economic events that would culminate into the marked improvement in the lives of the people.
Switching on the light, Energy Minister, Alhaji Kanja Sesay, conveyed the greetings of President Julius Maada Bio to the people of Koya, noting that he had always been at pains to see a town as importantly located as Masiaka impenetrably or eerily dark at night.
He said it was to correct that anomaly that he had to galvanize the support of partners, emphasizing that he felt happy and fulfilled to be at a ceremony marking the official turning on of the light to end the town’s painful or tiring wait.
Alhaji Kanja Sesay spoke about the government’s strides to colossally increase national access to energy, citing the district’s electrification project and the rural mini-grid drive as pointers to such strides.
He said Conakry De, Masimera, Melikoure, Petifu, Mange and now Masiaka were among towns in the Port Loko District that had been provided with mini-grids.
He appealed to the people to own the project and to abstain from the act of illegally abstracting electricity.
Sierra Leone has a population of about eight million, however, only 23 per cent have access to electricity.
Development Director at the British High Commission in Sierra Leone, Kobi Bentley, said she had a responsibility to superintend overall United Kingdom’s aids in Sierra Leone on behalf of the Foreign Commonwealth and Development Office (FCDO).
She said the British Government, through the FCDO, had provided more than 37 million pounds for mini-grids in Sierra Leone, adding that the United Nations Office for Project Services (UNOPS) and the Government of Sierra Leone were implementing the project, noting that the project was the first of its kind in scale and scope.
Madam Bentley spoke about the social and economic benefits of electricity and commended the collaboration between and among partners in the mini-grid sector.
Engineering Team Lead for UNOPS, Ezekiel Kamangulu, said his company had implemented the project on behalf of the Ministry of Energy, stating that the project aims to catalyze the Government of Sierra Leone’s blueprint to increase energy access through decentralized means.
He said the project was not only going to increase access to renewable energy but would also serve as a trigger for economic and social growth.
Co-founder and Vice President for PowerGen, Joseph Phillip, said his company was excited to be working in Sierra Leone, noting that Masika was the 27th community that his company was now taking care of in respect of the running of mini-grid facilities.
Source: https://energynewsafrica.com
Alhaji Kanja Sesay spoke about the government’s strides to colossally increase national access to energy, citing the district’s electrification project and the rural mini-grid drive as pointers to such strides.
He said Conakry De, Masimera, Melikoure, Petifu, Mange and now Masiaka were among towns in the Port Loko District that had been provided with mini-grids.
He appealed to the people to own the project and to abstain from the act of illegally abstracting electricity.
Sierra Leone has a population of about eight million, however, only 23 per cent have access to electricity.
Development Director at the British High Commission in Sierra Leone, Kobi Bentley, said she had a responsibility to superintend overall United Kingdom’s aids in Sierra Leone on behalf of the Foreign Commonwealth and Development Office (FCDO).
She said the British Government, through the FCDO, had provided more than 37 million pounds for mini-grids in Sierra Leone, adding that the United Nations Office for Project Services (UNOPS) and the Government of Sierra Leone were implementing the project, noting that the project was the first of its kind in scale and scope.
Madam Bentley spoke about the social and economic benefits of electricity and commended the collaboration between and among partners in the mini-grid sector.
Engineering Team Lead for UNOPS, Ezekiel Kamangulu, said his company had implemented the project on behalf of the Ministry of Energy, stating that the project aims to catalyze the Government of Sierra Leone’s blueprint to increase energy access through decentralized means.
He said the project was not only going to increase access to renewable energy but would also serve as a trigger for economic and social growth.
Co-founder and Vice President for PowerGen, Joseph Phillip, said his company was excited to be working in Sierra Leone, noting that Masika was the 27th community that his company was now taking care of in respect of the running of mini-grid facilities.
Source: https://energynewsafrica.com
Ghana: VRA Offers GHS800K Scholarship Package To 61 Needy But Brilliant Students
Ghana’s largest state power generation company, Volta River Authority (VRA), has awarded educational scholarships at a total value of GHS 800,000.00 to 61 needy but brilliant students from communities impacted by the Authority’s operations.
According to a statement posted on the VRA’s Facebook page, the CEO of VRA, Emmanuel Antwi-Darkwa, speaking at the scholarship ceremony, said the scholarship scheme was proof of the Authority’s commitment to “adding value to lives.”
He commended the achievements and progress of previous beneficiaries of the scholarship and urged current beneficiaries to apply themselves diligently to their studies.
Since the inception of the scholarship scheme in 2011, VRA has sponsored 329 students from Akosombo, Akuse, Kpone and Aboadze.
Out of the number, 234 students were sponsored at the secondary level before the introduction of the Government of Ghana’s Free SHS programme, and 95 students at the tertiary level.
Source: https://energynewsafrica.com
Ghana: VRA Begins Conversion Of Akosombo Into Smart CityOut of those sponsored at the tertiary level, 77 have completed successfully while 18 are still in school.
Source: https://energynewsafrica.com
Ghana: Fuel Hikes: Government Working To Cushion Consumers-NPA CEO
Fuel consumers in the Republic of Ghana have been assured of cushioning by the government in the coming days, the Chief Executive Officer of the country’s downstream regulator, NPA, Dr Mustapha Abdul-Hamid, has said.
He said the government is aware of the pains Ghanaians are going through due to the rising cost of fuel and is taking steps to ameliorate the effect of the rising prices on them.
A litre of petrol and diesel currently sells between GHS9.99 and GHS11.70.
As of 16:50 GMT, Wednesday, WTI $114.0was trading at while Brent sold at $120.8
There have been calls for the government to abolish some of the taxes on petroleum products with the latest coming from the Trade Union Congress (TUC).
Some portals have reported that government officials, at a meeting with transport operators, have agreed to abort four tax components on the petroleum price buildups but checks at the Energy Ministry by this portal proved otherwise.
Ghana’s Minister for Finance, Ken Ofori Atta, is expected to hold a press conference on Thursday, where he would announce several measures the government is putting in place to address the challenges the country’s economy is facing.
Speaking during a visit to the Western Regional Minister, Kwabena Okyere Darko-Mensah, as part of his familiarization tour of the Region, the NPA CEO, Dr. Mustapha Abdul-Hamid, said: “There is going to be heavy sacrifices on the part of the government, NPA and everybody so that together, we can move our country forward.”
He intimated that the total amount of tax that goes to the central government on a litre of fuel is around GHS1.90 cedis which may not be that significant to the individual consumers given the recent frequent rising cost of fuel on the international market.
On the flip side, he said, “This will be a huge revenue loss to the government because that amounts to a loss of GHS4 billion and over on government revenue yet everybody wants their road to be tarred.”
Dr. Mustapha Abdul-Hamid, however, alluded to genuine demands by Ghanaians on the government to provide one facility or the other for the people albeit at the same time that the government would be bleeding from its revenue points.
The Western Regional Minister, Kwabena Okyere Darko-Mensah, who was happy about the visit, said the space to manage NPA fuel pricing is difficult especially “when we were expecting crude oil prices around $61 and now we are looking at $120 per barrel.”
He said such a situation becomes very difficult and a lot of Ghanaians do not seem to know or appreciate it.
“All the taxes that the government has put in place are very little. You have a problem with such a situation whether to take off these taxes and stop development or keep it and do development and people will cry.
“You should find a way to get our message directly to the people for them to know that in the budget is only $60 but currently, the price is $120. If we decide to go and borrow money or cushion Ghanaians, no matter what, we will still pay! we are going to pay!”
He added that “let Ghanaians know how prices are changing and how it is affecting the real price that we need to pay; if you cannot buy the petrol there should be alternative to use as it is done in other countries.
“We, at a Regional Coordinating Council (RCC), we do acknowledge the problem that you have been encountering, such as illegal bunkering on petroleum product; you need to come and visit these communities and then engage them rather than arresting them so that the other people will know that what they are doing is wrong,” Mr Darko-Mensah said.
“If the NPA dissociates themselves on this issue, it will continue to come up. If you engage and invest in some kind of corporate social responsibility programmes, it will do us a lot of good,” he said.
Responding, the NPA boss announced that this year’s Consumer’s Week would be held in Takoradi, “so we will come back and do proper engagement with the people.”
Source: https://energynewsafrica.com
Some portals have reported that government officials, at a meeting with transport operators, have agreed to abort four tax components on the petroleum price buildups but checks at the Energy Ministry by this portal proved otherwise.
Ghana’s Minister for Finance, Ken Ofori Atta, is expected to hold a press conference on Thursday, where he would announce several measures the government is putting in place to address the challenges the country’s economy is facing.
Speaking during a visit to the Western Regional Minister, Kwabena Okyere Darko-Mensah, as part of his familiarization tour of the Region, the NPA CEO, Dr. Mustapha Abdul-Hamid, said: “There is going to be heavy sacrifices on the part of the government, NPA and everybody so that together, we can move our country forward.”
He intimated that the total amount of tax that goes to the central government on a litre of fuel is around GHS1.90 cedis which may not be that significant to the individual consumers given the recent frequent rising cost of fuel on the international market.
On the flip side, he said, “This will be a huge revenue loss to the government because that amounts to a loss of GHS4 billion and over on government revenue yet everybody wants their road to be tarred.”
Dr. Mustapha Abdul-Hamid, however, alluded to genuine demands by Ghanaians on the government to provide one facility or the other for the people albeit at the same time that the government would be bleeding from its revenue points.
The Western Regional Minister, Kwabena Okyere Darko-Mensah, who was happy about the visit, said the space to manage NPA fuel pricing is difficult especially “when we were expecting crude oil prices around $61 and now we are looking at $120 per barrel.”
He said such a situation becomes very difficult and a lot of Ghanaians do not seem to know or appreciate it.
“All the taxes that the government has put in place are very little. You have a problem with such a situation whether to take off these taxes and stop development or keep it and do development and people will cry.
“You should find a way to get our message directly to the people for them to know that in the budget is only $60 but currently, the price is $120. If we decide to go and borrow money or cushion Ghanaians, no matter what, we will still pay! we are going to pay!”
He added that “let Ghanaians know how prices are changing and how it is affecting the real price that we need to pay; if you cannot buy the petrol there should be alternative to use as it is done in other countries.
“We, at a Regional Coordinating Council (RCC), we do acknowledge the problem that you have been encountering, such as illegal bunkering on petroleum product; you need to come and visit these communities and then engage them rather than arresting them so that the other people will know that what they are doing is wrong,” Mr Darko-Mensah said.
“If the NPA dissociates themselves on this issue, it will continue to come up. If you engage and invest in some kind of corporate social responsibility programmes, it will do us a lot of good,” he said.
Responding, the NPA boss announced that this year’s Consumer’s Week would be held in Takoradi, “so we will come back and do proper engagement with the people.”
Source: https://energynewsafrica.com Africa’s Electrification Needs $350 Billion Investment By 2030
Sub-Saharan Africa, the region with the lowest universal access to energy, needs $350 billion in investments, one-fifth of which needs to be off the grid, to achieve universal electricity access by the end of this decade, Wood Mackenzie last Thursday.
According to the African Development Bank Group, more than 640 million Africans have no access to energy, which corresponds to an electricity access rate for African countries at just above 40 percent, the lowest in the world.
Per capita consumption of energy in sub-Saharan Africa, excluding South Africa, is 180 kWh, compared to 13,000 kWh per capita in the United States and 6,500 kWh in Europe, the bank group says.
Electrifying Africa is one of the big challenges ahead for the energy industry, and the way it is being pursued could shape the next generation of the business models of power companies, according to WoodMac.
“The future of energy may be forged in Africa,” said Benjamin Attia, a principal analyst with Wood Mackenzie’s Energy Transition Practice.
“The evolution of sub-Saharan Africa’s utility business model, both on and off the grid, will fundamentally reshape the trajectory of global electricity demand and will be essential to the energy transition,” Attia added.
The persistent lack of electricity access in Africa is partly due to massive underinvestment in infrastructure so far, according to WoodMac. In addition, a large part of the utilities in Africa are operating at a loss and do not have the capital to expand and improve the power supply.
Faced with these challenges, Africa could take advantage of the decline in the costs of renewable energy and of innovative business models, Wood Mackenzie said.
“Decentralised, bottom-up, solar-and-storage grids could not only transform sub-Saharan Africa’s energy future but carry important lessons for the next generation of thinking on utility business models globally,” WoodMac’s Attia said.
Africa is estimated to have massive potential for 1,000 GW of solar power. Its actual installed capacity as of 2020, however, was barely 10.58 GW.
Source: Oilprice.com
Africa Must Develop Gas Resources To Spur Industrialisation-Dr Ackah
An Energy Economist and Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr. Ishmael Ackah has underscored the need for African leaders to focus on developing the gas resources of their respective countries to spur the economic transformation of the continent.
With the ongoing global transition from fossil fuel to renewable energy, Dr. Ishmael Ackah noted that gas is a relatively clean source of energy and good complement to renewable energies.
According to him, natural gas can support the economic transformation of the continent through chemical production, fertilizer manufacturing, cement and clean cooking fuels.
Dr. Ackah observed that governments across the continent have identified natural gas as a bridge fuel for power generation and for the petrochemical industry to feed industry, enhance access and modernize agriculture.
Referring to a recent report on global gas discoveries, he said about 40 per cent of new gas discoveries occurred in Africa, an indication that Africa is endowed with gas resources.
In his view, leaving natural gas in the belly of the earth would delay or deny Africa’s chance of industrializing.
Dr. Ishmael said this in a presentation on the topic “Political Economy of the Energy Transition at the three days’ ‘Commonwealth Science Conference For Sub-Sahara Africa Fellows’ Meeting in Accra, capital of Ghana.
Dr. Ackah also underscored the need for African governments to support national oil companies to develop and implement transition readiness strategies.
Referring to a 2021 UNESCO report on research, he said the report noted that Africa’s gross expenditure on research as a proportion of GDP is about an average of 0.5 per cent compared to the world average of 2.2 per cent.
“No known country in Africa is spending one per cent of its GDP on research and development,” he quoted the report as saying.
Dr. Ackah, consequently, called on African leaders to strengthen research institutions to undertake Research & Development along the renewable energy value chain.
Source: https://energynewsafrica.com
Nigeria Takes Steps To Resolve Power Crisis
Nigeria says it has made progress in resolving the country’s debilitating power crisis.
The West African nation has been facing a serious power crisis.
The country’s national electricity grid has collapsed a couple of times this year, causing a nationwide blackout and that, coupled with fuel shortages, has made Nigerians unhappy.
Speaking at a press briefing on Saturday in Abuja, the Minister for Power, Abubakar Aliyu enumerated several steps being taken by the Buhari administration to address the power crisis.
These efforts, according to him, include the restoration of gas pipelines destroyed by vandals and optimising the capacity of power plants.
The Minister added that the Okapi power plant has resumed power generation and is currently contributing an average of 300MW.
According to him, the Nigerian Bulk Electricity Trading Plc has been directed to enter into fast-track negotiation with NAOC on an interim energy sales agreement to bring the new Okpai Il power plant on the grid, thereby, contributing an additional 4OOMW of generation capacity.
“The “pigging” of the gas pipeline supplying gas to the Odukpani power plant is scheduled for completion on March 21st 2022 thus ramping up generation by about 400MW.
“To optimise the capacity utilisation of the power plants owned by the Niger Delta Power Holding Company Ltd (NDPHC), the Nigerian Electricity Regulatory Commission has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company Ltd.
“We expect an on-grid improvement of about 800M YV generation capacity from the NDPHC plants.
“In the medium-term, we have agreed with NGPIC (…a subsidiary of NNPC) on the framework for the overhaul of the Okolona gas processing plant, thereby, restoring the full capacity of the 650MW Afam VI combined cycle power plant.
“While the recent spate of system collapse is regrettable, it was a direct consequence of a snap on a 330kV transmission line.
“The mitigation measures for avoiding such incidence of blackouts are being implemented through several interventions including the Presidential Power Initiative.”
The Minister reassured Nigerians that all relevant agencies involved in the restoration of normality in power supply have been charged to act in the context of the emergency state of the industry.
He added that the Federal Ministry of Power would continue to periodically update the nation on the progress made in addressing power challenges in the country.
Source: https://energynewsafrica.com
Ghana: Tullow Completes Takeover Of Oxy’s Interest In Jubilee And TEN Oil Fields From Kosmos Energy
Africa focused independent oil and gas firm, Tullow Oil has announced the complete takeover of Occidental Petroleum’s (Oxy) interests in the Jubilee and TEN fields in Ghana to Kosmos Energy for $118 million.
According to Tullow Oil, the cash consideration paid on completion was $118 million reflecting closing adjustments and was funded from cash on the balance sheet.
This transaction takes Tullow’s equity interests to 38.9% in the Jubilee field and to 54.8% in the TEN fields and adds c.5 kbopd of unhedged daily production.
This equates to c.4 kbopd on an annualised basis and increases 2022 Group production guidance to 59-65 kbopd (30-32 kbopd at Jubilee, 13-14 kbopd at TEN and non-op portfolio unchanged at 16-19 kbopd).
This additional equity increases Tullow’s 2022 Group capital expenditure forecast by $30 million to $380 million and is expected to generate c.$300 million incremental free cash flow at $75/bbl between 2022 and 2026.
As of 31 December 2021, the transaction increases Tullow’s net 2P reserves by c.21 mmboe (9%) and has an estimated post-tax NPV 10 valuation of $355 million at $75/bbl.
Commenting on the transaction, Chief Executive Officer of Tullow Oil Plc Mr. Rahul Dhir, stated “I am delighted that this important transaction has been completed and I am grateful for the continued support of the Government of Ghana and in particular, the honourable minister of Energy whose leadership has been paramount In getting to completion. This transaction underscores our confidence in the assets and meets our objectives of value accretion and deleveraging.”
Source: https://energynewsafrica.com