London:UTM Offshore Signs Front-End Engineering Design Contract For Floating Liquefied Natural Gas Facility In Nigeria
UTM Floating Liquefied Natural Gas (LNG) Limited, JGC Corporation, Technip Energies and Kellogg Brown & Root (KBR) have signed a Front-End Engineering Design (FEED) contract for the development of Nigeria’s first Floating Liquefied Natural Gas (FLNG) facility in London.
With the signed contract, the development of the FLNG facility in block OML 204 offshore Nigeria will kick off, enabling the West African country to maximize the exploitation of stranded gas resources in a sustainable manner while contributing to the Nigerian government’s agenda of reducing flaring and optimizing environmental sustainability in energy developments, according to Chief Timipre Sylva, Minister of Petroleum Resources, Nigeria, in a speech made during the signing ceremony of the contract.
According to the minister, with factors such as a lack of investment, transportation and export infrastructure, and technological challenges disrupting Nigeria from maximizing its gas industry, the FLNG project is a step forward in the right direction for the West African country to develop, exploit and monetize its over 209 trillion cubic feet (tcf) of proven gas resources and a potential upside of 600 tcf of gas to ensure energy security, economic growth and the reduction in emissions.
“Given the large resources that may be developed and used for commercial purposes, we have already proclaimed that gas is our transition fuel and a destination fuel, and we anticipate that it will be a major component of our energy mix by the year 2060,” added Minister Sylva, adding that, “As a developing nation, we believe that affordable, accessible and reliable energy will continue to be essential to sustaining and powering our growing economy, and to lift millions out of poverty. As a government we know our action is essential to enable evolution of the energy system. We believe innovation, technology and policy will be the key drivers of change.”
Highlighting the role of FLNG technology in accelerating gas exploitation, the Minister added that “We are aware that the number of offshore gas finds has surged in recent years around the world, with LNG and FLNG becoming even more important in terms of satisfying the world’s future energy needs. According to market research analysts, the FLNG market is estimated to increase at a compound annual growth rate (CAGR) of 27.14%, reaching $88.99 billion by 2024. The UTM offshore FLNG project is therefore timely and will lead towards a faster-moving, more diverse and more flexible global LNG industry.”
He also gave reference to some of the mechanisms and policy reforms including the Decade of Gas, The Year of Gas and the Petroleum Industry Act implemented by the government to create an enabling environment to expand the country’s gas industry and ensure a just and inclusive energy transition.
Speaking on how Nigeria can fast track gas developments, meet its 2030 economic growth targets and growing energy demand, create jobs and bring new investments on the back of gas exploitation, the minister also highlighted the importance of collaborative partnership, commending the “African Export-Import Bank, under the leadership of its amiable President and Chairman, Dr. Benedict Okey Oramah, for orchestrating the signing of the Memorandum of Understanding (MoU) with UTM Offshore Limited to raise $5 billion for the development of Nigeria’s first FLNG project.”
Julius Dediare Rone, CEO and Chairman of UTM Offshore, who was awarded the National Honors Award in the Rank of Order of the Federal Republic – OFR on October 11, 2022 by H.E. President Muhammadu Buhari for his leading role in driving Nigeria’s gas sector expansion, added that gas and FLNG will play a crucial role in helping the Nigerian government to meet its three priorities, namely, “security of supply, economic competitiveness, and a reduction of greenhouse gas emissions.”
According to Rone, “We opted for FLNG because FLNG was originally developed to help realize the promise of natural gas – specifically, to bring gas to the global market from small offshore fields and nearshore terminals in areas lacking infrastructure – especially pipelines. And the LNG market is stuck with traditional models that do not address the world’s demand for low cost, flexible LNG to become a preferred fuel-of-choice over coal and liquids. The world markets as we all know it today needs low-cost, flexible LNG supply and has limited capacity to underpin major conventional projects. The solution, UTM offshore believes, is a standardized FLNG that allows the costs to be 20-40% cheaper with FID thresholds of just 1.5 – 2.5 MTPA. And this is where the UTM offshore FLNG project will hold sway, having the desired impact as well as influence.”
Commenting on Africa’s gas and FLNG market trends, NJ Ayuk, Executive Chairman of the African Energy Chamber, reiterated that “Gas is green for Africa and crucial for driving socioeconomic development and for making energy poverty history across the continent.
“The Chamber commends the work being undertaken by UTM Offshore and its development and investment partners such as the Afreximbank. At African Energy Week, we took a strong position to drive up African gas deals and this is one of them that we support. We believe African solutions and companies will be crucial for unlocking the full potential of the continent’s massive gas resources to ensure energy security and revive industrialization.”
Source: https://energynewsafrica.com
Ghana: US$100Million Oil Revenues; GNPC Disagrees With PIAC And Absolves Finance Minister Of Wrongdoing
The Public Interest and Accountability Committee (PIAC) and the Ghana National Petroleum Corporation (GNPC) have expressed divergent views on the account into which petroleum revenue of $100.7 million should be paid.
While PIAC insists it should be paid into the Petroleum Holding Fund, the GNPC says it should be paid into Jubilee Oil Holding Limited, a subsidiary of the corporation.
Lifting Of Oil
The amount was realised from the lifting of 944,164 barrels of oil from the Jubilee fields and Anadarko CWTP Company in the first half of 2022.
Testifying as a witness before the ad hoc committee of Parliament hearing the censure motion on the Minister of Finance on Thursday, the Vice-Chairman of PIAC, Nasir Alfa Mohammed, said the money was rather paid into an offshore account.
“We have established that they have not paid that quantum of money, which ought to have formed part of the petroleum revenues of Ghana, into the Petroleum Holding Fund, and in our view that is contrary to the law,” he told the committee.
However, the GNPC said PIAC got it all wrong.
The Deputy Chief Executive (CEO) of the GNPC in charge of Commerce, Strategy and Business Development, Joseph Dadzie, who also testified as a witness before the committee, said the money was paid into Jubilee Oil Holding Limited, which was legally clothed with the authority to receive the money.
He, therefore, disagreed with PIAC that the money should have been paid directly into the Petroleum Holding Fund.
Both witnesses were testifying in response to the proponents of the censure motion against Ken Ofori-Atta on the ground of illegal payment of revenues into an offshore account, in flagrant violation of Article 176 of the Constitution.
Accruals
Answering questions from members of the committee, Mr Nasir said the proceeds were accrued from the seven per cent interest the GNPC acquired from the Jubilee Fields and Anadarko Company assets for $119 million on April 1, 2021.
He said the failure to lodge the amount in the Petroleum Holding Fund breached Section 6 of the Petroleum Revenue Management Act, 2011 (Act 815) and Section 7 of the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893).
Both acts 815 and 893, he explained, state that revenues accruing to the state from the direct or indirect participation of the state in petroleum operations shall first be paid into the Petroleum Holding Fund.
Losing legitimate revenues
Emphasing that the money ought to have been deposited in the Petroleum Holding Fund and not in any other account, Mr Nasir said: “Our consideration is that if that money does not come to the Petroleum Holding Fund, the state will be denied legitimate revenue from petroleum.”
“Our position, as a committee, is that lifting, whether it is lifted by 100 per cent of GNPC or not, ought to come first into the Petroleum Holding Fund from where disbursement can be made for whatever reason,” he added.
The witness indicated that in its annual report from January to December 29021, PIAC reported that in line with the GNPC strategy to increase its stake in viable oil blocks, it acquired a seven per cent interest from Occidental Petroleum from Anadarko Company in respect of the company’s Deepwater Tano Cape Three Points assets for $119 million, effective April 1, 2021.
He said the acquisition, which was to be transferred to the GNPC’s subsidiary, Explorco, translated to 5.95 and six per cent production interest in the Jubilee and the TEN fields, respectively, for the GNPC.
Explaining further, the witness said 100 per cent of acquisition was later ceded to Jubilee Oil Holding Limited, which made its first oil lifting of 944,164 barrels of oil in the Jubilee Field in the first half of 2022.
With $100.7 million being realised from the sale of the crude oil, he said, the revenue was not paid into the Petroleum Holding Fund, as required by law.
“Mr Chairman, it was the consideration of the committee that contrary to Section 6 (e) of Act 815, capital gains tax was not assessed and collected by the Ghana Revenue Authority in the sale of the seven per cent interest by Anadarko Company in the Jubilee and the TEN fields in 2021.
“We wrote to both the GRA and the Ministry of Finance for responses on these issues and in its written response to PIAC on the matter, the GRA referred the committee to the Ministry of Finance, indicating that the ministry was exclusively in charge of the transaction,” Mr Nasir said.
He said the Ministry of Finance, in turn, referred the committee to the GRA for answers.
He said for the purposes of disclosure, the GNPC referred the committee to an advice by the Attorney-General’s Department purporting to okay the transaction in the nature and manner the GNPC dealt with it.
“Mr Chairman, we are happy to say that we did not come to this conclusion without recourse to that advice,” he added.
Set up
When he appeared before the committee, the GNPC Deputy CEO said it was not the GNPC that set up Jubilee Oil Holding Limited but rather Anadarko Company.
He said Jubilee Oil Holding Limited was set up because Anadarko decided to sell its stakes in the Ghana assets and reached an agreement with Kosmos to purchase it.
The Ghana government, he said, then made a submission that it wanted part of that stake, and after negotiations, “we agreed on seven per cent”.
With strict timeliness for the consummation of that transaction and the need for the GNPC to go through the approval process, Mr. Dadzie said, Anadarko decided to sell Jubilee Oil Holding Limited, carving out the seven per cent for the GNPC to acquire later on.
“We got the necessary approvals and we were ready to buy Jubilee Oil Holding Limited, so the structure of the transaction was not a GNPC-defined structure but that of the seller (Anadarko Company).
“We did not buy a participating stake; we rather bought the company which held seven per cent in Jubilee and TEN,” he said.
Acquisition
On where GNPC got the funds to buy Jubilee Oil Holding Limited, Mr Dadzie said the corporation wrote to the Ministry of Finance to advance it a loan towards the purchase and obtained approval from the ministers of Energy and Finance.
On the quantity of oil lifted by Jubilee Oil Holding Limited so far, he said: “We have lifted in total $153 million.”
“Jubilee Oil Holding Limited is a 100 per cent subsidiary of the GNPC and we believe it is a company registered under the Companies Act and obviously the terms and conditions, as well as the constitution of Jubilee Oil Holding Limited, are governed by that act, not the Petroleum Revenue Management Act.
“For that reason, 100 per cent of that revenue cannot be paid into the Petroleum Holding Fund. Jubilee Oil Holding Limited must operate, and if at the end of the day it declares profit and the directors decide dividends must be paid, that money is paid to the GNPC, which will pay it into the Petroleum Holding Fund,” Mr Dadzie said.
Finance Minister not wrong
Responding to a question on which of the allegations related to the Finance Minister, he said: “As far as Jubilee Oil Holding Limited is concerned, the Finance Minister is not responsible for the revenues.”
“Obviously, we have to, at the end of the day, submit our financials and pay whatever asset tax there is to the GRA. In 2021, Jubilee Oil Holding Limited paid GH¢17 million to the GRA as tax on its operations.
“So, as far as revenue is concerned, I do not think the Finance Minister has any direct control over revenue,” he declared.
Asked if the $100 million was paid into an offshore account, Mr Dadzie said: “Yes, it was paid into an account at the Ghana International Bank in London by the buyers of the crude.”
Source: graphic.com.gh
U.S., Japan And Partners Mobilise $20 Billion To Move Indonesia Away From Coal
A coalition of countries will mobilise $20 billion of public and private finance to help Indonesia shut coal power plants and bring forward the sector’s peak emissions date by seven years to 2030, the United States, Japan and partners have said.
The Indonesia Just Energy Transition Partnership (JETP), more than a year in the making, “is probably the single largest climate finance transaction or partnership ever”, a U.S. Treasury official told reporters.
The Indonesia JETP is based on last year’s $8.5 billion initiative to help South Africa more quickly decarbonise its power sector that was launched at the COP26 climate summit in Glasgow by the United States, Britain and European Union.
To access the programme’s $20 billion worth of grants and concessional loans over a three- to five-year period, Indonesia has committed to capping power sector emissions at 290 million tonnes by 2030, with a peak that year. The public and private sectors have pledged about half of the funds each.
Indonesia has also set a goal to reach net-zero emissions in its power sector by 2050, a decade before its current target in its national climate plan, and to double the pace of renewable energy deployment so that it accounts for at least 34% of all power generation by 2030.
“We’ve built a platform for cooperation that can truly transform Indonesia’s power sector from coal to renewables and support significant economic growth,” U.S. Special Envoy on Climate Change John Kerry said.
The Treasury official said peak power emissions for Indonesia in 2030 under the plan would be at a level 25% lower than their currently estimated peak in 2037. Indonesia’s annual emissions reduction over those years would be larger than Britain’s annual power sector emissions, the official said.
The plan will eliminate 300 million tonnes of greenhouse gas emissions through 2030 and a reduction of well over 2 billion tonnes through 2060, the partners said in their statement.
“Indonesia is committed to using our energy transition to achieve a green economy and drive sustainable development,” President Joko Widodo said in a statement. “This partnership will generate valuable lessons for the global community.”
The United States and Japan are co-leading the effort with Indonesia on behalf of the other G7 democracies Britain, Canada, France, Germany, Italy, as well as partners Norway, Denmark and the European Union.
Multilateral development banks and the Climate Investment Funds will account for about a third of the $10 billion in public funding for Indonesia’s JETP, CIF head Mafalda Duarte told reporters. CIF has allocated about $500 million to aid Indonesia’s energy transition.
“There is a recognition that this is the first move, a first package of support, and that more will be needed,” Duarte said when asked about the adequacy of the JETP funding.
On Monday, Japan announced it would help Indonesia transition away from coal power through public and private institutions, including the state-affiliated Japan Bank for International Cooperation (JBIC).
Indonesia, the Asian Development Bank (ADB) and a private power producer on Monday announced plans to refinance and prematurely retire a 660-megawatt coal-fired power plant in West Java province, the first such deal under the ADB’s new carbon emissions reduction financing programme.
U.S. Treasury and State Department officials said half of the $20 billion would come from the private sector, with seven global banks participating: Bank of America (BA.N) Citigroup Deutsche Bank (DBKGn.DE), HSBC (HSBA.L), Standard Chartered (STAN.L), Macquarie (MQG.AX) and MUFG.
The U.S. officials said public finance would include concessional lending and equity, as well as some grants.
The United States will work with Indonesia to map out a 90-day plan to set up a secretariat to run the initiative and for Indonesia to reform its policies, such as streamlining permitting and setting up a competitive procurement process to make the targets achievable.
South Africa this month said the scale of funding it requires to phase out its coal was much higher than the funding mobilized through its JETP mechanism.
The State Department official said it had learned some lessons and had engaged local partners from the outset to “move as fast as possible”.
Source: Reuters
Ghana: Fuel Prices Drop Across Filling Stations
Oil marketing companies in the Republic of Ghana have reduced the prices of fuel at the pumps across the West African nation, energynewsafrica.com can confirm.
Diesel (gasoil) price has been reduced by almost Gh¢3 per litre while petrol (gasoline) went down by, at least, Gh¢1.17 per litre.
Many consumers have described the reduction as good while others think the reduction should have been much bigger.
Prices of diesel and petrol shot up during the second pricing window in October and November 1, with diesel selling at Gh¢23.49 per litre while petrol sold at Gh¢17.99 per litre.
The increment in fuel prices, which was caused by the continuous depreciation of the Ghanaian cedi against major international currencies, triggered hikes in transport fares, with some drivers taking advantage of the situation to charge exorbitant fares.
On Tuesday, 15th November 2022, the leading oil marketing company, GOIL, took the lead to reduce its pump prices.
A litre of petrol is now sold at Gh¢16.82 down from the previous window price of Gh17.99 while diesel is sold at Gh¢20.49.
Shell and TotalEnergies, both major competitors of GOIL, sold at the same price for both petrol and diesel during the first pricing window with GOIL, but have also reviewed their pump prices with Shell selling at the same price GOIL is selling for both petrol and diesel.
TotalEnergies adjusted its diesel price to Gh¢20.99 per litre and petrol Gh¢16.99 per litre.
Engen, Star Oil, Petrosol and many other OMCs have also reviewed their pump prices downward.
Petrosol is selling diesel at Gh¢20.44 per litre while petrol is being sold at Gh¢16.82 per litre.
Engen is selling diesel at Gh¢20.50 per litre while petrol is sold at Gh¢16.80 per litre.
Star Oil is selling petrol at Gh¢16.59 per litre while diesel is sold at Gh¢20.29 per litre.
Meanwhile, Alinco oil is selling petrol at Gh¢16.60 while diesel is being sold at Gh¢19.79
Source: https://energynewsafrica.com
Ghana: Ex-Deputy Energy Minister Shocks Ghanaians
A former Deputy Minister for Energy and the incumbent Member of Parliament for Adansi-Asokwa in the Ashanti Region, Kobina Tahir Hammond shocked Ghanaians on Tuesday when he revealed that he does not know the cost of fuel because he doesn’t have a car.
“I don’t buy fuel. I don’t have a car, so I don’t buy fuel,” the former Deputy Energy Minister said during the proceedings of an ad-hoc committee hearing the motion of censure against Ken Ofori-Atta, Ghana’s Minister for Finance.
Many Ghanaians have been wondering whether the MP rides a bicycle to Parliament for his parliamentary duties or has other means of transportation to the House.
Fuel prices have been soaring on the local market due to the depreciation of the Ghanaian cedi.
However, on Wednesday, 16th November 2022, oil marketing companies adjusted their pump prices due to a decline in crude oil prices on the world market, as well as gains made by the Ghanaian currency over the past few days.
Source: https://energynewsafrica.com
Angola Looks To Solar And Wind To Diversify Its Energy Matrix
The Vice President of Angola has reiterated the country’s commitment to diversifying its energy matrix by adding solar and wind energy to the mix.
Her. Excellency Esperança da Costa said government has intensified its commitment to the use of solar and wind energy in order to diversify the energy matrix aimed at reducing greenhouse gas emissions by 2030.
Esperança da Costa said the commitment falls within the scope of the use of the country’s water resource to produce green hydrogen generated by renewable or low-carbon energy.
Addressing a ceremony to launch the digital green industry corridor, as part of COP27 underway in Sharm El-Sheikh, Egypt, the Vice President said that the diversification of the energy matrix in Angola is in line with the commitments made at Glasgow, on climate change.
The Vice President stressed the country’s commitment to the implementation of environmentally-friendly industrial parks, through the territorial planning of areas to ensure the continued growth of these types of projects.
As for the African countries, Esperança da Costa reiterated their commitment to increase their energy matrix to 70% of clean energy.
She highlighted the continent’s effort toward socio-economic and industrial development goals, which calls for accelerated progress.
She said that this was an accelerated progress toward expanding energy capacity and creation of jobs for young people, having warned of the need to invest in clean energy sources.
The official also noted that the investment must be complemented with rapid absorption of natural gas, as a clean transition fuel.
The Vice President also pointed to several challenges that restrict the processing role of gas in Africa.
She defended the expansion of gas infrastructure, the development of sound energy plans and competitive gas markets.
Esperança da Costa considered it necessary to create initiatives to mobilise investments and financing for the private sector and promote the regional integration of natural gas markets.
As for the launch of the digital green industry corridor, she said it was an initiative promoted by the African Union to favour the adaptation of smart technologies by operators in Africa and create green jobs in urban corridors, for the continent’s youth.
Source: Esi-Africa.com
Nuclear Technology Could Help Africa Adapt To Climate Change
The International Atomic Energy Agency (IAEA) released a report that shows how nuclear technology supports climate change adaptation in Africa.
At this year’s United Nations Climate Change Conference (COP27) in Egypt, the IAEA released a comprehensive report on Nuclear Technologies and Climate Adaptation in Africa, describing how these technologies are already widely used to build resilience on the continent.
Africa has contributed very little to greenhouse gas (GHG) emissions, yet key sectors are already experiencing the damaging consequences of climate change. The United Nations has observed that increased temperatures or drought have sharply reduced agricultural productivity growth in Africa in the past six decades and caused regional economic losses of $70 billion in the past 50 years.
“In nuclear science and its applications, we have the tools to adapt to climate change conditions,” said IAEA Director General Rafael Mariano Grossi.
“The IAEA is at the centre of global efforts to make sure no one is left behind when it comes to benefiting from these indispensable assets.”
Over the past ten years, the IAEA has carried out almost 50% of its climate change adaptation projects in Africa, more than in any other continent, aimed at increasing resilience and reducing vulnerabilities in multiple sectors. This includes land use management, soil erosion, climate-smart agriculture, food production systems, and improved crop varieties, analysis of GHG emissions, water resource management, coastal protection and ocean change monitoring. The report describes various areas of intervention, supported by case studies offering concrete examples of how nuclear science and technology have benefitted Africa.
The report highlights projects supporting African countries in cultivating and exporting food, including growing drought-tolerant crops and applying the sterile insect technique (SIT) to eradicate insect populations, such as tsetse flies, fruit flies and mosquitoes, that harm both human health and economies.
The projects have also strengthened Africa’s capacity to collect and analyse data on the quality of water in river basins and the ocean, allowing policymakers to put measures in place for better resource management, including water security in the Sahel and adapting to ocean acidification in coastal areas, which aims to protect the African fishing industry, and thus prevent environmental and social crises.
The report emphasises the importance of partnerships in up scaling such projects.
COP27 is an opportunity to forge and strengthen partnerships, and to raise awareness in decision-making bodies, development organisations and financial institutions of the potential of nuclear science and technology to feature in national strategies, plans and programmes, including agri-food strategies and disaster risk reduction planning.
Two Tullow Oil Plc Board Members Visit Ghana
Two of Tullow Oil Plc’s Board Members, Mr. Martin Greenslade and Mr. Mitchell Ingram paid a four-day working visit to Ghana from 8th to 11th November 2022.
The visit comes on the back of the Group’s renewed focus to prioritise investments in its producing assets in the West African.
The visiting Board Members, together with the leadership of Tullow Ghana, paid a courtesy call on the Vice President of Ghana, H.E. Dr Mahamudu Bawumia.
The Board Members reaffirmed the importance of the Ghana asset to the Group’s portfolio, and the Group’s commitment to continue investing in the Ghana operations.
The Board Members assured the Vice President of the Group’s resolve to continue supporting the delivery of the Ghana Value Maximisation Plan, which is in its second year.
The Tullow delegation provided an update on the progress of the plan which has since 2021, delivered eight (8) new wells across the Jubilee and TEN fields.
The investment by Tullow and its partners will continue to be delivered under the 10-year plan.
The two officials also reiterated the Group’s commitment to achieving its 2030 Net Zero plans.
The Vice President, H.E. Dr Bawumia acknowledged Tullow’s continued investment and expansion of its operations in Ghana, and recognised Tullow for its contribution to economic development by these efforts at a time of challenging global energy crisis.
He assured the visiting officials, of government’s commitment to protecting investments into the country.
The Vice President further mentioned that government will be keenly looking forward to the realisation of Tullow’s investment decisions on ongoing projects including the execution of post-foundation commercial gas agreements, exploration interests and other projects being considered by Tullow and its partners in Ghana.
Messrs. Greenslade and Ingram also paid a courtesy call on the British High Commissioner to Ghana, H.E. Harriet Thompson during which they shared the planned investments for the realisation of Tullow’s Net Zero plans.
Under Tullow Oil Plc’s renewed focus, the Group plans to invest its capital principally in the large resources underpinning its producing assets, with a goal to pursue cost discipline, responsible and safe operations, and efficient production.
In 2021, Tullow Oil and the Jubilee and TEN Partners announced the ‘Ghana Value Maximisation Plan’ which is an over $4 billion, 10-year investment plan, to unlock significant value in the Jubilee and TEN Fields, through a multi-year, multi-well drilling campaign and expansion projects.
Under the plan, 50 new wells are estimated to be delivered in the Jubilee and TEN fields, over the 10-year period, with expansion works in the Jubilee North-East and South-East areas of the field.
Cumulatively, the plan is expected to deliver over $10 billion worth of value to the government of Ghana at maturation.
As part of the country visit, the Board Members visited the FPSO Kwame Nkrumah in the Jubilee Field and the Noble Venturer, which is currently conducting drilling activities, to get a first-hand appreciation of the transformation of operations on the Jubilee asset and the ongoing investment in the drilling programme.
The offshore visit provided real time updates on the performance of the Ghana Value Maximisation Plan to the visiting Board Members. While in Takoradi, the two officials were pleased to see some of Tullow Ghana’s local content development and socio-economic investment activities.
They took a tour of Orsam Oil and Gas Limited, an indigenous company and one of Tullow Ghana’s sub-contractors supporting the Jubilee South-East Expansion Project with the design, fabrication, and assembly of offshore equipment. Currently, more than 1000 tonnes of steel are being fabricated in Ghana.
These include the fabrication of manifolds, suction piles, rigid jumpers, and umbilical termination assembly (UTAs) at the Orsam yard, for the Jubilee South-East Project. Significant progress has been made on the Jubilee South-East project with installations scheduled to be completed by the first half of 2023.
The JSE project, once online in the first year, is expected to bump up average daily oil production rates to c.100,000 bbl./d in the Jubilee field. The JSE project is an expansion of development of the Jubilee field being undertaken by the Jubilee Partners.
The Board Members also visited Tullow Ghana’s socio-economic investment projects including the ongoing Free SHS project at Bompeh Senior High School, and the Early Childhood Education Project at Nkotompo, both in the Sekondi-Takoradi Metropolitan area.
Source: https://energynewsafrica.com
Under Tullow Oil Plc’s renewed focus, the Group plans to invest its capital principally in the large resources underpinning its producing assets, with a goal to pursue cost discipline, responsible and safe operations, and efficient production.
In 2021, Tullow Oil and the Jubilee and TEN Partners announced the ‘Ghana Value Maximisation Plan’ which is an over $4 billion, 10-year investment plan, to unlock significant value in the Jubilee and TEN Fields, through a multi-year, multi-well drilling campaign and expansion projects.
Under the plan, 50 new wells are estimated to be delivered in the Jubilee and TEN fields, over the 10-year period, with expansion works in the Jubilee North-East and South-East areas of the field.
Cumulatively, the plan is expected to deliver over $10 billion worth of value to the government of Ghana at maturation.
As part of the country visit, the Board Members visited the FPSO Kwame Nkrumah in the Jubilee Field and the Noble Venturer, which is currently conducting drilling activities, to get a first-hand appreciation of the transformation of operations on the Jubilee asset and the ongoing investment in the drilling programme.
The offshore visit provided real time updates on the performance of the Ghana Value Maximisation Plan to the visiting Board Members. While in Takoradi, the two officials were pleased to see some of Tullow Ghana’s local content development and socio-economic investment activities.
They took a tour of Orsam Oil and Gas Limited, an indigenous company and one of Tullow Ghana’s sub-contractors supporting the Jubilee South-East Expansion Project with the design, fabrication, and assembly of offshore equipment. Currently, more than 1000 tonnes of steel are being fabricated in Ghana.
These include the fabrication of manifolds, suction piles, rigid jumpers, and umbilical termination assembly (UTAs) at the Orsam yard, for the Jubilee South-East Project. Significant progress has been made on the Jubilee South-East project with installations scheduled to be completed by the first half of 2023.
The JSE project, once online in the first year, is expected to bump up average daily oil production rates to c.100,000 bbl./d in the Jubilee field. The JSE project is an expansion of development of the Jubilee field being undertaken by the Jubilee Partners.
The Board Members also visited Tullow Ghana’s socio-economic investment projects including the ongoing Free SHS project at Bompeh Senior High School, and the Early Childhood Education Project at Nkotompo, both in the Sekondi-Takoradi Metropolitan area.
Source: https://energynewsafrica.com
Oil Will Still Be Major Primary Energy In 2050 And Beyond—OPEC Boss
Despite the push by climate change campaigners to ensure that the oil and gas sector is starved with investment and instead shift investment into renewable sources of energy, oil and gas will still be the major source of primary energy, OPEC General- Secretary Haitham Al Ghais has said.
“OPEC has a role to play in supplying the world with oil. We believe oil remains a major primary source of energy in 2050 and beyond, and we are yet to see anybody who will show us the science and data to contradict us,” he said during the recent African Energy Week 2022 in Cape Town, South Africa.
As a result of the push for the transition from fossil fuels to renewable energy, investment in new oil and gas projects declined in 2020 and 2021 with multinational oil companies diversifying their investment portfolios into renewable energy sources including wind and solar.
Interestingly, according to a report by fdiintelligence.com, between January and August 2022, foreign investors announced 15 greenfield oil and gas extraction projects worth $42bn, which is equivalent to the total capital expenditure (capex) in the previous four full-year periods combined.
That is also more than seven times higher than the $5.4bn of Capex committed in 2021.
At this rate, FDI into oil and gas extraction in 2022 is set to reach its highest level since 2009, when $87bn worth of projects was announced.
This rise in capital pledges follows years of underinvestment in oil and gas as the companies have pushed towards decarbonisation and renewables.
Source: https://energynewsafrica.com
Russian Oil Output To Fall By 1.4 Million Bpd Next Year As EU Ban Takes Effect – IEA
Russian oil output is set to fall by 1.4 million barrels per day (bpd) next year after a European Union ban on seaborne exports of Russian crude comes into effect, the International Energy Agency has said.
The move to deprive Moscow of revenue will create more uncertainty for oil markets and add to pressure on prices, including diesel, the Paris-based energy agency said in its monthly oil report.
“The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets,” the IEA said.
“A proposed oil price cap may help alleviate tensions, yet a myriad of uncertainties and logistical challenges remain … the range of uncertainty has never been so large.”
The EU will ban Russian crude imports from Dec. 5 and Russian oil products from Feb. 5, depriving Russia of oil revenues and forcing one of the world’s top oil producers and exporters to seek alternative markets.
In addition, a G7 plan, intended as an add-on to the EU embargo, will allow shipping services providers to help to export Russian oil, but only at enforced low prices. This is also set to take effect on Dec. 5.
This means the EU will need to replace 1 million bpd of crude and 1.1 million bpd of oil products, with diesel especially scarce and expensive with prices 70% higher than this time last year helping to fuel global inflation, the IEA said.
The agency said a rerouting of global trade flows as Russia seeks to export more oil to non-EU markets and as the EU buys from elsewhere could ease this pressure on oil and products supply, but strong demand for scarce oil tankers could pose challenges.
“The competition for non-Russian diesel barrels will be fierce, with EU countries having to bid cargoes from the US, Middle East and India away from their traditional buyers,” the IEA said.
The IEA forecast that a gloomy economic outlook will put global oil use on track to contract by nearly a quarter million bpd in the fourth quarter of 2022 year on year, with demand growth slowing to 1.6 million bpd in 2023 from 2.1 million bpd this year.
The weak Chinese economy, an energy crunch in Europe and a strong dollar were all weighing on consumption, the IEA said. But the agency did increase slightly its forecast for Chinese demand growth for next year by 100,000 bpd to 15.7 million bpd.
Source: Reuters
Germany’s Gas Storage Levels Hit 100% Capacity
Germany’s gas storage facilities are now at full capacity as the country prepares for a winter of disrupted supplies.
Russia has slashed exports to Europe, forcing Berlin to look for other sources.
Data published on Tuesday by the European gas storage association GIE showed that natural gas storage facilities in Germany have now reached 100% capacity.
Europe’s largest economy has been building its reserves after Russia cut deliveries in the wake of its invasion of Ukraine.
Full storage tanks could prove a helpful buffer to ensure supplies for businesses and consumers over the winter months.
The country met its gas-saving targets ahead of schedule, having reached a 95% target set for November by mid-October.
“The total storage level in Germany stands at 100%,” said the Federal Network Agency, Germany’s energy regulator.
The storage milestone was reached on the same day that Germany opened a new quay dedicated to the import of liquefied natural gas (LNG) by sea as an alternative to piped Russian supplies. Five such terminals are planned in total.
President of the Federal Network Agency Klaus Müller said that the events together represented a “double success.”
“We now need this momentum for the expansion of renewable energies and their grids,” Müller said.
The success of Germany’s gas-saving effort was bolstered in part by Berlin’s efforts to source alternative supplies. These have included LNG imports from producers such as Norway and the United States.
Businesses and private consumers have also adapted, heeding calls to reduce consumption. That was in part made possible by mild autumn weather that meant there was less need for heating than might otherwise have been expected.
The drive to avoid an energy crunch has also included temporarily reactivating old oil- and coal-fired power stations,and extending the life spans of Germany’s last three nuclear power plants.
Source:dw.com
Ghana: GOIL Reduces Petrol, Diesel Prices Significantly
Ghana’s leading indigenous Oil Marketing Company, GOIL, has announced a reduction in the pump prices of both types of gasoline (petrol) and gasoil (diesel) at all its retail outlets across the West African nation.
A litre of petrol is now selling at Gh16.82 while diesel is selling at Gh20.50 per litre.
Previously, a litre of petrol sold at Gh17.99 while diesel was selling at Gh¢23.49 per litre.
This means that a litre of petrol has been reduced by Gh¢1.17 while diesel saw a reduction of Gh¢2.99 per litre.
Fuel prices are reviewed every two weeks in the Republic of Ghana, unlike some countries in West Africa where it is done monthly.
The second pricing window ends today, Tuesday, November 15, 2022, and prices of fuel are expected to be reviewed by the oil marketing companies.
It is not yet clear what occasioned the reduction but energynewsafrica.com can report that the depreciation of the Ghanaian cedi against the major international currencies like dollars has been slowed over the last few days.
Crude oil prices on the international market have also been hovering below $100 per barrel.
As of Tuesday morning, Brent was trading at $92.78 while WTI was trading at $85.26.
Many consumers have been lamenting over the rising cost of fuel in Ghana and the reduction in fuel prices will come as good news to them.
NEW FUEL PRICES EFFECTIVE TUESDAY 15TH NOVEMBER 2022
Super XP RON 95—Ghc 16.82
Diesel XP—Ghc 20.50
Kindly note that prices have decreased for SUPER XP RON 95 from Gh¢17.99 to Gh¢16.82 and decrease from Gh¢ 23.49 to 20.50 for DIESEL XP.
Thank you.
# GOIL
#GOODENERGY
Egypt: Ghana Is Strongly Supporting Clean Cooking—Energy Minister
Ghana’s Minister for Energy, Dr Matthew Opoku Prempeh, has reaffirmed the country’s strong commitment to promoting clean cooking anchored on its 2030 agenda of 50 per cent of its population having access to Liquefied Petroleum Gas (LPG).
Dr. Prempeh was speaking at the Kingdom of Saudi Arabia’s Clean Fuels Solutions for Cooking Event, which was part of the 2nd Middle East Green Initiative on the margins of the ongoing COP27 at Sharm El Sheikh in Egypt.
The event was under the patronage of His Royal Highness Mohammed Bin Salman, Crown Prince of the Kingdom of Saudi Arabia.
The Minister said Ghana’s strategy for clean cooking is to improve the efficiency of cooking fuel production, transportation to markets, value addition and promotion of efficient end-user technologies.
He said by the end of 2030, Ghana would reduce the use of firewood and charcoal for cooking to below 30 per cent which would improve its overall carbon footprint.
He added that the country would also increase access to LPG for household use to 50 per cent from the current 36.9 per cent and provide LPG for commercial catering, particularly in schools and other government institutions.
Dr. Opoku Prempeh said as the demand for clean cooking solutions is growing, there is a need to turn attention to the efficient exploitation of the natural resources that are required for the clean cooking ecosystem.
“We need effective coordination and transparent accounting systems to unlock the enormous carbon financing opportunities and drive investment into the clean cooking sector,” he said.
The current disruption in the global supply chain due to COVID-19 and other geopolitical challenges, according to the Minister, makes it imperative to bring clean cooking interventions closer to markets.
He, therefore, called for the need to develop local capacity along the entire value chain to support the catalytic growth of the clean cooking industry globally.
“Ghana is building capacity through several technical cooperations including the GIZ-TVET, the Senior High Schools Renewable Energy Challenge which has triggered interest in research and development and innovation in renewable energy and clean cooking solutions for the Ghanaian market and beyond. With support from the World Bank, Ghana is developing the National Clean Cooking Strategy and Investment Prospectus to provide the framework for the promotion and development of the industry,” he said.
He continued, “Ghana, with support from the World Bank, successfully launched the result-based National LPG Promotion Programme on September 6, 2022.
“The objective of the programme is to provide government interventions that would accelerate the switch from unclean fuels to LPG in a bid to achieve the goal of 50 per cent access by 2030.
“The government will distribute about two million LPG stoves and install LPG cooking systems in institutions that cook on a large scale under this programme. These interventions complementing the Cylinder Recirculation Model will enable Ghana to reach its targets aforementioned.”
Dr. Prempeh indicated Ghana’s readiness for cooperation and partnerships to scale up Ghana’s National LPG Promotion and Improved Cookstoves Promotion Programmes.
Dignitaries at this function included Dr Baomintsvotse Vahinals, Chief of Staff at the Office of the President of Madagascar, H.E. Ibrahim Yacoubou, Minister for Energy and Renewable Energy of Niger, H.E Sophie Gladima, Minister for Energy and Petroleum of Senegal and a host of other dignitaries on the African continent.
Source: https://energynewsafrica.com
Ghana: ECG Suffers Another Sabotage In Krobo Area
It appears the attack on the power installations of the Electricity Company of Ghana (ECG) in the Krobo enclave in the Eastern Region is not ending anything time soon.
Last Friday, the power distribution company detected that some unidentified persons had deliberately cut one of its high-tension poles at Adelakope in the Yilo Krobo Municipality close to Asutsuare junction on the Tema—Akosombo highway.
The assailants used chainsaw to cut the pole at the base, thereby, weakening it.
Luckily, the pole didn’t collapse, and ECG engineers replaced it on Saturday, 12th November 2022.
This is the second time some unidentified persons had used chainsaw to cut a high-tension pole in the same area.
In August, this year one of the high-tension poles at the same area was sawn into two.
It was at the time when residents in both Manya and Yilo Krobo were protesting the installation of prepayment meters.
Speaking to energynewsafrica.com, the Public Relations Officer for Tema Regional ECG, Madam Sakyiwa Mensah appealed to those behind these criminal acts to desist, warning that they could be prosecuted if arrested.
She added that such unfortunate act leads to disruption in power supply to customers and also poses danger to themselves and users of the areas where these acts are committed.
Source: https://energynewsafrica.com
Luckily, the pole didn’t collapse, and ECG engineers replaced it on Saturday, 12th November 2022.
This is the second time some unidentified persons had used chainsaw to cut a high-tension pole in the same area.
In August, this year one of the high-tension poles at the same area was sawn into two.
It was at the time when residents in both Manya and Yilo Krobo were protesting the installation of prepayment meters.
Speaking to energynewsafrica.com, the Public Relations Officer for Tema Regional ECG, Madam Sakyiwa Mensah appealed to those behind these criminal acts to desist, warning that they could be prosecuted if arrested.
She added that such unfortunate act leads to disruption in power supply to customers and also poses danger to themselves and users of the areas where these acts are committed.
Source: https://energynewsafrica.com