Ghana: BOST Margin Won’t Be Scrapped- Energy Minister

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Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh says the government will not scrap the BOST Margin of nine pesewas on every litre of petroleum products, ostensibly saying the call for its scrapping is unreasonable. Bulk Oil Storage and Transportation (BOST) Company Limited is a strategic fuel stock-keeping company. The BOST Margin was introduced in 2011 on the price build-up to cover the maintenance and expansion of fuel infrastructure. Some civil society groups and individuals, in recent times, have demanded that it be scrapped because it is no longer relevant. But the Managing Director of the company, Edwin Nii Obodai Provencal insists the Margin is still useful because the company is utilising it effectively. Speaking at the Annual General Meeting of BOST on Wednesday, Dr Opoku Prempeh indicated that the introduction and subsequent increase in the Margin to six pesewas have increased revenue for BOST by about 80 per cent in 2021. “I can promise you that the BOST margin on the price build-up for petroleum products is not going to be taken out anytime soon. We will use the fund efficiently and effectively to protect the citizens against private sector interests which are always about profits for their businesses. “The margin will be accounted for and serve the people of Ghana to ensure that petroleum products are available in the country in case of any uncertainty,” he said. Board Chairman of BOST, Ekow Hackman told the board that the company has experienced massive transformation and is on the path to declaring dividends soon. “Passion, performance and excellence remain at the heart of our business to ensure that we fulfill our mandate as a company and deliver value to the shareholder” he noted.       Source: https://energynewsafrica.com

Ghana: NPA Shut Down Three Filling Stations In Sunyani For Cheating Consumers

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Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has locked three filling stations in Sunyani in the Bono Region for cheating consumers by dispensing fuel less than the quantity they pay for. A statement issued by NPA named Frimps oil station at Penkwase, the GOIL station near Eusbett hotel and Engen, all in the Sunyani Township as the culprits. In the case of Frimps, all seven dispensing units functioning at the time of the visit were under-delivering whilst Goil and Engen had two and four of their nozzles under-delivering respectfully. However, the NPA team observed that some of the nozzles at these filling stations were dispensing petroleum products more than what the consumer had paid for. The random exercise was undertaken after the team, led by Kwadwo Odarno Appiah, and Eunice Budu Nyarko, Bono Regional Manager and Consumer Services Manager respectively, sensitised commercial drivers and traders at the Nana Bosoma market, popularly known as the Wednesday market, in the Sunyani Municipal area of the Bono Region. The Bono Regional Manager emphasised that the Authority would continuously monitor the operations of fuel stations to ensure consumers have value for money and that the products sold are of good quality. He said the defaulting fuel stations are going to be sanctioned. “The Authority will require a report on investigations carried out by the stations as to what caused the anomalies of the nozzles,” he noted. He further cautioned fuel stations, after seizing two ramps, to desist from the practice of using ramps and shaking vehicles during filling, adding that, it is an unsafe practice which can cause unwarranted sparks and fire. “The NPA will not hesitate to lock temporarily stations caught using ramps,” he hinted. Donate To Support Independent Journalism In these perilous times, a truth-seeking portal like the Energy News Africa is essential. We have no shareholders or billionaire owner, meaning our journalism is free from commercial and political influence – this makes us different.  Support energynewsafrica.com with any amount by donating to the account below.  Thank you.  GT Bank Account Number: 208126002110 Account Name Energy News Africa Ltd. Or Contact +233243782655   Email:[email protected]     Source: https://energynewsafrica.com          

Ghana: Energy Minister Commends BOST For Making Progress

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Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh, has expressed his delight in Bulk Oil Storage and Transportation Company’s achievement in the 2021 financial year. According to the Minister, the company’s pre-tax profit of One Hundred and Sixty-Four Million Cedis (Gh¢160 million) for the 2021 financial year from a previous figure of Two Million Ghana Cedis (Gh¢2 million) is a remarkable achievement. “This is also happening at a time when the company is making assiduous efforts at extricating itself from a quagmire of protracted debts,” he said. This, he said, was a testament that, with the right leadership and set of attitudes, State Owned Enterprises (SOEs) can grow to feed the government with the revenue required for its progress as a people. He urged the Ministry responsible for Public Enterprises and the State Interests and Governance Authority (SIGA) to leave no stone unturned in encouraging SOEs to deliver on their mandate, helping the government to make the lives of the people better, using the BOST story as a perfect blueprint. The Minister was confident that if BOST sustained the current momentum, more successes would be chalked for the overall benefit of the citizens of our country. “This is crucial, especially as the government works to ensure that BOST is resourced to fulfill its mandate of ensuring the nation’s fuel security,” Dr Prempeh noted. Donate To Support Independent Journalism In these perilous times, a truth-seeking portal like the Energy News Africa is essential. We have no shareholders or billionaire owner, meaning our journalism is free from commercial and political influence – this makes us different.  Support energynewsafrica.com with any amount by donating to the account below.  Thank you  GT Bank Account Number: 208126002110 Account Name Energy News Africa Ltd. Or Contact +233243782655 Email:[email protected]   Source: https://energynewsafrica.com

Ghana: UNDP Resident Representative Tours BPA’s Hydro Generation Station And Solar Projects

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The United Nations Development Programme (UNDP) Resident Representative in the Republic of Ghana, Dr Angela Lusigi, has visited the Bui Power Authority’s Generation Station located within the Bui Enclave in the Savannah and Bono Regions. She was accompanied by the Communication Officer of UNDP, Praise Nutakor, National Coordinator of Global Environmental Facility (GEF), Dr George Austin and two other UNDP staff. She visited the hydro generation station where she was conducted around the plant by Benjamin Awuku of the Electrical Maintenance Department. Dr Lusigi and her entourage also visited the solar PV Power Plant station which is currently generating a 50MW peak onto the national grid and the 1MW floating solar on the Bui reservoir. The Authority is constructing a 250MW peak and also intends to scale up the floating solar to 5MW. The Director of Renewable at the BPA, Wisdom Ahiataku-Togobo, and his team also took Dr Lugusi and her entourage around the solar plant and later had closed-door discussions. Speaking to the press, Dr Angela Lusigi said she was impressed with the level of progress made by the Bui Power Authority in terms of power generation and also initiatives aimed at combating climate change and improving the livelihoods of settlers in the area. She mentioned that UNDP and BPA have been working together, stating that based on that collaboration, UNDP supported BPA during the construction of the hydropower project as well as the Tsatsadu Mini Hydro Generation Station at Alavanyo Abehenease in the Hohoe Constituency in the Volta Region. She said her outfit would continue to deepen the collaboration between them and the BPA. “There are tremendous opportunities to grow renewable energy in Ghana. And definitely what I have seen on the ground shows that there is a diversity of options right from hydro to the solar plant. It’s just amazing to see the installation of the first floating solar on the water,” she said. She also commended the Authority for its re-afforestation project, saying, “Not only are we looking at energy generation but are also looking at helping the community maintain the resources that are necessary for us to continue to enjoy benefits.” The Director for Renewable Energy, Wisdom Ahiataku-Togobo who spoke on behalf of the CEO Hon. Samuel Kofi Dzamesi noted that BPA is committed to the deployment of renewable and clean energy systems to help in combating climate change and reduce CO2 emissions in the energy sector.
Wisdom Ahiataku-Togobo, Director for Renewable Energy at Bui Power Authority
He said apart from deploying clean and renewable energy systems, the Authority is also building a good carbon sink by undertaking massive tree planting activities on all degraded lands in the enclave.
Dr Angela Lusigi and her entourage viewing the floating solar on the Bui Reservoir
Donate To Support Independent Journalism In these perilous times, a truth-seeking portal like the Energy News Africa is essential. We have no shareholders or billionaire owner, meaning our journalism is free from commercial and political influence – this makes us different.  Support energynewsafrica.com with any amount by donating to the account below.  Thank you  GT Bank Account Number: 208126002110  Account Name Energy News Africa Ltd. Or Contact +233243782655 Email:[email protected]     Source: https://energynewsafrica.com  

Global Oil Production Rose By 790,000 Bpd In August-Says IEA

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Saudi Arabia and the United Arab Emirates as part of the OPEC+ pact led to a 790,000-barrel-per-day rise in global oil production in August, the International Energy Agency (IEA) said in its closely-watched Oil Market Report on Wednesday.   Production gains were partially offset by losses in OPEC member Nigeria—the biggest laggard in the OPEC+ deal – as well as lower output in the non-OPEC members of the OPEC+ alliance, Kazakhstan and Russia, the IEA said.  Growth in production is expected to slow toward the end of this year, edging up by just 280,000 bpd from August through December to 101.6 million bpd. Global oil production is forecast to rise by 4.8 million bpd this year, to an average of 100.1 million bpd. Next year, production is expected to grow by 1.7 million bpd to 101.8 million bpd, the IEA said.  In August, Libya’s oil production rebounded to 1.211 million bpd, according to the country’s National Oil Corporation (NOC)—a level last seen before the port blockades that began this spring. Libya’s oil production has been recovering ever since the blockade was lifted in the middle of July.  At the other end of the supply spectrum, crude oil exports out of Nigeria plunged to below 1 million bpd, their lowest level on record, last month, oil export analytics firm Petro-Logistics said earlier this week.  The monthly report from the Paris-based agency showed still very resilient Russian oil exports, but flagged major losses in just a few months’ time when the EU embargo on seaborne oil imports from Russia enters into full force early next year.  Russian total oil exports actually rose by 220,000 bpd in August to 7.6 million bpd, which is down by just 390,000 bpd from pre-war levels.  However, the EU embargo on Russian crude oil and product imports that comes into effect in December 2022 and February 2023, respectively, is expected to result in deeper declines as an additional 1 million bpd of products and 1.4 million bpd of crude will have to find new homes, the IEA said.  “Russian total oil production is forecast to decline to 9.5 mb/d by February 2023, a 1.9 mb/d drop compared to February 2022,” the agency said.    Source: Oilprice.com

Ghana: Bui Power Authority Goes In Commercial Sugarcane Plantation To Improve Livelihoods Of Settlers In Bui Enclave

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Ghana’s second largest state power generation company, Bui Power Authority, has taken another giant step to improve the economic well-being and livelihoods of residents within the Bui enclave in the Bono and Savannah Regions. In line with the Authority’s mandate of developing irrigation projects, and more so in championing the government’s ‘One District, One Factory (1D1F)’ industrialization agenda, the Chief Executive Officer of BPA, Samuel Kofi Dzamesi, in 2021, led the Authority to enter into a partnership with Bui Sugar Limited for the establishment of a sugarcane plantation and processing plant within the Bui Hydroelectric Project acquired lands. The partnership will lead to the cultivation of 6,940 hectares of sugarcane as raw materials for the factory. So far, the company has planted 130 hectares of sugarcane plantation out of a total of 6,940 hectares of land. Located in the Fawoman community in the Banda District of the Bono Region, the project has, so far, employed 120 workers from the neighbouring communities. It is expected that the current workforce would increase to 500 as the project progresses. The 6,940 hectares of sugarcane plantation, upon completion, would be the largest sugarcane plantation in Ghana. The processing plant is expected to process about 60,000 tons of sugar annually and will be developed into four phases which would eventually result in a total population capacity of about 100,000 metric tons annually. During his visit to the plantation site recently with some Management Team and staff of BPA, the CEO of the Authority, Samuel Kofi Dzamesi, was highly impressed with the progress of works, as in just nine months, about 130 hectares of land have been cultivated and more lands are being prepared for cultivation. He commended the developer for the zeal and commitment shown towards the project and applauded them for engaging about 120 workers (from the neighbouring communities) at this initial stage. Mr. Dzamesi assured the developer, Bui Sugar Factory, of BPA’s continuous support by creating the enabling environment for the factory and plantation to thrive. He also took the opportunity to invite other investors and businesses to set their operations within the Bui enclave to develop the area for them to make the needed returns on their investments. BPA was established by an Act of Parliament, Act 740, with the mandate to construct a dam at the Bui gorge and utilise about 184,371 hectares of land for the dam’s operations, development of irrigation projects and for development of the Bui Township.     Source: https://energynewsafrica.com

South Africa Does Need Some Gas In The Energy Mix – Just Not The Kind Gwede Mantashe Wants(Opinion)

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By: Neil Thomas Stacey & Celestin Sempuga     Of the multitude of crises facing South Africa at the moment, the energy crisis probably receives the most coverage; “load shedding” is a swear word among South Africans. Other problems, however, are more likely to be top of mind for those directly affected by them. Millions of South Africans still lack access to basic safe sanitation and, to make matters worse, it is reported that roughly half of the country’s sewerage works fail to treat sewage properly while some 40% are in critical condition. On the opposite end of the digestive tract, South Africans also face soaring food prices, driven in part by record fertiliser prices as the Ukraine conflict affects global supply. If only there were some way to turn sewage into energy and fertiliser, we could tackle all three crises in one fell swoop. Fortunately, there is. Anaerobic digestion is a process that uses micro-organisms to break down biomass to produce biogas, a mixture of methane and CO2, as a source of energy. The solid matter and dissolved minerals that are left over, referred to as digestate, are a valuable fertiliser rich in phosphate, potassium and trace minerals, while the urea content of urine supplies nitrates. Biodigestion is a well understood technology, and has been implemented all over the world at various scales. China is considered the world leader in biodigestion, producing some 15 billion m3 of biogas per year, equivalent to around 200GWh per day, which is around 40% of South Africa’s daily electricity use. The majority of this is produced in small-scale digesters, mainly household- or community-scale units. It is estimated that there are almost 50 million biodigesters operating throughout China, and no wonder; China has employed various different subsidy schemes to encourage their adoption since the 1970s and everything needed to set up a biodigester can be easily bought through Alibaba, on a reasonable budget. This widespread personal adoption illustrates the simplicity and robustness of the technology. A small biodigester does not require heavy or expensive equipment to build, nor advanced technical skills to operate. The micro-organisms that do the digestion can be supplied by simply adding some cow-dung at startup. The low-tech, low-cost nature of biodigesters makes them an excellent fit for under-resourced communities in South Africa. They are also a good match for South Africa’s energy requirements. At present, we do not lack total capacity; what we lack is peak capacity to meet surges in demand in the morning and evening, when large amounts of power are used for cooking, water-heating and household heating. These applications can all be met directly by using biogas, mitigating those surges in demand without the infrastructure requirements (and inefficiencies) of electricity generation and distribution. Biogas is produced from materials which currently break down into CO2 anyway, resulting in net zero emissions of CO2 emissions when biogas is used for energy. Biodigesters have been trialed at dozens of schools throughout South Africa, and that is an excellent use-case. In most implementations, the digestate is used on-site as fertiliser for vegetable gardens and so the projects supply sanitation as well as food and even the gas supply for cooking that food. South Africa also has an established biodigester on a much larger scale: the Bronkhorstspruit Biogas Plant has been operational since 2015, using livestock waste to provide some 4MW to BMW South Africa’s Rosslyn plant while producing around 20,000 tons of fertiliser per year. Biodigesters are a cheap, low-tech route to community self-sufficiency, provided their initial costs are covered and the necessary training to operate them is provided. China has taken the route of offering grants and subsidies since the 1970s, so that’s a proven formula that one would hope South Africa’s national government would replicate. However, biodigestion is a model for decentralisation of services and devolution of powers and revenue, and therefore politically unpopular as it takes power out of the hands of government. Different funding approaches will be needed if South Africa is to use biogas as an instrument for providing energy, sanitation and food while reducing CO2 emissions. Fortunately, good ideas don’t always need government money. Biodigestion results in multiple sources of revenue, making it a good destination for private sector investment. Biodigesters can be supplemented with household vegetable waste and even garden waste, alleviating other demands for rubbish disposal while also making sorting plastic waste easier. This suggests that rebates on municipal levies for waste disposal and sanitation would be feasible as a funding mechanism, requiring just the buy-in of local municipalities and/or metros rather than national or provincial government. South Africa also happens to have multitudes of reasonably well-funded small-to-medium communities with high population density, perfectly suited for biodigesters and the associated infrastructure. The trouble is, they just don’t think of themselves as communities. There is a tendency to assume that proposals for community-scale technologies are intended for rural schools and townships, but they are all at least equally applicable to sectional-title housing developments. In many instances they are far more applicable there, because those developments can afford to make additional capital investments that will pay back returns after several years, and it is also far easier for them to allocate full-time employees to tasks that don’t easily draw volunteers. A middle-class housing complex is a largely novel but seemingly ideal context for seamless biogas integration. Vertically-stacked apartments can easily share water-heating infrastructure and combined sewage feeds to a biodigester. Household sorting of kitchen waste is not a challenging task, so simply having a shared separate bin for residents to dispose of digestible kitchen waste is not onerous on that scale. Most complexes and housing estates are also regularly attended to by garden services that could collect plant waste for digestion with no trouble at all. In most cases, a biodigester would actually save on disposal costs. Under-resourced areas may be where biodigesters are needed most, but rolling them out to the middle-class first, to develop the business model, may prove to be the most viable strategy. Ideally, revenue from those projects could even be used to subsidise rollout elsewhere. Neil Thomas Stacey lectures on waste-water management at Wits University. Celestin Sempuga is head of the Process Synthesis Research Group at UNISA’s Florida Campus, and has been installing biodigesters at rural schools. Both authors indicated they have no conflicts of interest.    

EU Gears Up To Tax Fossil Fuel Companies Amid Energy Crisis

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The European Union is preparing to propose a plan that would force fossil fuel companies taking in windfall profits from surging oil and gas prices to submit financial contributions to offset soaring household energy bills, a draft document circulating around Brussels indicates.   The European Commission is expected to release the details of the draft proposal this week, which would then require a majority vote from the 27-member bloc.  The draft, sighted by Reuters, is also said to include bailouts for power firms that are at risk of collapse amid an intensifying energy crisis.  Funds to be required from fossil fuels companies are dubbed a “solidarity contribution” by the draft document, and would target oil, gas, coal and refining companies based on “taxable surplus profits made in the fiscal year 2022”.  “The solidarity contributions are justified by the fact that such companies make unpredictable surplus profits,” the draft said, as reported by Reuters, adding that the profits “do not correspond to any regular profit that these entities would or could have expected to obtain in normal circumstances”. Bloomberg, which has also seen the draft, reports that the document referred to financial contributions from fossil fuels companies as an “exceptional and temporary” levy.  The bill has a higher chance of gaining approval as it requires a majority vote rather than a unanimous one.  If approved, the bill would install a minimum rate for a “solidarity contribution” from fossil fuels companies, while each EU member state could increase that rate, though not decrease it.  The draft also indicates that the EU is gearing up to propose a mandatory power cut across the bloc, which is being interpreted as a move towards energy rationing as a stop-gap measure to avoid the spiraling of an energy crisis that has now been exacerbated by Russia’s cutoff of gas flows through Nord Stream 1.  The power cut targets in the draft proposal, as seen by Bloomberg, seek to cut overall consumption, as well as to lower demand during selected peak hours during weekdays.  The draft also discussed a cap on “excessive” revenue of non-fossil fuel power generating companies.   Source: Oilprice.com

Kenya: KenGen Signs Deal With Toshiba Over Geothermal Partnership

Kenya Electricity Generation Company (KenGen) has signed a partnership agreement with Japan’s Toshiba Energy Systems & Solutions Corporation (Toshiba ESS). The deal is to collaborate on exploring geothermal energy in several countries. The agreement signed on the sidelines of the 8th Tokyo International Conference on African Development (Ticad-8) provides for an operation and maintenance (O&M) services partnership for geothermal power plants in developing countries, including East African countries, “through the combination of KenGen’s and Toshiba ESS’s expertise and networks,” the two companies said in a joint statement. With 799 MWe in operation, Kenya Electricity Generating Company (KenGen) is Africa’s leading producer of geothermal energy. Although its geothermal plants are located solely in Kenya, the company is already beginning to export its expertise in developing geothermal projects in East Africa, including Djibouti and Ethiopia.      

Ghana:NPA Goes After 45 OMCs For Pocketing Almost Gh¢68 Million Primary Distribution Margin Fund

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Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has issued a warning notice to 45 Oil Marketing Companies (OMCs) that are indebted to Primary Distribution Margin Fund. The Authority gave the companies up to 30th September 2022 to settle their indebtedness or have their shareholders’ and directors’ names published. Energynewsafrica.com understands the companies owe the state about Gh¢68 million. It is not known how many years the companies have owed the Primary Distribution Margin Fund, which is one of the tax components on petroleum products. It is charged on every litre of petrol and diesel and it’s collected by the Oil Marketing Companies (OMCs). It is used to offset cost incurred in moving petroleum products from the coastal depots to the in land depots. In a notice issued by the NPA on Monday, it said the authority would be compelled to use all lawful means to retrieve the monies owed if they failed to settle their indebtedness. Among the 45 companies mentioned in the NPA statement are Apex Petroleum Ghana Limited, Santol Energy Limited, Hak Oil, Life Petroleum Company Limited, Rich Oil Company Limited, Petro Afrique Ghana Limited, and Champion Oil Company Limited. Below is the full list of defaulting OMCs 
  1. Apex Petroleum Ghana Limited
  2. Avos Oil Company Limited
  3. Bisvel Petroleum Services
  4. Black Rock Energy Limited
  5. Capstone Oil Limited
  6. Champion Oil Company Limited
  7. Deep Petroleum Limited
  8. Deliman & Co Limited
  9. G& G Oil Limited
  10. Glee Oil Limited
  11. Golden Petroleum Limited
  12. Hak Oil
  13. Havilah Oil Ghana Limited
  14. Hossana Oil Company Limited
  15. Humano Energy Limited
  16. Jas Petroleum Limited
  17. Karela Oil And Gas Limited
  18. Life Petroleum Company Limited
  19. Lillygold Energy Resources Limited
20 Maiga & Hhm Company Limited
  1. Mba Global Petroleum Limited
  2. Mm Energy Limited
  3. Nuru Oil Company Limited
  4. Orient Energy Limited
  5. Oval Energy Company Limited
  6. P&0 Energy Company Limited
  7. Perfect Petroleum Company Limited
  8. Peta Energy Limited
  9. Petro Afrique Ghana Limited
  10. Q8 Oil (Gh) Company Limited
  11. Rich Oil Company Limited
  12. Rodo Oil Limited
  13. Royal Roses Oil Company Limited
  14. Safety Petroleum Limited
  15. Santol Energy Limited
  16. Sawiz Petroleum Company Limited
  17. Sephem Oil Company Limited
  18. Sky Petroleum Limited
  19. Spirits Petroleum Limited
  20. Titan Petroleum Limited
  21. Union Oil Ghana Limited
  22. Unique Oil Company Limited
  23. Universal Oil Company Limited
  24. Warren Oil Company Limited
  25. Zoe Petroleum Limited
Donate To Support Independent Journalism In these perilous times, a truth-seeking portal like the Energy News Africa is essential. We have no shareholders or billionaire owner, meaning our journalism is free from commercial and political influence – this makes us different.  Support energynewsafrica.com with any amount by donating to the account below.  Thank you  GT Bank Account Number: 208126002110  Account Name Energy News Africa Ltd. Or Contact +233243782655 Email:[email protected] Source: https://energynewsafrica.com  

Ghana: Tullow Sued For Allegedly Violating Local & Participation Law

Tullow Ghana Limited, a subsidiary of London- based Tullow Oil Plc, has been sued by a Ghanaian group of oil and gas service providers. Tullow Ghana Limited is the lead operator of Ghana’s Jubilee Oil Field. The group, Ghana Oil and Gas Service Providers Association (GOGSPA), in a motion filed at the Accra High Court (Commercial Division), is seeking the order of the court to restrain Tullow Ghana Limited, its agents assign and any person acting under their instructions from violating the Local Content and Local Participation, (Amendment) Regulations 2021 (LI 2435) in the award of petroleum contracts in Ghana pending the determination of the suit. The plaintiff said the decision to sue followed many complaints that services reserved for indigenous Ghanaian companies under the laws in the upstream oil and gas sector were being taken away and awarded to foreign venture companies. The plaintiff said it raised the concerns of the indigenous companies with Tullow in a petition in June 2022, highlighting that any award of contract reserved for indigenous Ghanaian companies to foreign joint venture companies after February 17, 2022, would violate the existing laws regulating the award of petroleum contracts reserved for local businesses. The plaintiff said the action of the defendant, if not restrained by the court, would lead to the mass unemployment of skilled Ghanaians in the upstream oil industry.     The plaintiff, therefore, prayed for a declaration that the award of petroleum contracts for the provision of goods and services exclusively reserved for indigenous Ghanaian companies under the Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) to Joint Venture Companies in Ghana by the defendant is Illegal. The plaintiff also wanted a declaration that the award of any petroleum contracts for the provision of goods and services reserved exclusively for indigenous Ghanaian companies under Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) to joint venture companies in Ghana by the defendant is null and void. The plaintiff seeks an order from the court directing the defendant to cancel every contract awarded for the provision of goods and services in contravention of the provisions of Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) “Damages in favour of the plaintiff against the defendant,” the plaintiff said. The group is seeking a perpetual injunction restraining the defendant, whether personally, through their agents, servants or privies or any person acting under their express or implied instruction from awarding any Petroleum contract in contravention of Petroleum (Local Content and Local Participation Regulations) LI 2204 (as amended) by Petroleum (Local Content and Local Participation) (Amendment) Regulations 2021 (LI 2435) and other laws regulating the awards of petroleum contracts in Ghana. However, in a statement issued by the defendant, Tullow said from 2010 to date, it has awarded over 4000 contracts to indigenous companies, in addition to almost 3,000 contracts awarded to joint venture companies which include indigenous participation. “Out of the total contracts awarded valued at $16.83Bn between 2010 and 2021, $11.24Bn worth of those contracts were awarded local Ghanaian participation,” the statement said. It continued that “over the years, Tullow Ghana has been consistent in steadily increasing contracts awarded to indigenous companies and has no desire to replace indigenous Ghanaian companies with foreign companies. “On the contrary, between 2014 to 2021 when LI 2204 was passed, Tullow Ghana tripled its indigenous contract award spend to up to $1.47Bn compared to $500m in 2014.” Tullow Ghana assured all stakeholders of its commitment to work with and develop the capacity of local Ghanaians to participate in the oil and gas industry, consistent with our contractual obligations and applicable law. Tullow Ghana said it does not intend to prejudice the ongoing legal proceedings and therefore no further statements will be issued at this time.
Africa’s Oil Nations Push Against Global Drive To Shun Oil And Gas
Donate To Support Independent Journalism In these perilous times, a truth-seeking portal like the Energy News Africa is essential. We have no shareholders or billionaire owner, meaning our journalism is free from commercial and political influence – this makes us different.  Support energynewsafrica.com with any amount by donating to the account below.  Thank you  GT Bank Account Number: 208126002110  Account Name Energy News Africa Ltd. Or Contact +233243782655 Email:[email protected]     Source: https://energynewsafrica.com    

Ghana: GNPC CEO Must Be A Scientist-Suggests Apaalse

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A former Chief Director of the Ministry of Energy, Lawrence Apaalse, has observed that the primary reason why Ghana’s national oil company (GNPC) has failed to live up to the expectation of Ghanaians over the years is the neglect of appointing authorities to appoint scientists or someone with technical expertise as CEO to manage the affairs of the corporation. He argued that since GNPC is a scientific institution, there is the need to appoint people with technical acumen to head it to bear fruitful results. “I think you need a scientist to run a scientific institution,” Mr Apaalse strongly suggested. The corporation has often been lambasted by the public for making wrongful decisions. Speaking in an exclusive interview with energynewsafrica.com, Mr Apaalse said over the past years, only people with business orientation have been allowed to direct the affairs of GNPC and this has resulted in multiple failures. He cited the Sankofa Gold Mines which was doing badly but when it was given to Mr Theophilus Ahwireng during the President Kufuor era, he turned the company around within a year, adding that “this should be the standardised practice. “Several non-scientists were managing the Sankofa Gold Mines that was being run by GNPC. The company was always in debt. At one point during President Kufuor’s era, they appointed Theophilus Ahwireng to go and see what he could do. And within a year, the company was making a profit. They paid their debts, and the workers were very happy. After a while, Mr Theophilus was moved to the Petroleum Commission and today, Sankofa Gold Mines is in a mess again. So it’s one-man factor. So if you send someone who has just done business administration, he is just doing the business aspect, but the scientist would follow steps to achieve results,” he argued. Mr. Apaalse lamented that it was only during Dr. Amos Ofori Quaah’s short spell which resulted in a positive dividend for the GPNPC. Dr. Quaah is a Geophysicist who started work with GNPC in 1985 and was appointed CEO in 2001 but resigned in 2002. Mr Apaalse noted that the current acting CEO of GNPC and his deputies, together with the board, are not scientists. He called for a blend of scientists and business-oriented Chief Executives to help resuscitate the corporation. “Look at the board. They have a complete board managing a scientific institution without a scientist among them,” he lamented. Donate To Support Independent Journalism In these perilous times, a truth-seeking portal like the Energy News Africa is essential. We have no shareholders or billionaire owner, meaning our journalism is free from commercial and political influence – this makes us different.  Support energynewsafrica.com with any amount by donating to the account below.  Thank you  GT Bank Account Number: 208126002110  Account Name Energy News Africa Ltd. Or Contact +233243782655 Email:[email protected]       Source: https://energynewsafrica.com

Kenya: Motorists Likely To Buy Petrol Above Sh200 Per Litre

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Motorists in Kenya are likely to buy a litre of petrol at a high of Sh215 ($1.79) from September 14 if the fuel subsidy is finally scrapped. Also compounding the situation and which might see oil companies say no to any further subsidy is the high debt owed them. This is expected to be the first headache for President William Ruto, who will be sworn in on Tuesday.  Economic analyst Jerry Mugera believes stabilising fuel prices will be Ruto’s first major assignment considering a spike will have a huge spiral effect on inflation which hit 8.5 per cent in a recent monthly review. ”Voters will be expecting a miracle from Ruto. I bet he is alive to this fact,” Mugera said. In the third review of the International Monitory Fund (IMF) $2.34 billion loan, Kenya committed to end the fuel subsidy before October. The subsidy has been used to cushion consumers from high global prices.  The international lender is against the initiative that has cut retail fuel prices by over Sh20 per litre for almost a year now.  The Energy and Petroleum Authority of Kenya (EPRA) retained fuel prices in the last review as the government utilised the Petroleum Development Levy (PDL) to cushion consumers. Until September 14, a litre of Petrol will retail at Sh159.12, Kerosene at Sh127.9 4 and diesel at Sh140 Without the subsidy, prices in the last review would have increased to Sh214.13 for diesel, Sh206.17 for petrol and Sh 202.11 for Kerosene. The National Treasury had diverted Sh18.1 billion meant for the stabilisation of fuel prices to fund energy and infrastructure projects.     Source: https://energynewsafrica.com

UK Lifts Shale Gas Fracing Ban In Hopes Of Boosting Fuel Supply

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New British Prime Minister Liz Truss has lifted a ban on drilling for shale gas, an effort to boost domestic energy supply that will have to overcome the same obstacles that stymied the industry for the past decade.  The lifting of the moratorium on so-called fracing was part of a package of measures announced on Thursday to tackle soaring energy prices that are hammering households and businesses. Even with the renewed government support, the shale gas industry still faces an uncertain road, with significant opposition from local communities and challenges related to the country’s geology.   Earlier this year, the UK’s meager fracing industry faced its last rites. Cuadrilla Resources Ltd., the company behind the country’s first major shale gas discovery in 2011, was poised to plug and permanently abandon two exploration wells in Lancashire. But Russia’s invasion of Ukraine handed the firm a reprieve as the regulator withdrew the order to close the wells and the government of former Prime Minister Boris Johnson considered whether to allow a restart of drilling. “It is vital we take steps to increase our domestic energy supply,” Truss said in parliament. “We will end the moratorium on extracting our huge reserves of shale that could get gas flowing in as soon as six months where there is local support for it.” That local support may be hard to find, given the vehement local opposition that has accompanied any attempts to drill for shale gas in the past decade. Residents worried about the risk of earthquakes or the disruption from fleets of trucks carrying equipment and workers, plus campaigners opposed on climate grounds, have frequently halted the industry’s operations. Only 17% of people in the UK support fracing, according to a government survey conducted last year.  “Before the fracing moratorium, the industry had ten years of the government ‘going all out for shale’ and giving them all the support denied to onshore wind,” said Georgia Whitaker, oil and gas campaigner for Greenpeace UK. “In that time, the fracers produced no energy for the UK, but managed to create two holes in a muddy field, traffic, noise, earthquakes and enormous controversy.” The geology of Britain’s rocks also make a US-style boom unlikely.  “We’ve got the wrong kind of shale in the UK,” said Jon Gluyas, director of Durham University’s energy institute. “We will get some shale gas out, but it won’t scale in the same way” as the US, he said.  There are a few key differences between the rocks below Britain and those in America’s Permian Basin. The best performing shale reservoirs in the US are found in rocks that are largely silica-based. That allows for the drilling of sturdy wells that will last a long time. In the UK, the ground is made of clay that won’t hold a fracture for as long.  Also, the rock in the US is uniform over large tracts of land, but in the UK can vary widely below the surface, making it impossible to replicate techniques quickly and ramp up production, he said.  A better solution for boosting UK gas production may lies in the North Sea, where industry has been extracting energy for decades and there are still plenty of resources left, Gluyas said.  Truss said her government will proceed with an offer of new North Sea exploration licenses announced earlier this year, with more than 100 new permits available.   The focus on fracing and licensing shows the Truss government’s focus on increasing supply, rather than limiting demand by funding energy-saving measures like home insulation. “There is a real danger of the government serving up a red herring with local communities likely to oppose fracing rigs while focus is diverted from efficiency and renewables,” said Jess Ralston, senior analyst at the Energy and Climate Intelligence Unit. “All the experts and even the industry agree more UK gas won’t bring down British bills.” Earlier this year when he was business secretary in Johnson’s government, Chancellor of the Exchequer Kwasi Kwarteng said fracing wouldn’t solve the energy crisis.  “Even if we lifted the fracing moratorium tomorrow, it would take up to a decade to extract sufficient volumes — and it would come at a high cost for communities and our precious countryside,” Kwarteng wrote in the Mail on Sunday newspaper in March. “No amount of shale gas from hundreds of wells dotted across rural England would be enough to lower the European price any time soon.”     Source: Bloomberg