Kenya has removed subsidies on petrol (gasoline) thereby pushing the price of the commodity to a record high in the East African nation.
As a result, the price of petrol has gone up by Ksh20 to KSh179.30 ($1.49) per litre.
The Government retained a subsidy of Kshs.20.82/litre and Kshs.26.25/litre for diesel and kerosene respectively.
Consequently, a litre of diesel will be sold at Kshs 165.82 ($1.38) while kerosene will be sold at Kshs147.94 ($1.23) per lire.
A statement issued by Energy and Petroleum Regulatory Authority (EPRA) noted that the new price regime will remain in force until October 14.
Last month, the subsidy shielded the prices of petrol from jumping to Sh214.04 per litre up from Sh159.12.
This, in effect, helped to lower the cost of diesel as it would have also jumped to Sh206.17 up from Sh140.03, while that of kerosene would have also gone up to Sh202.11 up from Sh127.94.
Kenyan new president, William Ruto, during his inauguration last Tuesday, vowed to withdraw the fuel subsidy that has kept prices stable since July.
The President said he would do away with subsidies on fuel and food, arguing that they are a huge burden to the exchequer and often lead to product shortages.
“In addition to being very costly, consumption subsidy interventions are prone to abuse, distort markets and create uncertainties including artificial shortages of the very products seek to subsidise,” he said.
EPRA had not adjusted these pass-through costs—the Fuel Cost Charge (FCC), Foreign Exchange Rate Fluctuation Adjustment (Ferfa) and Water Resources Management Authority (Warma) levy—since December 2021.
The FCC is the single largest variable electricity cost adjusted monthly and is collected by Kenya Power to be reimbursed to thermal power generators for their fuel purchases used to generate power.
With the brakes off fuel subsidy, the withdrawal of the subsidy on electricity has pushed its cost to the highest level in months heavily hitting households, businesses as well as industrial consumers.
The high fuel prices could, however, avert a fuel shortage crisis that has been brewing for weeks.
The Kenya Pipeline Company (KPC), last week, sounded the alarm over an imminent fuel shortage due to the failure of oil marketing companies to pick up fuel cargo from importers due to a lack of money to pay for the cargo.
The withdrawal of the subsidy will now avert the fuel shortage, with oil marketers handed a new lifeline with the new higher prices as they will collect their money upfront.
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The price of petrol (gasoline), on Friday, witnessed a 60 pesewas reduction at the pumps, energynewsafrica.com can report.
Leading Oil Marketing Companies (OMCs) notably GOIL Company Limited and TotalEnergies, have adjusted their pump prices downward from Gh¢11.55 per litre to Gh¢10.95 per litre.
As at Friday evening, Shell, one of the major OMCs, was still selling petrol at Gh¢ 11.55 per litre.
However, checks by energynewsafrica.com showed that Shell adjusted petrol price to Gh¢ 10.95 per litre on Sunday.
Other OMCs are likely to adjust their pump price for petrol either Saturday or Monday.
The price of diesel (gasoil), however, remained unchanged and is still being sold at Gh¢14.50 per litre.
The reduction in petrol price follows a drop in crude oil prices over the last two weeks.
International benchmark crude Brent and West Texas Intermediate (WTI) prices have fallen below $100 per barrel for the past two weeks.
In a statement issued last Wednesday, the Institute for Energy Security (IES) projected a drop in petrol prices by 5 per cent.
“With the fall in the international price of Gasoline and Gasoil by 10.96% and 0.54% respectively, the Institute for Energy Security (IES) projects a marginal reduction in the current price of Gasoline at the local pump, due to the significant decline in the value of the local currency against the US Dollar.
“Even though the prices of Gasoil and LPG also dipped on the international market, the 3.58% depreciation of the Cedi may thwart any expected fall in the price of the two products at the local pumps. Consumers may rather be forced to buy Gasoil and LPG at a higher value over the current prices for the rest of September 2022, on account of the Cedi fall against the greenback,” a statement signed by Fritz Moses, Research at IES, said.
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Nigeria’s Vice President, Yemi Osinbajo has stressed that the use of gas as a transition fuel will help in stemming deforestation and advancing Nigeria’s broader development goals.
The Vice President said Nigeria has one of the largest gas reserves in the world and deserves to reap more from it.
Osinbajo’s spokesman, Laolu Akande, in a statement on Wednesday in Abuja, said the Vice President received the U.S. Special Presidential Envoy on Climate Change, John Kerry, at the Presidential Villa, Abuja, on Tuesday
Mr Kerry, who was on a working visit to Nigeria, met with President Muhammadu Buhari before meeting the vice President.
Osinbajo said that other developing countries would also benefit from the adoption of gas as a transition fuel.
Highlighting the need for Nigeria to continue the exploration and use of gas as a way of arresting deforestation, he said it would help in transiting away from dirtier fuels like diesel, kerosene and petrol, while at the same time ensuring that the country had the necessary energy baseload for industrialisation.
Osinbajo said that Nigeria has one of the largest gas reserves in the world and should benefit from its exploitation.
He also highlighted the significance of Nigeria’s Energy Transition Plan(ETP) which is the first in Africa.
Vice President Osinbajo had discussed the ETP during his recent visit to Washington D.C., where he met with his American counterpart, Kamala Harris, at the White House, among other top US government officials.
Before the recent US trip, the Federal Government had launched the ETP at a global virtual event.
The Vice President and Kerry also discussed the issues of renewable energy sources and the global transition.
In his remarks, Kerry praised the plan and the efforts already being made in Nigeria to step up the use of renewables, especially solar and hydro-power, as major components of the energy mix.
He acknowledged that Nigeria ought to benefit from its gas reserves and urged an even more rapid adoption of renewables, especially electric vehicles, which were certainly the next wave in auto manufacturing.
Kerry observed that the technology of renewables improved daily, adding that batteries were in production which lasted far more than those that were already in the market.
Upon a request by the Vice President, Kerry promised that the U.S. would assist Nigeria with the expertise to scientifically determine the most appropriate energy mix toward the goal of energy for all by 2030 and net zero carbon emissions by 2060, without compromising the country’s energy security.
The US Special Envoy also affirmed the readiness of the U.S. Government to assist Nigeria in a bilateral partnership to realise its Climate Change adaptation and resilience capacity, thereby, consolidating the nation’s place as a model for other countries on the planet.
He added that he looked forward to Nigeria presenting an inspiring position, which would no doubt attract all necessary global support at the upcoming COP 27 in Egypt later in the year.
Kerry was accompanied by other U.S. officials including the American Ambassador to Nigeria, Ms Mary Leonard.
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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’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.
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Source: https://energynewsafrica.com
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.
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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 ReservoirDonate To Support Independent Journalism
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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’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
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.
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 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’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
Apex Petroleum Ghana Limited
Avos Oil Company Limited
Bisvel Petroleum Services
Black Rock Energy Limited
Capstone Oil Limited
Champion Oil Company Limited
Deep Petroleum Limited
Deliman & Co Limited
G& G Oil Limited
Glee Oil Limited
Golden Petroleum Limited
Hak Oil
Havilah Oil Ghana Limited
Hossana Oil Company Limited
Humano Energy Limited
Jas Petroleum Limited
Karela Oil And Gas Limited
Life Petroleum Company Limited
Lillygold Energy Resources Limited
20 Maiga & Hhm Company Limited
Mba Global Petroleum Limited
Mm Energy Limited
Nuru Oil Company Limited
Orient Energy Limited
Oval Energy Company Limited
P&0 Energy Company Limited
Perfect Petroleum Company Limited
Peta Energy Limited
Petro Afrique Ghana Limited
Q8 Oil (Gh) Company Limited
Rich Oil Company Limited
Rodo Oil Limited
Royal Roses Oil Company Limited
Safety Petroleum Limited
Santol Energy Limited
Sawiz Petroleum Company Limited
Sephem Oil Company Limited
Sky Petroleum Limited
Spirits Petroleum Limited
Titan Petroleum Limited
Union Oil Ghana Limited
Unique Oil Company Limited
Universal Oil Company Limited
Warren Oil Company Limited
Zoe Petroleum Limited
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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.
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