Equatorial Guinea: President Reshuffles Mines And Hydrocarbons Minister; Appoints Oburu Ondo To Take Charge
The President of Equatorial Guinea, H.E. Teodoro Obiang Nguema Mbasogo, has appointed Antonio Oburu Ondo, the former Managing Director of GEPetrol, the country’s national oil company, as the new Minister for Mines and Hydrocarbons after a major shakeup in his administration.
He replaces Gabriel Mbaga Obiang Lima–current President of the Organization of Petroleum Exporting Countries and the Gas Exporting Countries Forum who has been moved to the Ministry of Economy and Planning.
Antonio Oburu Ondo will leverage his years of industry experience and know-how to continue driving the industry forward, demonstrating his resolve by getting various projects off the ground, driving new drilling campaigns and developing new gas plants.
Having served as the Managing Director of GEPetrol, Ondo’s experience in the oil and gas industry would be instrumental as he leads the Ministry of Mines and Hydrocarbons towards realising the country’s energy sector and wider national development agenda.
Antonio Oburu Ondo has a long history as someone who understands the industry, and as such, he will help keep the market stable and continue working on attracting the necessary hydrocarbon-focused investments into the country, building on the progress that has already been achieved in Equatorial Guinea.
With over 1.1 billion barrels of proven crude oil reserves and 1.5 trillion cubic feet of natural gas, and with a slate of large-scale projects being developed under the country’s wider Gas Mega Hub initiative, Equatorial Guinea’s objectives to become a regional hydrocarbon processing hub are well underway, making clear the critical role oil and gas will continue to play in Africa.
Commenting on the appointment, NJ Ayuk, Chairman of African Energy Chamber, said:
“The Chamber looks forward to strengthening its relationship with Antonio Oburu Ondo in his new capacity as Minister of Mines and Hydrocarbons. We will continue to work closely with him as we have done in the past to help build a sustainable energy industry in Equatorial Guinea. The country is well on its way to become a global oil and gas hub, and at the Chamber, we will continue to make good on our promise to help drive new investment and development across the oil and gas value chain in Equatorial Guinea.
“Monetizing and maximizing Africa’s oil and gas reserves represents a critical way forward, especially during times of the energy transition, when Africa most needs industry expansion,” he added.
Source: https://energynewsafrica.com
Ghana: Energy Minister Meets Agitating NEDco Staff Over Their MD
Ghana’s Minister for Energy, Dr Matthew Opoku Prempeh, is expected to meet the irritated staff of Northern Electricity Distribution Company (NEDCo) today(Thursday, February 9, 2023), over their call for the removal of their Managing Director, Mr.. Osman Aludiba Osman.
The staff of NEDCo, in a 7 page resolution addressed to the Board Chairman on January 11, 2023, chronicled seven points which they believe warrants the removal of Mr Osman Ayuba.
They mentioned, for instance, the worsening financial performance of NEDco, lack of strategy for NEDco, high cost of projects that have not yielded desired results, worsening distribution losses, exorbitant sole source procurement of point of sale device, lack of basic distribution line and substation maintenance tools.
On Wednesday, the staff partially withdrew their services at all operational areas comprising Upper East, Upper West, Savannah, Brong Ahafo, North East, Ahafo Region,Bono Region, Ahafo Ano South and parts of Oti Region.
The industrial action is due to the failure of the Board of Directors to meet the demand of the staff who are calling for the removal of the Managing Director, Osman Aludiba Ayuba, after several engagements.
Meanwhile, the embattled Managing Director, Mr Osman Aludiba Osman Ayuba, has written to the Board of Directors to respond to the claims of the staff.
In a 14 page letter sighted by energynewsafrica.com, Mr Osman Ayuba took his time to respond to all the claims by the staff.
He described the demand by the workers for his removal as baseless.
Source: https://energynewsafrica.com
Ghana: Herbert Krapah Appointed Deputy Energy Minister
Ghana’s President Nana Akufo-Addo has appointed Mr Herbert Krapah as the Deputy Minister for Energy.
Prior to the appointment, Mr Herbert Krapah was serving as a Deputy Minister for Trade.
He is a governance and legal expert who served as Government Spokesperson on Governance and Legal Affairs at the Ministry of Information until December 2020.
The astute lawyer who was called to the Ghana Bar in 2017 has experience in Trade and Investment Law, Commercial Law, Debt Restructuring, among others.
He previously worked as a lawyer at Africa Legal Associates, a reputable law firm in Ghana.
Education
Mr. Krapah holds a Bachelor of Law Degree from the University of Ghana and a Master of Law Degree from the London School of Economics and Political Science, UK, where he specialised in International Finance, Secured Financing, International Commercial Arbitration and Corporate Crime.
He also holds a Master of Science Degree in Development Finance from the University of Ghana Business School and a Certificate in Human Rights Law from Fordham University in New York.
He is a lecturer at the University Of Ghana School Of Law where his research focuses on both legal philosophy and global constitutionalism.
Herbert Krapah is a member of the Ghana Bar Association, the Programme for African Leadership and the Criminal Justice Reform Ghana.
CREDENTIALS
MSc(Development Finance)–University of Ghana Business School, Legon, Accra, Ghana.
Master of Laws–London School of Economics and Political Science, London, UK
Certificate (Human Rights Law)-Fordham University, New York, USA
BL–Ghana School of Law, Accra, Ghana
Bachelor of Laws–University of Ghana School of Law, Accra, Ghana
BSc (Agricultural Science)-Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.
Source: https://energynewsafrica.com
Biden Wants To Quadruple The Tax On Big Oil’s Stock Buybacks
Share repurchase taxes should be quadrupled to punish Big Oil for their “outrageous” profits, President Biden said in remarks to this year’s State of the Union address.
“You may have noticed that Big Oil just reported record profits. Last year, they made $200 billion in the midst of a global energy crisis,” the U.S. president said.
“It’s outrageous.”
He then went on to say that instead of using these profits to invest in more oil production and keep fuel prices down, energy companies were using them to buy back stock, “rewarding their CEOs and shareholders.”
The President then proposed that to rectify this sub-optimal state of affairs, oil companies should face quadruple taxes on share repurchases and added that “They will still make a considerable profit.”
This is the latest in a series of attacks on Big Oil coming from the White House, as the Biden administration appears to see the industry as the sole party responsible for movements in retail fuel prices as long as these movements are upwards.
Last year, the President threatened the industry with a windfall profit tax and accused it of war profiteering because most U.S. oil producers have become careful with their spending plans, giving strong signals that production growth is not their number-one priority.
Biden also threatened “other restrictions” that he did not specify as the oil industry remained stubborn in its refusal to heed calls for more investments in new production. Energy executives have repeatedly said there are obstacles to such a strategy, including inflation and the Biden administration’s own energy policies that are heavily subsidizing a shift away from fossil fuels.
At the same time, industry insiders have said, the White House is making it harder for any new production to come online with a complex permitting process that compromises the economic viability of some projects.
Source: Oilprice.com
Ghana: NPA Goes After 47 OMCs For ‘Pocketing’ Primary Distribution Margin Fund
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has issued a warning notice to 47 Oil Marketing Companies (OMCs) that are indebted to Primary Distribution Margin Fund.
The Authority gave the companies up to 22nd February 2023 to settle their indebtedness or have their shareholders’ and directors’ names published.
In a notice issued by the NPA on Wednesday, 8th February 2023, it said the Authority would be compelled to use all lawful means to retrieve the monies owed if they failed to settle their indebtedness.
The NPA did not disclose how many years the companies have owed the Primary Distribution Margin Fund, which is one of the tax components on petroleum products.
The Primary Distribution Margin 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.
Among the 45 companies mentioned in the NPA statement are Apex Petroleum Ghana Limited, Santol Energy Limited, Havilah Oil Ghana Limited, 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
Best Petroleum
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
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
Maiga & Hhm Company Limited
Mba Global Petroleum Limited
MM Energy Limited
Nuru Oil Company Limited
Nujenix Company Limited
Orient Energy Limited
Oval Energy Company Limited
P&O Energy Company Limited
Perfect Petroleum Company Limited
Petra Energy Limited
Petro Afrique Ghana Limited
Petro XP Ghana Limited
Precious Energy 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
Universal Oil Company Limited
Warren Oil Company Limited
Zoe Petroleum Limited
Source: https://energynewsafrica.com
French Strikes Halt Fuel Shipments From Refineries And A Fuel Depot
A nationwide strike in France over a proposed pension reform interrupted on Tuesday the shipment of fuels from refineries and a fuel depot of TotalEnergies, the French supermajor told Reuters.
Workers and employees in various sectors, including the energy sector, civil servants, and teachers, have been staging strikes for weeks to protest against President Emmanuel Macron’s plan to raise the retirement age.
Workers at the oil refineries at Donges and Feyzin, operated by TotalEnergies, are on strike today, a representative of the Force Ouvriere trade union told Reuters.
Workers at the fuel depot Flandres have also joined the massive industrial action in France, the official added.
This is not the first time that fuel deliveries have been disrupted by strikes this year.
Two weeks ago, the strike in France halted wholesale fuel deliveries from three refineries operated by TotalEnergies on the first day of a series of planned nationwide strikes in many sectors.
The Donges, Normandy, and Feyzin refineries of TotalEnergies stopped the wholesale supply of gasoline and diesel, while the refinery at Feyzin had to reduce processing rates to a minimum on January 19.
TotalEnergies and the French unit of ExxonMobil hold most of the refining capacity in France.
The strikes against Macron’s unpopular pension reform are expected to continue.
The most recent wave of strikes comes three months after refinery workers went on strike for weeks in September and October amid a pay row.
Strikes at refineries in France in the autumn of 2022 left more than 60% of the country’s refining capacity offline while gas stations in and around Paris and in the northern part of the country began to run out of fuel.
The strikes against the planned pension reform also come just as the EU banned imports of petroleum products from Russia as of February 5.
Source: Oilprice.com
Ghana: Dr. Amin Adam Removed From Energy Ministry
Ghana’s President Nana Akufo-Addo has removed Dr. Mohammed Amin Adam, as deputy Minister for Energy and replaced him with Mr. Herbert Krapah.
The President, however, reassigned him to the Ministry of Finance as Minister of State.
Dr. Amin served as deputy minister for energy since 2017 and has spearheaded the drafting and formulation of Ghana’s Gas Master Plan.
He did a lot of extensive work in Ghana’s extractive sector prior to becoming a deputy minister in 2017.
He studied Petroleum Economics from CEPMLP of the University of Dundee in the UK specializing in petroleum fiscal systems, fiscal policy in resource-led economies, and resource governance.
He also holds an MPhil (Economics) and B.A. (Hons) Economics from the University of Cape Coast in Ghana and is a Fellow of the Institute of Certified Economists of Ghana (ICEG).
Source: https://energynewsafrica.com
Ghana: Gold For Oil: NPA Offers Explanation In 23 Points
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has explained to Ghanaians the Government of Ghana’s Gold For Oil programme.
This comes on the back of the controversy surrounding the programme following the arrival of 41,000 metric tons of fuel in the latter part of January 2023.
Below is an explanation by NPA:
Introduction:
Pricing of Products:
- The Gold for Oil (G4O) Programme is an initiative of the Government of Ghana to use the existing Bank of Ghana (BoG) Domestic Gold Purchase (DGP) Programme to support the import of petroleum products into Ghana.
- The prime objective of the programme is to use additional foreign exchange resources from the BoG’s DGP programme to provide foreign currency for the importation of petroleum products for the country which currently stands at about USD350 million per month.
- The government has begun the implementation of the G4O Programme where gold purchases under the BoG’s DGP Programme mainly through the Precious Minerals and Marketing Company (PMMC) and where required from aggregators and mining firms is used to purchase petroleum products.
- This is intended to free up foreign exchange resources to meet petroleum imports of the country thereby reducing pressures on the Bank of Ghana’s foreign reserves and the banking sector emanating from the Bulk Import, Distribution and Export Companies (BIDECs) request for foreign exchange.
- The programme also aims to procure petroleum products at very competitive prices through Government-to-Government (G2G) arrangements. The programme will ensure that the cost of importing the products from international oil traders will always be comparatively lower.
- The consequent reduction in foreign exchange pressures, the reduction in premiums charged by international oil traders as well as efficiency gains from the value chain will translate to lower ex-pump prices in the country. The G4O Programme Process Flow and Requirements:
- Under the programme, all the more gold produced and exported by companies with licensed small-scale concessions including community mines through the PMMC shall be purchased by the BoG. The Ministry of Lands and Natural Resources has issued directives towards the realisation of the programme.
- The purchased more gold is used for the payment of oil supply to Ghana. Payment for oil supply is to be done in two channels: by way of barter trade or via broker channel.
- For suppliers willing to take gold in direct exchange for petroleum products, BoG will provide equivalent volume of gold. Both the Bank and the International Oil Trading Companies (IOTCs) are required to open Gold Metal Accounts in a mutually agreed gold refinery for the purpose of gold transfer.
- BoG accumulates refined gold in its metal account at a refinery nominated by a supplier to fund petroleum product shipments.
- BoG transfers equivalent amount of gold based on petroleum products supply invoice from its metal account to a supplier’s metal account on receipt of Quality Certificate (QC) of the product supplied and final invoice from Bulk Oil Storage and Transport Company (BOST). The Broker Channel:
- BoG executes a Gold Supply Agreement under which it sells gold to a gold broker, which provides forex cover to pay for petroleum products.
- Gold Broker buys dore gold from BoG and deposits the proceeds in BoG gold holding account.
- BoG transfers funds from gold holding account to an Escrow Account to pay for petroleum product shipment on receipt of QC and final invoice from BOST.
- BOST, a state company, operates as an off taker for petroleum products, and therefore executes an agreement with IOTCs for the import of petroleum products to Ghana, for onward sale to licensed BIDECs.
- BIDECs buy directly from BOST with cash and or a letter of credit (guarantee) from a reputable financial institution.
- BOST and the National Petroleum Authority (NPA) ensure that the cedi proceeds from the sale of imported petroleum products will be collected and deposited with a collection bank in favour of BoG. The collection bank is required to transfer collected funds into BoG’s G4O proceeds account within 48-hours which is then used to fund the next cycle of gold purchases.
Pricing of Products:
- To ensure that the price of petroleum products imported under the G4O programme reflects at the pumps to benefit the consumer, the NPA will regulate the prices of these products in the interim to correct market failure until the policy matures.
- NPA will work with BOST to negotiate prices with the international oil traders to ensure that the landed cost of products procured under the programme are always competitive. NPA will approve the IOTC that will be selected to supply products to BOST under the programme based on the competitiveness of the offers made by them. BOST will sign supply contracts only after approval has been granted by the NPA.
- The price at which BOST will sell the products to BIDECs will be approved by the NPA. The price at which the BIDECs will sell the products to Oil Marketing Companies (OMCs) will also be approved by the NPA.
- The applicable exchange rate for pricing the products supplied under G4O will be based on the average rate at which the gold was purchased from the licensed gold exporters by BoG.
- The NPA will put measures in place to ensure that OMCs that lift products supplied under the G4O programme pass the price on to consumers accordingly. In this respect, BIDECs and OMCs who lift and supply G4O products will sell at the ex-refinery and ex-pump prices that will be determined by the NPA. If there must be a comingling of products supplied under G4O and other sources, the ex-refinery and ex-pump prices will be computed using a weighted average.
- All BIDECs and OMCs who wish to purchase products under the G4O programme will be required to sign off an undertaking confirming their willingness to comply with the terms and conditions for partaking in the purchase and sale of G4O products.
- To ensure that the impact of the G4O programme on ex-pump price will be significant and effectively monitored, the number of BIDECs and OMCs who will be permitted to lift G4O products will be controlled. Payment Structure:
- BOST will be required to pay for products supplied to it under G4O into an Escrow Account at BoG within 60 days of receipt of products from the international oil traders.
- BIDECs will be required to pay for products procured from BOST within 15 days of loading. Payment for the products will either be on a cash basis or with a 15-day letter of credit (LC) from reputable commercial banks.
- BOST will be required to provide BoG with copies of the LCs from BIDECs for verification and to give BoG the assurance that receipt of payments will be made on agreed dates.
- The NPA will ensure that adequate laycan slots are allocated to BOST to import products under the programme.
- NPA will advise BOST on the projected demand on a monthly basis.
Uganda: UETCL Appoints Joshua Karamagi As New CEO
The Board of Uganda Electricity Transmission Company Limited (UETCL) has appointed Mr. Joshua Karamagi as the company’s new Chief Executive Officer (CEO).
He replaces George Rwabajungu who resigned in August 2022.
According to UETCL, Mr. Karamagi will assume his new role on March 1, 2023.
”The board and management of UETCL welcomes Mr. Joshua Karamagi the new incoming CEO who will assume office on March 1, 2023,” the company said in a tweet on Monday.
Prior to his latest appointment, Karamagi has been serving at Uganda Electricity Generation Company Limited (UEGCL) as the chief finance officer, since 2015.
Karamagi is accomplished finance professional and business leader boasting over 25 years of CFO experience, in energy infrastructure finance and investments; business consulting, audit and assurance.
At UEGCL, he is remembered for being a key member of the team that developed two major hydro power projects worth $2 billion.
Before joining UEGCL, he served across a number of senior positions in the public sector including at Makerere University and NSSF.
He has also previously served as an assistant commissioner (Treasury) at the Ministry of Finance, Planning and Economic Development, where he was in-charge of monetary and fiscal policy for Uganda’s budget.
He holds a Master of Business Administration from Edinburgh Business School, Herriot-Watt University, as well as Bachelor of Commerce from Makerere University.
Source: https://energynewsafrica.com
OPEC “Cautiously Optimistic” About Oil Demand Amidst Reopening Of China
OPEC’s top official said he sees a “more upbeat” economic outlook as China reopens after several years of virus restrictions.
“There’s a positive mood and optimism, which I must always say is cautious optimism,” Secretary-General Haitham Al-Ghais said on Monday, February 6, 2023 at the India Energy Week forum.
While there’s a lot of potential for oil demand this year, the “beast” of Covid-19 means there’s also the risk of volatility, Al-Ghais cautioned. Ministers from the OPEC+ coalition are just “a phone call away to step in when necessary,” he added.
Oil is trading at about $80 a bbl in London after a rocky start to the year, as traders weigh China’s resumption of travel against a renewed wave of virus cases and signs of plentiful supply.
The Organization of Petroleum Exporting Countries and its allies opted to keep output levels unchanged at a monitoring meeting last week, deciding that hefty cutbacks agreed late last year should be sufficient to stabilize markets for the time being.
At the same time, the group has indicated that despite the nascent signs of demand recovery, it’s still too early to start lifting production levels again.
“I will believe it when I see it and then take action,” Prince Abdulaziz bin Salman, energy minister of OPEC leader Saudi Arabia said on Saturday in Riyadh.
Source :Worldoil.com
Ghana: BPA Inaugurates Six-Member Audit Committee
The Bui Power Authority (BPA) has inaugurated a six-member internal audit committee for 2023 in line with section 86(1) of the Public Financial Management Act 2016(Act 921).
The committee is chaired by Dr. Mrs. Rebecca Atswei Lomo.
The rest are Mr. Steven Perdison, Emmanuel Quarshie, Dr. Mrs. Rebecca Acquaah-Arhin, Mr. Paul Twum-Barimah and Ms. Beatrice Dadson.
The Chief Executive Officer of BPA, Samuel Kofi Dzamesi, who chaired the swearing ceremony, in a welcome speech, reiterated the importance of the Internal Audit Unit and how impactful it has been in the efficient operation of the Authority.
While congratulating the members, Mr. Samuel Kofi Dzamesi stressed the need for the sharing of information as it is the hallmark of any successful team.
He also reassured the team of his unrelenting support.
The Deputy Director of the Internal Audit Agency (IAA), Mr. Senanu Mensah, who conducted the swearing-in on behalf of Dr. E.O Osae, the Internal Audit Agency Director-General, emphasised that the Audit Committee is paramount in public accountability and management of public resources.
He mentioned that the Audit Committee’s role is in three parts namely Mandatory, Advisory/Consulting and Support to BPA’S Internal Audit Committee.
He further explained that the mandatory function is to ensure that all necessary Audit Reports are endorsed and submitted as stipulated by the Agency.
As an advisory, the Audit Committee would focus on areas such as Financial Management, Internal Control, Government Processes, Regulation Laws, Policies and Risk Management.
The Committee is also to support the Internal Audit Unit of the Authority to ensure that it delivers on its mandate.
He ended by stating that, although the Agency operates as a stand-alone, it expects a seamless synergy between the Audit Committee and BPA, as it would ensure that the mandate is carried out efficiently.
Source: https://energynewsafrica.com
Ghana: GNGC Signs US$700m Deal For Second Gas Processing Plant
The Ghana National Gas Company (GNGC) on Friday signed a Project Implementation Agreement with its joint venture partners to construct a second Gas Processing Plant (GPP Train 2) at Atuabo in the Ellembele District of the Western Region.
The project which is estimated at US$700 million is expected to be completed within 24 months.
It would generate 1,500 direct and indirect jobs within the Atuabo enclave.
According to a report filed by Ghana News Agency, Dr. Benjamin K. D. Asante, the Chief Executive Officer (CEO) of the GNGC, initialed the agreement on behalf of Ghana Gas while Dr Hilton John Mitchell, a representative of the Consortium, comprising the Integrated Logistics Bureau Limited, Jonmoore International, Phoenix Park Limited and African Finance Corporation, signed for the rest of the partners.
The construction of a second train gas processing plant with a nominal capacity of 150 million standard cubic feet per day (MMscfd), expandable to 300 MMscfd, to process incremental raw gas volumes from the Greater Jubilee and TEN fields.
The project formed part of the GNGC’s strategic development plan and expected to increase the national gas processing capacity to 450 MMscfd.
The new gas processing facility will process raw gas with natural gas liquids (NGLs) being fractionated into pure components like propane, butane, pentane and stabilised condensate components from the Jubilee and TEN Fields.
The lean gas containing methane and ethane shall be tied into the lean gas export from existing GPP Train 1 and delivered into the onshore export pipes.
Some of the components of the GPP Train 2 include the construction of a 150 MMscfd capacity processing plant, expandable to 300 MMscfd, a storage facility, an additional compressor package at Atuabo Mainline Compressor Station and provision of utilities and liquid waste treatment system.
Speaking at the signing ceremony in Accra, Mr. Kennedy Ohene Agyapong, the Board Chairman of Ghana Gas, said the project, upon completion, would enhance the operations of the GNGC and further boost the utilisation of the country’s gas resources for the Government’s industrialisation agenda.
Mr. Agyapong, also Member of Parliament for Assin Central, said the facility would play a critical role to help Ghana achieve her energy transition objectives of using renewable energy sources for industrial purposes and reduce the global carbon emissions.
Dr. Asante, the CEO of Ghana Gas, said the project would enable it to become a fully integrated gas services company and provide reliable supply of gas and gas derivatives in Ghana and West African Sub-region.
It would further fulfill the Company’s vision of supplying gas in a cost-effective and environmentally friendly manner, he said.
The new plant, upon coming on stream, he said, would improve the output of liquids processed from natural gas to 80 per cent, compared to the existing facility, which produced between 40 and 50 per cent of gas liquids.
Dr. Asante added that the plant would help the nation to generate more megawatts of electricity and ultimately resolve the perennial power outages (dumsor) experienced in Ghana.
The by-products from the processed gas, he explained, could be used to manufacture fertilizer, which would boost the agriculture industry and ultimately reduce the country’s fertilizer import.
Mr Egyapa Mercer, a Deputy Minister of Energy, on his part, said the project would be a useful additional infrastructure in the country’s power generation system.
It would also support the government’s efforts in providing an alternative power supply to drive socio-economic development, he added.
Dr Hilton John Mitchell, who spoke on behalf of the joint venture partners, expressed the Consortium’s commitment to work collaboratively with the GNGC to deliver the gas processing plant on schedule and in a cost-effective manner.
The Ghana National Gas Company was established in July 2011 as a limited liability company with the responsibility to build, own and operate natural gas infrastructure required for gathering, processing, transportation and marketing of gas.
Source: https://energynewsafrica.com
Shell Reports $40bn Profits Highest In 115 Years
Oil and gas giant Shell has reported record annual profits after energy prices surged last year following Russia’s invasion of Ukraine.
Profits hit $39.9bn (£32.2bn) in 2022, double last year’s total and the highest in its 115-year history.
Energy firms have been making record profits after oil and gas prices jumped following the invasion of Ukraine.
It has heaped pressure on firms to pay windfall taxes as households struggle with rising bills.
Last year, the UK government introduced a windfall tax – called the Energy Profits Levy – on the profits of firms to help fund its scheme to lower gas and electricity bills.
Oil and gas prices had begun to rise after the end of Covid lockdowns but rose sharply in March last year after the events in Ukraine led to worries over supplies.
It led to bumper profits for energy companies, but also fueled a rise in energy bills for households and businesses. Along with rising food prices it has pushed inflation – the rate at which prices rise – to a 40-year high.
Despite the government’s windfall tax, Shell previously said it did not expect to pay any UK tax this year as it is allowed to offset decommissioning costs and investments in UK projects against any UK profits.
But the BBC understands that it will now say that it has paid some tax in 2022 and expects to pay hundreds of millions in UK tax in 2023.
These numbers look small compared to its profits, but Shell only derives around 5% of its revenue from the UK – the rest is made and taxed in other jurisdictions.
This is unlikely to satisfy those who think that a UK headquartered company which has set a new record for corporate profits should be paying more, and those who will notice that Shell paid more to its shareholders than it spent on renewable investments.
The government is limiting gas and electricity bills meaning that a household using a typical amount of energy will pay £2,500 a year, although this is due to rise to £3,000 in April.
However, that is still more than twice what it was before Russia’s invasion.
In May, the government introduced its windfall tax on the profits made from extracting UK oil and gas. The rate was originally set at 25%, but it was increased to 35% in November.
Earlier this year, Shell said it would pay tax in the UK for the first time since 2017 as a result of the new windfall tax.
Shell chief executive Wael Sawan said the firm’s latest results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world”.
But Labour’s shadow climate change secretary Ed Miliband said: “As the British people face an energy price hike of 40% in April, the government is letting the fossil fuel companies making bumper profits off the hook with their refusal to implement a proper windfall tax.
“Labour would stop the energy price cap going up in April, because it is only right that the companies making unexpected windfall profits from the proceeds of war pay their fair share.”
Source :BBC