Despite global capital expenditure having been on a downward spiral between 2014 and 2020 owing largely to COVID-19 pandemic spending trends and energy transition related divestment in Africa, the African Energy Chamber (AEC) project that capital expenditure within Africa’s oil and gas industry to increase in 2022 and beyond.
According to the organization’s Q1 2022 report, The State of African Energy, capital expenditure within Africa’s oil and gas sector will reach $30 billion in 2022 after a decline from $60 billion in 2014 to $22.5 billion in 2020.
This provides an opportunity for both mature and emerging hydrocarbon producers to establish investor-friendly regimes to attract capital and accelerate project development continent-wide.
At the current expected project sanctioning levels, upstream spending towards 2025 is expected to see an increase. Deferred projects and the projects originally slated for investments from 2022 onwards will together have the potential to contribute to a significant growth potential. Should the projects materialize, the potential expenditure may increase to almost US$49 billion by 2024.
Investments related to onshore projects represent the single greatest category with investments reaching over US$68 billion during the 2022 – 2025 period. Big investments are also expected in Uganda and Kenya related to the greenfield onshore development of Lokichar basin.
This greenfield development may be one of, if not the last, big conventional onshore project in the world. Subsea tiebacks will take the second spot in 2022 – 2025 cumulative spending and are likely to be more and more common as it makes commercial sense to piggyback smaller hydrocarbon accumulations on existing infrastructure.
This category also includes the offshore related part of Liquefied Natural Gas (LNG) developments which further boosts this category in light of the mega-projects expected in Mozambique.
Years 2020 and 2021 showed that the African oil and gas industry was one of the hardest hit in the aftermath spurred by the COVID-19 outbreak. The initial after-effects of the demand vacuum and price crash caused by the pandemic led to production sanctions imposed on the African OPEC member nations. The initial reaction from the operators included delays to the projects with high breakeven prices, reduction of capital and operating expenditure, and cashflow neutral forecast at lower oil price curves. However, as the region saw a few project sanctions, 2022 – 2025 forecast now shows a relatively increased spending. To be noted, Q4-2020 versus Q4-2021 capital expenditure comparison showed a contraction of about US$33.5 billion during the same period.
“Africa’s oil and gas industry is set to see an influx in investment in 2022. Despite COVID-19 pandemic and energy-transition-related financial restrictions in 2020 and 2021, the sector will see an uplift in 2022, with capital expenditure expected to increase to $30 billion this year. This marks a critical opportunity for African producers to ramp up production, spur exploration and get sizeable projects off the ground,” stated Sergio Pugliese, President for Angola at the African Energy Chamber
Meanwhile, a number of upcoming major projects in Africa are driving the majority of the greenfield expenditure in the short term. The majority of the volumes are to be sanctioned and developed are natural gas with projects like the Area 1 LNG project in Mozambique and the Greater Tortue Ahemyim Floating LNG project offshore Senegal-Mauritania leading the list. Other projects include the TotalEnergies-led Tilenga project in Uganda; the Sonatrach-led AT (Isarene) project in Angola; the TotalEnergies-led Cameia-Golfinho project in Angola; and the Eni-led Quiluma/Maboqueiro project in Angola.
Despite the anticipated increase in capital expenditure within Africa’s oil and gas industry in 2022, the continent’s full energy potential is yet to be exploited. In this regard, and with an objective to ensure the continent is well-positioned to develop all of its resources, the AEC’s annual conference, African Energy Week (AEW) 2022 – taking place from 18 to 21 October in Cape Town – represents the most suitable platform for discussions on Africa’s energy future. Through collaborative panel discussions and industry-advancing investor summits, AEW 2022 will host conversations on how African hydrocarbon producing countries can boost investment to unlock the continent’s full oil and gas energy potential.
Source: https://energynewsafrica.com
Italian energy group Eni has suspended the purchase of oil from Russia following its invasion of Ukraine and is watching developments closely with regards to gas procurement.
“Eni has suspended the stipulation of new contracts related to the procurement of oil and oil products from Russia,” the company said in emailed comments on Wednesday.
Western sanctions imposed after the invasion of Ukraine have already cut off Russia from international trade and financial markets. Until this week its energy exports were exempted from the sanctions regime.
But on Tuesday U.S. President Joe Biden announced a broad ban on oil and other energy imports from Russia which is the world’s biggest exporter of oil and natural gas.
Eni, which had already frozen joint ventures with Russian oil group Rosneft following sanctions imposed in 2014, also has long-term take-or-pay gas contracts with Gazprom .
Earlier on Wednesday, when asked what it would do with these contracts if sanctions on Russia’s energy sector tightened, it said it would fully “honour every decision taken by the European and Italian institutions”.
This week European Union leaders are set to try and phase out the EU’s dependency on Russian energy sources, including Russian gas which accounts for 45% of the bloc’s import requirement.
Eni, in which the biggest shareholder is the Italian state, bought 22.5 billion cubic metres (bcm) of Russian gas in 2020 out of a total of around 62 bcm.
Last week it said it would sell its stake in the Blue Stream pipeline carrying Russian gas to Turkey co-owned with Russian gas giant Gazprom
Italy, which uses gas to generate some 40% of electricity, imports more than 90% of its gas needs, with Russian piped flows accounting for around 40%.
Since Russia invaded Ukraine, Italy has ramped up efforts to secure alternative gas sources in producer countries like Algeria, Qatar and Azerbaijan.
Eni, which has extensive gas resources in Africa, has strategic long-term gas contracts with Algerian state energy giant Sonatrach.
Source: Reuters
“Ghana should have been raking in more revenues from the soaring crude oil prices on the international market had the leadership been proactive by ensuring that there is increasing exploratory activities at the country’s offshore oil fields,” the Executive Director of the Institute for Energy Policies Research (INSTEPR) Kwadwo Nsafoah Opoku says.
Crude oil prices have been soaring on the international market following the Russian invasion of Ukraine.
As of about 6am Thursday, International Benchmark-Brent was trading at US$ 112.6 per barrel.
Mr Kwadwo Opoku believes Ghana would have profited from the windfall from the rising oil prices since the government pegged the country’s oil price at US$62 per barrel in the 2022 budget.
In a press statement, Mr Kwadwo Opoku said Ghana, for the past eight years, has not done any exploration activity in the upstream to increase oil production, noting that production at the three oil-producing fields keeps declining.
Checks by energynewsafrica.com indicate that Ghana’s production has dwindled from 200,000 bbl to 153,000 bbl.
Kwadwo Nsafoah Opoku,Executive Director for INSTEPR
Quoting a report by the Public Interest and Accountability Committee (PIAC), which suggested that Ghana produced a total of 27,767,859.00 barrels of crude oil for the first half of 2021 from the Jubilee, TEN and SGN, representing an 18.9 per cent reduction from the first half of 2020, Mr Kwadwo Opoku said the situation has not improved in 2022.
Mr Kwadwo Opoku noted that from 2013 till date, 10 companies signed Petroleum Agreement with Ghana but only Springfield E&P has undertaken exploration activities leading to unitisation talks with Eni.
“It is beyond comprehension that Petroleum Agreements which were for seven years have not been abrogated with no work done for over eight years. Most of these 10 companies have not fulfilled their minimum work obligations under the Petroleum Agreement,” he stated.
Touching on the maiden licensing bid round, Mr Kwadwo Opoku said ENI/Vitol and First E&P were the winners for this bidding process but four years on, the government has not completed negotiation with the companies for work to begin.
“The decline in production and no upstream exploration activities means that Ghana is deprived of the needed revenue that we would have otherwise received from high international crude prices. Imagine our daily production was over 300,000 barrels per day…Ghana would have done more lifting resulting in more money for all facets of the economy, even to local government common fund which gets 5% of ABFA (Annual Budget Funding Amount). It is interesting to note that the decline in production is also affecting GNPC’s financial position since they are receiving less money year on year.
“The Upstream and Midstream are in a mess and INSTEPR does not see any policy direction to correct the situation.”
Touching on the Voltaian Basin project, Mr Kwadwo Opoku expressed shock at why it has taken GNPC more than years to complete a 2D seismic survey of the area.
“The sad part of the Voltaian Basin story is, the current Petroleum Act does not make provisions for onshore exploration.”
M.r Kwadwo Opoku, who cautioned that Ghana at this rate will catch the Dutch Diseases sooner than later, called on the government to urgently start a stakeholder’s consultation to find solutions to these tough times ahead.
Source: https://energynewsafrica.com
South Africa’s renewable energy industry has received an R600 million boost from foreign funders.
The Norwegian Investment Fund, Norfund and UK development finance institution CDC Group last Thursday signed a memorandum of understanding with broad-based black economic empowerment investment company H1 Capital to fund 2.4 GW of new wind and solar projects.
The projects form part of bid window five of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The projects will generate 6400 GWh per year.
H1 Capital is an investment and development company which has funded several renewable energy projects in South Africa. It has a 49% stake in three solar hybrid storage projects that were announced as preferred bidders in the Risk Mitigation Independent Power Producer Procurement Programme – Kenhardt 1, 2 and 3.
The projects are to be developed by Norwegian firm Scatec and will be based in the Northern Cape.
Under bid window, five of the REIPPPP H1 is co-invested in 21 projects under four sponsors – namely Scatec, Redrocket, EDF and Globeleq Mainstream.
The funding to H1 entails R360 million from Norfund and R240 million from CDC Group.
The investment supports pledges Norway and the UK made at COP26 at Glasgow last year to scale up climate finance to Africa.
At COP26, Norway announced a new Climate Investment Fund, to be managed by Norfund.
This deal is the first investment under the new fund.
CDC Group – which will soon be named British International Investment – has funded multiple projects in South Africa in the past, having invested over $367 million (~R5.6 billion) in the country. These investments include an equity stake and loan provided to Trans-Africa Concessions to finance a 440km motorway between Witbank and Maputo.
Other renewable energy investments in the country involve backing for independent power producer Globeleq’s six wind and six solar power projects and the Redstone concentrated solar power plant.
The investment in H1 marks the CDC Group’s first broad-based black economic empowerment deal.
Thithi Kuhlase-Maseko, head of CDC Group’s SA office, said that the deal helps achieve their aims to promote sustainability and inclusiveness. “This investment marks another key step toward fulfilling our pledge to devote greater capital to fund clean infrastructure and support South Africa on its path towards just energy prospects.”
At the signing ceremony Norway’s Minister of International Development, Anne Beathe Tvinnereim, noted that the deal would support access to clean energy, facilitate the reduction of fossil fuels and support job creation. The pipeline of projects would help avoid carbon emissions of 6.2 million tons – which is 12.5% of Norwegian emissions, said Tvinnereim.
“We are in this together. We need to think globally, and we need to pull together, and we need action now,” she added. Tvinnereim expressed optimism that this would be the first of many more mutually beneficial partnerships contributing to a just transition in SA.
Commenting on the significance of the deal, H1 CEO Rayburn Hendricks said that the projects are capital intensive. Capital is scarce, and to achieve the country’s objectives for clean energy, “long-term patient capital” is needed.
While R600 million has been pledged, the total exposure to rollout projects is “multiples” of that figure. However, he explained that the R600 million forms an “equity layer” that is often harder to raise from the market than debt. The funding secures H1’s financial commitment to the projects it is invested in.
“From H1 we are ready to do the job that is expected of us. This is something we worked on for a very long time… we are able to perform our obligations.”
Hendricks is hopeful the partnership with Norfund and CDC Group can be replicated with other projects and players in Sub-Saharan Africa.
Both CDC Group and Norfund affirmed commitments to supporting private sector energy developments.
As the prices of crude oil keep soaring on the international market, Dr Babajide Agunbiade, a fellow of the Nigerian Society of Engineers and Director at National Oilwell Varco, has shared his perspective on the current situation on what it means to consumers and oil-producing nations.
Introduction
Oil tops over $100 per barrel, the highest seen in more than seven years following the 2014 recession, Russia – Saudi Oil war, and Covid-19 pandemic, among others. Higher projections are anticipated due to the ongoing Russia-Ukraine tension, which has already further driven up international crude oil prices. The invasion of Ukraine has heralded concerns about global energy supplies at a time when global economic recovery is still fragile, and inflation is surging.
https://www.purc.com.gh/
The gradual recovery from the two-year Covid-19 pandemic hit and high oil prices will likely translate into higher pump prices which inadvertently will have an enormous economic impact on economies dependent on imported oil. However, the impact of higher oil prices on economic growth in OPEC countries would depend on various factors, mainly how the unexpected gain in revenues is managed.
2. Global Oil Price Increase and Its Implication
Oil prices remain an important determinant of Nigeria’s economic performance as it has a significant effect on Nigerian foreign exchange earnings. It is the basis upon which government budgeting, revenue distribution, and capital allocations are determined (Musa et al., 2019). Hence, an increase in oil prices leads to an increase in foreign exchange earnings. Conversely, a decline in oil price leads to shortened revenues in dollars, causing exchange rate volatility, and rightly so as Nigeria’s economy is monolithic with crude oil as the major source of foreign exchange earnings.
Thus the cascading effect of an increase in oil prices cut across the entire economic ecosystem and food chains, as highlighted in this article.
2.1 Operators and Servicing Companies
This price increase provides additional incentive to produce more oil so as to maximize profits and plug shortages, which will increase investments in the exploration and production of Oil and Gas. This bears good news for EPCI contractors and other Servicing Companies who can profit from the increased investment with proper positioning. Key services that are expected to get more jobs to include Maintenance and Repairs to improve efficiency and output on already existing facilities, Retrofits, and Upgrades which will be focused on increasing the capacity of facilities as well as well-drilling and appraisals.
2.2 Jobs and Workforce Retention
The oil price crash of 2020 triggered layoffs and an increase in unemployment. With the new $100 per barrel outlook, capital projects which has been suspended over the last 2 years are coming back alive, and increased employment in the Oil and associated Industry is envisaged.
2.3 Government Budgets
Higher oil prices will favor oil-producing countries such as Nigeria and Ghana as they have higher revenues and can utilize the additional income to increase national reserves as well as budgetary spending. These funds can be used to finance investments in critical sectors of the national economy such as healthcare and education, as well as for infrastructure projects such as roads, rail lines, and ports to facilitate trade. Investment in infrastructure will improve quality of life, create jobs and opportunities, and help build more robust economies. This will also reduce the burden associated with borrowing and financing loans and can help strengthen the national currency in the foreign exchange market.
2.4 Inflation and Manufacturing
The current global energy mix depends on oil and gas, which supplies about 60% of global energy consumption required for manufacturing, transportation, and various other key sectors. The effects of shortages and increased prices present new difficulties for various industries that will seek to remain profitable and increase prices. The effects on the Nigerian economy, which relies solely on imports for the supply of petroleum products despite being an oil-producing country, will be damning as this reliance on imports can drive inflation figures higher and further weaken her economy and the buying power of the citizenry.
2.5 Ordinary Citizens, Households, and Small Businesses
Sub Saharan’s power sector is significantly underperforming. This has necessitated the dependence of ordinary citizens, households, and businesses that need electricity on PMS or AGO to power their homes and business. For decades, in Nigeria, trillions of naira have been spent on the subsidy of petroleum products, and the apparent will of the present administration to stem the continuous theft of government funds through subsidy has been defeated by widespread agitations from labour and many civil society organizations who dread the consequence of a free market where the prices of these petroleum products will rise with oil prices, and personal expenses will skyrocket and lead to further hardship for the common man. But in actuality, now happens to be the best time for the subsidy removal to maximize the gains of the additional income and not lose this to the payment of subsidies which in practice benefits few elite Nigerians who smuggle these products through porous borders to neighboring African countries for personal gain.
Reference
Analysis of the Impact of High Oil Prices on the Global Economy International Energy Agency. (2004). [online] Available at: https://allafrica.com/…/00010270….
2. Musa, K.S., Maijama’a, R., Shaibu, H.U. and Muhammad, A. (2019). Crude Oil Price and Exchange Rate on Economic Growth: ARDL Approach. OALib, 06(12), pp.1–5.
3. https://economictimes.indiatimes.com/…/89814131.cms…
About the author
Dr. Babajide Agunbiade is one of the world’s leading offshore production experts; he’s an investor, businessman and director for Houston-based National Oilwell Varco, the largest oilfield equipment manufacturing company in the world. In that role, he has completed over 2 billion USD worth of offshore production projects in the Gulf of Mexico and Sub-Saharan Africa. He is a fellow of the Nigerian Society Of Engineers, Fellow of Institute Of Industrial and Systems Engineers as well as being a fellow of the Society Of Underwater Technologies.
Source: https://energynewsafrica.com
The Chief Executive Officer (CEO) of Ghana’s petroleum downstream regulator, NPA, Dr. Mustapha Abdul-Hamid, has invited oil investors in the United Arab Emirates (UAE) to take advantage of the country’s favourable petroleum market environment and come to invest in its petroleum infrastructures.
He mentioned that there is an opportunity for investment in oil jetties, pipeline and distribution infrastructures, refineries and gas processing plants, storage and loading gantries as areas for grab by investors.
Dr. Abdul-Hamid said this at the just ended Energy Investment Forum organised by the Ministry of Energy on the sidelines of EXPO 2020 in Dubai, UAE.
He said the establishment of NPA has led to the removal of restrictions on the establishment and operations of facilities, and the importation of crude oil and petroleum products.
He stated that it has also created a reliable legislative and regulatory regime that has delivered for the country a downstream industry, whose contribution to the economy has grown more than four-fold, with private players–both local and international–forming a major part of the industry.
Touching on why Ghana should be the preferred destination for their investment, Dr. Hamid said: “Our unique geographical position along the coast of West Africa, democratic stability and security require that we provide leadership in building an integrated infrastructure to serve the sub-regional petroleum industry.”
Mr Charles Owusu, the Chief Executive of Petroleum Hub Development Corporation, on his part, said the Government of Ghana would provide both economic and regulatory incentives such as corporate tax exemptions and waivers to investors.
“These waivers will cover import duties and taxes and levies on machinery and equipment,” he added.
He also stated that Ghana is ready to reduce the corporate tax rate from 35 per cent to 15 per cent after a 10-year tax holiday for petroleum sector investors.
Source: https://energynewsafrica.com
The United States has confirmed that it is in talks with European allies to potentially sanction Russian crude oil in response to Moscow’s ongoing aggression in Ukraine, sending oil prices briefly above $130.
US Secretary of State Antony Blinken noted on Sunday during the NBC talk show Meet the Press on Sunday, “We are now in very active discussions with our European partners about banning the import of Russian oil to our countries, while of course at the same time maintaining a steady global supply of oil.”
The latest considerations follow a stream of sanctions that have already had a significant impact on the Russian economy but have not yet been able to halt Putin’s advance into Ukraine.
European Commission President Ursula von Der Leyen has yet not fully supported the idea as of yet, though she has expressed that one of their primary goals in the sanctions that have been levied thus far is to cut Putin’s funding streams.
The European Commission President noted on CNN, “The goal is to isolate Russia and to make it impossible for Putin to finance his wars,” adding “For us, there is a strong strategy now to say we have to get rid of the dependency of fossil fuels from Russia.”
The move, if agreed upon, has long been considered the “nuclear option” as a ban on Russian oil could weigh on global supply in an already tight market.
Bank of America analysts noted that if Russia’s oil is cut off, the market could face a 5 million barrel shortfall which could push oil prices to $200 per barrel.
The situation is compacted by stalling talks with Iran over a potential new nuclear deal.
Amrita Sen, the co-founder of Energy Aspects, a think tank, explained, “Iran was the only real bearish factor hanging over the market but if now the Iranian deal gets delayed, we could get to tank bottoms a lot quicker especially if Russian barrels remain off the market for long.”
Source: Oilprice.com
The Abuja Electricity Distribution Company (AEDC), one of the power distribution companies in the Republic of Nigeria, has been sued at a Niger State High Court by residents of Suleja Local Government over poor electricity supply in the area despite paying a huge amount as monthly electricity bills.
The Plaintiff accused AEDC of rendering poor services which is making life unbearable in the area.
In an affidavit sworn by Musa Abdullahi Esq, one of the residents of Suleja Local Government, on behalf of the residents of Dawaki, Mata Akawu, Suleja Club, Maje, Kwamba, Bakasi, Gangare Kwata, Chaza, Emir Palace, Hassan Dalatu, Church Road, Rafin Sanyi, Paolosa and Kwankwashe, it said the above-mentioned residents have been enjoying only four hours of electricity in the morning and four hours in the evening totalling eight hours out of the 24 hours they are supposed to enjoy electricity.
According to the affidavit, what is more upsetting is the fact that consumers are, sometimes, asked to provide funds for the repair of AEDC’s damaged transformers and other equipment.
The Plaintiff posed six questions for the defendant to respond to and sought nine reliefs from the court.
Among the reliefs the plaintiff is seeking is a declaration that the defendant, having failed in their basic duty of provision of power supply safely and reliably, without any tangible justification, the plaintiff is entitled to damages and compensation because the charges/rates are under the guise of bills are imposed by the defendant on the Plaintiff which the plaintiff pays.
An order directing the Defendant to pay Plaintiff (1) general damages to the tune of two hundred million Naira only (N200,000,000), an equivalent of US$474,384.40 for the wrongful, unjustifiable and unwarranted power interruption or refusal of the defendant to supply adequate electricity to the Plaintiff which act of the defendant has caused untold hardship on the Plaintiff Or (ii) in an alternative an Order directing six months free bill period for the Plaintiff as compensation for the all the period of unjustified power interruption.
Additionally, the Plaintiff is seeking an Order directing Defendant to always notify Plaintiff of any prolonged power outage exceeding four hours on any of their entire social media platforms be it newspaper or electronic media.
The Defendant have 30days to respond to the suit. No date has been communicated for mention at the time of report.
Below are the reliefs being sought by the Plaintiff
Source: https://energynewsafrica.com
Nigeria’s determination to join countries generating electricity is gaining momentum as it open bids for the construction of nuclear power plants that would generate 4,000 megawatts of electricity for the country.
“Nigeria is trying to deliver 4,000MW of electricity through nuclear power. We are trying to construct four units and we are at the bidding stage,’’ Dr Yau Idris, Director General, Nigerian Nuclear Regulatory Authority (NNRA), said at the Nigerian International Energy Summit (NIES) in Abuja.
“It is wrong to think that Nigeria can’t manage a nuclear power plant. There are mechanisms put in place that ensure any country can build a nuclear power plant,” he stated.
According to him, Nigeria had been trying to diversify its energy sources since 1977, stressing that the additional 4,000MW would increase the country’s generation capacity to about 13,000MW.
Idris said the regulatory agency has signed agreements with Russia, Pakistan, France and South Korea to build the capacity of its staff in manning the nuclear plants.
In Africa, only South Africa operates Nuclear power plant. The Koeberg Power Station is about 30km northeast of Cape Town and has two units of 900MW Capacity PWR reactors each.
Interestingly, interest in nuclear power generation is growing in Africa because it is considered as one of the sustainable sources of energy.
Apart from Nigeria, which is determined to construct nuclear power plant countries like Egypt, Ghana and Kenya have also taken giant steps towards establishing nuclear power plant.
Ghana’s Public Utilities Regulatory Commission (PURC) has hosted a seven-member delegation from the Ugandan Electricity Regulatory Authority (ERA) to discuss how the two regulatory bodies can strengthen relationships and learn from each other.
The delegation was in Ghana from February 28 to March 4, 2022.
During the five-day visit, the delegation understudied the PURC’s regulatory activities.
The seven-member delegation was led by Prof John Ddumba–Ssentamu, who is a member of the Ugandan Electricity Regulatory Authority.
The delegation comprised Eng. Ziria Tibalwa Wacko, Chief Executive Officer, Eng. Joseph Oteng Otogo, Mr Stephen Mwandha, Board Secretary, Dr Richard Okou, Director Technical Services, Mr Edward Iruura, Director Financial Services, and Juliet Mugoya Jacobs, Principal Executive Secretary.
In his opening remarks, Dr. Ishmael Ackah, the Acting Executive Secretary of the PURC, expressed his appreciation to the delegation for recognising the Commission’s impact and regulatory efforts within the energy and the water industry.
He added that the visit would allow both parties to foster a beneficial relationship.
The delegation was taken through Tariff Structure and Methodology and Overview of the Energy and Performance among other areas of utility regulation in Ghana.
As part of their activities during the benchmarking study tour, the delegation visited the Energy Commission, the technical regulator, and the Ghana Grid Company to be acquainted with the Overview and Mandates, the implementation of Local Content Regulations, and the study of the control systems respectively.
The delegation ended their study visit with a tour of the Kwame Nkrumah Mausoleum.
Watch a video of the Acting Executive Secretary of PURC, Dr Ishmael Ackah explaining the functions of the Commission
Liquefied Petroleum Gas Tanker Drivers in the Republic of Ghana have begun a sit -down strike to press for the resolution of some grievances.
According to the Drivers, they will never resume work until their grievances are resolved.
Addressing a press conference in the Tema industrial area, the National Chairman of Tankers Drivers Union, George Nyaunu noted that the ban on the construction of new LPG facilities about five years ago has crippled the investments owners of the facilities and making it difficult to pay drivers.
He said two of the owners of the facilities have passed away because of the ban on the new LPG facilities.
According to him, tanker drivers have tolerated promise and assurance for far too without any positive resolution.
He demanded, with immediate effect the review of the working condition of tanker drivers in general drivers, especially their salaries.
“We demand an immediate lifting of the ban on construction of LPG stations by LPG owners……we don’t know why these stations have been lying down.”
“Banks are chasing owners of the facilities; some of the owners are dying,’’ he added.
Mr Nyaunu also spoke about what he described as unfair treatment of petroleum tanker drivers by BOST and NPA.
According to Mr Nyaunu, drivers who transport petrol and diesel would be compelled to join the strike in the coming days if government fails to address their grievances.
To sum it, I Chairman of Gas Tanker Drivers Union, Shafiu Mohammed told energynewsafrica.com that they would not resume work until their issues are resolved.
In a related development, Ghana Liquefied Petroleum Gas Operators Association GLiPGOA have hinted at shutting down all LPG refilling stations by Monday, March 7, 2022.
Source: https://energynewsafrica.com
A former Executive Director of Minecom responsible for the oil and gas business unit, Jerry Kofi Hinson, has been appointed as the Managing Director of the Tema Oil Refinery (TOR), confirming an earlier report by this portal that he has been pencilled for the post.
On February 11, this year, energynewafrica.com reported that Jerry Kofi Hinson is likely to be named the fourth MD of TOR under the administration of President Akufo-Addo, after the then Managing Director, Francis Boateng, and his deputy, Ato Morrison, were dismissed some nine months ago.
Since June 2021, the debt-saddled state oil refinery was being managed by a three-member Interim Management Committee (IMC) until Wednesday, March 2, 2022, when it ended its role, thereby, paving way for the newly constituted board and new MD to take over.
Speaking at the inauguration of the new board, Dr Matthew Opoku Prempeh, Ghana’s Minister for Energy, charged the board to be tactical enough to ensure that there is a conducive working environment to improve upon the relationship between the board and management as well as unions.
“It is in our collective interest as a nation for TOR to be fully operational, especially at this time and more especially when we have our discovery,” he said.
The Minister added that TOR is an important national asset that must be protected.
“I believe its transformation lies in individual hearts and minds. I am confident that with the collective input of all stakeholders, we can empower TOR to play a vital role in our economic development. I am clear in my mind that with the diverse expertise represented on this Board, you will deliver. I once again want to assure you of my support as the sector Minister as we embark on this journey together.”
The new Board Chairman, David Kwame Tandoh Adomako, assured the Minister of their full commitment to managing the facility just as any private individual would manage their business and leave TOR better than they met it.
The new board members include; Jerry Kofi Hinson (MD), Nana Akua Bakoma Prempeh, Prince Hamidu Armah, Prof Albert Ahenkan, Edith Sapara-Grant, Kamal-Deen Abdulai, Leon Kendon Appenteng and Irene Osei Bonsu.
Source: https://energynewsafrica.com
Three oil giants BP, Equinor and Shell have decided to part ways with Russia following the counter recent invasion of Ukraine resulting in the loss of human lives.
While BP announced that it is offloading its 19.75 per cent stake in a Russian state-owned oil firm, Rosneft, Shell said it would end all of its joint ventures with the Russian energy company, Gazprom.
BP had come under pressure from the UK government to make the move since last Thursday’s invasion.
It has held the shareholding in the Russian company since 2013.
In a raft of actions to show their unhappiness about the Russian invasion in Ukraine, BP’s Chief Executive, Bernard Looney, has also resigned “with immediate effect” from the Rosneft board, as has fellow BP-nominated Director, Bob Dudley.
Mr Looney had been on the Rosneft board since 2020 alongside its Chairman, Igor Sechin, who is a close friend and ally of Russian President Vladimir Putin.
BP’s latest annual results published two weeks ago revealed Rosneft accounted for $2.7 billion (£2bn) of its profits, about a fifth of its total.
Regarding Equinor’s decision to end its investment in Russia due to the Russian invasion of Ukraine, President and CEO Anders Opedal, in a statement, said: “We are all deeply troubled by the invasion of Ukraine, which represents a terrible setback for the world, and we are thinking of all those who are suffering because of the military action.
“In the current situation, we regard our position as untenable. We will now stop new investments into our Russian business, and we will start the process of exiting our joint ventures in a manner that is consistent with our values. Our top priority in this difficult situation is the safety and security of our people,” Opal said.
It came after Norway’s $1.3 trillion (£970bn) sovereign wealth fund, which is the world’s largest, also announced on Sunday that it would freeze and divest its Russian assets.
On its part, French oil giant, Shell, in a statement issued on Monday, said that it is exiting its operations in Russia including a major liquefied natural gas plant.
It said it would quit the flagship Sakhalin 2 LNG plant which holds a 27 per cent stake and which is 50 per cent owned and operated by Russian gas giant, Gasprom.
Shell said the decision to exit Russian joint ventures would lead to impairments.
Shell had around $3 billion in non-current assets in these ventures in Russia at the end of 2021, it said.
“We are shocked by the loss of life in Ukraine, which we deplore, resulting from a senseless act of military aggression which threatens European security,” Shell Chief Executive Ben van Beurden said in a statement.
Source: https://energynewsafrica.com
Ghana’s Public Utilities Regulatory Commission (PURC) has charged electricity and water consumers to channel their grievances to their offices across the country in time for timely and effective resolution.
Consumers have also been advised to be vigilant and demand receipts for all payments and purchases at both electricity and water cash vending points.
The Commission made these calls when officials of its Wa Regional Office embarked on public education and outreach programme at the Pentecost International Worship Centre (PIWC).
Recently, the Commission facilitated the payment of compensation for five consumers in Sekondi-Takoradi after establishing that their properties got destroyed when a rented house they were occupying burnt due to a power surge.
The ECG was made to compensate the victims with a sum of GH¢51,622.
https://web.facebook.com/purcgh/posts/260999412883757
Source: https://energynewsafrica.com
Mr Charles Owusu, the Chief Executive of Petroleum Hub Development Corporation, on his part, said the Government of Ghana would provide both economic and regulatory incentives such as corporate tax exemptions and waivers to investors.
“These waivers will cover import duties and taxes and levies on machinery and equipment,” he added.
He also stated that Ghana is ready to reduce the corporate tax rate from 35 per cent to 15 per cent after a 10-year tax holiday for petroleum sector investors.
Source: https://energynewsafrica.com 
Source: https://energynewsafrica.com 
He said two of the owners of the facilities have passed away because of the ban on the new LPG facilities.
According to him, tanker drivers have tolerated promise and assurance for far too without any positive resolution.
He demanded, with immediate effect the review of the working condition of tanker drivers in general drivers, especially their salaries.
“We demand an immediate lifting of the ban on construction of LPG stations by LPG owners……we don’t know why these stations have been lying down.”
“Banks are chasing owners of the facilities; some of the owners are dying,’’ he added.
Mr Nyaunu also spoke about what he described as unfair treatment of petroleum tanker drivers by BOST and NPA.
According to Mr Nyaunu, drivers who transport petrol and diesel would be compelled to join the strike in the coming days if government fails to address their grievances.
To sum it, I Chairman of Gas Tanker Drivers Union, Shafiu Mohammed told energynewsafrica.com that they would not resume work until their issues are resolved.
In a related development, Ghana Liquefied Petroleum Gas Operators Association GLiPGOA have hinted at shutting down all LPG refilling stations by Monday, March 7, 2022.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com