Ghana: I Will Make National Petroleum Authority Financially Viable-CEO
The newly appointed Chief Executive Officer of the National Petroleum Authority (NPA), Ghana’s petroleum downstream regulator, Dr Mustapha Abdul-Hamid, has said that one of his major priorities will be to ensure that the Authority is financially viable.
According to him, the downstream sector is an important component of Ghana’s economic success, but noted that if the right things are not done to ensure efficiency and robustness, the industry may struggle to contribute the expected revenue targets for national development.
Speaking at the opening of a management retreat in Ada, last week, Dr Mustapha Hamid, who expressed concerns about the manner which the banking sector suffered due to wholesale granting of licences, leading to a cleanup by the government, said the same approach will not be adopted to ensure the industry is sound and safe.
According to him, the licences for the establishment of petroleum retail outlets should be given to those that are willing and prepared to do business, contribute the right amount of taxes into state coffers and ensure the nation benefits significantly.
“My vision is to make NPA efficient and viable,” he told participants at the retreat.
He added that third party activities in the industry should not be encouraged, because it undermines the integrity of the sector and the operations of those doing the right things.
Dr Abdul-Hamid also affirmed his commitment to improving efficiency of the NPA’s operations, improving staff morale as well as building the capacity of staff to deliver on his mandate.
According to him, a united front and team work among staff would ensure the objectives are achieved.
Dr Abdul-Hamid also said the authority, under his leadership, would deliver first class service to stakeholders in the petroleum downstream sector.
The retreat is part of the authority’s way to review its mid-year performance and expedite planned strategies to meet its target for the year.
Source: www.energynewsafrica.com
Electricity Demand Rebound Will Require More Fossil Fuel Generation -IEA
Global electricity demand is growing faster than renewable energy capacity can be rolled out and will require more power to be generated from the burning of fossil fuels, the International Energy Agency (IEA) said in a report on Thursday.
After falling by about 1% in 2020 when the COVID-19 pandemic curbed industrial activity across the world, power consumption is set to grow by close to 5% in 2021 and by 4% in 2022 as economies recover, the IEA said in the mid-2021 edition of its Electricity Market Report.
Nearly half of the increase will have to be met by burning fossil fuels, notably coal, which could push carbon dioxide emissions from the sector to record highs in 2022, the agency said, adding it expects particularly strong demand in the Asia Pacific region, primarily China and India.
Renewables are expanding quickly as the global community addresses the need to reduce carbon pollution, but the IEA’s report shows the process will have to accelerate if cleaner energy is to keep up with overall demand.
Renewable capacity, including hydropower, wind and solar photovoltaics, is on track for 8% growth in 2021 and more than 6% in 2022, while virtually emissions-free nuclear will increase by 1% and 2% respectively.
“Even with this strong growth, renewables will only be able to meet around half the projected increase in global electricity demand over those two years,” the IEA said.
“To shift to a sustainable trajectory, we need to massively step up investment in clean energy technologies – especially renewables and energy efficiency,” it said.
CO2 emissions from burning coal and gas were likely to increase by 3.5% in 2021 and by 2.5% in 2022, it predicted.
Turning to wholesale power prices, the IEA noted a rise of 54% in first half 2021 in advanced economies, compared with the same period in 2020.
Gasoline Demand May Never Fully Recover-IEAFull year average prices last year declined by a quarter from 2019. The IEA also noted that extreme cold, heat and drought have caused disruptions to electricity supply this year, notably the Texas power crisis in February. Source: Reuters
Ghana Drafts Framework To Regulate Electric Vehicles Industry
Ghana is in the process of drafting policy framework that would regulate the emerging electric vehicle industry in the West African nation.
The country’s electricity regulator, Energy Commission, is working on the technical regulations, while the Public Utilities Regulatory Commission, which is responsible for tariff setting, is expected to come up with effective tariff to be paid for charging electric vehicles.
The country’s Minister for Energy, Dr Matthew Opoku Prempeh told The Finder newspaper: “The draft, when completed, would be scrutinised after which it would submitted to Cabinet for approval.”
The use of electric vehicles, Dr Matthew Opoku Prempeh said would offer enormous benefits for Ghanaians not only in terms of health, economic and social circumstances but more importantly environmentally, as the clean energy agenda drastically reduces carbon emissions, thereby clearing the way for significant climate progress.
Dr Opoku Prempeh was optimistic that the emerging electric vehicles would create job avenues for the teeming youth.
In 2019, Ghana’s electricity regulator, Energy Commission, launched the ‘Drive Electric Initiative’ as part of effort to promote the use of electric powered vehicles for the transportation needs of Ghanaians.
The move was in response to global push for electric vehicles as part of energy transition from fossil fuels to renewable energy sources to address climate change.
To this end, Ghana’s Southern electricity distribution company, ECG, in November 2020, collaborated with POBAD International, a wholly-owned Ghanaian technology firm, launched the EV charging system with a test run of an EV to officially add Ghana to the register of countries that are introducing the new technology in their transportation industry.
Managing Director of ECG, Kwame Agyeman-Budu, said his outfit had signed a Memorandum of Understanding (MoU) with POBAD International Ltd to pilot the operations of EV charging system in strategic locations in Accra over the next three months.
Mr.Agyeman-Budu, whose speech was read for him by his Deputy, Ing. Jones Ofori Addo said the pilot would afford ECG the opportunity to carry out a thorough engineering and commercial studies into the effects of the EV charging system on EC’s electricity distribution networks, the energy consumptions rate of the different charging systems and any other issues.
Source:www.energynewsafrica.com
Lift Ban On Power Purchase Agreements (PPAs) For Renewable Energy Boom In Ghana
By:Emmanuel Kpogo,
Lifting the ban on renewable energy Power Purchase Agreements (PPAs) would be a major hurdle removed, to allow for the explosion of renewable energy projects and initiatives in Ghana, for purposes of de-carbonization, cost-efficient energy supply, and for economic recovery and growth post Covid-19.
It would be recalled that government suspended the issuance of new licenses for Wholesale Electricity supply and Permits for Utility Scale Grid connected solar photovoltaic (PV) and wind power plants in 2017. The Energy Commission (EC) provided two main reasons for the decision at the time.
The first was that, the EC had issued about 124 Provisional Wholesale Electricity Supply Licenses for Utility Scale Grid-connected Renewable Energy (RE) projects since the coming into force of the Renewable Energy Act, 2011 (Act 832), out of which only three (3) have been developed, representing approximately a low 2.5 percent development rate. Unfortunately, the notice from EC failed to provide further details on the over 97 percent licensed projects that have not been developed, operationalize or which phase of development any of these projects were.
The second reason for the suspension of issuance of new PPAs had to do with the Electricity Company of Ghana (ECG) having signed numerous PPAs, in excess of 2,000MW. According to various reports by the Ministry of Finance and Economic Planning, Ghana pays over US$500 million a year for unused electricity. Government laments the tariffs agreed under the PPAs (mostly thermal) were not competitive and have contributed significantly to the build-up of debt in the energy sector, and over-supply of power.
Based on these two reasons, ECG was directed by the Ministry of Energy (MoE) to suspend the signing of new PPAs for renewable and conventional/thermal power plants since the beginning of 2017.
The Concerns
The reasons as put forward by government to suspend the issuance of additional power purchase agreements (PPAs) raises many concerns. A mere suspension of issuance of new licenses cannot be said to be a sustainable solution, as it will not force the existing licensed companies to develop and operationalize their projects. A comprehensive review of licenses and projects on case-by-case basis is commendable, for purposes of recalling redundant licenses and issuing new licenses to companies with resources and capacity to develop projects within the shortest possible period.
A recent report by Ackah et al. (2021) on the Ghana’s PPAs identified 32 of such agreements in force, for the provision of electricity generation. Out of these 32, the number of known PPAs operating or near-operational projects is 14 with a total installed power generation capacity of 2,825 megawatts (MW). Of these, two (2) are solar, three (3) are Emergency Power Producers (EPPs) and the remaining nine (9) are gas or gas/hybrid Independent Power Projects (IPPs). The remaining 18 PPAs with a further installed capacity of 4,107 MW have been signed but are not yet under construction. Of these, eleven (11) are solar, five (5) gas, one (1) biomass, and one (1) sea wave power, according to the report.
The idea that Ghana pays over US$500 million a year for unused electricity, rather makes a strong case for the ban to be lifted for renewable energy power agreements since renewables currently provides comparatively cheaper tariffs with technologies which promises to make renewable energy even cheaper going forward. The last decade has seen efficient renewable energy technologies consistently reducing the cost of renewable power. Investment into renewables in the last decade has also increased exponentially in response to the Paris Climate Accord and the United Nation (UN) sustainable development goals. The “green” revolution is on, with major economies and energy companies taking actions to embrace and take advantage of renewables.
Why Lifting Of Ban Is Crucial
“Green energy” as it has come to be called is presently enjoying unparalleled political and business momentum around the globe, with the number of policies and projects around the world expanding rapidly. As a result, Ghana must as a matter of urgency remove all hurdles, and position itself to explore fully the country’s untapped potential in renewable energy.
Five (5) key factors makes sense for the lifting of ban on renewable energy PPAs:
1. The need to diversify from fossil fuels as part of the global shift, to provide cost-effective and sustainable energy supply for millions of Ghanaian population. The lifting of the ban is a panacea to the daunting electricity supply challenges the country have had to grapple with over the past few years.
2. To meet the extended deadline of 2030 for the 10 percent share goal of renewable energy in the country’s energy mix. Whereas the global average for renewables in the energy mix stands roughly at 12 percent, Ghana is far lagging behind, with a little over 1 percent share in the current power mix. It must be noted that the initial deadline for achieving the 10 percent share of renewable energy in the country’s energy mix was 2020.
3. To meet Government’s policy of achieving 100 percent electricity coverage by 2025 by filling the deficit gap via mini-grid powered by renewable energy such as solar, wind and waste-to-energy. Aboagye et al. (2021) posits that, if government can ensure access to modern energy access for all in affordable, reliable and sustainable manner by 2030 as enshrined in the seventh Sustainable Development Goal (SDG), it is imperative to give much impetus to renewable energy generation and applications for socio-economic development in Ghana.
4. The need for a guaranteed uninterrupted power supply for industries, in the in view of government’s “One District, One Factory policy”, and the African Continental Free Trade Area that is forecasted to boost industrialization, exports, and gross domestic product (GDP) of local economies. According to Konfidant, a research and advisory firm, one of the five key competitive areas that Ghana falls short of, compared to selected African countries is the cost of power― a key determinant for a country’s ability to attract manufacturing companies, and produce at a relatively cheaper rate.
5. The global trend towards “Green” economy to address climate change concerns, and the need to prepare adequately for renewable energy investment boom in the country, makes another strong case for lifting of the ban. The Ghana “Renewable Energy Master Plan” can be fully operationalized only if the ban on renewable energy PPAs are lifted to drive the green revolution.
Why Renewables?
The deployment of renewable energy is linked to fighting climate change, creating sustainable “green” jobs, while serving as a catalyst for the needed infrastructure development and economic growth.
Additionally, renewable energy is offering very competitive prices for electricity, particularly solar and wind. Compared to the country’s thermal power plants that emits carbon dioxide and offers on average a cost of 11 cents per Kilowatt-hour, both wind and solar power can offer something below 7 cent per Kilowatt-hour. This presents a huge relief and opportunities for industries and commercial entities that are struggling to cope with high electricity cost in the country.
The excess low-priced green electricity offered to consumers can also be used to produce fuel in the form of “Green” Hydrogen, through electrolysis where a strong electrical current is passed through water to splits the molecule into its two constituent elements― oxygen and hydrogen. Hydrogen is definitely the fuel of the future, and gradually seeking to replace a significant size of current fossil fuels needs.
Government of Ghana is therefore presented with a huge opportunity in stimulating capital spending on new infrastructure, which establishes Hydrogen as one of the new energy sectors, that is expected to play a vital role in the ecological transition, and positioned to play a significant role in meeting present and future transportation and industrial needs.
Based on these and many other benefits, it is imperative that government lifts the ban on PPAs for renewables. It is noteworthy that, whenever renewable energy is talk about, it is done within the contest of climate change, costs, and sustainable energy supply based on the right energy mix. The push for a national discourse on Ghana’s energy mix must continue unabated, taking into consideration the country’s resources in wind, solar, water and fossil fuels.
Beyond lifting the ban on renewable Power Purchase Agreements (PPAs) to help deepen the deployment of renewables in the country, it is recommended that government;
1. Establishes a Renewable Energy Authority to promote and develop the renewable energy sub-sector. It is to facilitate the formulation of policies and regulations, while creating the enabling environment to attract investors from the private sector, among others.
2. Develops a Hydrogen policy, indicating key strategies and relevant Road Maps for the development of the “energy carrier” in the country. A strong policy signal will trigger huge investment and business activities relating to hydrogen in the country. The right policy would cause a Hydrogen economy to emerge through the private sector, and free government from spending on the needed infrastructure.
It must be reiterated that the wholesale ban of PPAs that is well into its fifth year is not doing the country any good. It is important to note that, prolonging the ban without review of the licenses and projects could deter investors and stifle growth in the energy space.
A proactive and impactful approach to the issues would be to review all licenses issued to determine redundant licenses that cannot be operationalized under the current circumstances. A more transparent and competitive process must be used to issue new licenses, for development and operationalization of renewable energy projects.
Written by Emmanuel Kpogo, Institute for Energy Security ©2021
Emmanuel is an IES Professional Member working in the downstream sector of the petroleum industry, with research interest in sustainable energy supply. He is a Chartered Supply Chain, Procurement and Logistics professional, specialized in Contract Management, Oil and Gas Operations, Strategy and Business Process improvement.
Nigeria: There Is No Plan To Privatise TCN-Malo
Nigeria will not privatise the country’s transmission company, TCN, a Director at the Energy Department of Bureau of Public Enterprises (BPE), Mr Yunana Malo has said.
Speaking at a media briefing last Monday in Abuja, Mr Malo explained that what is rather going to happen is that the bureau would put TCN on concession in order to get maximum value.
He said the transmission was the weak link in the power reform, as the generation, which was privatised, had since attracted a lot of investments, making it more efficient.
He said the generation capacity had improved, adding that 60 percent of the distribution segment had also been partially privatised and was beginning to pick up through the reforms of the Federal Government.
“The seemingly weak link in the transmission component, it is still 100 percent owned by the FG.
“The idea is to think outside the box and bring in solutions that will make the transmission component service the value chain, and make it more efficient.
Ghana: PURC To Compensate Electricity Consumers After Investigating Erratic Power Supply“Government is not thinking of privatising; it is thinking of ways and means that the private capital can be brought into the transmission component without giving out the ownership of Transmission Company,” Vanguard quoted Mr Malo as saying during the press briefing. Mr. Malo explained that the bureau would concession the transmission segment, “so that we can have somebody building the high tension lines, covering areas that have not been reached or to maintain the existing ones to get maximum value, to move from the radial system we have today into a mesh. “So the idea is not to privatise but to reform and make it efficient, bringing in private sector operational modalities within the transmission company.” Source:www.energynewsafrica.com
Chile Government Plans Closure Of Four Coal-Fired Power Plants
Chile’s government has announced plans to close four coal-fired power plants operated by an AES Corp unit before 2025 as the South American country seeks to accelerate decarbonization.
The world’s largest copper producer has been working on decarbonizing its energy network with the goal of becoming carbon neutral by 2050.
Juan Carlos Jobet, the energy minister, said since agreements signed in 2019 when Chile was the host of the COP25 United Nations climate summit, officials had sought ways to speed up the timeframe.
“At that point, the plan was for the decommissioning of eight power plants by 2025,” he said in a statement.
“As it is now, by that date we will have decomissioned 18, representing 65% of Chile’s coal-fired units.”
The latest closure announcements involve coal-fired plants in the seaside community of Puchuncavi in Chile’s central zone and 80% of coal-fired energy generation in Mejillones, a city in the North, by 2025. The previous closure target was 2040.
Ghana: Nuclear Power Plant Is Needed For Reliable Electricity-Energynewsafrica.com Managing EditorThe two places are part of heavily industrialized areas known as “sacrifice zones.” These were part of an economic development drive and have suffered environmental damage and health effects. The plants to be closed are all run by U.S.-headquartered energy giant AES ‘ local subsidiary, AES Andes. To replace coal-fired power, Chile is looking to clean technology, mainly solar and wind power, aiming for 40% of its power supplied from such sources by 2030. It is also seeking to become one of the world’s biggest producers of green hydrogen, an alternative fuel source for future use in industries including steel-making, cement, fertilisers, shipping and aviation.
Africa Cannot Depend On Solar And Wind Energy To Industrialise-Wisdom Togobo
A former Director for Renewable and Alternative Energies at Ghana’s Ministry of Energy, Wisdom Ahiataku-Togobo says Africa’s industrialisation drive would only be realised if the continent’s electricity generation is anchored on hydro, nuclear, natural gas or coal power as cheap baseload.
According to him, industries need regular and reliable supply of electricity for continuous production, stressing wind and solar power plants do not provide 24 hours of electricity as compared to hydro, natural gas or nuclear power.
He suggested that what Africa can do is either use hydro or nuclear power as baseload for her electricity and introduce other renewable energy sources such as wind and solar along the way.
He said it would not be prudent to push for renewable energy sources without having any baseload.
“Industries need reliable power to be able to produce. Solar is not available for 24 hours. You get it for, at most, eight hours. Wind also fluctuates. Sometimes, the wind will blow some hours and will not blow and industries can’t survive with these intermittencies. That is why you need a bigger baseload to support this intermittencies,” he explained.
“Africa cannot industrialise on the backbone of solar and wind without any baseload,” he added.
Making a presentation on behalf of Bui Power Authority (BPA) at a stakeholders’ forum organised by Association of Ghana Industries, in collaboration with Nuclear Power Ghana recently on Ghana’s nuclear efforts, Mr. Ahiataku-Togobo, who is currently Director at the Executive office of Bui Power Authority, observed that most African countries use diesel, light crude and heavy oil as fuel for electricity generating plant with only few of them using natural gas to power their plants.
He said South Africa is the only industrialised country in sub-Saharan Africa due to the availability of cheap coal and nuclear power.
He noted that Malaysia is industrialising at a fast rate due to availability of coal and NLG power.
“Ghana is endowed with abundant natural resources including gold, bauxite, iron ore, cocoa among others that require cheap reliable power to add value,” said Mr. Togobo.
He lamented that even though Ghana currently has excess generation capacity, Valco is unable to pay for the high cost of this excess power.
Mr. Ahiataku-Togobo explained that BPA was in support of Ghana’s nuclear power agenda because the “activity is in line with the BPA’s Amendment Act 1046 to support the development of renewable and clean energy alternative including nuclear power.”
He added that nuclear power emits no carbon dioxide yet has the potential to provide reliable baseload and adequate reserve margin for supporting the uptake of more variable renewable energies such as wind and solar.
He further stated that operational cost of nuclear power is very low and, therefore, most suitable to support industrialisation and value addition as experienced by all the countries with Nuclear power plants.
Source: www.energynewsafrica.com
Cairn Energy Secures French Court Order To Seize 20 Indian Gov’t Properties
Britain’s Cairn Energy Plc has secured a French court order to seize about 20 Indian government properties in France to recover a part of USD 1.7 billion arbitration award, sources said on Thursday.
On June 11, the French court had ordered Cairn Energy’s take-over of Indian government properties, mostly comprising flat; and the legal process got completed on last Wednesday evening.
An arbitration panel had in December ordered the Indian government to return USD 1.2 billion plus interest and penalty to Cairn Energy after reversing a retrospective tax demand.
Ghana: Petroleum Downstream Sector Needs Cleaning Up-AkwaboahWith Indian gov’t not honouring the award, Cairn Energy has moved in multiple jurisdictions overseas to recover the amount due by seizing Indian government assets.
Brazil Plans To Be 5th-Largest Crude Exporter By 2030
Brazil’s expected oil output surge this decade will make it the world’s fifth-largest crude exporter in 2030, Brazilian Mines and Energy Minister Bento Albuquerque said in an interview with The Rio Times.
“In 2030, when we reach a production of 5.3 million barrels of oil per day, Brazil will become the fifth largest exporter in the world,” Albuquerque said, adding that Brazil’s crude and liquids production is set to jump from 3.3 million barrels per day (bpd) now.
Currently, Brazil is out of the top ten of the world’s largest crude oil exporters, a ranking where Saudi Arabia is firmly in the lead.
Brazil’s prolific pre-salt offshore oilfields have been ramping up production in recent years and are the main driver of rising oil production.
Moreover, Brazil is one of the countries not part of the OPEC+ alliance that are expected to continue to contribute to non-OPEC supply this year and in the coming years, according to estimates from OPEC itself.
The main drivers for 2021 supply growth are anticipated to be Canada, Brazil, China, and Norway, OPEC said in its latest Monthly Oil Market Report (MOMR) in June.
Brazil’s crude oil production in April 2021 rose by 128,000 bpd from March to average 2.97 million bpd. Based on preliminary production data, and fewer outages due to lower maintenance and other unplanned outages, May crude production indicates further month over month growth of more than 50,000 bpd, OPEC has estimated.
In 2020, Brazilian crude oil production rose by 5.7 percent to average 2.9 million bpd, according to data from industry regulator ANP published last month.
The pre-salt basin with 2 million bpd output led the rise in supply.
Thanks to the higher crude oil production, Brazil’s exports hit a record level of 1.4 million bpd in 2020, up by 16.9 percent year over year, ANP said.
Source: Oilprice.com
Ghana: Energy Minister Donates Chairs To Schools In South Manhyia Constituency
The Minister for Energy, Dr. Matthew Opoku Prempeh, has donated assorted chairs to basic schools and one Senior High School (SHS) in the South Manhyia constituency in Kumasi in the Ashanti Region of the Republic of Ghana.
The Energy Minister, who is also the Member of Parliament for the area, presented 52 hexagonal tables for kindergarten (KG), 300 chairs for another kindergarten (KG), 510 mono desks for Junior Higher School (JHS), 300 dual desks for primary schools and 400 foreign desks to the Serwaa Nyarko Girls’ SHS.
In a Facebook post sighted by energynewsafrica.com, Dr. Opoku Prempeh said: “This presentation came on the back of requests from the schools through the Metro Director of Ghana Education Service(GES).”
The Minister urged the heads of the beneficiary schools to ensure proper care of the items to promote effective teaching and learning.
He also used the opportunity to encourage all the schools in his constituency not to relent on their efforts but continue to be the best in the region and strive to be the best nationwide.
The presentation was witnessed by Mr David Oppong, GES Metro Director, Mr Martin Addis Fordjour, Head of Supervision GES, Kumasi, Mr Albert Asante Twum, Mr Peter Gyemfi, Head of Supply and Logistics, Nana Yeboah Asiamah- PRO, GES, Kumasi Metro, and all the heads of basic schools in the constituency.
The Assembly Members from the six electoral areas in the South Manhyia constituency, officials from the Manhyia sub-metro, and executives of the ruling New Patriotic Party in the constituency were also present.
Source:www.energynewsafrica.com
He also used the opportunity to encourage all the schools in his constituency not to relent on their efforts but continue to be the best in the region and strive to be the best nationwide.
The presentation was witnessed by Mr David Oppong, GES Metro Director, Mr Martin Addis Fordjour, Head of Supervision GES, Kumasi, Mr Albert Asante Twum, Mr Peter Gyemfi, Head of Supply and Logistics, Nana Yeboah Asiamah- PRO, GES, Kumasi Metro, and all the heads of basic schools in the constituency.
The Assembly Members from the six electoral areas in the South Manhyia constituency, officials from the Manhyia sub-metro, and executives of the ruling New Patriotic Party in the constituency were also present.
Source:www.energynewsafrica.com
Ghana: Four Chinese Nationals Grabbed For Stealing Electricity Cables
Security operatives in the Republic of Ghana, on Thursday at 7.30pm, arrested four Chinese nationals for allegedly stealing quantities of electricity cables.
It is unclear which company owns the cables but media reports suggested that the cables bore the seal of the country’s Ministry of Energy.
According to a report filed by Accra-based Kasapa FM, Ghana’s national security operatives in the Eastern Region arrested the suspects after the former picked intelligence that the suspects were smuggling 30 bundles of electricity cables and some unbundle cables at CK Aluminium Company Limited at Nsawam Adoagyiri to an unknown destination.
The suspects are Liu Lianwei, 38, Su Meng, 55, Tuan Xiuwei, 41, and Zhang Chenming, 55.
The suspects are currently at the Eastern Regional Police headquarters assisting in investigations.
The Regional Police Public Relations Officer, DSP Ebenezer Tetteh was quoted as saying: “Investigation is ongoing and the media will be briefed after that.”
Source:www.energynewsafrica.com
Singapore: Two Oil Thieves Jailed Over Six Years
A Singaporean court has sentenced an Indian national and his Malaysian colleague to over six years’ jail term for siphoning more than 300,000 tonnes of gas oil worth, at least, 200 million Singapore dollars (USD150 million approximately) in 2017-18 at the Royal Dutch Shell’s Singapore refinery.
According to media reports, the Indian, Sadagopan Premnath, 40, was jailed for six years and eight months while his Malaysian colleague, Muhammad Ashraf Hamzah, 39, received nine and a half years’ jail term for the heist that is said to be the largest in marine gas oil at Royal Dutch Shell’s Singapore refinery.
Sadagopan had earlier pleaded guilty to four counts of criminal breach of trust, with another five charges taken into consideration for sentencing, the report said.
He was involved in the scheme between 2017 and 2018, aiding in the misappropriation of USD36 million (about 49.1 million Singaporean dollars) worth of gas oil.
He conviction is said to have received about USD 150,000 from the criminal proceeds.
The duo had followed instructions to open and close valves so that ships could receive the stolen gas oil without being detected.
According to a Singaporean newspaper, Today, two others–a Vietnamese ship captain Doan Xuan Than and another ship officer, Dang Van Hanh were also jailed for receiving between 3.5 million Singaporean dollars and 7.7 million Singapore dollars of gas oil.
In early 2015, Shell began observing significant unidentified gas oil loss at the refinery on Pulau (island) Bukom.
A 2015 review did not turn up anything suspicious. Shell then implemented various measures to improve processes but the misappropriation continued.
In early 2017, it engaged a third-party consultant to conduct a review, but the investigation did not yield a conclusive explanation for the high losses.
It soon experienced its highest hydrocarbon loss since 2015. Shell then hired a global team of analysts, who detected the misappropriation, and a police report was made.
Shell had since taken various measures to improve its systems and processes, including developing monitoring software to detect potential thefts.
So far, Shell has incurred about six million Singapore dollars in costs to manage the consequences of the misappropriation.
For each charge of criminal breach of trust as an employee, each man could have been jailed for up to 15 years and fined.
Source:www.energynewsafrica.com
Ghana: Court Acquits And Discharges CEO Of Reroy Cables Ltd
The Chief Executive Officer of Reroy Cables Limited, Kate Quartey-Papafio, has been acquitted and discharged by the Commercial Court 7 Division of the High Court in Accra, Republic of Ghana.
The businesswoman, together with the Managing Director of the defunct Capital Bank William Ato Essien, Tettey Nertey and Fitzgerald Odonkor, was charged with conspiracy to steal, stealing and laundering of stolen money in the case involving the collapse of Capital Bank.
According to report by Citinewsroom.com, Justice Eric Kyei Baffour, who presided over the case in a ruling on a submission of no case on Thursday, July 8, 2021, described the accused person’s role in the events leading up to the collapse of Capital Bank as childish rather than criminal.
The judge reportedly said as a businesswoman, she did not exercise her business acumen in relation to her dealings.
That notwithstanding, the court observed that the law only recognised a person who acts in bad faith.
Consequently, the court ruled that the Republic had not made a sufficient case to warrant it to invite the businesswoman to answer questions.
Kate Quartey-Papafio was accordingly acquitted and discharged.
Source:www.energynewsafrica.com
Equatorial Guinea: Don’t Attend Africa Oil Week In Dubai-Obiang Lima Tells IOCs
Equatorial Guinean Minister for Mines and Hydrocarbons, H.E Gabriel M. Obiang Lima, has criticised organisers of Africa Oil Week for deciding to host the continent’s flagship oil and gas event in Dubai instead of its usual location, South Africa.
Obiang Lima, who expressed disappointment in the organisers, was quick to state that his country is not going to participate in the event.
According to him, he would send a letter to all IOCs and service companies operating in Equatorial Guinea, strongly encouraging them not to attend the Africa Oil Week in Dubai.
He urged his fellow ministers and other industry stakeholders to cancel their participation in the Dubai initiative.
Obiang Lima stated his country’s stance at a meeting in Malabo, the nation’s capital, where he said: “This is not the time to abandon Cape Town, South Africa and Africa.”
In addition to this, the Minister looked forward to seeing Gwede Mantashe, Minister for Mineral Resources in Cape Town, to further promote the African energy agenda through development and deal-making participation.
According to H.E Gabriel Obiang, Duncan Clarke’s vision and love for Africa and its oil industry should not be forgotten.
He credited Duncan Clarke for helping so many countries showcase their resources and attract investments, and urged the African Energy Chamber to continue that legacy as it is more critical now than ever.
Minister Gabriel would engage in an aggressive investment drive over the next six months and would be in Cape Town, Houston, Doha and other cities to promote investment opportunities in Equatorial Guinea.
He pledged to work with other ministers from the CEMAC region and the African Energy Chamber on finding solutions concerning the Central Bank’s (BEAC) new currency regulations.
According to him, IOCs and Independents have to be welcomed in the region and “we must create an enabling environment.”
The African Energy Chamber thanked the Minister for his strong support for South Africa and Africa.
“Many Africans got into oil and gas because of Duncan Clarke. He opened doors for so many. That legacy must be respected and preserved,” stated Leoncio Amada Nze, President of the African Energy Chamber, CEMAC Region
“When you’re dealing with an issue like this, you don’t need everyone. You just need to be effective and we thank Minister Gabriel Obiang for his effective advocacy for Africa in times of crisis,” added Mr. Amada Nze.
“Our work to support the African oil and gas sector will lead to a lot of changes on how Africa is viewed and how we respect this continent and its people. We must be patient, whatever temporary inconvenience there may be, in the long run, it will be better for everybody,” concluded Mr. Amada Nze.
Source:www.energynewsafrica.com