Nigeria: Privatization Of Power Sector Not A Failure—IBEDC COOThe Commissioner said the implementation would start immediately, adding that Lagos State Government has identified several feeders that can provide power in 20,000 low-income areas with plans to replicate the initiative across the state. He said: “This Memoranda of Agreement is to ensure the provision of uninterrupted power to residents, especially the low-income areas. It is also part of efforts to solve the problem of metering and infrastructure deficit to ensure these areas get power supply which is also measurable. “The 20,000 meters have been procured by the state government and would be distributed free to low-income areas in Alimosho Local Government Area at the pilot phase. We intend to replicate this gesture in other areas of the state once the pilot phase is successfully executed. “We have identified several feeders that can provide power in these communities and implementation would start immediately.” The Managing Director of Ikeja Electricity Distribution Company (IKEDC), Folake Soetan expressed the firm’s readiness to support the Lagos State Government in ensuring uninterrupted power supply to residents of the state. The Managing Director of Sahara Power Group, Anthony Youdeowei said his company would be transparent in its dealings with the Lagos State Government and Ikeja Electric to provide power supply for Lagosians.
Nigeria: Lagos Signs Agreement With Ikeja Electric On Power Supply
The Lagos State Ministry of Energy and Mineral Resources and the Ikeja Electric Plc has signed a Memorandum of Agreement to boost power supply in the state.
Under the agreement, signed at the Ministry on Tuesday, the Lagos State government would be financing the project, procuring and providing meters that comply with Ikeja Electric’s minimum standard meter specifications for installation to all customers on the designated feeders and distribution transformers in the Alimosho Local Government Area.
The state government would also be supplying personnel for the implementation of the project.
However, Ikeja Electric would be responsible for the execution of the project and ensure that funds received from the state government are applied towards network upgrades on designated feeders and distribution transformers and the installation of customer meters.
Speaking during the signing of the agreement at the Lagos State Secretariat, Alausa, the Commissioner for Energy and Mineral Resources, Mr Olalere Odusote said the agreement aims to increase power supply to, at least, 22 hours daily, from about eight to 12 hours daily.
ReconAfrica Delegation To Attend African Energy Week In Cape Town – Committed To Promoting Namibian Frontier Exploration
Scot Evans, CEO of Reconnaissance Energy Africa (ReconAfrica), has confirmed his attendance and participation at African Energy Week (AEW) taking place in Cape Town on the 9th-12th of November.
Both Evans and Diana McQueen, Senior Vice-President Communications and Stakeholder Relations, will come to Cape Town, not only to lead a discussion on Namibia’s hydrocarbon potential, but also to host a Women in Leadership Brunch at Africa’s premier energy event.
ReconAfrica is a Canadian oil and gas company focused on hydrocarbon exploration and development in Namibia and Botswana.
The company has a 90% interest in a petroleum exploration license in NE Namibia, covering the entire Kavango sedimentary basin, as well as a 100% interest in petroleum exploration rights in NW Botswana over the entire Kavango basin in the country.
In collaboration with the government, ReconAfrica is committed to exploring the oil and gas potential in the Kavango Basin, with the company currently acquiring high-resolution aeromagnetic surveys of the license area, as well as detailed analysis of the resulting data.
With over 11 billion barrels of oil and 2.2 trillion cubic feet of proven natural gas reserves in Namibia, international oil companies have been focused on exploiting the country’s significant hydrocarbon potential.
Notably, ReconAfrica has made impressive progress in a short space of time regarding exploration, particularly in Namibia.
The company is drilling three conventional exploratory stratigraphic wells, intended to provide a complete picture of the geological formation. In April 2021, ReconAfrica announced preliminary results from the first well, with the discovery of a working petroleum system in the Kavango Basin. Thereafter, in June 2021, drilling of the second well correspondingly showed similar characteristics to that of the first, with clear evidence of a working conventional petroleum system.
With the complete evaluation of the first well drilled in the Kavango Basin, the complete drilling of wells three and four, 450km conducted of 2D seismic data, and the introduction of joint venture negotiations expected by the end of 2021, ReconAfrica is positioning itself as a leading Namibian hydrocarbons explorer and producer. At AEW 2021 in Cape Town, ReconAfrica will promote its exploratory success in the Kavango basin, emphasize future plans and commitments, and further position itself as the preferred developer in the prospect.
“ReconAfrica represents the future of independent energy explorers in Africa that will play a significant role in meeting Namibia, Africa and the world’s energy needs through the safe, efficient and sustainable production of hydrocarbons. With a dedicated world class team, backed by technology, they stand to produce hydrocarbons in Namibia while taking action to reduce emissions and aligning with the global ambitions of Net Zero carbon that are growing ever more important,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.
Meanwhile, ReconAfrica will host a Women in Leadership networking brunch at AEW 2021 in Cape Town, whereby the company aims to promote the role of women and emphasize the value of women in leadership positions. Geared towards having a conversation on women in leadership, and creating the ideal engagement platform for an enhanced discussion, ReconAfrica is committed to AEW 2021’s broader agenda of placing women at the forefront of Africa’s energy future.
“We are even more pleased that ReconAfrica will host this years’ women in leadership brunch, emphasizing how gender equality and inclusivity in leadership positions will help drive Africa’s energy development. Their approach in driving meaningful dialogue through their on the ground actions in Namibia and developing respectful local relationships and partnerships can only help Namibia and Africa’s energy sector see mutual benefits and a strong shared future for so many that are seeking empowerment,” concluded Ayuk.
Source: https:// energynewsafrica.com
Ghana:Vivo Energy Launches Community Digital Literacy Project In Tamale
Vivo Energy Ghana, the exclusive distributors and marketers of Shell-branded fuels and lubricants in Ghana has launched the ‘Vivo Energy Community Digital Literacy Project’ to increase access to relevant educational content through technology among schoolchildren.
The pilot project is in partnership with Worldreader and the Northern Regional Library Authority and seeks to reinforce schoolchildren’s reading skills and help to mitigate the learning loss caused by the schools’ closure during the peak of the COVID-19 pandemic in Ghana.
Mrs Shirley Tony Kum, the Corporate Communications Manager at Vivo Energy Ghana, speaking at the launch, said the project would promote Sustainable Development Goal 4, of ensuring inclusive and equitable quality education within the implementing area.
She said the project, in its first phase, would reach children in over 25 households within the Tamale Metropolis with ‘BookSmart Tablets’, trained home facilitators, and guided lesson plans to create an enabling environment for reading and learning for them.
Facilitators will also take the opportunity to help sensitize households on the COVID-19 protocols and the risks associated with non-compliance.
“To ensure effective implementation of the project, household facilitators have been trained and will have access to remote support through structured daily lesson plans and book title recommendations for specific targeted outcomes”, she added.
Mrs. Kum indicated that Vivo Energy was committed to implementing educational initiatives that would have a significant impact on the lives of schoolchildren, especially those in marginalised communities.
“As a company committed to fuelling the growth Ghana, we have, and continue to implement various initiatives across the country to improve literacy rates and prepare a more secure workforce for the country’s development. Some of these initiatives include the launch of VSTEM (Science, Technology, Engineering, and Mathematics) to make STEM education more attractive and increase awareness about career opportunities in science and technology, especially among female students,” she said.
Other initiatives include the training of some Senior High School students in Full-Stack Web Development as a foundation for an Advanced Technical Course at Soronko Academy, Ghana’s leading technology and digital skills development centre; the launch of a one-year intensive Graduate Talent Programme at Vivo Energy Ghana for students from various universities with STEM backgrounds; and the handing over of a renovated and furnished five-unit classroom block to the Brengo Presbyterian School in Asanti Mampong.
During the lock-down, Vivo Energy Ghana funded the rollout of an alternative e-learning platform accessible to all senior high school students in partnership with ABCDE Africa and eCampus.
The company, also donated 10 brand new HP laptop computers to the Otumfuo Charity Foundation to support this year’s Otumfuo Teachers Awards scheme to build the capacity of teachers, especially those in the rural areas with limited access to resources.
Mr David Sumbo, a Lecturer at the University for Development Studies (UDS), who was the Guest Speaker at the event, called for collaboration among stakeholders in the educational Document Type: Communications Form Document Number: VEGH/COM/FRM/06 Document Title: Press Release Revision Number: 0 Page 2 of 2 News Release sector to ensure appropriate content was available on digital platforms for all categories of readers.
“Technology is a double-edged sword which can be used for good or bad, that is why it is very important to take a critical look at what is available for people to read and help create the right environment for people to read”, he noted.
Mr Alhassan Abdul-Kahad, Programme Manager at Worldreader, said the Vivo Energy Community Digital Literacy Project would help to improve the literacy rate among the youth and help prepare a more secured workforce that would help to accelerate the country’s development.
Source: https:// energynewsafrica.com
Cynthia Lumor Appointed First Deputy Managing Director Of Tullow Ghana
Tullow Ghana, a subsidiary of London- based oil and gas firm Tullow Oil Plc, has announced the appointment of Mrs. Cynthia Lumor as Deputy Managing Director, effective 1st October 2021.
Mrs. Lumor is the first to be appointed as Deputy Managing Director of Tullow Ghana since it began operations in 2006.
Commenting on her appointment, Chief Executive Officer of Tullow, Rahul Dhir said: “I am delighted that Cynthia has been appointed to this important role. Since Wissam assumed office last year, Cynthia has been instrumental in managing our key government and external relationships in Ghana and her promotion reflects her important role in delivering Tullow’s strategy in Ghana.”
Prior to her appointment as Deputy Managing Director, Mrs. Cynthia Lumor served on the leadership team of Tullow Ghana and was Director for Corporate Affairs with responsibility for External Affairs and Social Performance, and oversight of Human Resources, Information Systems and Facilities Management.
She joined Tullow Ghana in 2017 from Scancom Ltd (MTN Ghana) where she was Corporate Services Executive.
Mrs. Lumor has several years of experience in the Oil and Gas industry, having previously worked for the Ghana National Petroleum Corporation as Principal Legal Officer.
As Deputy Managing Director, Mrs. Lumor will be responsible for the integration of the non-technical functions within the Ghana business and will continue to support the MD, Wissam Al Monthiry in driving Tullow’s plans to invest over $4 billion in Ghana over the next 10 years.
Source: https:// energynewsafrica.com
Tanzania: President Sacks Energy Minister; Appoints January Makamba As New Minister
Tanzanian President has sacked the country’s Minister for Energy, Medard Kalemani, replacing him with a former Deputy Minister for Environment who was sacked by the late President John Magafuli.
Her Excellency Samia Suluhu, on Monday, sacked Medard Kalemani as Minister for Energy in a cabinet reshuffle.
She immediately appointed Mr January Makamba as the substantive Minister for Energy.
The former Deputy Environment Minister, January Makamba was sacked from the government in 2019 and forced to apologise to then-President John Magufuli, who later died in March this year.
Mr Magufuli had accused Makamba of criticising him during telephone conversations with other members of the ruling Chama Cha Mapinduzi (CCM) party and threatened to expel him unless he apologised.
Magufuli, nicknamed ‘the bulldozer’ for his authoritarian leadership, made no secret of the fact that he eavesdropped on the telephone conversations of members of his government.
Makamba, whose father was a former Secretary-General of the CCM, had challenged Magufuli for the party’s 2015 presidential nomination but lost in the contest.
The Ministry of Energy is currently overseeing the construction of a controversial hydropower dam project in the Selous Game Reserve and is strategically vital to Tanzania, which has significant natural gas reserves.
Source: https:// energynewsafrica.com
Ghana: Former Tema Oil Refinery MD Appointed Chair Of GPHA Board
A former Managing Director of Tema Oil Refinery, Isaac Osei, has been appointed the chairman of the Board of Ghana Ports and Harbours Authority (GPHA).
Isaac Osei was appointed Managing Director of Tema Oil Refinery in 2017 but resigned in 2019.
As Managing Director of TOR, Mr Osei supervised the first routine maintenance of both the Crude Distillery Unit (CDU) and the Residual Fluid Catalytic Cracker (RFCC), thereby, reducing losses and improving the efficiency of both plants.
The refinery was also able to attract BP and Vitol as partners to help improve its operations.
Ghana: We Need Collective Decision To Save TOR- Dr Opoku Prempeh
Dubai Eases Travel Restrictions Ahead Of Africa Oil Week In November 2021
Dubai is now among only a small proportion of locations in the world for which there are no current travel restrictions. Following a decision by the UAE Government and Dubai Tourism, travellers from all countries are now welcome to enter Dubai.
All they need to hold is a negative COVID-19 PCR test certificate, which has become standard travelling procedure in the COVID-19 era.
This is good news for the many delegates planning to attend Africa Oil Week (AOW) in Dubai in November 2021.
Travellers from most countries will need to show the results of a negative test taken no more than 72 hours before departure. Travellers arriving from Bangladesh, India, Indonesia, Nigeria, Pakistan, South Africa, Sri Lanka, Uganda, Vietnam and Zambia must follow a slightly different procedure.
These travellers must hold a valid negative COVID-19 PCR test certificate with a QR code issued within 48 hours of the time the sample was collected from an approved health facility. And they must have a rapid PCR test report with a QR code for a test conducted at the departure airport within six hours of departure.
Travellers from selected countries will also be required to take a final test on arrival at Dubai.
“We welcome the easing of restrictions,” says Chris Hall, AOW’s Group Event Director. “They indicate that Dubai is once again open for business and reassure us of our decision to temporarily relocate AOW to Dubai.
“While we look forward to returning to Cape Town in 2022, we believe that this move is in the best interests of our delegates and will help us to run the only safe, in-person energy event for Africa this year.”
AOW is gearing up to welcome some 45 ministers and government leaders representing 66% of African governments, including Ghana, Uganda, Senegal, Côte d’Ivoire, Kenya and the Republic of the Congo.
The executive teams of the continent’s major oil and gas players, such as TotalEnergies, Eni, Equinor, Tullow Oil, Perenco, Panoro and Seplat, will also be attending. The potential for meaningful engagement, after a pandemic-induced hiatus, has been welcomed by all.
The easing of travel restrictions, of course, doesn’t mean that either Dubai or AOW will be relaxing their interventions to keep delegates safe.
“Since the start of the pandemic, a robust strategy was implemented with the key priority being to safeguard the health and well-being of our residents and guests,” says Issam Kazim, the CEO of Dubai Corporation for Tourism and Commerce Marketing.
“We continue to implement the highest standards of hygiene and COVID-19 precautionary measures across the city, with inspectors carrying out venue checks at those establishments awarded the ‘Dubai Assured’ stamp, every two weeks, to ensure ongoing compliance.
“These efforts, along with the progress being made with the roll out of the country-wide vaccine programme, are key to managing the virus and providing peace of mind for residents and visitors..”
“For those travelling from the UK, Dubai remains an easier option than South Africa at this stage, as the latter is still on the UK’s red list,” AOW’s Hall adds.
“The UAE is on the UK’s amber list, which means that fully vaccinated travellers will not need to quarantine when they arrive home.”
Together with its official partners, including Emirates (airline), AOW looks forward to its next event being the start of the return of safe in-person meetings, the world over.
Two Libyan Ports Resume Operations After Protests Stopped Oil Loading
Two of Libya’s key oil export terminals have resumed loading crude on tankers, after protests had stopped operations earlier last week.
The Es Sider and Ras Lanuf oil terminals resumed loading tankers last Friday, Reuters reported, quoting Libya’s National Oil Corporation (NOC) and engineers at the ports.
However, loading operations and exports from a third oil port, Hariga, continue to be blocked due to protests.
The relative stability of Libya’s crude oil production and exports from recent months could abruptly end after protests erupted this week at several key crude terminals, including one that prevented a tanker from loading crude at the biggest oil port.
Protesters at the Es Sider terminal have derailed the loading of a Suezmax tanker, Yannis P, sources familiar with the situation told Bloomberg on Wednesday.
The demonstrators were demanding that NOC’s chairman Mustafa Sanalla resign.
The tension among Libya’s top oil officials escalated at the end of last month when Libyan Oil Minister Mohamed Oun said he had suspended NOC’s chairman Sanalla.
In a separate protest, graduates were protesting at the port of Tobruk in eastern Libya, demanding employment, Argus reported last Tuesday, citing Libyan shipping sources.
The protests at Libyan oil terminals come at a turbulent time for the oil industry of the OPEC member exempted from the OPEC+ cuts.
The tension between Oun and Sanalla has been growing since Oun was appointed oil minister in March in the government of national unity, which includes a post for an oil minister for the first time in five years.
Libya will struggle to keep its oil production at current levels if the country fails to resolve a long-running dispute over its budget, Oun told Bloomberg last month.
The success of Libyan plans to boost oil production remains in jeopardy due to disagreements over the nation’s budget—the first national budget in nearly a decade.
According to secondary sources in OPEC’s latest Monthly Oil Market Report, Libya’s crude oil production averaged 1.165 million bpd in July, up from 1.163 million bpd in June.
Source:Oilprice.com
Ghana: Think Tank Cautions Oil Rich African Nations Against Making Risky Ventures In The Name Of Energy Transition
The Executive Director of Institute for Energy Policies Research (INSTEPR), an energy think tank in the Republic of Ghana, Kwadwo Opoku has cautioned oil rich African nations against taking risky ventures in the name of energy transition.
Describing the ongoing energy transition agenda as a fiction, Mr Kwadwo Opoku urged oil rich African nations to rather take advantage of energy transition to build a vibrant petrochemical industry since fossil fuels will still be relevant in the next 45 years.
His comment was contained in a press statement following the recent oil discovery in Ivory Coast by Italian oil and gas firm Eni.
“I have come to the realization that when people do not have innovative ideas and plan to
change the lives of people, they look for every excuse with slogans and buzz phrases.
Ghana: GNPC Proposal For Aker Questionable –Energy & Associates“For me the phrase ‘Energy Transition’ is like ‘Vision 2020’. In the 1990s, every political speech started with Vision 2020 and how Ghana will be a Middle-Income country by 2020. “We are in 2021, we can all judge for ourselves if this Vision was achieved. Data shows that there is no such thing as the collapse of the Crude Oil Industry. The world crude Oil reserve is 1,700 billion barrels as of 2020 and if no new discoveries are made, this will last for about 45 years. With all that you have read, do you think it is possible that the human population will survive without Crude Oil after 2046?” he quizzed.
Ghana: Aker Energy Didn’t Engage Us Over Sale Of 37 % Stake To GNPC-LUKOIL
Russian oil and gas giant LUKOIL, has raised concerns about Norwegian oil and gas firm, Aker Energy’s decision to sell 37 percent stake in the DWT/CTP oil block offshore Republic of Ghana to the West African nation’s national oil company, GNPC.
Ghana’s GNPC is seeking acquisition of 37 percent stake in Deep Water Cape Three Points oil block operated by Aker Energy and 70 per cent in the South Deepwater Tano(SDWT) block operated by AGM.
It has, therefore, submitted a document to Ghana’s Parliament seeking approval to go for a loan facility of $1.65 billion to facilitate the acquisition of stakes in the two oil blocks.
However, the planned acquisition has generated wide spread criticisms with 15 civil society groups working in the extractive sector, good governance and anti corruption institutions raising concerns about the value of the deal.
While the ongoing controversy surrounding the deal is yet to settle, LUKOIL has expressed shocked over the deal.
LUKOIL which holds 38% License Interest and a 42.22% Participating Interest in the Aker Energy block in a letter addressed to the Presidency and copied to the Ministry of Energy, Ministry of Finance, Aker Energy and the GNPC, said it was not aware of the planned deal until the Ghanaian media published stories about the deal after the country’s Energy Minister submitted a document to Parliament on behalf of GNPC.
LUKOIL asserts that the planned acquisition of the oil blocks poses significant risks to the project execution of the oil blocks adding that to avoid any negative consequences for the DWT/CTP project, LUKOIL going forward should be involved in the following;
Ghana: Akufo-Addo’s Assurance To Resolve Eni, Springfield Unitisation Impasse Welcome-Benjamin Boakye(i) the sale/acquisition of Aker Energy’s share. (ii) the resignation of the Operator of the DWT/CTP project and an appointment of a successor. (iii) further project financing plans so as to ensure further sustainable development of the project in the interest of all stakeholders.
Sunon Asogli Shortlisted To Bid For Construction Of 350MW Limbe Power Plant In Cameroon
Ghana’s largest independent Sunon Asogli Power Ghana has been shortlisted among four other companies to bid for the construction of the proposed 350 MW limbe gas fired power plant in the Republic of Cameroon.
The four other companies are Folder Energy Partners Limited/ China Machinery Engineering Corporation (CMEC), Power Construction Corporation Of China Limited (POWERCHINA), AKSA ENERGY URETIM A S and ACWA Power.
Among the companies which had been shortlisted for the final bid Sunon Asogli was ranked as the number one followed by Folder Energy Partners Limited/ China Machinery Engineering Corporation (CMEC), Power Construction Corporation Of China Limited (POWERCHINA), AKSA ENERGY URETIM A S and ACWA Power respectively.
This was contained in a statement issued by the Cameroonian Ministry of Water and Energy.
Ghana:ZEN Petroleum Grows Retail Presence With Three New Stations In Greater Accra, Western And Upper West Regions
ZEN Petroleum, a wholly owned Ghanaian Oil Marketing Company (OMC) has announced the opening of three new service stations, bringing its total number of stations to 35.
Located at Korle Gonno-Accra, Sekondi Ekuase, and Wa, the new stations expand ZEN’s presence in the Greater Accra and Western Regions, and mark the Oil Marketing Company’s (OMC) entry into the Upper West Region.
Having maintained its position as the leading supplier of fuels to Ghana’s mining industry, ZEN has seen a recent expansion of its Retail presence, with a target of 10 stations set to be opened in 2021.
The opening of the new service stations indicates ZEN’s consistent growth in the petroleum downstream sector, having seen 100% Retail growth in 2020, with 342 million litres of fuel delivered in the past year and approximately 3 million litres of lubricants delivered per month.
ZEN’s growth has also been marked by its position as a major employer in the downstream sector, having recently increased its staff strength to nearly 950 in recent months.
In a statement during the opening of the new station, ZEN’s Retail Director Prince Awuley, said: “We continue to prioritise safety, fuel quality and accessibility by ensuring our stations are designed, constructed and operating well above industry standards. Our latest stations are therefore equipped with double wall tanks, leak detection, overfill prevention, flame arrestors, oil separators and other key safety features, while providing priority access and parking for persons with disabilities.”
He added, “We are excited to reach all corners of Ghana with our high-quality fuels and lubricants at the most affordable prices, and the world-class service delivery our customers have come to associate with the ZEN brand.”
Available to customers at the new stations are checks for leaks, water, density and levels of fuel dispensed using 10 litre Test Measure Cans, in addition to convenient mobile payment systems, a lube bay, a convenient shopping option and restrooms.
In addition to its recent expansion efforts, ZEN has also been heavily involved in community-based philanthropic projects.
These include the construction and donation of the recently commissioned Oppong-Boanuh Investigation Centre and renovated Divisional Headquarters for the Odorkor Police Command, and a donation to 8 year-old Dave Chief Quansah Acheampong, winner of the Africa Under-9 Chess Champion Competition in the African Schools Individual Chess Championship 2020.
Through its “ZEN 2 Community” programs, ZEN is committed to giving back to communities and conducting business safely, responsibly and with a passion to develop Ghana.
ZEN is a wholly owned Ghanaian Oil Marketing Company (OMC) that within ten years has established itself as the market leader in supplying Fuel and Lubricants to mines in Ghana.
ZEN has consistently proven to be a reliable, safe and valuable partner in supplying high quality hydrocarbon products to the industrial and retail sectors in Ghana and continues to innovate towards establishing a growing, world-class retail network, driven by a diverse local team of passionate experts.
ZEN is committed to locally driven business solutions, respecting local customs and adhering to our core values, while maintaining a global outlook, international standards and the provision of quality products and services.
These include the construction and donation of the recently commissioned Oppong-Boanuh Investigation Centre and renovated Divisional Headquarters for the Odorkor Police Command, and a donation to 8 year-old Dave Chief Quansah Acheampong, winner of the Africa Under-9 Chess Champion Competition in the African Schools Individual Chess Championship 2020.
Through its “ZEN 2 Community” programs, ZEN is committed to giving back to communities and conducting business safely, responsibly and with a passion to develop Ghana.
ZEN is a wholly owned Ghanaian Oil Marketing Company (OMC) that within ten years has established itself as the market leader in supplying Fuel and Lubricants to mines in Ghana.
ZEN has consistently proven to be a reliable, safe and valuable partner in supplying high quality hydrocarbon products to the industrial and retail sectors in Ghana and continues to innovate towards establishing a growing, world-class retail network, driven by a diverse local team of passionate experts.
ZEN is committed to locally driven business solutions, respecting local customs and adhering to our core values, while maintaining a global outlook, international standards and the provision of quality products and services. East Africa’s Energy Future Shines Bright – Investors Are Watching
The eyes of international oil and gas investors are becoming increasingly fixed on Africa as an area of development, and on the East Africa region in particular – with good reason.
“It’s no secret that the East African oil and gas sector has recently benefited from substantial FDI,” says Paul Sinclair, Vice President of Energy at Africa Oil Week (AOW).
“These regional investments have reignited global appetite for East Africa, and this is reflected in the rising numbers of delegates applying to attend AOW to meet and do business with East African stakeholders.”
Indeed, a total of eight East African countries – Kenya, Uganda, Ethiopia, Somalia, Rwanda, Djibouti, Eritrea and Burundi – will all have high-level ministerial and NOC representation at AOW in November 2021.
This incredible cohort demonstrates the region’s support for AOW’s temporary move to Dubai as a safety precaution. AOW has already committed to being back home in Cape Town, South Africa, from 2022.
The list of regional energy authorities and NOCs attending the event is extensive, and includes AREEN, SIHD, EPRA, EWURA and UNOC. The following ministers have also confirmed their attendance:
· Hon. Yonis Ali Guedi: Minister of Energy and Natural Resources, Djibouti
· Hon. Dr Koang Tutlam: State Minister of Petroleum and Natural Gas, Ethiopia
· Hon. Charles Keter: Cabinet Secretary for Energy, Kenya
· Hon. John Munyes: Cabinet Secretary for Petroleum and Mining, Kenya
· Hon. Francis Gatare: CEO of the Rwanda Mines, Petroleum & Gas Board
· Hon. Abdirashid Mohamed Ahmed: Minister of Petroleum and Mineral Resources, Somalia
· Hon. Ruth Nankabirwa: Minister of Energy and Mineral Development, Uganda
“CEOs and board-level executives are also participating from TotalEnergies, PGS, TGS, Tullow, Africa Oil Corp, Equinor, Eni and more,” says Chris Hall, AOW’s Group Event Director.
“Their presence makes it clear why important figures such as Dr Estêvão Pale, Chairman and CEO of ENH, are attending AOW to promote oil and gas projects in Mozambique.”
Much of this interest has been spurred by the East African Community’s development of a strategy to facilitate the efficient and reliable delivery of oil products in the region. The strategy recommends developing a new refinery in Uganda; accelerating a planned upgrade of the Mombasa refinery in Kenya; and improving handling, transportation, storage and distribution facilities across the region.
Investors are also observing important discoveries made in Uganda, Kenya and Tanzania, which are expected to enhance East Africa’s potential to achieve energy self-sufficiency. Feasibility studies are under way for the construction of new crude oil pipelines in Uganda, for example, and contractors are being mobilised to extend existing oil product pipelines from Kenya to Uganda and Rwanda.
According to data and analytics firm GlobalData, the recent green light for the East African Oil Pipeline means that Uganda is set to produce its first oil as early as 2025, with production expected to jump in the next five years to 230,000 barrels per day, from zero in 2021.
GlobalData oil and gas analyst Conor Ward says: “The Lake Albert oil development in Uganda will be one of the largest oil developments we have seen in Africa in the last 20 years, expecting to recover almost 1.5 billion barrels of oil. The Tilenga and Kingfisher fields (part of the Lake Albert development) will bring significant value to the government of Uganda, and the two fields alone could generate up to US$8 billion in fiscal revenues.”
These projects will contribute to planned expansions in other East Africa Community partner states, as well as other countries that rely on the region for petroleum imports.
Although East African countries are reliant on oil for their energy needs, the region is also beginning to look towards renewable energy as a viable path. Kenya, for example, is among five countries driving the current African solar energy market. Hydro and wind have also been prioritised.
To maximise these opportunities – as well as those still on the horizon – East African nations must harmonise their respective regulations to make sure the region is seen for the scalable investment destination that it is. Once this is done, the region’s potential will open up even more. All of these issues and more will undoubtedly be discussed at AOW.
Ghana: Akufo-Addo’s Assurance To Resolve Eni, Springfield Unitisation Impasse Welcome-Benjamin Boakye
Executive Director for African Centre for Energy Policy (ACEP), a think tank in the Republic of Ghana, Benjamin Boakye, has described as welcome assurance by Ghanaian leader, Nana Akufo-Addo that he will do everything possible to see to the resolution of the impasse between Italian oil and gas giant, Eni, and Springfield E&P.
According to him, although President Akufo-Addo’s comment about his resolve to see to the peaceful resolution of the issue is “a bit too late, it is redeemable.”
Mr Boakye revealed that he had the opportunity to write to the Ghanaian leader and insisted that unitisation is a function of science and technology, stressing that in oil and gas industry, science gives meaning to laws.
“Unfortunately, Ghana focused on the law without exhausting the science,” he stated.
The ACEP boss said: “It is only fair to both parties that an indisputable body of evidence is generated to justify unitisation. Again, it must be noted that when the law fails to be an enabler, oil stays in the ground, and the law cannot produce oil.”
The Italian oil and gas company has filed a suit at the International Tribunal in London, in the United Kingdom to challenge a directive by Ghana’s Ministry of Energy, asking Eni and Springfield E&P to unitise Sankofa offshore field operated by Eni and Afina oil block operated by Springfield E&P.
In a statement filed by three renowned lawyers namely Craig Tevendale, Andrew Cannon and Charlie Morgan from Herbert Smith Freehills LLP, Eni is seeking five reliefs from the Tribunal.
The claimant wants the Tribunal to declare that the purported 9th April Directive, 14th October Directive, 6th November Directive and any other steps taken to implement those directives represent a breach of contract under the Petroleum Agreement.
The claimant also wants the Tribunal to declare that the respondents take no further action to implement the purported unitisation of the Sankofa Field and Afina Discovery on the terms of the purported 14th October Directive, the Draft UUOA sought to be imposed by purported November Directive or otherwise.
The third relief the claimant is seeking is an order that the respondent pays damages in an amount to be quantified for the losses suffered by the claimant arising out of the respondent’s breaches of the petroleum agreement, Ghanaian law and International law on a joint and several basis.
Additionally, the claimant is seeking an order that the respondent pays all of the costs and expenses of the arbitration including the fees and expenses of the claimant counsel and any witnesses and/or experts in the Arbitration, the fees and expenses of the Tribunal and the fees of the SCC on a joint and several basis and /or an order such further or other relief as the Tribunal may in its discretion consider appropriate.
It would be recalled that in April 2020, Ghana’s former Minister for Energy, John Peter Amewu issued a directive to Eni and Springfield E&P to begin talks and combine their adjacent oil and gas fields in April and gave them until September 18 to reach an agreement.
The Minister’s directive said that seismic data had indicated Eni’s Sankofa offshore field, which entered production in 2017, and Springfield’s Afina Discovery, had identical reservoir and fluid properties.
“Regrettably, it has become obvious that the parties do not intend to comply with the Ministry of Energy’s directives,” the letter signed by Minister John Peter Amewu said.
A year after the directive, both Eni and Springfield E&P have failed to unitise the Sankofa offshore field and Afina Discovery.
Springfield took the case to a high court in Accra.
The court, in its ruling recently, directed Eni to escrow 30 percent of proceeds from the Sankofa offshore field pending the final determination of the case.