Angola: Electricity Network To Receive $600 Million InvestmentThe ACEP boss said GNPC and Aker started engaging CSOs before the transaction emerged in its current form. “When they were asked to provide the specific details of the transaction, they did not show up again. Again, after the presentation by Lambert to CSOs, we requested a meeting with GNPC for a technical conversation on issues Lambert had no answers to. That has not been granted. “I can conclude that it is not a mere coincidence that every high-value transaction is rushed through Parliament and requires the suspension of Order 80(1), the Standing Order which requires that a committee’s report is delayed for, at least, 48 hours to allow other MPs to take a closer look at a laid committee’s report before it is approved. Therefore, when a memo dated 30th July (Friday) is submitted to parliament, a committee meets on the Memo on Monday, 2nd of August and produces a report for approval on the 5th of August, CSOs cannot be less suspicious. Could it be that the processes in Parliament are so oiled like a relay race, that as soon as the Memo got to the desk of the Speaker, the Committee Chairman was on hand to pick it up and summon all his members to act the next working day while many parliamentarians were completely unaware? How can anybody argue that CSOs are not engaging when most parliamentarians do not have the opportunity to participate in debates on such high-value transactions?” Benjamin Boakye said. Ben Boakye’s Responds to Prof and Gabby
Ghana: Gov’t Is Refusing To Take Right Decision On GNPC, Aker Deal-Benjamin Boakye
The Executive Director for African Centre for Energy Policy (ACEP), in the Republic of Ghana, Benjamin Boakye is accusing the government for deliberately refusing taking right decision regarding the controversial GNPC-Aker Energy deal.
According to him, “the CSOs who have been critical of the GNPC-Aker transaction are blunt in our position that the justifications provided by GNPC contain deliberate misrepresentations anchored on the guise of energy transition, stranded assets and operator capacity development to short-change the country.
“We are firm in our belief that the government is capable of making the right decisions but has been unwilling to do so in many high-value transactions in the public’s interest, and that raises questions about incentives,” Mr Benjamin Boakye said in a seven-page article he wrote to respond to proponents of the GNPC, Aker Energy deal.
The Government of Ghana, through the country’s national oil company, GNPC, is seeking parliamentary approval for a loan of US$1.65 billion to acquire 37 percent stake in the Deep Water Cape Three Point(DWT/CTP) oil block and 70 percent stake in the South Deep Water Tano (SDWT).
This move has, however, been met with stiff opposition by about 15 civil society groups working in the extractive sector, anti-corruption and good governance.
The group is of the view that the analysis being done by GNPC and Aker Energy was poor and deliberate for the benefit of few people in the government.
Ghana: ECG Invests Over GHS 980K To Improve Electricity Supply Reliability In Tema
The Electricity Company of Ghana (ECG) Limited in the Tema Region has invested GHC989,800 in some major projects in the first half of the year to improve electricity supply in its operational areas.
The amount covers five major projects undertaken within the period covering January to June 2021.
“The projects include the construction of a link between two of their main overhead sub-transmission cables which has now enabled the transfer of load from one feeder to the other in case of repair works, and to ensure continuous power supply,” Ing. Emmanuel Appoe, the Tema Regional Engineer of ECG, explained.
The project benefited Communities 12, 11 and parts of Community 6.
The other project had to do with the restoration of faulty underground sub-transmission link cables between two substations.
This was to ensure that Communities 5, 6 and 10 would have better supply of power.
In some areas, the company realised that the load on the available transformers were getting too high, hence, resulting in low voltage to customers in the catchment area. A number of transformers were added to the existing ones serving Power City and surrounding areas in Prampram, Community 19 and behind the Emef Estate.
An amount of GHC142,141.92, out of the total amount above, was invested in the upgrading of undersized conductors serving Community 8 and its environs.
Speaking on these projects, Ing. Emmanuel Appoe, who also doubles as the current Acting General Manager for Tema Region, mentioned that the company is committed to its “mission of providing safe, quality and reliable electricity services in order to support Ghanaians and to live up to our mandate.”
Ing. Appoe also added a plea that developers and the general public should desist from encroaching on the right of way where electricity network installations are concerned.
Ghana: ECG Deploys Clou Smart Meters In Tema RegionThis, he said, often leads to unnecessary delays in case of faults repairing, which eventually leads to delayed outage periods. Speaking particularly on the projects which had to do with overloaded transformers being eased, he admonished the public to stop illegal connections and urged people to report suspected cases of illegal connection. He added that “illegal connections are one of the main reasons for transformer overloads, which leads to low voltages for consumers and sometimes, a total breakdown of the transformers, hence, plunging customers into outages till the transformers are replaced.” Source: https://energynewsafrica.com
Nigerians Sleep In Darkness As Transmission System Collapses Second Time In Less Than A Month
Nigerians are sleeping in darkness as the country’s power transmission system collapses the second time in less than a month.
Media report suggests that the West African nation’s transmission system collapsed at about 1:00pm Monday.
The grid had, on July 28, 2021, suffered a total collapse, which the transmission company of Nigeria attributed to the loss of 611 megawatts at two power stations.
Eko Electricity Distribution Company, in a message to its customers on its Facebook page, said: “We regret to inform you of a system collapse on the national grid that’s causing outages across our network.
“We are working with our TCN partners to restore supply as soon as possible. Please bear with us.”
Kaduna Electricity said: “We sincerely apologise for the power outage in our franchise states which is due to a system collapse from the national grid. Supply shall be restored as soon as the grid is back up.
“We regret any inconvenience this may cause all our customers.”
Source: https://energynewsafrica.com
Nigeria: LPG Users Hit Hard As Commodity Price Jumps By 33%
Consumers of Liquified Petroleum Gas LPG in the Republic of Nigeria are facing a difficult time as the price of the commodity, otherwise known as cooking gas, has risen by over 33 percent month-on-month from N360/kg in July to N480/kg in August.
According to report filed by Vanguard, a 12.5kg cylinder, which sold in Lagos for 4,500 Naira and 4,800 in Abuja in June and July, is now selling for 6,000 Naira.
The new prices come at the backdrop of the recent Federal Government’s efforts aimed at promoting more use of gas in Nigeria and its declaration of 2021-2030 as Nigeria’s decade of gas, meaning more demand for the commodity.
The Central Bank of Nigeria, CBN, had recently set up a N250 billion fund to expand the usage of gas.
Gas prices had recorded steady rise in recent months with market price at N4,400 in June and N3,200 in November/December 2020.
A resident of Agbado, Ogun State, Mr Obatomi Ajewole said the increase in the price of cooking gas has affected the measure of plate of food sold to customers by food vendors.
The Nigerian Association of Liquefied Petroleum Gas Marketers, NALPGAM, has attributed the latest rise in the price of cooking gas to Federal Government’s re-imposition of Value Added Tax (VAT) on imported LPG.
In a press statement, NALPGAM explained that Nigerians may have to pay up to N10,000 in the nearest future to refill 12.5 kilogram cylinder of cooking gas.
“It is unfortunate that the Federal Inland Revenue Service and the Federal Ministry of Finance have gone to resuscitate a product that has been exempted and gazetted from VAT.
“This was gazetted in 2019 and has encouraged domestic gas utilisation. Nigerians are already complaining about the prices of cooking gas across the country, and this would further worsen the situation.”
He cautioned that the initial objective of domestic availability would be defeated if cooking gas goes out of the reach of ordinary Nigerians due to the current increment in prices of the commodity.
Source: https://energynewsafrica.com
South Africa: Police Put On High Alert As Protesters Threaten To Shutdown Electricity, Fuel, Other Installations
South African Police Service (SAPS) is on high alert following threats by some citizens to shut down electricity, water and other sensitive installations in the country.
SAPs has indicated that it is deploying more than 5,500 law enforcement officers and law enforcement agencies to monitor the unrest, which is carried on under the ‘Ramaphosa Must Fall’ campaign.
Last month, the country witnessed nationwide unrest that left 300 people dead and several businesses looted and destroyed.
Meanwhile, in a tweet, Lirandru Themba, who is the Police Ministry Spokesperson, said: “Law abiding citizens should be at ease knowing that the NatJOINTS is not taking these threats lightly. Security forces are on high alert and ready to maintain stability in the country and ensure the safety and security of South Africans.
‘’Some messages also doing the rounds where people are mobilising to respond to the #Nationalshutdown. The public is urged not to respond to calls for violence and criminality & discouraged from participating in activities that seek to defy the rule of law,” she added.
Source: https://energynewsafrica.comLaw abiding citizens should be at ease knowing that the NatJOINTS is not taking these threats lightly. Security forces are on high alert and ready to maintain stability in the country, and ensure the safety and security of South Africans. https://t.co/Ktl2XSa92E
— Lirandzu Themba (@LirandzuThemba) August 22, 2021
Ghana: $36M Electric Meters Fraud: Why Is EOCO, National Security Delaying Prosecution-INSTEPR
The Institute for Energy Policies Research ( INSTEPR) is questioning the long delay in the conclusion of investigation and prosecuting of officials involved in the US$36 million electric meters acquisition fraud.
According to the Energy think-tank, its checks at the ECG revealed that all relevant documents regarding the fraudulent transactions have been submitted to the Economic and Organised Crime Office and National Security since 2017 but the two state investigative bodies are yet to prosecute the culprit involved.
“Why has it taken four years for the State Security Agencies in investigating this transaction? Who are the people behind L & R Investment and Trading Company in Ghana? The initial USD$12 million was paid to First Grace Limited. Who are the people behind this company? Why is the management of Capital Bank Limited not being prosecuted for the illegal discounting of the Letter of Credit?” INSTEPR raised these questions.
In a statement signed by the Executive Director of INSTEPR, Kwadwo Poku said: “We do not want to draw any conclusion since this matter is still under investigation, but I am sure every Ghanaian will agree with me that we need some answers and accountability now from our leaders on this fraudulent transaction. There is no way this transaction was done by the average Joe on the street.”
In 2016, the Ministry of Power, through the Ministry of Finance, made a payment of USD $36 million to L & R Investment and Trading Company Limited for the supply of single phase and three phase electric meters to ECG.
The total contract price for the supply of these meters were USD $39,999,566.44, to be supplied over a period of twenty-six (26) weeks.
When the contract was signed, an advanced payment of USD$12 million was paid to L & R Investments plus a Letter of Credit (LC) of USD$24 million.
The ECG has come under public scrutiny following revelations in the 2020 Auditor General’s Report which made damning findings about the power distribution company.
According to INSTEPR, it was doing an investigation into procurement lapses at the ECG after the recently published Auditor-General’s report.
“Electric meters procured for customers were found in the warehouse of ECG while customers across the country are in dire need of these meters. We learnt that not all the meters in the ECG warehouse are ready to be supplied to the customer, so we asked why?” Mr. Kwadwo quizzed.
The statement explained that in September 2016, the then Ministry of Power wrote to the Managing Director of ECG, informing him of a USD$80 million financing secured by the Government for the procurement of electric meters.
The said letter stated that local Ghanaian companies would be given USD$40 million and Messrs. L & R Investments and Trading Company, whose local representatives are Messrs. First Grace Limited, be given USD$40 million.
“The Ministry’s letter instructed the Managing Director of ECG to initiate discussion with the said suppliers with the view of entering into contract for the supply of these electric meters.
“The Ministry also asked for immediate response to their letter to facilitate cabinet and parliamentary approval.”
It added that the Management of ECG on their part, upon receipt of the Ministry’s letter, engaged Messrs. L & R Investments and six local Ghanaian companies.
After ECG had and evaluated the proposal from L & R Investment, a pre-contract meeting was held in October 2016 between the technical team of ECG and the Managing Director, in the name of Mr. Tao Wenhui for L & R Investment.
It said at the meeting, the Scope of Supply, Technical Classification, Due Diligence, Pilot Studies, Factory Acceptance Tests (FAT) and Training of ECG metering Staff were discussed and agreed.
The two key conditions before the supply of the meters, after signing the contract, were the pilot study to assess the meters for two months and the Factory Acceptance Tests (FAT).
After the contract was signed and L & R given an initial payment of USD$12 million, the meters that were to be provided as samples (200 electric meters) for the pilot studies were not sent to ECG and the agreed travel of three representative from ECG to undertake the Factory Acceptance Tests in China before the manufacturing of the said meters did not take place.
“Without any of these conditions being met, the management of ECG was sent shipping documents for containers of meters at Tema Port. ECG informed L & R Investment that they cannot accept the containers because they have not followed the process agreed to as per their contract. After months of back and forth with L & R Investments, the containers of meters were cleared from the Tema Port to stop the accrual of demurrage.
“The meters in the containers were not the specification as per the supply contract.
“INSTEPR was told that the said contract was terminated in 2017 after legal consultations on non-performance by L & R Investment. This company, after months of not conforming to the agreed conditions of their contract, went ahead to discount the USD$24 million Letter of Credit (LC) given to them under the contract. We have sighted documents that state that on the 16th of August, 2017, at a time when Capital Bank Limited had ceased to be a bank under the laws of the Bank of Ghana, Capital Bank discounted the LC and made a payment of USD$22.5 million to L & R Investment.”
Source: https://energynewsafrica.com
Ghana: Fuel Prices Up By 12 Pesewas
Consumers of petroleum products in the Republic of Ghana are paying more for fuel as the prices of the commodity shot up by 12 pesewas at the weekend.
Both petrol and diesel were selling at GHS6.23 as at last Friday.
However, both petrol and diesel witnessed an increment of 12 pesewas on Sunday, pushing the prices of the two major products upward to GHS6.35 per litre on the local market.
It would be recalled that energy think-tank, Institute for Energy Security (IES) predicted that prices of fuel would witness a marginal reduction.
“For this window, with the 1.49% reduction in the price of the International Benchmark- Brent crude, the 2.17% decrease in price of Gasoline, the 1.77% decrease in Gasoil price and the marginal depreciation of 0.17% of the local currency against the US dollar,” the IES said in a statement last week.
That defeats the prediction by the IES.
As at Monday morning, Brent crude was selling at US$66.46 per barrel while WTI was trading at US$63.34.
Source: https://energynewsafrica.com
Angola: Electricity Network To Receive $600 Million Investment
The Angolan government plans to invest approximately $600 million to strengthen and improve the quality of electricity supply in the Southern Region of the country by 2022.
The country’s Minister for Energy and Water, João Baptista Borges disclosed this recently.
According to him, the government has already started negotiations with the African Development Bank (AfDB) and the Kingdom of Spain.
The projects to be implemented include the construction of a 400km high-voltage line linking Huambo to Lubango.
GNPC-Aker Energy Deal: Why Is NDC Silent? Asks Kwadwo PokuThe work also includes the demining of the connecting road. This project is supported by the AfDB to the tune of $300 million. According to the Minister, the AfDB has already approved funding for the Huambo-Lubango connection line. The bank has signed an agreement with the Ministry of Finance to this effect and a consultation for the launch of the public tender is underway. The country is also planning to build a connection line between Huambo and Matala at a cost of $100 million. A connection between Lubango and Namibe is also planned and will cost between $70 million and $80 million. In the province of Huíla, a solar energy project will be implemented in the municipality of Caraculo (Namibe). The Lubango/Namibe line receives funding approved by the Japan Cooperation Fund. The one that connects Huambo and Matala is financed by the Kingdom of Spain. This line will bring energy in particular to the mining region of Jamba.
Nigeria: Gunmen Kill Seven At Nigerian Gas Project Site
Gunmen killed a police officer and six employees of Nigerian oil and gas services company Lee Engineering during an attack on a project site in the southeastern state of Imo, last Tuesday.
Attacks on oil and gas facilities have long been a problem in Nigeria, where the multi-billion dollar industry sits alongside impoverished communities that have seen little benefit from it. In this case, the motive was unclear.
“We have declared the place a black spot and all efforts to arrest perpetrators are ongoing,” said Imo State police spokesman Michael Abattam.
“The command has put in measures to guard the workers in the area since it is prone to attack,” he said.
Lee Engineering could not immediately be reached for comment.
The attack took place on Monday at a location called Assa, according to Abattam.
The Lee Engineering website says the company has a project there involving the installation and construction of a gas primary treatment facility and the supply of a gas turbine generators and a waste heat recovery system.
Source: Reuters
NPA Boss Woos US Investors To Ghana’s $60 Billion Petroleum Hub Project
The newly appointed Chief Executive Officer of the National Petroleum Authority (NPA), Ghana’s petroleum downstream regulator, Dr Mustapha Abdul-Hamid, has called on investors in United States of America (USA) to consider investing in Ghana’s petroleum hub project.
According to him, his outfit is ready to provide the licences and permits to guarantee their investments in the project.
The Akufo-Addo-administration has planned to establish a petroleum hub in the Western part of the West African nation.
The $60 billion project, which is private sector-led, will have, among other facilities, four new oil refineries each with a capacity of 150,000bpd, storage tanks for crude and finished products, two oil jetties, two petrochemical plants with processing capacity of 45,000bpsd each, as well as waste and water treatment plants.
It is estimated that 780,000 jobs would be created when the project commences and completed.
The government, through the country’s national oil company (GNPC), has already earmarked $10 million to secure 20,000 acre land for the project.
Speaking during the official ribbon cutting ceremony at the Ghana Delegation pavilion at the just ended Offshore Technology Conference (OTC) in Houston, Texas, USA, Dr Mustapha Abdul-Hamid asserted that Ghana is the best place for the petroleum hub project because of political stability, geographical location, robust downstream sector and its high quality crude oil.
Dr Abdul-Hamid said the NPA would assist in the establishment of the petroleum hub by undertaking vigorous engagements with investor communities to be able to attract investments into the country, adding that the Authority would ensure it played its regulatory role by providing licences and permits for the establishment of the refineries, distribution and transportation infrastructure, and storage facilities, among others.
“It will also monitor the quality of petroleum products to ensure they meet specified standards,” he noted.
Dr Abdul-Hamid said the NPA would assist in the establishment of the petroleum hub by undertaking vigorous engagements with investor communities to be able to attract investments into the country, adding that the Authority would ensure it played its regulatory role by providing licences and permits for the establishment of the refineries, distribution and transportation infrastructure, and storage facilities, among others.
“It will also monitor the quality of petroleum products to ensure they meet specified standards,” he noted.
African Energy Chamber Awarded Energy & Corporate Africa Leadership Award In Houston, Texas
The African Energy Chamber has been awarded the Energy & Corporate Africa Leadership Award by Energy & Corporate Africa in Houston, Texas.
The African Leadership Awards aim to acknowledge and celebrate key advocates in the industry that continue to shape and empower communities.
“This prestigious award by Energy and Corporate Africa in Houston, is a tribute to the Oil and Gas industry’s commitment to building bridges and working with governments and investors to promote free markets, limited government, low taxes and cutting bureaucracy so the energy industry can work to provide jobs, hopes and opportunities to so many Africans and their investors,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.
It is the recognition awarded on such honourable platforms that emphasize the significant role that the Chamber, along with fellow African energy advocates, continue to play in upholding a consistent and much-needed voice in Africa’s energy sector.
“I congratulate H.E Chief Timipre Sylva (Minister of Petroleum of Nigeria), Mallam Mele Kyari (Group Managing Director, Nigerian National Petroleum Corporation) and Dr. Bryant (ABC) Orjiako (Chairman and co-founder of SEPLAT) on their well-deserved awards. They have done extraordinary work. The African Energy Chamber will continue working with pro-growth African governments and business leaders to ensure that the relationship between the oil and natural gas industry and governments remains strong.” added Ayuk.
Making energy poverty history by 2030 is a journey that needs strong and consistent voices. In the midst of a new global energy landscape, Africa’s energy journey is one that needs to be told and experienced by Africa. It is with this resilience that the Chamber continues to unite global and African energy stakeholders, drive industry growth and promote Africa as the destination for Africa-focused investment.
“We have an obligation build coalitions to drive energy into the continent. This award validates the basic idea that getting energy to work in Africa does not come at demonizing oil and gas companies and the working men that give everything to make this industry work. We need to build coalitions that win for the energy industry and Africans. The woke screams and antipathy toward free markets will not get us anywhere especially at a time when we have to deal with an African Energy Transition and Making Energy Poverty History” concluded Ayuk.
The African Energy Chamber is the largest energy advocacy group representing the majority of African energy industry.
The AEC advocates for free markets, personal responsibility, less regulation, low taxes, limited government, individual liberties, and economic empowerment will boost African oil and gas markets and economies.
Ghana: ECG Lost US$344.3 Million Revenue In 2018 Due To System Losses
Ghana’s southern electricity distribution company, ECG, recorded a huge loss of US$ 344.3 million in revenue as a result of system losses in 2018.
The company purchased a total power of 10,900.55 GWh from power producing companies in the West African nation.
However, ECG sold 8,251.47 GWh to customers with the remaining 2,649.08, which represented 24.30 percent of power purchased, being lost through system losses despite creating Revenue Protection Division and installation of Automatic Meter Reading for special load tariff customers put in place by management.
In monetary value, the 2,649.08 GWh is about $344,380,400million.
This was contained in the 2020 Auditor-General’s Report.
The report attributed the huge revenue loss to high transmission losses and electricity theft.
“ECG, in effect, lost 24.3% of its revenue for the year and this could affect the profitability and viability of the Company,” the report said.
Ghana: Government Loses Over $150 Million To Transmission Losses In A Decade (Article)The Auditor-General advised Management of ECG to determine losses which are due to technical and commercial challenges so as to deploy measures to reduce those losses. Responding to the issues raised by the Auditor-General, management of ECG said that currently, the estimation of technical losses is undertaken only in selected districts. For estimation of technical losses globally across all ECG districts at the same time needs a dedicated and well-trained team of personnel, a set of measuring tools including PQ analyser and voltage recorded, power flow software that can handle the modelling of both balanced and unbalanced loads, boundary meters, AMR meter and GIS software.
Ghana: Secret Behind GNPC, Aker Energy Deal Revealed
Credible information available to energyneswafrica.com suggests that the planned acquisition of stakes in the Aker Energy and AGM Petroleum Ghana oil blocks is a calculated move by some persons in the Akufo-Addo-government to enrich themselves at the expense of the West African nation.
According to information intercepted by energynewsafrica.com, should the deal go through, it would enrich persons who, our sources describe as a ‘gang of three’.
“For the record, if this deal is approved, Ghana will suffer because the government just taxes and enjoys royalties and not investment in a risky exploration. Now, the ‘gang of three’ wants to get wealth and collapse the portion Ghana enjoys without much risk,” the source explained.
Multiple sources of information obtained from persons in Government and people close to the country’s energy Ministry confirmed that the deal would not be in the interest of the nation and the citizenry, as claimed by GNPC in their memorandum but would only benefit few people in government who want to amass wealth.
Ghana’s Minister of Energy, Dr. Matthew Opoku, recently, submitted a memorandum to Parliament of Ghana on behalf of GNPC, seeking approval for a loan of $1.65 million to enable Ghana acquire stakes in two oil blocks.
In the memorandum, GNPC, through its exploration company, Explorco, wants to acquire 37 percent interest in Deep Water Tano/Cape Three Point (DWT/CTP) operated by Aker Energy Ghana Limited; and 70 percent stake in the South Dee Water Tano SDWT operated by AGM Petroleum Ghana Limited.
According to the memorandum, GNPC is proposing the establishment of a joint operating company between Aker Energy and AGM Petroleum Ghana Limited, and GNPC Explorco.
‘’An Operator Joint Venture (JV) will be formed between GNPC Explorco and Aker Energy/AGM,’’ the Parliament Memorandum said.
The joint operator company is expected to hold 40 percent stake with Aker Energy /AGM holding the remaining 60 per cent.
The Minister for Energy and the Minister for Finance are supposed to agree on a purchase price with Aker Energy/AGM.
Valuation
According to the document submitted to Parliament by the Energy Minister, the Aker Energy/AGM interests in the respective blocks have been valued by number of sources, including GNPC, Aker Energy/AGM, Artic Securities, Pareto Securities and Lambert Energy Advisory.
The valuations range between US$2.0 and US$2.55 billion, with prospects for the total share of Aker and AGM in the two blocks.
GNPC and Aker Energy/AGM jointly commissioned the independent Lambert Energy Advisory valuation report and agreed to use outcome as a reference point for the negotiation price.
Based on this report, the total share of Aker and AGM in the two blocks is US$2.55 billion.
The pro rata value of the GNPC Explorco share being acquired based on Lambert Energy Advisory is $US2.0 billion.
Value for money
In a statement issued last week, Alliance of Civil Society Organisations made up of 15 CSOs working in the extractive sector, good governance and anti-corruption raised concerns regarding the value of the assets as claimed by GNPC and Aker Energy/AGM.
The CSOs took issues with claims by Aker Energy that it had invested about US$800 million so far on the blocks in a document submitted to Parliament.
While GNPC claims it has verified the expenditures, the CSOs have doubts about the figures, insisting that it “appears inflated if juxtaposed against the amount of work done by Aker and the value of its acquisition three years ago.”
Aker Energy acquired Hess’s interest in the DWT/CTP for US$100 million in 2018. Before selling its interest to Aker, Hess had appraised the field with estimated recoverable oil of 450 million barrels.
In total, Hess drilled 12 wells (seven exploratory wells and five appraisals well). With that amount of work done, the highest valuation Hess got was about US$400 million in 2016 when it farmed out 40 percent to Lukoil and Fuel Trade for the entire field.
Aker claimed it has spent about US$420 million on five well drilled on the two blocks.
“In another document presented to the country’s Economic Management Team (EMT), the US$420 million relates only to the three wells on DWT/CTP. Given that the DWT/CTP cost is shared among the partners of the block the total expenditure claims for the wells could be in the region of US$600 or US$750 million compared with US$400 million by Hess for 12 wells, depending on which of the documents used. This is very high regardless of which of the information is used.
“The remaining US$280 million must be accounted for properly. GNPC claims that money was used for “certain activities essential for establishing resource in the blocks”. This is overly ambiguous and cannot be accepted as a cost with this kind of description which questions the distinction between that activity and data acquisition and studies done as part of exploration and appraisal,’’ the CSOs said.
According to energynewsafrica.com sources, Aker Energy is cash trapped and that explains their inability to develop their oil block.
Energynewsafrica.com’s sources indicated that Aker Energy was going to relinquish their stakes and walk away from the shores of Ghana just as ExxonMobil did.
One of the sources in Government remarked that “Aker Energy lied to the NPP government. We bend the rules to make it easier for them, but they have not been able to develop their oil block.
“What have they done with their own block?” the source quizzed.
The source concluded that “Aker does not have money.”
Another source in Government, who is angered by the GNPC’s to acquire stakes in Aker Energy and AGM blocks, wondered why the government now wants to buy stake in SDWT block when it reduced GNPC Explorco’s 24 percent from to 18 percent.
“First, why are we now paying for something we gave away for free? We also cannot be haphazard in the way we do things. We have to decide firmly on what type of National Oil Company we must have; either an asset manager or an exploration company. It is when that decision has been made that these investments decisions can make sense,’’ energynewsafrica.com’s source stated.
“Besides, Aker has proven they cannot develop the block so after a while, they will have to relinquish. So, why are we a poor nation bailing them out? Why is Aker not going to the capital markets to raise money as all others do?
“Those who got the free shares are now selling them back to government,” the source said.
Source: https://energynewsafrica.com
OTC: More Jobs For Ghanaian Youth In The Energy Sector-Egbert Faibile Promises
The Chief Executive Officer of the Petroleum Commission, Ghana’s petroleum upstream regulator, Mr. Egbert Faibille, has disclosed that as part of government’s local content agenda in the petroleum sector, the Commission is to sponsor a 10-month training course of 150 technicians at the Takoradi Technical University.
Mr Faibille made this known during an event dubbed ‘Around the World Series’ at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, USA.
Mr Faibille is among a government delegation led by the Minister for Energy, Dr Matthew Opoku Prempeh. Others include senior officials of the Ministry as well as heads and senior managers of various energy sector agencies.
Tracing the background to this development, Mr Faibille stated that in the Commission’s engagements with International Oil Companies (ICOs) on local content engagements, it had emerged that there were deficiencies in the skill sets and qualifications of the mid-level technicians that the Commission sought to get engaged by the IOCs.
He stated that the Commission, under the leadership of the Ministry of Energy, was seeking to reverse this by rolling out a number of training programmes for high-end international certification for Ghanaian youth, and that in the instant case, the 150 candidates had been selected from a total of over 2,000 young Ghanaians who had been examined.
Speaking on this issue, the Public Relations Officer for the Ministry of Energy, Mr Kwasi Obeng-Fosu explained that, these candidates would, on the completion of their training, be issued City and Guilds certification and come out as process technicians, instrumentation technicians and mechanical technicians.
He quoted Mr Fabille: “When we started our journey, we were looking at the high-end engineering and geoscience training. But over the period, we forgot, possibly, that we would have FPSOs in our waters, for which you would still need mid-level specialist technicians to perform key roles, just as a hospital needs both doctors and laboratory or dispensing technicians.”
The result, he noted, was that when the FPSOs berthed, a certain deficiency came to light, and the idea now is that if a person is coming into the country as an expatriate technician for say 2-3 years, then by the time the person leaves, there should be in his or her place, a Ghanaian technician who has understudied the expatriate and has been trained up to their standard both in terms of certification and practical experience and ready to take over. Ultimately, he noted this would drive down the cost of running the FPSO.
Touching on service provision and in-country spending as part of the local content conversation in the sector, Mr Faibille stated that this hovered around 67-70 percent and lauded international oil companies like Tullow for their commitment to this. However, he called for diversification of the supply base, noting that it is the same companies that supply the same services for the same oil companies and he called that a market failure.
“Tullow and others must be more welcoming of other suppliers so that the chain of monopoly is broken, else the local content story will remain stagnant,” he remarked.
This year’s OTC, which started on Monday 16th August, 2021, will end today.
Source: https://energynewsafrica.com