Natural Gas Monetization Binds Africa And Mozambique’s Oil And Gas Industries

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For many years, and as it was pursuing ambitions to become a global LNG exporter, Mozambique has struggled to generate enough energy for its domestic market. We are now about to see an energy revolution thanks to great gas discoveries made by international investors over the past decade. While international technological innovation and skillful know-how will be driving such projects, we must all push for a transfer of knowledge throughout the development of Mozambique’s LNG projects. The need for more collaboration and shared experience among African energy experts is going to be critical for Mozambique as it pushes towards monetizing massive gas discoveries. Similarly, recognizing that the state and the private sector need to play a role in the development of critical energy infrastructure to pave the way for domestic gas utilization will be key to Mozambique’s development and also solving energy poverty issues. “Mozambique can learn from the success and struggles of other African countries on the critical role of gas in our development,” stated Florival Mucave, President of the Mozambique Oil & Gas Chamber, who firmly believes that increased collaboration between upstream and downstream players across the value-chain will benefit Mozambique. Mozambican stakeholders from the public and private sector recognize that the country is at a crossroad in its development. In this context, building the right energy mix while taking into consideration climate issues is key for the country.
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The African energy industry is capable of embracing climate concerns and at the same time continuing to develop its natural resources to benefit the poor, create jobs and promote an inclusive economic development. Mozambique’s LNG is important to the world and will act as a bridge to other sources of energy, and local businesses should be ready to participate in this development. Local content and jobs must not be catch phrases, they must be real. African businesses and entrepreneurs have a role to play and must push for an enabling environment that will spur investment, entrepreneurship and growth. “The government and energy companies have recognized the amazing opportunity that gas offers to change our economic ambitions, and there is a clear intent to monetize these resources for the benefit of Mozambicans. This will be possible only through an increase in investment into infrastructure,” added Florival Mucave. “The issues around domestic gas and local concerns will be resolved with a market driven approach. This will pave the way for the use affordable and abundant gas to launch an industrial and agricultural-led growth, improve our trading abilities regionally, effectively increase the Mozambican spending power, and revitalize our economy in a post Covid -19 environment,” he concluded. Mozambique is already benefiting from its collaboration with the African Energy Chamber, the largest energy industry lobby group in the continent. Such collaborative platforms between the public and private sector needs to be encouraged to drive investment in gas and monetization across industries, for the benefits of African factories and households. “We stand ready to share lessons learnt from other gas producers with Mozambique. There are a lot of resources across our network when it comes to gas monetization, including successful deals, in-depth industry experience and market driven policies that can ensure Mozambique’s energy success,” declared NJ Ayuk, Executive Chairman of the African Energy Chamber. “Mozambique is in a unique position to capitalize on these opportunities and I am confident it will. Our industry needs to collaborate with government to develop smart policies and drive up the economy. Total, Exxon, ENI are part of the solution and we must work with them and provide the incentives to collectives achieve such opportunities that benefit Africans as a whole,” he added. Source: www.energynewsafrica.com

Saudi Aramco Discovers 4 New Oil And Gas Fields

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Saudi Aramco has discovered four new oil and gas fields, the Kingdom’s Energy Minister Abdulaziz bin Salman said, as quoted by the Saudi Press Agency. Two of the fields are unconventional deposits, the report said. One of these, al-Reesh, has three wells pumping oil, at a rate of a combined 10.851 barrels of Arab extra light crude and close to 8 million cu m of natural gas. The other non-conventional deposit, al-Sirrah, produces mostly natural gas, at a rate of 18 million cu m daily, along with 98 barrels of condensate daily. Another well, also at the al-Sirrah deposit, is yielding natural gas only, at a daily rate of 32 million cu m. The fourth discovery was made in northern Saudi Arabia, at the al-Ajramiyah well, which is pumping crude at a rate of 3,850 barrels daily. The total recoverable reserves of the deposits tapped with the discoveries have yet to be determined, bin Salman said. OPEC’s top producer and exporter, and the world’s second-largest oil producer, has been struggling with the effects of high oil supply coupled with demand devastation. The Kingdom has been among the most aggressive production control proponents in OPEC+, consistently producing less than its production quota under the latest output control agreement. Even so, Riyadh had to revise its 2021 budget, cutting spending plans by 7 percent in response to the weak price environment. Riyadh will now spend some $264 billion next year, or 990 billion riyals, as it battles a substantial deficit resulting from the latest oil price collapse. Earlier this year, the Kingdom was forced by oil market circumstances to implement some unpopular austerity measures, including a triple increase in value-added tax and the cancellation of so-called cost-of-living allowances for much of the population. While the government insisted these were not austerity measures, the fact of the matter was that the drop in oil revenues threatened the economy of OPEC’s number-one oil exporter. Source: Oilprice.com

Trina Solar Vertex 210mm Modules Sets New Cost-Saving Standard According To DNV GL

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With its top-notch research and development of ultra-high-efficiency modules, Trina Solar has once again led the industry into the 600W+ era, with a variety of high-power, high-efficiency, high-yield and highly reliable products. Drawing attention from across the industry, Trina Solar’s innovative “low voltage, high string power ” design concept has certainly proven to be the best Levelized Cost of Energy (LCOE) reduction strategy according to a report by DNV GL. Trina Solar invited DNV GL to evaluate such design in terms of BOS costs and LCOE and how they fit different solar projects, with the assessment taking place in typical photovoltaic sites in Spain and Texas, US. Through the comprehensive and objective evaluation system and methodology by DNV GL as an independent third party, the design concept of “low voltage, high string power” can be demonstrated to the industry and customers. In the era of grid parity, the Vertex series have a prominent edge in LCOE. Foreign and domestic leading design institutes and well-known third-party organization DNV GL have evaluated the LCOE advantage and value of Vertex 210mm modules, notably the bifacial dual-glass Vertex series. The report finds that the 545W bifacial dual-glass Vertex module has the best LCOE, and performs significantly better than the conventional 166mm, 450W and 182mm, 535W modules in terms of BOS costs. With the close partnership in the 600W+ Photovoltaic Open Innovation Ecological Alliance members, along with the design mindset of low voltage , high string power, modules, trackers, inverters as well as solutions are all in place. This is a critical step for the photovoltaic industry to reach the best LCOE. In conclusion, Trina’s Vertex 210mm module and its low-voltage high-string power design can significantly save the system’s BOS cost and LCOE, setting a new cost-saving standard and ultimately ensuring the project’s earnings to maximize customer value, making PV solar energy more cost competitive. Since its establishment in 1997, Trina Solar has always been driven by innovation, reliable quality and customer value. With the release of the first advanced Vertex 210mm modules in February 2020, the product line has been stacked with different products including Vertex S 400W, and the Vertex series of 500W, 550W and 600W and beyond, which fit well with the applications of residential, commercial and large scale power plant, as well as multiple scenarios of agriculture and fisheries . For more information about the assessment report on Trina’s Vertex modules, please visit www.trinasolar.com

Ghana: GTPCWU Urges Petroleum Workers, Drivers To Increase Productivity In 2021

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The National Chairman of the General Transport Petroleum and Chemical Workers Union (GTPCWU), Bernard Owusu, has urged its members to be united, stand firm and work hard to ensure productivity in the coming year. In a statement issued on Thursday, Bernard Owusu noted that 2020 has been fruitful, in spite of the difficulties encountered due to the covid-19 pandemic. “I will be looking forward to working with you in unison, to ensure productivity in our work. It is in unity that we find strength, hope and eventually, we can stand firm as the darkness approaches. Let us stand together and firm against the many faces of hate,” he said. Mr. Owusu also used the occasion of the celebration of Christmas to appeal to political party leaders to call their members to restrain themselves from any chaotic activity that will disrupt the country’s peace. “Let us use all the legal means to deal with any misunderstanding that has erupted after the December 7 elections,” he urged.

Ghana: ECG MD Urges Ghanaians To Adhere To Covid-19 Protocols As They Celebrate Christmas

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The Managing Director of Electricity Company of Ghana (ECG), Kwame Agyeman-Badu is urging Ghanaians to be mindful of the threat Covid-19 poses to their health and the nation, thus, reminding them to adhere to the safety protocols as they mark this year’s Christmas festivities. In his special wishes to Ghanaians and his staff, Agyeman-Badu cautioned celebrants to be extra careful. “Let’s continue to be mindful of the Covid-19 and protect ourselves during the celebrations as we look forward to a better new year,” he said. The ECG boss prayed for more blessings for all Ghanaians and a better economy for Ghana in the year ahead. “It has been a difficult year, but the Lord has been merciful,” he concluded.

Ghana: Respect EC’s Declaration Of Akufo-Addo As President-Elect And Move On-Energy Minister To Ghanaians

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Ghana’s Minister for Energy, John-Peter Amewu, has asked staff of the Energy Ministry and, by extension, Ghanaians to accept the declaration of Nana Addo Dankwa Akufo-Addo as the President-elect by the country’s Electoral Commission and move on. “I call on everyone to accept the decision by the EC,” he said. The opposition party in the West African nation, National Democratic Congress (NDC), has refused to accept the presidential election results which saw the incumbent President, His Excellency Nana Akufo-Addo, re-elected for the second term. Since the declaration of the results, the opposition party has been organising street protests amid burning of car tyres, an act that have been condemned by well-meaning Ghanaians. Addressing staff of the Ministry on Wednesday, December 23, 2020, at a get-together to break for the Christmas festivities, the Energy Minister advised the opposition to use the right channel instead of engaging in street protests.
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“Ghana is one and Ghana has one president,” he stated. “Whether you voted for the NDC or NPP, the EC has declared the winner and we must all respect it,” he advised the staff. Mr. Amewu, who contested the Hohoe Constituency seat on the ticket of the ruling New Patriotic Party (NPP) and won, thanked the staff for holding the fort and working hard when he and his deputies, who contested for parliamentary seats and also won, were in their constituencies campaigning. “For every person who worked, I’m most grateful,” he concluded. Source: www.energynewsafrica.com

Ghana: We’re Resolving Prepaid Customers Challenges-ECG

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Ghana’s southern electricity distribution company, ECG, has assured its customers and stakeholders that it has started working assiduously to resolve the irregularities in prepayment credit being experienced by customers. “We wish to assure our stakeholders that we have already started assiduous work to improve the communication link between the server and the meters, as well as replace faulty meters with new ones,” the company said in a statement signed by Managing Director, Kwame Agyeman-Budu. This follows concerns raised by Institute for Energy Security (IES), a think tank, that there are widespread challenges being faced by ECG pre-paid customers. The IES claimed that ECG customers who have pre-financed the use of electricity at a later time are having their electricity credits being converted to debits. “The more a customer buys power to be used, the more the customer owes the ECG, resulting in many homes and workplaces being disconnected,” the energy think tank said. Reacting to the claims, ECG, which commended IES for bringing the issues to their attention, however, discounted the claim that the system now converts customers credit to debt. “There is no feature in the prepayment system that converts electricity credit to debt, or is there a facility in which the more a customer buys electricity, the more the customer owes the ECG.” Giving explanation to the current challenges being face by customers, it said with ECG prepaid meters, money is deposited into a meter account and dispensed with an approved tariff till it is finished, then the meter disconnects electricity supply till another deposit is made. According to ECG, in some minimal cases, the meter breaker stays connected and the meter continues to record the customer’s consumption on a zero balance, and this can lead to a debt. For some smart meters deployed in 2014 in parts of Accra, the nation’s capital, the money is deposited into the customer’s account on a centralised server and gets dispensed only when the meter is remotely connected to the server. Delayed routine reconciliation due to failed remote communication between meters and the server automatically switches the meters into credit mode and allows the customers to consume electricity beyond their remaining credit. This usually results in a negative balance when communication is restored between the server and the meters. In most cases, debt after the reconciliation of the customer’s initial deposit and the actual electricity consumed is scheduled for payment on flexible terms for the customer. “Currently, a team of technical staff has been deployed to upgrade the communication network between the prepaid meters and the server, and this has resulted in the increasing debts of customers whose meters have been operating on credit mode, and as such have not made any commensurate purchases of electricity used over the months. “We take this opportunity to thank our affected customers for their patience, and the IES for raising the concerns of customers,” ECG said. Customers who require further information or have peculiar challenges with their prepaid meters are being advised to call the ECG customer service center on 0302 611611, where their details will be recorded for the metering experts to take up the issues and work promptly to normalize the situation. Source: www.energynewsafrica.com

Ghana: BOST Chalks Impressive Feat A Year Under Edwin Provencal

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Ghana’s strategic stock oil keeping company, Bulk Oil and Storage Transport Company Limited (BOST), has chalked impressive successes just over one year after Edwin Nii Obodai Provencal was appointed the Managing Director of the state company. Mr. Provencal was appointed in August 2019 to replace George Mensah Okley, after the former resigned from his post. At the time he assumed office, BOST’s assets, such as pipeline infrastructure, storage tanks, barges, tugboats and other vital installations had been abandoned for years without repairs. Besides, BOST was saddled with huge legacy debts which dated back under the leadership of Kwame Awuah Darko and the National Democratic Congress’ administration. However, the sordid state of BOST has seen an improvement. In a presentation by the Managing Director of BOST to staff at the Accra Plains Depot (APD) on Monday, he highlighted on the key successes the company had recorded in the last year. He said 6 out of the 15 storage tanks at APD, Buipe and Bolga, which were abandoned, have now been repaired and are currently in use. According to him, the Buipe-Bolgatanga Petroleum Product Pipeline (B2P3) had also been repaired and currently in use while repair works on the 6’’ Tema-Akosombo pipeline has just been completed. Touching on some ongoing repair works, Mr. Provencal mentioned the repairing and spraying of barges and tagboats and extension of 8″ pipeline to the oil jetty, supply and installation of mass flow meters, fixing of pumps and loading arms, remedial works on 18″ CBM pipeline and commencement of Front End Engineering Design (FEED) for Accra -Kumasi pipeline. Revenue Performance On the revenue performance of the various department of company, the Terminal Department recorded GHS48 million revenue in 2020, as compared to GHS45 million in 2019. The volume of products sold in 2020 was 685,000 metric tonnes, as compared to 652,000 metric tonnes, representing five percent jump. The Transmission Department also raked in GHS7 million in 2020 as compared to GHS2.9 million, representing 141 percent with the volume of product skyrocketing to 23,224 metric tonnes in 2020 while 2,200 metric tonnes was sold in 2019, representing 1,057 percent. Interestingly, the Fuel Trade Department made GHS0.6m loss in 2019. However, in 2020, it made GHS26 million in profit, representing 4,348 percent after trading 150,000 metric tonnes of fuel compared to 77,000 metric tonnes in 2019.
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Meanwhile, the company also realised GHS178 million in revenue from other sources in 2020, as compared to GHS123 million realised in 2019. Turn Around Time At Depots Previously, it took about four hours for Bulk Road Vehicle (BRV) drivers who went to BOST depots to load fuel. However, after a restructuring exercise at the depots, it now takes about two hours and 30 minutes for the drivers to go through pre-loading and post loading process and exit the depots. Reduction In Expenditure In 2019, the company’s expenditure stood at GHS400 million. However, the figure has been reduced significantly to GHS163 million in 2020. 2021 Outlook Going forward into 2021, Mr. Provençal stated that other steps the company plans to take include upgrading of BOST Depots, shipping of 12″ pipes stack in Houston, USA to Ghana, repair of remaining two defective barges, implementation of performance management system and reclassification of staff placement and salary and addressing salary issues. Staff Commendation Mr. Provencal commended staff of BOST for working very hard for achieving parts of the company’s target for the year 2020. In his view, it would take the company about five years to set it on sound footing. He charged the staff to continue to support management to turn the company around for the benefit of the majority and not selected few. “We’re on a five year journey and we’re in the first year. By year two, we’re going to get better and by the time we get to year five, we will have arrived. “What we need is resilience and focus from all & sundry despite the obstacles. I won’t take decisions that will benefit only a few: my decisions will benefit the majority of staff who are making things happen,’’ he explained. Mr. Provencal promised not to repeat the mistakes of his predecessors, assuring the staff that he would make sure that staff are rewarded based on their performance but not on favouritism. “I believe in rewarding people who deserve it,” he said. Source: www.energynewsafrica.com

Equatorial Guinea Intensifies E&P Activities In 2021

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Equatorial Guinea will see three exploration wells drilled in Trident Energy-operated Block G in 2021, along with refurbishment and well intervention works across other assets, according to the Ministry of Mines and Hydrocarbons. Trident Energy will drill three wells in Block G in 2021 – each of which is expected to take 33 days to complete – with an estimated start date in April. Located 15 km offshore Equatorial Guinea, Block G is home to the Ceiba and Okume fields, and is set to yield new development opportunities following the company’s acquisition of 4D seismic in the first quarter of 2020.
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Noble Energy will conduct refurbishment work on its Aseng floating production storage and offloading (FPSO) unit over a period of 10 days, with the objective of maintaining safety, reliability and productivity of the infrastructure, as well as complying with regulations of the ABS (leading U.S. offshore classification society). Intervention works will also be carried out in wells 5P and WI-1. Meanwhile, maintenance works will be conducted on the Zafiro, Jade and Serpentina infrastructures, with execution planning activities carried out ahead of well repairs on the Jade Platform by 2022, along with optimization of production and management of inactive wells. Serving as the country’s most prolific asset, the ExxonMobil-operated Zafiro field was producing 90,000 barrels per day (pre-COVID-19) via the Jade fixed production and drilling platform and Serpentina FPSO. Details of the 2021 Work and Budget Program follow an announcement by the Ministry of Mines and Hydrocarbons last week (https://bit.ly/3phvUbq) forecasting $1.1 billion in upcoming foreign direct investment into the oil and gas sector. As of October, total crude oil production in the country in 2020 stands at 35.15 million barrels, translating to an average daily production of 115,250 barrels per day. Total condensate production amounts to 9.48 million barrels, translating to an average daily production of 31,079 barrels of oil equivalent per day. The Ministry has set its sights on boosting hydrocarbon output by facilitating the influx of foreign capital and enabling operators to carry out capital-intensive E&P activities in 2021.

India: Gas Pipeline Blast Kills One, Destroys Houses In Gujarat

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A blast at a gas pipeline in Gujarat killed one person and injured two others early on Tuesday, authorities said. It was not immediately clear who ran the pipeline – state-run Oil and Natural Gas Corp (ONGC) denied media reports that it was the operator. Local company Sabarmati Gas, partly-owned by Bharat Petroleum Corp, also said it was not involved. The massive explosion destroyed two houses in a residential area near ONGC’s Kalol field in Gandhinagar district, trapping people under the debris, officials said. Senior Gandhinagar official Kuldeep Arya told Reuters a gas leakage could have triggered the blast. “ONGC confirms that this pipeline, where the accident took place, does not belong to ONGC,” its local office said. It was supporting rescue officials on the ground, it added.

Ghana: PURC Launches Investigation Into Prepaid Meter Irregularities Faced By ECG Customers

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The Public Utilities Regulatory Commission (PURC) has launched investigations into the irregularities being experienced by some customers of Electricity Company of Ghana (ECG). In a statement signed by its Executive Secretary, Mami Dufie Ofori, the Commission assured the affected customers that it would take appropriate regulatory actions when investigations were completed. The Commission reiterated its commitment in protecting the interest of consumers and utility service providers with the aim of achieving quality utility service. It would be recalled that the Institute for Energy Security (IES), on Monday, expressed concerns about the challenges prepaid meter customers of ECG were facing and called on the Energy Minister to intervene to resolve the issues. Reacting to the issue, Managing Director of ECG, Kwame Agyeman-Budu admitted that the system is experiencing some communication challenges. According to him, he personally experienced the same challenges when he purchased electricity credit. In view of that, he said his outfit had informed the pre-paid meter vendor and is working to rectify the anomaly. He urged consumers to exercise patience, saying the system would be restored to ensure that no-one is shortchanged. Source: www.energynewsafrica.com

Nigeria Commissions LPG Plant At Oredo (Photos)

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Nigerian President Muhammadu Buhari has officially inaugurated Nigerian Petroleum Development Co.’s (NPDC) integrated gas handling facility at Oredo. Located in Edo State’s OML 111, the facility will receive gas from the Oredo field and should halt flaring. “Scaling up utilisation of Nigeria’s abundant natural gas resources will help spur industrialisation”, Buhari said. He noted that 2020 was the country’s year of gas. The Oredo plant will be the largest onshore LPG plant in Nigeria targeting the domestic market. Launching the plant moves Nigeria a “step closer to self-sufficiency and supports growth for small and medium sized enterprises. The Oredo plant will create hundreds of direct, and indirect, employment opportunities and will also support the ongoing drive for alternative auto fuel,” the president said. Self sufficiency The Oredo field will provide 200 million cubic feet per day of wet gas to the plant. It will produce around 84 mmscf per day of lean gas. The field produces around 10,000 barrels per day of oil. The operator will export this gas to the local market via the Escravos Lagos Pipeline System (ELPS), producing a potential 367 MW of power. It will also produce 330 tonnes per day of LPG, 345 tonnes of propane and 2,600 barrels of condensate. The plant will meet 20% of Nigeria’s LPG demand. “This translates into a daily load out of 17 trucks of LPG and 22 trucks of propane,” Nigerian National Petroleum Corp.’s (NNPC) managing director Mele Kyari said. Kyari noted the importance of gas revenues during 2020, when oil prices plummeted. “This has given us the courage to pursue other projects,” he said. NPDC is a “leading supplier of gas” for the domestic market and is expected to be the country’s top producer of oil in two or three years, the NNPC official said. Local companies Network Oil and Gas carried out work on the project, while Loneb Resources Nigeria was a subcontractor for piping and structures. NPDC opted to go ahead with the plan in 2015. The company expects revenues from the plant to be around $200mn per year.

Nigeria: Buhari Commissions NPDC’s Edo Integrated Gas Plant Today

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President of the Republic of Nigeria, H.E. Muhammadu Buhari will officially unveil the Nigerian Petroleum Development Company’s (NPDC) Oredo Integrated Gas Handling Facility (IGHF) at Ologbo Edo State today. Managing Director of NPDC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), Mansur Sambo, disclosed that the company is now the largest supplier of natural gas to the domestic market, having contributed an additional 600 million standard cubic feet per day (mmscf/d) to the market. Sambo said of about 1.7 million standard cubic feet per day (mmscf/d) supplied to the domestic market, NPDC and its partners supply about 1.1 billion, making the firm the largest gas supplier to the domestic market. He pointed out that of the 1.1 billion, NPDC alone supplies about 650 million mmscf/d, adding: “As at today, NPDC is the largest gas supplier to the domestic market.” He hinted that the Liquefied Natural Gas (LNG) unit was ready and would be commissioned by the President and appealed to the host community to continue to be hospitable to the workers at the gas facility, stressing that their presence in the community would boost its economic base. On gas flaring, Sambo said the NPDC had drastically reduced the percentage of gas flared to a minimum level, noting that gas flaring was a necessary activity in the hydrocarbon processing industry. “Without the flares, the plant will not breathe because it is just like the air we human beings breathe,” he added.

Ghana: GOIL Rolls Out National Give-Away Bonanza To Customers

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Ghana’s leading indigenous Oil Marketing Company, GOIL has rolled out a nation-wide Give-Away bonanza to customers and patrons in all its over 400 service stations. Under the program, customers who patronize GOIL’s Super XP RON 95 fuel and its additivated Diesel benefit from tantalizing gift items in all its 8 zones. Some of the items being given out include Airtime credit, T-shirts, face towels, Dusters, Drinking Mugs, Corporate embossed sanitizers and nose masks as well as tissue boxes. In one of such give-away bonanzas, the Managing Director and Group CEO of GOIL, Kwame Osei-Prempeh joined the South Zonal team to hand over gift items to customers at its PRESEC service stations. Mr. Osei Prempeh handed over T. shirts, Drinking mugs and Face towels to customers and encouraged them to continue to patronize GOIL products because patrons will get double benefits of quality products and value for money. The Zonal South Manager, Helen Kyeremateng urged customers to continue to patronize GOIL products such as the Super XP RON 95, its additivated Diesel, and trusted lubricants. All of GOIL’s over 400 service stations are taking turns to roll out the Giveaways during the yuletide.