Ghana: COPEC Demands Protective Equipment For Drivers, Pump Attendants Due To Outbreak Of Coronavirus
A petroleum consumer advocacy group, Chamber of Petroleum Consumers (COPEC) in the Republic of Ghana, says it has concluded discussions with the Ghana Private Road Transport Union (GPRTU) and Association of Oil Marketing Companies (AOMCS) for the immediate purchase and distribution of basic preventive clothing and equipment for drivers, pump attendants and other service providers.
The decision follows the outbreak of the deadly Coronavirus (COVID-19) in the West African nation.
So far Ghana has recorded about six cases of the Coronavirus.
Executive Secretary of COPEC, Duncan Amoah told energynewsafrica.com, that there was the need for the pump attendants and other service providers to be protected again the spread of the infectious disease.
In a statement the Chamber encouraged as many fuel stations to make all the necessary arrangements to install self-serving or automated pumps across some service stations to reduce the possibility of physical contact between the customer and attendants at the various stations within this period.
COPEC further called for the use of electronic payment systems and platforms in the payment for the services and products at these service stations as well as the payment of fares for public transport where possible.
“We encourage the public to strictly abide by and observe all the health protocols as spelt out by the Ghana Health Service under the current circumstances to prevent an escalation in the number of infections as Authorities continue to work strenuously to contain and eradicate the upsurge and incidence of this virus outbreak,” it added.
Source:www.energynewsafrica.com
CNOOC Makes Large Oil Discovery In Bohai Bay
Chinese oil and gas company CNOOC Limited has made a large-sized discovery Kenli 6-1 in Bohai Bay, which is expected to be the first large-sized oil filed in Laibei lower uplift.
The Kenli 6-1 structure is located in Laibei lower uplift in the southern Bohai basin with an average water depth of about 19.2 meters.
CNOOC said on Monday that the discovery well KL6-1-3 was drilled and completed at a depth of 1,596 meters, and encountered oil pay zones with a total thickness of approximately 20 meters.
The well was tested to produce around 1,178 barrels of oil per day, the company added.
The company also noted that this successful exploration well represented a breakthrough in the exploration area of Laibei lower uplift, and further proved the huge exploration potential of the Neogene lithologic reservoir in the Laizhou Bay.
Source: www.energynewsafrica.com
Saudi Aramco Slashes CAPEX As Oil-Price War Hits Home
Saudi Arabia’s national oil company, Aramco is slashing its capital expenditure for this year amid the oil-price war.
Capital expenditure will be between $25 billion and $30 billion in 2020 and spending plans for next year and beyond are being reviewed, Aramco said.
The oil giant is lowering that range from the planned $35 billion to $40 billion announced in its IPO prospectus, and compares with $32.8 billion in 2019.
“That was the surprise,” Ahmed Hazem Maher, an analyst at EFG Hermes in Cairo, said of the spending cut.
“They’re adding production in a low price environment so their cash flows could be impacted.” Cutting investment could help absorb some of the impact of the drop in oil prices, he said.
The oil-price war led by Saudi Arabia and Russia means more pain for Aramco as producing nations prepare to boost supply.
Discounted pricing to markets already reeling from weak demand and crude that lost roughly half its value since the beginning of the year is likely to hit revenue further.
Aramco shares fell as much as 0.9% on Sunday, extending the decline this year to about 18%. Aramco’s market value has slumped from a peak of over $2 trillion in December to about $1.5 trillion. Aramco executives are set to brief financial analysts of the results at 3 p.m. Saudi time on Monday.
The coronavirus’ blow to oil use has overwhelmed OPEC’s initial optimism for demand this year, with analysts now expecting a drop in consumption. The OPEC+ group’s failure on March 6 to agree on further cuts is only exacerbating a glut as buyers search for storage tanks and vessels.
“We have already taken steps to rationalize our planned 2020 capital spending,” Chief Executive Officer Amin Nasser said. Given the impact of the coronavirus pandemic on economic growth and demand, Aramco is adopting “a flexible approach to capital allocation,” he said.
Saudi Arabia, Russia and others intend to boost production once the current accord to lower output expires in March. The kingdom pledged to supply 25% more oil in April than it produced last month, and Wednesday ordered Aramco to boost output capacity by 1 million barrels a day.
Oil prices fell last year even as Saudi Arabia trimmed output as part of efforts between OPEC and other producers to rein in production. Drone and missile attacks on two of its biggest facilities in September temporarily slashed production by more than half, but didn’t cause a big surge in prices.
Aramco reiterated its plan to pay $75 billion in dividends this year. The company needs to balance its pledge to pay investors with spending on its upstream projects — maintaining oil production and expanding fields — and boosting its global refining and chemical operations — the downstream segment of the business.
“Aramco can restructure the strategy to concentrate more on the upstream expansion rather than downstream,” said Mazen Al-Sudairi, head of research at Al Rajhi Capital. “They can do it easily from their cash flow. But it might affect the money transfer to the government for one or two quarters.”
Brent crude averaged $64.12 a barrel in 2019 compared with $71.67 the previous year. Saudi production slipped to an average of 9.83 million barrels a day from 10.65 million in 2018, according to data compiled by Bloomberg. Aramco restored output to pre-attack levels by early October.
Aramco’s 2018 net of $111 billion made it by far the world’s most profitable company, exceeding the combined incomes of some of the world’s biggest companies including Apple Inc., Samsung Electronics Co. and Alphabet Inc.
Source:www.energynewsafrica.com
Tullow Oil Slashes Exploration Budget By 30%, Sets Up Committees To Deal With COVID 19
Africa focused oil and gas firm, Tullow Oil Plc has cut down its exploration budget for 2020 by 45 percent.
Tullow also slashed its capital expenditure (Capex) by 30 percent this year.
The firm hopes to spend US$350 this year as capex.
In a statement posted on its website, Tullow announced that it has appointed Amalia Olivera-Riley, formerly of Repsol and ExxonMobil, as its new Exploration Director following the resignation of Angus McCoss in December last year.
According to the firm, recruitment of a new CEO is well under way with a final short-list being considered by the Board.
The group has also revised its full year production target to between 70,000 and 80,000 bopd.
Touching on the COVID-19 outbreak, the firm said it has experience in managing infectious diseases of this nature following the significant contingency plans put in place during the West African Ebola outbreak in 2015.
Tullow said it actively monitors advice from the World Health Organisation and Public Health England, as well as participates in weekly calls with the International Oil and Gas Producers’ Health Committee relating to the COVID-19 outbreak to ensure best practice precautions are being applied.
“In both Ghana and Kenya, Tullow’s in-country teams have set up their EID (Emerging Infectious Disease) Management committees in response to the current COVID-19 outbreak. These EID committees steer the local management response to the outbreak, including ensuring that our contractors have implemented appropriate measures. We have also implemented ‘self-declaration’ forms for all personnel travelling to our offshore assets in Ghana, that require people to sign-off that they have not been to the ‘specified locations’ as defined by the UK Foreign & Commonwealth Office in the last 30 days, as well as implementing business travel restrictions to and from these ‘specified locations’.
“In the event that the COVID-19 outbreak escalates, the country specific Business Continuity Plans set out how Tullow will continue to operate, recover quickly from, and effectively manage the response,” it said.
Source: www.energynewsafrica.com
Ghana: Accra, Eastern, Others Experiences Black Out
Reports reaching energynewsafrica.com indicate that several areas in the Republic of Ghana, West Africa, are experiencing black out.
Comments on social media platforms indicate that parts of the capital Accra, are in darkness, with the Eastern, Volta, Northern and Upper East Regions also experiencing same.
Here are some of the social media comments we monitored:
In a car at Amasaman-Pokuase and the area is also off.
And let me add Kpone and Industrial Area too is ‘tuuuuummm’, to wit total darkness.
West Hill Mall area and parts of Northern Region too
Same in Wa, more like disco
Eastern region light off
Energynewsafrica.com sources within the Ghana Grid Company (GRIDCo) indicate that there has been system disturbances hence the outages.
The sources explained that engineers are busily working on the systems to restore power to the affected areas.
Source:www.energynewsafrica.com
Coronavirus: 2020 Offshore Technology Conference In Houston Postponed
Event organisers of the largest global oil an gas programme, Offshore Technology Conference (OTC) have postponed this year’s conference which was slated from May 4-7.
According to the organisers, they are working to confirm new dates for the event in August or September this year.
In a statement the organisers said they recognizes the unprecedented global challenge associated with the current COVID-19 pandemic.
“The health and safety of our partners, attendees, exhibitors, staff, and community are of the utmost importance, and our hearts go out to all who have been affected.”
“Considering the rapidly changing guidance from governments and companies, OTC has chosen to postpone the conference from 4–7 May to the third quarter of 2020. We are actively working to confirm dates in August or September,”
The statement said in the coming weeks, OTC will be communicating with authors, speakers, exhibitors, and partners to develop the new plans and ensure the conference continues to provide a platform for energy professionals to meet and exchange ideas.
Since 1969, OTC has been a reliable source of technology and knowledge sharing to propel the offshore industry forward.
The conference has also been a key economic driver for the city of Houston and neighboring communities.
“By postponing rather than canceling OTC, we aim to preserve the significant work of the program committee and authors to prepare for this conference, as well as minimize the economic impact this decision has on businesses in Houston and throughout the industry,” the statement said.
Source: www.energynewsafrica.com
Liberia: Power Outages: President Weah Orders LEC To Submit Power Distribution Plan
President of Liberia, H.E. George Manneh Oppong Weah has directed the management of Liberia Electricity Corporation (LEC) to submit to his office its power distribution plans.
The directive follows constant wave of power outages which is making life unbearable to many electricity users in the West African nation.
President Weah is now demanding efficiency and productivity.
Deputy Press Secretary, Smith Toby, has told journalists that the President was concerned about the unfortunate situation of consistent wave of power outage in Monrovia and its environs.
”The President has some very serious concerns with LEC. Like most of you are concerned about LEC, so is the President,” Toby said during the Executive Mansion Press Briefing Tuesday. “The President has given the management of LEC up to this month to submit to him the requested power distribution plan.”
The Deputy Press Secretary indicated that the President was taking the situation seriously because, in his words, “the way the LEC is supplying current shows that there is not a structured plan.”
Residents of Monrovia and its environs are plagued with the troubling inconsistent power supply, a situation that has now become a national embarrassment.
Mr. Toby explained that the President was not taking the situation lightly, as would he not hesitate to act in order to arrest the situation in the interest of beneficiaries.
“The President himself is a user of LEC, and so he is concerned,” he said. “Against this backdrop, he wants the plans as to how they are distributing or supplying current to communities.”
Toby disclosed that President Weah called on the LEC management and its partners to ensure proper supply or distribution of electricity, as he (the President) would no longer take excuses for what appears to be poor performance on the part of the Management.
UK Imposes Travel Restrictions To North Sea Oil Installations
Britain’s oil and gas sector association OGUK on Thursday banned people from travelling to offshore installations such as platforms if they have travelled to certain countries affected by the coronavirus in the previous 14 days.
The ban comes after Equinor reported the oil industry’s first coronavirus infection on an offshore installation on Wednesday, highlighting the challenge in preventing contamination for thousands of workers living in the close quarters on rigs and platforms.
“Industry policy is that personnel will not be permitted to travel offshore if they have travelled from or transited through affected countries … on the UK government’s list of affected areas,” OGUK said.
These countries, so-called Category 1 and 2 areas, currently include Italy, Iran, China’s worst hit areas and a number of other Asian countries.
OGUK’s health, safety and environment director, Trevor Stapleton said that rescue helicopters are ready to bring individuals back onshore if lives are at risk.
Helicopters could also bring coronavirus test kits to offshore installations and back onshore, he said.
As for possible production shutdowns in the British North Sea, which produced about 1.7 million barrels per day of oil equivalent last year, Stapleton said it was up to the individual installation managers.
When asked about possible interruptions to maintenance, he said there are some problems already, with a lot of equipment sourced from Italy, but “these are being looked at”.
Source:www.energynewsafrica.com
Emmanuel Montwedi Appointed Executive Secretary Of Int. Youth Nuclear Congress
A South African nuclear scientist Emmanuel Montwedi has been appointed as the new Executive Secretary for the International Youth Nuclear Congress (IYNC) during a board meeting at a congress in Sydney, Australia.
IYNC is a global network of the future generation of professionals in the nuclear field dedicated to developing new approaches to communicate benefits of nuclear power, as part of a balanced energy mix.
The network also aims to transfer knowledge from the current generation of leading scientists to the next generation and across international boundaries.
This year’s congress took place from the 9-13 March 2020.
Emmanuel Montwedi is a Senior Nuclear Engineer and is currently serving as the Deputy Chairperson of South African Young Nuclear Professionals Society (SAYNPS), which is a national network of more than 500 members.
Furthermore, Montwedi was in the Local Organising Committee for the African Youth Nuclear Summit (AYNS) 2019, an event that gathered more than 300 delegates from across Africa.
As the South African representative in the African Young Generation in Nuclear (AYGN) Executive Committee, Montwedi has also driven a number of important issues connected to youth empowerment, diversity and initiated collaborations with various organisations.
Speaking on the appointment, Gaopalelwe Santswere, President of the African Young Generation in Nuclear (AYGN), commented: “Montwedi has an interesting background and I have no doubt that his valuable knowledge and effective leadership skills will benefit our continued international collaborations as we continue to promote the peaceful uses of nuclear technology. It is commendable to see the IYNC taking the issue of diversity serious by ensuring global representation in the leadership structure.”
The newly elected IYNC board will serve for the period of two years until the next congress in 2022 which is set to take place in Russia.
“This appointment into executive leadership of IYNC has come at the right time where the country just approved its Integrated Resource Plan (IRP) which considers a diversified energy mix where nuclear is part of all forms of energy technologies”, says Israel Sekoko, Chairperson of SAYNPS.
“I am very happy and honoured to be part of the progressive and professional association like IYNC. It’s amazing how this unique network has created entirely new opportunities for thousands of young nuclear professionals across the globe. I look forward to expanding and developing that work, together with my experienced and dedicated colleagues”, said Emmanuel Montwedi.
Source:www.energynewsafrica.com
Dubai: DEWA Launches R&D Centre At Its Solar Park Under IPP Model
The Dubai Electricity and Water Authority (DEWA) has inaugurated the Research and Development (R&D) Centre at the Mohammed bin Rashid Al Maktoum Solar Park aimed at advancing Dubai’s Fourth Industrial Revolution (4IR) goals.
The sections and labs of the R&D Centre cover 4,400 square metres and is one of the key projects at the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world based on the Independent Power Producer (IPP) model.
The R&D Centre contributes to building and localising knowledge and expertise with around 70% of the Centre’s staff are Emiratis.
The Centre’s areas of work include solar power; the integration of smart grids; energy efficiency, and water, in addition to 4IR applications such as ‘3-D Printing and Additive Manufacturing’ as one of the innovative solutions to produce spare parts for electricity generation, transmission, and distribution divisions.
The Centre has various internal labs and outdoor labs to study the performance and reliability of PV panels.
Key internal labs include the Electrical Characterisation Lab, the Mechanical Characterisation Lab, the Materials Characterisation Lab, the Solar Simulator Lab, and the Accelerated Aging Lab.
The outdoor labs will be used to test different solar panel technologies and performance, as well as a safe zone for drone testing.
DEWA’s R&D Centre is the only centre in the UAE that focuses on renewable energy, smart grid technologies and energy efficiency and has the largest and most comprehensive solar testing and certification facility in the UAE.
Furthermore, it operates the longest continuous testing of photovoltaic panels in the UAE in desert climate conditions.
The Centre has 37 male and female researchers, 20 of whom are PhD and MSc holders. The team has published over 40 papers in international conferences and magazines.
“We are committed to anticipating and shaping the future of energy and water. We include innovation in all our strategies and initiatives, to support the UAE Strategy for the 4IR, which aims to strengthen the UAE’s position as a global hub for the 4IR,” Saeed Mohammed Al Tayer said.
Al Tayer noted that in order to increase the contribution of 4IR to the national economy by means of advancing innovation and future technologies, the National Artificial Intelligence Strategy 2031 is central to developing an integrated system that employs AI in vital areas of the UAE.
The R&D Centre received a Platinum Rating for green buildings from Leadership in Energy and Environmental Design (LEED) by the US Green Building Council.
The Centre has PV panels installed on its roof and car park, as well as Building Integrated Photovoltaic (BIPV) in its walls.
The building reduces energy consumption by over 25% and saves more than 50% water. The percentage of recycled materials is more than 30%.
Source: www.energynewsafrica.com
Ghana: Oil Marketing Companies Lost GHc50m In Dec 2019-Agyemang Duah
The Chief Executive Officer of the Association of Oil Marketing Companies (AOMC’s) in the Republic of Ghana, Kwaku Agyemang-Duah says the OMCs lost a whopping GHS 51m between 16th and 31st December, 2019.
The losses, he explained was as a result of the OMCs staying the price of fuel at the pump when crude oil prices soared on the international market amidst the depreciation of the cedis.
He said the OMCs decided to keep the price at that time because increasing it would have become unbearable to consumers.
“In the second window of December 2019, which covered 16th to 31st, per the prevailing international market prices, petrol, diesel, and LPG were to be sold nominal at GHc5.57, GHc5.85, and GHc5.68 per litre/kg respectively. Yet, the highest ex-pump price of petrol and diesel was sold at GHc5.41 whereas LPG was sold at GHc5.58. This means, OMCs subsidised fuel prices and in effect, made losses of 16. 62 pesewas on petrol, 44.615 pesewas on diesel and 10.27 pesewas on LPG translating to GHc50 million.
“These losses were considered subsidies which OMCs were technically gifting our cherished consumers on a daily basis at retail outlets on the price.”
Mr Agyemang-Duah said these losses led to a good number of their members’ inability to pay their employees in a regular fashion, inability to settle financial obligations such as loan etc. when they fell due, delayed SSNIT contribution payments, inability of some OMCs to load petroleum products as well as honour some statutory fees and charges,” he said.
Mr Agyemang-Duah was addressing a press conference in response to recent calls by the opposition NDC and Chamber of Petroleum Consumers for OMCs to slash the prices of fuel at the pump, following the fall in crude oil price on the international market.
Readers would recall that the opposition NDC asked the government to ensure that fuel prices were reduced by at least 20 percent to reflect the decline of crude oil prices on the international market.
That, according to Mr Agyemang-Duah, is not possible because of the price build up indicators.
“A preview of the price build-up comprising ex-refinery price, taxes and levies and marketers and dealers margins indicate that for the expected public expectation of between 10 percent-20 percent reduction to occur. One of these parameters would have to suffer. However, our margins have suffered enough,” he stated.
At about 5pm, WTI was trading at about US$31.12 per barrel while Brent was hovering around US$33.48
“As the international prices decline at a steady state in the midst of the appreciation of the cedi, we believe that the competition engendered by the deregulation, will culminate in the eventual reduction of the ex-pump prices that fairly reflect the market dynamics as well as the need to ensure the survival of the operators.”
Source: www.energynewsafrica.com
Ghana: Gov’t To Distribute Free LED Bulbs To Households Nationwide
The government of Ghana has announced plans to supply 12 million free energy saving LED bulbs to electricity consumers across the West African nation.
Per the distribution, Metropolitan Assemblies would receive 50,000 each covering 6W, 9W, and 13W, while Municipal and District Assemblies would receive 40,000 and 30,000 each respectively.
The initiative forms part of the Ghana government’s nationwide energy conservation and demand side management exercise which targets homes and strategic institutions, since their collective energy consumption accounts for over half of the national electricity demand.
Addressing the media in Accra, capital of Ghana, on Thursday, Ghana’s Energy Minister, John-Peter Amewu said the venture is to ensure energy wastage in the system is reduced.
According to him, the project would start in three months’ time through Metropolitan, Municipal, District and other local media to ensure a successful process.
Mr Amewu said the government used GHc200 million to procure the LED bulb to ensure that all households, universities, hospitals and other heavy energy consumers adopt the use of energy efficient appliances to reduce burden on the national grid.
“To ensure that the government achieves its intended purpose for this exercise, energy conservation and demand side management, a comprehensive audit would be conducted by relevant government institutions a month after distribution of the LED bulbs,” the Energy Minister said.
He urged Ghanaians to remain vigilant and ensure nobody sells the free six watts bulbs to them when the exercise starts in three months’ time across the nation.
Source:www.energynewsafrica.com
OPEC+ Panel Cancels Next Week’s Meeting
The March 18 meeting of the OPEC+ panel monitoring the oil market and producers’ compliance with quotas has been canceled, a source in one delegation told Russia’s news agency TASS on Thursday, as Saudi Arabia and its OPEC allies face off with Russia in an escalating oil price war after the OPEC+ group failed to agree on joint actions last Friday.
The meeting of the Joint Technical Committee (JTC) of OPEC and non-OPEC countries, scheduled for next week, is unlikely to take place, three sources familiar with the plans told Reuters, with one source saying that the meeting would be postponed.
OPEC’s top producer and de facto leader, Saudi Arabia, has signaled it would not attend the panel meeting, regardless of its format, one of the sources told Reuters.
Earlier today, reports suggested that the meeting would go ahead, but in a teleconference format because of the coronavirus outbreak which is spreading in Europe.
Russia’s energy ministry believes that under the circumstances a teleconference is the most adequate format for holding the meeting, Russian Energy Minister Alexander Novak said on Thursday, but didn’t confirm the date of March 18, saying that “we need to ascertain if we have received an official invitation.”
On Wednesday, Novak said that Russia would send representatives to the meeting of the OPEC+ panel, reiterating Moscow’s readiness to continue cooperation with OPEC in some form after the collapse of the OPEC+ production cut deal and oil prices.
Novak’s comments came a day after he said that the “doors aren’t closed”, to future cooperation between Russia and OPEC, despite the breakup of the OPEC+ production cut agreement.
OPEC+ has meetings scheduled for May or June to assess the situation on the market, the Russian minister said, but his Saudi counterpart seemed to dismiss Russia’s comments that cooperation should continue.
Source:www.energynewsafrica.com
Oil Price Slump May Jeopardise Our Planned $1 Billion Asset Sales-Tullow
Tullow Oil Plc has said that the oil price slump may jeopardise planned $1 billion asset sales designed to refill its coffers as the Africa-focused group’s lenders may balk at approving loans, threatening its future.
According to the company, the oil price slide might thwart the asset sales which may stop its lenders from approving semi-annual reserve-based loans or amendments to its debt covenants if required.
As at about 5pm Thursday WTI was trading at US$31.65 per barrel while Brent was trading at US$33.72 per barrel.
“If oil prices remain at or below their current levels for an extended period of time, this would adversely impact our future financial results,” Tullow said in a statement posted on the company’s website.
The company said it expects its free cash flow to slide to $50 million-75 million this year at an oil price of $50 a barrel, but hopes to raise cash from the asset sales.
Free cash flow at the group had already fallen last year to $355 million from $411 million in 2018. Highly-indebted Tullow expects to break even at prices of $45 a barrel.
Tullow said it expected its debt facility to be confirmed this month at $1.9 billion, of which it can still tap $700 million.
It said it would slash its investment budget by about a third to $350 million this year and cut its exploration spending, historically the focus of the group, by almost half to $75 million. That will be weighted towards its fields in Ghana.
The company, which is also shrinking its workforce by about a third, said it has drawn up a final shortlist of chief executive candidates to replace Paul McDade, who resigned in December.
Tullow has hedged around 45,000 barrels a day of its 2020 production at a floor price of $57.28 a barrel, and around 22,000 bpd of its 2021 output at a floor of $52.78 a barrel.
Below is Tullow’s 2020 Outlook
- Group production year-to-date in line with expectations; full year guidance of 70,000 – 80,000 bopd
- Jubilee performing well after gas processing facility upgraded, increased gas offtake agreed, and sea-water injection capacity optimised; Nt-09 production well at TEN on-stream in Q2; non-operated West African production in line with expectations
- Capex of c.$350 million, down c.30% from 2019; exploring options to reduce further if required
- 2020 free cash flow forecast of $50-$75 million at $50/bbl; free cash flow breakeven of c.$45/bbl
- 60% of 2020 sales revenue hedged with a floor of $57/bbl; 40% of 2021 sales revenue hedged with a floor of $53/bbl
- RBL redetermination ongoing; expected c.$1.9 billion debt capacity at the end of March; liquidity of c.$700 million