Strategic Options For Ghana As Exxonmobil Exits― IES
ExxonMobil’s Global Strategy
ExxonMobil’s long-term growth strategy is hinged on advantaged projects, industry-leading growth opportunities and favorable cost environment, intended to support earnings and cash flow growth potential. The goal is to rebuild balance sheet capacity to manage future commodity-price cycles while working to maintain a reliable dividend for its shareholders.
The next is focusing on mitigating climate risk and establishing new plans that are projected to be consistent with the Paris Agreement goals of reducing carbon emissions and risks associated with climate change. It is as a result committing huge investment to research, develop and deploy lower-emission technologies like carbon capture and storage, advanced biofuels, energy-efficient manufacturing, and Hydrogen.
Following the severe negative impact on its operations, the oil major has adjusted its capital investment plans, by reducing spending by more than 30 percent going forward. It is developing plans that are more flexible to market conditions, and focusing on few priority areas that will deliver the strongest returns.
Based on that ExxonMobil is removing less strategic assets from its portfolio, and concentrating on high-performing chemical projects, refinery upgrades, and advantaged assets in Brazil, Guyana, Papua New Guinea, and the U.S. Permian Basin.
In Guyana, the estimated gross recoverable resource from the Stabroek Block increased to more than 8 billion oil equivalent barrels, in part because of six additional discoveries made in 2019 and 2020. In the Permian Basin production volumes has increased and remain on track to exceed 1 million of oil equivalent barrels per day by 2024.
In Brazil, ExxonMobil holds the leading acreage position among international oil companies, adding more than 450,000 acres in 2019, for 2.5 million net acres.
In the downstream sector, ExxonMobil remain focused on maximizing value from its based assets through increased integration, utilization and efficiency. The company is strategically upgrading its portfolio through strategic divestments through its US$15 billion divestment program.
The re-organization along the value chain is to help ExxonMobil reduce operating costs and to improve on operational efficiencies, to better position the company for the future. This is the global position of ExxonMobil― not quite different for other oil majors, and other international oil companies.
ExxonMobil Ghana Exits
The exit of ExxonMobil from Ghana is following a global trend, and consistent with the company’s global position of doing away with less strategic assets, and rather concentrating on high-performing chemical projects, refinery upgrades, and advantaged assets.
The decision to exit from Ghana was easily made partly because the quantum of oil find during the initial exploration of the Deepwater Cape Three Points (DWCTP) appears not fall within its threshold, and therefore does not make commercial sense to pursue. Another likely reason could be the company’s expectation of Tax exemptions from the initial exploration activities, falling off the table. The exemptions if offered could have provided some form of free cash flow for the company to attempt drilling further wells to confirm the results or otherwise from the initial Seismic survey.
These domestic experiences of ExxonMobil Exploration and Production Ghana coupled with its global position of focusing on few priority areas that would generate decent returns, may be influencing ExxonMobil to relinquish its 80 percent operating stake in Ghana’s DWCTP block.
The exit of ExxonMobil comes at a time Aker Energy has postponed the development of the Pecan field in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana, with high possibility of exiting, if cash-flow constraint persist.
Currently, oil companies are struggling to raise funds for projects because substantial amount of global capital is being directed at renewable energy projects, away from hydrocarbons. The shift follows the unprecedented political and business momentum renewable energy is currently enjoying, with the number of policies and projects around the world expanding rapidly.
The oil majors and other international oil companies (IOCs) are diversifying into renewables, motivated to invest heavily in renewable technologies and projects because that is where the cash is drifting.
Options For Ghana
The exit of ExxonMobil Ghana from the country, coupled with the delay to submit a Plan of Development (PoD) by Aker Energy Ghana while the energy transition is on, may result in the country’s hydrocarbon resources being stranded, thus denying the country of the badly needed revenue to support its budget.
The Government as a result have alternative options to explore in the immediate term and in the long-term, to exploit the country’s hydrocarbon resources for the benefits of the citizenry. Urgent action is required for the efficient exploitation of the resources as expeditiously as possible before the “Green” revolution, which is directing more focus into the renewable energy space.
Government may consider as part of the strategic options, to improve its fiscal regimes, review Petroleum Agreements (PAs), and resource the state oil company to achieve Operatorship status, without the usual political interferences.
First, it thus appear that the country’s take as “Royalty” and other related taxes are quite on the high side, in the face of changing market conditions. Government may therefore consider reviewing downwards Royalty and other tax rates, taking into consideration the energy transition taking place, and directing funds to “green” projects and away from hydrocarbons. This measure is to serve as an incentive for existing and potential players in the upstream petroleum sector to continue pursuing projects within the sector.
Second, Government may wish to look at the “up-front payments” that the country takes, as captured in the Petroleum Agreements (PAs) in the form of technology transfer and training. These upfront payments, which the oil companies are expected to make within 90 days and before undertaking Seismic surveys, is serving as disincentive to the oil companies, particularly the smaller ones. If the up-front payments that goes as high as US$7 million be reviewed downwards, the savings could serve as free cash flow to the oil companies to deploy into their operations.
Third, the “exploratory period” can also be reviewed by extending it from the current 7 years (should there be no force majeure), to possibly 10 years. This is to give the companies enough time to acquire Seismic data, analyze the data, establish the existence of reservoirs of hydrocarbons, and to reduce the number of dry holes.
Four, to take a look at existing Petroleum Agreements and those that are not performing, for a possible review of the fiscal regimes. The fiscal terms constituting royalties, free carried interests, additional carried interests, additional oil entitlement, fees, and rentals, can be reviewed and re-packaged to attract investment into the fields.
Five, Government may want to limit its influence on the Ghana National Petroleum Corporation (GNPC), to allow its focus on the hydrocarbons. The GNPC can be well positioned to take up from where the international oil companies are stopping. Since these fields, particularly ExxonMobil’s are de-risked by virtue of the additional information gathered, the GNPC represented by its subsidiary Explorco can attempt to appraise the fields, and venture into full production if commercial discovery is made. To beef up GNPC’s financial and technical capability, a strategic partner can be sought to develop stranded fields.
South Africa: Energy Security At Centre Of Recovery- Energy Minister Mantashe
South Africa’s Minister of Mineral Resources and Energy Gwede Mantashe says energy security is at the centre of the country’s Economic Reconstruction and Recovery Plan, “with a requirement of reliable, affordable and clean energy sources, as well as long-term sustainable jobs.”
The Minister said this in a speech read for him by Advocate Thabo Mokoena, the Director General of the Department of Mineral Resources and Energy during the opening session of Enlit Africa, taking place online from 8–10 June.
He said South Africa “fully appreciates the risk of climate change for current and future generations and the need for a transition to a low carbon economy”. Mitigating climate change and a just energy transition are also important themes of the conference.
Minister Mantashe said while the “National Development Plan needs South Africa to transition to a lower carbon-intensive economy, we recognise the challenges proposed by climate change, given our country ‘s developmental needs, and that coal power generation currently represents around 74% as part of our generation mix”. The rest of the country’s energy is provided by 7% hydro, 4% wind, 3% solar PV, 1% solar CSP, 7% oil and 3% nuclear.
He said it was “critical for the country to fully understand the trade-off between the new investments needed in power generation and the reduction in coal mines’ production, as well as the eventual closure of some stations around 2040, as driven by different levels of emission targets.”
Minister Mantashe also stated that the country was making steady progress on its hydrogen society roadmap, “meant to set out a vision for an inclusive hydrogen society in South Africa, so that an enabling compact between industry, labour, community and government can be developed.”
According to the minister, “the evolution of a just energy transition in South Africa will require a balanced, integrated, enhanced and innovative international collaboration at both technical and financial levels”. He invited the Enlit Africa attendees to “work with us, collaborate and partner and also, assist the process towards a balanced and fair outcome for all South Africans.”
IEA’s Net Zero Roadmap
The opening session also featured a visionary discussion about whether Africa’s energy transition has to follow the same trajectory as the rest of the world.
Recently the International Energy Agency (IEA) published its World Roadmap to Net Zero by 2050, describing the transition needed from governments, companies, investors, and citizens, to fully decarbonise the energy sector and put emissions on a path to limit global warming of 1.5 degrees.
“I advise everyone to read this report,” said panellist Max Jarrett, the IEA’s Africa programme manager. “It’s not just the 400 milestones related to fossil fuel investments that are necessary, but the whole package needs to be looked at. Of course, African countries are going to have to chart these pathways differently towards meeting these commitments, but at the same time, the IEA has presented a global context of what we collectively are going to need to do.”
Solar Africa’s Answer To Decarbonise
“If we look at decarbonisation in particular, COVID-19 and the developments over the last 15 months have shown that the world can do this,” was the opinion of fellow panellist Sabine Dall’Omo, CEO of Siemens in South Africa. “We have seen much less emissions of industrial applications and the output in 2020 was significantly lower. But what is important when it comes to decarbonisation is that if we don’t do anything about it, it would mean a significant impact on the global economy.”
According to Dall’Omo, developing countries will be hardest hit and alternatives are needed to offset the increase in carbon emissions in Africa. “We believe that particularly solar energy, which is relatively fast, deployable, has a good efficiency on the continent, and could really be a game changer for Africa, because it’s also sizable from a contractual point of use and you don’t have massive capital layouts.” Smart storage solutions can also make a significant difference to the outlook on the African continent in this regard, according to the Siemens executive.
Source:www.energynewsafrica.com
Ghana: NPA Moves To Curb Fuel Tanker Accidents
Operators of fuel retail outlets in the Republic of Ghana have been tasked to aim at ensuring zero tolerance for accident by implementing safety guidelines developed by the downstream petroleum regulator, NPA.
A Chief Inspector of National Petroleum Authority (NPA), Esther Anku who made the call at the launching of the Association of Oil Marketing Companies 2021 Petroleum Safety Week in Accra, capital of Ghana, noted that there have been terrible accidents in the industry due to negligence and operators not following laid down procedures.
She said her outfit has observed with worry the increasing trend in accidents involving Bulk Road Vehicles (BRVs) on the road, tanker yards and other places.
According to her, records available to the NPA show that in 2020, 16 of such accidents occurred while nine has been recorded since the beginning of 2021 including two that occurred on the Accra-Tema motorway few days ago.
“Considering the hazardous nature of products these BRVs carry, these accidents could have devastating effects such as what was experienced about two weeks ago at Onyina Nofo in the Ashanti Region where a BRV accident claimed three lives and destroyed several properties including over 10 houses,” Mrs Esther Anku said.
To curb these accidents, she said the NPA, in collaboration with the Driver and Vehicle Licensing Authority (DVLA) and Road Safety Limited (RSL), has taken the necessary steps to comply with the section 53(1) of the Road Traffic Regulations 2012 LI 2180.
It states that ‘A person shall not drive a motor vehicle intended for the transportation of hazardous goods, unless that person (a) is trained and qualified to handle the motor vehicle and its contents and (b) is certified by the Licensing Authority to drive a motor vehicle that carries hazardous goods’.
Mrs. Anku noted that Road Safety Limited has been licensed by DVLA to carry out training for BRV drivers on general defensive driving, safe loading and unloading procedures, basic fire fighting and emergency response among others.
She said 617 drivers have been trained as at last week, adding that a new set of drivers have also commenced a three-day training.
She said in the future, only drivers who have been licensed by the DVLA to transport hazardous products will be permitted by the NPA to drive BRVs.
“These are measures to ensure that drivers of petroleum products are skilled and competent in the discharge of their duties to enhance safety in the industry and curb the high number of BRV road accidents in the country,” Mrs. Esther Anku said.
On his part, the Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Senyo Hosi expressed worry about the inability of the country’s downstream regulator to ensure that the laws are applied against persons or institutions whose negligence causes accidents in the industry.
Citing the June 3, 2015, disaster at the Kwame Nkrumah Circle, Senyo Hosi said though GOIL has one of the most safety compliance outlets, the station’s outlet where the disaster happened was not safety compliant.
“When an accident happens, we don’t just want to see people who have acted criminally-criminal negligence is a matter of law. It is something that must be dealt with and pursued as an industry. We don’t do it…we must start letting people feel the pinch of non safety behaviour,’’ he stated.
Source: www.energynewsafrica.com
Ghana: AOMC Launches Petroleum Safety Week (Photos)
The Association of Oil Marketing Companies in the Republic of Ghana has launched the 4th edition of the Annual Petroleum Safety Week with a call on members to prioritise safety in order to prevent accident at their work places.
This year’s Safety Week is on the theme: ‘Reinforcing Positive Behaviour At The Workplace To Achieve The Greatest Participation Of Safety In This Era Of Covid-19 Pandemic’.
The annual safety week provides the opportunity for the association to take stock of the past events, educate its members and discuss issues of safety and issues affecting the sector.
Below are exclusive pictures:
Ghana: Eni Has Been Uncooperative In Getting Afina Discovery & Sankofa Field Unitised-Springfield E&P
Indigenous Ghanaian petroleum upstream player, Springfield Exploration and Production Limited (SEP) is blaming Italian oil & gas firm, Eni, for the delay in the unitisation of the Afina Discovery and Sankofa oil field offshore the western part of the Republic of Ghana.
According to Springfield E&P, it has demonstrated commitment to the process of unitisation of the two oil fields since the country’s former Energy Minister, John Peter Amewu directed the two firms to do so in April 2020.
“Indeed, from April 2020 when the directive was issued, talks have been ongoing amongst various government institutions on one hand and Springfield, with Eni being the only uncooperative party,” the company said in a statement copied to energynewsafrica.com.
The statement said Springfield has been and will remain a willing and cooperative party to the unitisation of the Afina-Sankofa fields.
The company also clarified some erroneous media reportage on the issue of the unitisation.
Below is the full statement:
Dubai To Host 2021 Edition Of Africa Oil Week In November
Africa’s largest oil and gas event, Africa Oil Week (AOW), will, for the first time, be held in Dubai, UAE, from 8th-11th November, 2021, at Madinat Jumeirah.
AOW was originally scheduled for 1th-5th November in Cape Town, South Africa.
However, a release by the organisers explained that they have to change location and dates after a careful evaluation of the government’s guidelines and consultation with customers.
“Delivering the event to the high standard to which our audience is accustomed and ensuring the safety and wellbeing of our attendees has always been our top priority. We believe that hosting the 2021 edition in Dubai will enable us ensure that the event experience is both safe and premium for our customers,’’ the statement said.
According to the event organisers, though they are disappointed for not being able to host the event in its natural home of Cape Town, they said: “We believe that Dubai is the next best location. The United Arab Emirates has demonstrated exceptional progress in its vaccination programme and has also led the way in safely reopening international large-scale events– hosting its first ‘in-person’ event post-lockdown as early as July last year and more recently, played host to large-scale, highly-successful events that attracted business travellers from more than 150 countries, increasing business confidence and accelerating the revival of all major sectors in the country. As such, in order to allow our customers ample time to make travel arrangements, we have made the decision to move dates and location – we are confident that Dubai will be a safe and highly desirable destination to host Africa Oil Week’s 27th edition.”
The organisers argue that although the event’s location might be different this year, “our purpose remains the same–Africa Oil Week will continue to be the must-attended event with Africa at its core, a platform dedicated to fostering relationships and driving transactions across the African upstream. We are honoured to have the continued support from our customers regarding this decision to host the event in Dubai in 2021, including Total, Chevron, Tullow Oil, Eni, PGS and Fugro.
Uganda: Four Firms Picked For New Oil Exploration Round“We are also delighted to confirm the support from the leading Ministers of Energy from across Africa for the 27th edition, confirming Africa Oil Week’s position as the event shaping the future of Africa. The event will return to Cape Town, South Africa in 2022. “AOW will take place in accordance with the latest health & safety and government guidance. We are looking forward to running the live event, reuniting the industry under the ‘Succeeding in a Changed Market’ theme, as well as provide the leading platform to help rebuild the future of oil and gas in Africa,” the statement concluded. Source: www.energynewsafrica.com
Uganda: Four Firms Picked For New Oil Exploration Round
Uganda has shortlisted four companies for an exploration round following its second oil exploration tender ever. The tender involved five oil blocks along Uganda’s border with Congo, where oil has already been discovered, Dow Jones reports.
The companies include France’s Total—which recently changed its name to TotalEnergies—Australian DGR Global, Nigerian PetrolAfrik Energy Resources, and Uganda’s state-owned National Oil Co.
Total has had a presence in Uganda for five years after it was awarded a license to develop several fields that are currently the only producing fields in the country. These are estimated to contain some 6.5 billion barrels of crude. Total is developing them in partnership with Chinese CNOOC.
The French supermajor is also participating in the East-African Crude Oil Pipeline (EACOP) projects: a 1,443 kilometer-long (897 miles) pipeline expected to transport oil from Uganda to the Tanga port in Tanzania. Total’s subsidiary, Total East Africa Midstream, is the developer of the project.
The pipeline, which will be the largest in Africa, is part of Uganda’s comprehensive plan to develop its oil resources. Later this year, the government plans to launch tenders for the construction work on the infrastructure along with a refinery.
On the production side, Total and CNOOC earlier this year inked a deal with the Ugandan and Tanzanian authorities to advance production at the Lake Albert project, which currently involves two fields. Production from these is seen at 230,000 bpd when it reaches its plateau, according to Total.
Saudi Aramco Discovers 4 New Oil And Gas FieldsUganda is a newcomer to the oil world but an ambitious one. These ambitions have understandably sparked criticism from environmentalist groups warning the pipeline project will wither never pay for itself because of declining oil consumption or contribute to climate change. There have been doubts about the financing of the huge oil initiative in Uganda, too. “Total and CNOOC still need to secure insurance and raise $2.5 billion in debt financing for the EACOP to move forward and they are going to struggle mightily to find enough banks and insurance providers willing to associate themselves with such a reckless project and assume its manifold risks on their books,” according to David Pred, Executive Director of Inclusive Development International, who also said in April that “The oil companies are trying to dress up the investment decision signing ceremony, but fortunately this climate-destroying project is far from a done deal.” Source: Oilprice.com
Ghana: Egyapa Mercer To Face Vetting Committee
The nominee for Deputy Minister for Energy position, Andrew Kofi Egyapa Mercer, is expected to appear before the Appointment Committee of Ghana’s Parliament to be vetted by the committee today ( Monday, June 7, 2021).
The nominee, a lawyer by profession, is the incumbent Member of Parliament for Secondi Constituency in the Western Region.
Energynewsafrica.com’s sources within the country’s Energy Ministry indicate that if the nominee goes through the vetting successfully and is approved, he will be in charge as Deputy Energy Minister responsible for Petroleum while Dr Mohammed Amin will be responsible for Power.
Profile
Andrew Kofi Egyapa Mercer, born on 25th May, 1973, is a lawyer and politician. He is a member of the New Patriotic Party and the incumbent Member of Parliament for the Sekondi Constituency in the Western Region of Ghana.
He succeeded Papa Owusu-Ankomah who had been MP for 20 years.
He attended Chapel Hill Preparatory School in Takoradi for his primary education.
He proceeded to the Adisadel College in Cape Coast where he obtained both his GCE Ordinary level and GCE Advanced level certificates.
He gained entrance into the University of Ghana, graduating with Honours in Bachelor of Arts in Humanities and Bachelor of Laws.
He studied at the Ghana School of Law and qualified as a lawyer in Ghana after passing his bar examination.
He joined First Atlantic Bank in Accra in 2007 as an Assistant Manager and advanced to become the head of the legal department.
Whilst at First Atlantic, he contested and lost the 2011 Parliamentary primaries of the New Patriotic Party in Sekondi to the incumbent Papa Owusu-Ankomah.
He resigned in 2013 to set up Mercer and Company, a corporate and investment law firm based in Accra.
Souce:www.energynewsafrica.com
OPEC Hosts First Energy Dialogue With Africa
OPEC, in collaboration with the African Energy Commission (AFREC), the African Petroleum Producers’ Organization (APPO) and African Refiners and Distributors Association (ARDA), joined efforts during the inaugural OPEC-Africa Energy Dialogue to promote continent-wide energy cooperation initiatives.
The High-Level meeting culminates more than two years of work to expand dialogue, technical cooperation and enhanced research on the continent’s promising energy future. The videoconference built upon previous technical meetings with AFREC and APPO.
In his opening remarks at the ground-breaking event, OPEC Secretary General, Mohammad Sanusi Barkindo, noted that OPEC has a long history of prioritizing cooperation through dialogues with a number of oil-producing and consuming countries, as well as with international organizations and global corporations.
“These events have proven to be highly effective in promoting mutual understanding on key energy issues, while also enhancing our common efforts as energy stakeholders to tackle industry challenges, such as the current COVID-19
pandemic,” the Secretary General said.
In addition to the OPEC Secretary General, speakers at the inaugural event were Rashid Ali Abdallah, Executive Director of AFREC; Dr Omar Farouk Ibrahim, Secretary General of APPO; and Anibor Kragha, Executive Secretary of ARDA.
In his remarks, Mr Rashid Ali Abdallah of AFREC stressed that to maximise local added value of the whole oil chain in Africa, “we should explore the relevance of investment in refining facilities and increase cross-boarder trading, especially through the African Continental Free Trade Area (AfCFTA). These dialogues are therefore key to strengthening our relations, help facilitate the mobilisation of Africa’s own energy resources and potentials, continue to bring energy to the top of national and regional agendas, whilst taking approaches that put Africa directly on to innovative and low carbon energy development pathways.”
In his keynote address, Dr Omar Farouk Ibrahim of APPO expressed the need “to join efforts to tackle the daunting challenges facing the global energy sector, and particularly Africa, which informed the decision of the APPO Ministerial Council to conduct a ‘Study on the Future of the Oil and Gas Industry in Africa’ in light of the COVID-19 pandemic and COP21.” The APPO Executive Director also stressed the necessity to undertake cross-border and regional energy projects in the context of energy transition.
Mr Anibor Kragha of ARDA noted that the “First OPEC-Africa Energy Dialogue was very timely, especially in harnessing Africa’s contributions to the upcoming UN Climate Change Conference (COP26) in November. Our positive deliberations on promoting sustainable investments across Africa’s oil and gas industry, developing a robust energy transition roadmap and securing the required funding to execute crucial regional projects will usher in a new era of prosperity for the continent.” He added: “ARDA, along with AFREC and APPO, is fully committed to this laudable OPEC initiative and that it will ultimately ensure that Africa’s full energy potential is realized and our citizens’ future energy demands are met with cleaner petroleum products, especially low-sulphur fuels and LPG for clean cooking in the near-term.”
The objective of the dialogue is to bring together top energy policymakers from various energy institutions to provide support and policy guidance to the technical meetings of the energy dialogue, aimed at enhancing cooperation and collaboration in energy data acquisition and joint studies, with a view to optimize their limited resources in pursuit of wider objectives. In particular, the mutual goals of the organizations are based extensively on energy access and energy poverty alleviation in Africa.
The OPEC-Africa Energy Dialogue will provide critical input for identifying enablers for investment in the African energy sector, accessibility and affordability of energy to eradicate energy poverty, and discuss the future of oil and energy in the post-COVID-19 recovery and energy transition for Africa.
The African continent is set to become increasingly important in terms of global energy demand and supply. African countries are projected to provide the largest share of world population growth in the long term and the continent will experience a significant expansion in urbanization levels. These underlying demographics, coupled with a growing economy and rising income levels, will drive an increase in energy demand.
Key points highlighted during the first High-Level OPEC-Africa Energy Dialogue included:
• Energy poverty remains a major challenge that requires expanded cooperation to achieve solutions;
• All sources of energy are needed to meet anticipated energy demand as well as expand energy access;
• Expanded cross-border energy trade and connections could strengthen energy access and reliability;
• A sustainable finance plan for African energy sector is very important;
• Enhanced continental cooperation on data collection and sharing is needed to support energy planning and stability;
• A harmonized African energy transition plan is needed to prepare for the COP26 meetings in Glasgow, scheduled for 1-12 November 2021;
• There is a need for additional dialogue and stronger advocacy to support the strategic energy interests of Africa.
The meeting was also attended by delegates from some OPEC Member Countries and non-OPEC oil-producing countries participating in the Declaration of Cooperation.
In closing the videoconference, the OPEC Secretary General said: “Africa will continue to be an integral and essential player in the oil and gas industry’s long-term efforts to meet the rising energy needs of the world’s rapidly growing population.
“As energy stakeholders,” he said, “we must continue to dialogue and collaborate at all levels to achieve our common goals. In this regard, I invite all of our fellow African energy producers to join with us as we will only get stronger with the enhanced support and cooperation of our continental partners.
DAY ONE 8 June: Enlit Africa Digital Event Agenda
Enlit Africa digital event kicks off with a Siemens sponsored keynote address that addressed this year’s content theme, the 5Ds of the energy transition. Day one will be all about the strategic and financial strategies Africa needs to use to make the energy transition a reality for all.
Sessions throughout the three-day Enlit Africa digital event will touch on all, one or a combination of the 5Ds identified as key to Africa’s transition to green, sustainable energy systems.
Decarbonisation, digitalisation, democratisation, deregulation and decentralisation and how these strategies affect all who work in the energy sector will be unpacked, discussed and debated across all sessions.
A panel discussion featuring speakers from the International Energy Agency, the Association of Power Utilities of Africa and Siemens will delve specifically into Tackling the 5Ds of the energy transition – a global initiative… with a local flavour.
The discussion on Accelerating South Africa’s energy transition with gas power and renewables will delve into the country-specific, nitty-gritty of what it will take to transition away from fossil fuels. GE will launch their gas power whitepaper during this session, highlighting how the strategic deployment of gas power and renewables is critical to creating sustainable energy access at the same time as reducing carbon emissions. The whitepaper also discusses the role gas can play in South Africa’s coal plant repurposing programme.
All players in the energy field, from utility to power developer will tell you the financing of any project is key to getting it started, never mind bringing it to fruition. To that end Financing the Africa energy transition will be unpacked in a panel discussion featuring speakers from the World Bank, Shell Foundation and Eskom, among others.
Keep an eye out for an interview about Burundi’s first successful solar IPP project as well as the discussion on the role of biogas for commercial operations.
https://www.clarion-events-group.com/enlit-africa-registration-energy-news-africa
Engineering consultancy ESB International will bring to bear some of the strategic lessons they have learned in their home base of Ireland in a session on Preparing your utility transformation roadmap, which will be of use to utilities and energy planners in governments throughout Africa.
At the same time the training session, Design Principles of Utility-Connected PV systems will look at the technical side of concepts of good design and how they are applied in practice when utilities deal with the largest and fastest-growing market sector in power today.
Connect. Engage. Evolve.
Enlit Africa, formerly African Utility Week and POWERGEN Africa, invites you to learn, connect and engage with industry leaders and Africa’s power and energy community across our three-day, not-to-be-missed digital event on 8 – 10 June 2021. Register for your front-row seat to highly topical, free CPD accredited webinars, roundtables, tech showcases and the world’s leading suppliers presenting their latest solutions and so much more.
Senegal: 60MW Solar Power Projects Commissioned
As the Senegalese Government aims to increase its share of renewable energy to 30%, ENGIE, Merdiam and the Sovereign Fund for Strategic Investments of Senegal (FONSIS) have announced the commissioning of two solar photovoltaic power plants, with a combined generation capacity of 60 MW.
Located in the central regions of Kaolack and Diourbel, respectively, the 35-MW Kahone Solaire SA and 25-MW Kaél Solaire SA plants represent the first electricity generation projects by private operators to have been the subject of a call for tenders in Senegal.
As part of the Scaling Solar program currently being implemented in the country by the International Finance Corporation (IFC) and the Government of Senegal, the two plants support a clean energy transition by supplying 540,000 Senegalese with renewable power, creating more than 400 direct and indirect local jobs, and reducing carbon emissions by 89,000 tons per year.
“The Senegalese Government has set itself a target of 30% renewable energy in the electricity mix by 2025. We are pleased to be able to contribute, with the Kahone and Kaél photovoltaic plants, to the provision of clean and sustainable energy to the population. We also welcome the excellent collaboration between the various parties involved,” said Philippe Miquel, CEO North Africa at ENGIE.
“Scaling Solar is the embodiment of the cooperation between FONSIS and several private sector players including ENGIE, Meridiam, the IFC, Proparco and the European Investment Bank,” said Papa Demba Diallo, Director General of FONSIS. “We are delighted with this collaboration, which allows our country to achieve several objectives of the ‘Energy Component’ within the Plan for an Emerging Senegal – in particular, the diversification of the energy mix, the development of clean energy allowing a reduction of pollution, in line with the conclusions of the Paris Climate Accord, but also the strengthening of universal access to sustainable and affordable energy.”
Within five years, it is estimated that Engie, Meridiam and FONSIS will collectively operate 120 MW of installed power generation capacity in Senegal, representing more than half of the country’s total solar capacity.
The Kaél and Kahone concessions will be operated over a period of 25 years by a company owned by ENGIE (40%), Meridiam (40%) and FONSIS (20%).
Africa’s Oil Nations Push Against Global Drive To Shun Oil And Gas
Africa’s largest oil producers do not plan to abandon oil and gas exploration and production and could consider creating a continent-wide bank to fund new projects when international banks refuse to finance new developments.
Nigeria, an OPEC member and the largest oil producer in Africa, hosted this week a round table on local content in oil and gas projects, attended by Nigeria’s Oil Minister Timipre Sylva, the Secretary-General of the African Petroleum Producers’ Organization (APPO), Omar Ibrahim, and representatives of other African producers where oil and gas is an important part of the gross domestic product (GDP). The nations present included Angola, Algeria, Egypt, Gabon, Cameroon, and Niger.
“While over 15 African nations are producing and exporting crude oil, a sad reality is that our people have not benefited maximally from this natural resource,” Nigeria’s minister Sylva said, as carried by local outlet This Day.
Raising the share of local content in oilfield services and the industry’s supply chain is one of the ways to cope with the growing reluctance for funding oil and gas projects and the environmental backlash against fossil fuels, according to Sylva.
Simbi Wabote, Executive Secretary at the Nigerian Content Development Monitoring Board (NCDMB), said that Africa may need to set up a continental bank to fund oil and gas projects now that major international banks are reviewing their exposure and commitments to fossil fuels.
“Financial institutions and IOCs, even educational research institutions, that are centres of innovation for the industry are closing their petroleum faculties in order to be seen to be in conformity with the global paradigm shift,” This Day quoted the secretary general of the African Petroleum Producers’ Organization, Ibrahim, as saying.
“With over 100 billion barrels of oil still in our ground, most economies are still heavily dependent on oil revenue. Is Africa ready to forgo the production of those 100 billion barrels and classify them as wasted assets?’’ Ibrahim added.
Source:Oilprice.com
Africa Needs Support To Move Towards Clean, Green Energy-Ghana’s Energy Minister
Ghana’s Minister for Energy, Dr. Matthew Opoku Prempeh says it is not enough for European nations and promoters of clean and green energy to ask African nations to move in the direction of clean and green energy without giving the necessary financial support for them to do so.
“If, now, we in Africa are being told to move in the direction of economic progress through green and clean energy, then, those who are speaking like that should provide the needed capital and partnerships to make it possible.
“If we have coal in abundance in Africa, but can’t use it in our power sector and we are being told to use clean reliable energy, then, those who are professing that should come to the table with the needed investments and partnerships for Africa to move in that direction,” he said.
The Minister expressed these concerns when he spoke at the German-Africa Energy Forum held in Hamburg, Germany.
Dr. Matthew Opoku Prempeh, who was speaking along with Nigeria’s Minister for Power, Eng. Sale Mamman, noted that Africa is endowed with both conventional and renewable sources which, if properly harnessed, would help to sustainably meet the energy demand while responding to climate change agenda.
According to him, Ghana is committed to ensuring reliable and cost effective energy delivery to all sectors of the Ghanaian economy.
He told the forum that in 2020, Ghana amended its Renewable Energy Act 2011(832) to respond to emerging trends in the renewable energy market.
“Through this amendment, we have empowered the generators and manufacturers to ensure renewable energy is part of their energy production and utilisation.”
Source: www.energynewsafrica.com
Ghana: Government’s Refusal To Refund US$4 Million VAT Pushed EXXONMOBIL Away
Energynewsafrica.com can authoritatively report that the Government of Ghana’s refusal to implement VAT exemption granted in the Deepwater Cape Three Points (DWCTP) oil block Petroleum Agreement is the topmost issue which has triggered the America’s oil and gas super major, ExxonMobil decision to abandon their exploration activities in the West African nation.
Reliable sources within the country’s energy sector indicated that the US super major has paid about US$4.2 million in VAT despite the company being exempted from paying VAT as per the Petroleum Agreement.
Article 12.8 of the DWCTP Petroleum Agreement (PA) specifically provides that “Contractor, its affiliates and sub-contractors shall not be liable to pay VAT in respect of plant, equipment and materials and related services supplied in Ghana, to be used solely and exclusively in the conduct of Petroleum Operations under this Agreement”.
Article 12.16 further provides that “Contractor shall be exempted from any upfront payment and /or refund requirement on any exempt taxes, duties, fees and other imports of any kind”.
Letters written by Deloitte & Touche, external consultant of ExxonMobil and sighted by energynewsafrica.com expressed the frustrations of ExxonMobil.
For almost two years, ExxonMobil has been pursuing the Government of Ghana to address their concern but all to no avail.
“We wish to follow up on this request as our client has not received any feedback from your office to date. Our client is currently compelled to make payment for VAT on supplier invoices which is an adverse cash flow impact on its operations considering that the company is clearly exempted from upfront payment of VAT in accordance with Article 12.16 of its Petroleum Agreement ratified by Parliament.
“We look forward to your prompt response and issuance of VAT Relief Purchase booklet to our client,” a portion of the letter written by Deloitte Touche read.
More to come…