South Africa: President Ramaphosa Makes Surprise Announce On Electricity Self-Generation Thresholds
The Head of Energy, Mining and Infrastructure at Baker McKenzie in Johannesburg, South Africa, Kieran Whyte has described as positive news announcement by President Cyril Ramaphosa that the threshold for self-generation power project licences would be lifted for projects generating up to 100MW.
The draft amendment to Schedule 2 of the Electricity Regulation Act (ERA), was published for comment in April 2021. It contained a self-generation threshold of 10MW of power, which allowed power plants with a capacity of between 1 – 10 MW to not be required to obtain a generation licence, but to register with The National Energy Regulator of South Africa (NERSA).
The announcement by President Ramaphosa will require the draft amendments to be revised to increase the threshold to 100MW.
“This change is welcome in the current context, where power reductions have had a significant impact on the private sector and are contributing to impeding much needed economic growth in the country. Multiple actions, including the facilitation of self-generation opportunities, as well as possible industry restructuring, the implementation of the restructuring of Eskom, and the amendment of policy and regulation to keep abreast of technological advancements, need to be urgently assessed to address the country’s power supply challenges. Consumers must also have the ability to consider a broader range of supply options in order to ensure stability of supply, address ESG considerations and ensure greater certainty and visibility around tariff trajectories.
President Ramaphosa announced in October 2020 that, as part of his Economic Recovery Plan for the country, the current regulatory framework would be reworked to facilitate new generation projects as well as to fast track applications for own-use generation projects.
According to him, “The President’s announcement on 10 June is a step in the right direction. It is hoped that the necessary regulatory amendments can be promulgated shortly to build on the momentum created by President’s announcement.
“There has been broad acknowledgment that South Africa has to move forward towards the necessary energy transition and the increased utilisation of renewable energy, and that the country has been in dire need of a reliable and secure energy supply. The announcement brings South Africa more in line with the global energy transition towards a decarbonised and decentralised energy system. However, policy clarity is urgently needed in respect of the right of licence-exempted generators to sell their excess power to energy distributors.”
OPEC Member Countries Lose $1Trillion In Two Years
Members of the Organisation of Petroleum Exporting Countries (OPEC) lost about US$1 trillion to oil price plunge in 2015 and 2016, Secretary-General of OPEC, Dr Mohammad Barkindo, has disclosed.
“In terms of foregone revenues to OPEC member countries during this oil cycle, collectively about one trillion dollars was lost as a consequence of the plunge in prices in 2015 and 2016.
“No member country of OPEC was insulated from the contraction in oil revenues during this cycle.
“This had a severe impact on the resources available to the government to pursue its laudable development programmes,” Dr. Barkindo revealed this in his keynote address to the Fourth Nigeria International Petroleum Summit in Abuja on Monday.
He noted that while the 2020-21 recession was also caused by extraneous factors far beyond Nigeria’s borders, the devastating COVID-19 pandemic also severely impacted global oil demand and, again, exposing developing economies.
Commenting further on the impact of COVID -19, he said that no nation or sector of the global economy was spared and by the end of March 2020, the world seemed a different planet to what it was at the beginning of that month.
“The most challenging period in this most challenging of years was April 2020,” he said.
Dr Barkindo noted that the world economy contracted by 3.5 percent year-over-year in 2020, global oil demand declined by 9.5 mb/d, dropping further by a staggering 22 mb/d in the month of April 2020.
”In OPEC, we were stunned by things happening that we never imagined possible. On 20th April, 2020, WTI went negative for the first time in history, with prices plummeting to –37 (negative 37) dollars per barrel. Sellers were paying buyers to lift their crude.
“In response to this unprecedented situation, OPEC knew it had to act. Thankfully, we did not need to reinvent the wheel.
“We turned to the mechanism that had helped us emerge out of the 2015-2016 oil market downturns: the ‘Declaration of Cooperation (DoC)’. It was an effort to move from crisis to opportunity,” he added.
He announced that OPEC had revised its global economic forecast up to 5.5 percent for 2021, but with the oil demand growth forecast remaining at 6mb/d.
“It should be borne in mind that the majority of this demand is back-loaded to the second half of 2021. A backward action structure remains in all major crude oil benchmarks. “Additionally, we saw a draw of 6.9 mb month-on-month in OECD commercial oil stock inventories in April. This is 160 mb lower than the same time one year ago and 34 mb above the 2015-2019 average.
“We expect to see further draws in the months ahead,” he added.
Source: www.energynewsafrica.com
Ghana: COPEC Congratulates Petrosol For Receiving Three ISO Certificates
The Chamber of Petroluem Consumers Ghana (COPEC), a consumer advocacy group in the Republic of Ghana, has congratulated PETROSOL Ghana Limited for being awarded three of the top global quality certificates.
Petrosol Ghana Limited is a Ghanaian-owned company and has been striving over the years to operate up to international standards.
In a statement, COPEC said: “We, at COPEC, are happy to know of Petrosol Ghana Limited, an indigenous fully owned Ghanaian company, having been awarded three of the top global quality certificates.
“The Chamber of Petroleum Consumers, a mouthpiece of downstream petroluem consumers, is, by this, congratulating PETROSOL for this great feat in putting the consumers first and also receiving the Certificates on Friday 12th June, 2021, at your Spintex Road Service Station for and on behalf of Ghanaian consumers.”
The certificates include ISO 900:2015 for Quality Management System, ISO 14001:2015 for Environmental Management System and ISO 45001:2018 for Occupational Health Safety Management System.
COPEC is of the view that these Certificates would go a long way to give assurance to Petrosol’s stakeholders that their systems and procedures are compliant to all the above ISO standards.
“Further, these certificates give an assuring comfort that PETROSOL is working strenuously to deliver fuel of the highest quality and quantity for the safety and satisfaction of Ghanaian consumers.
“COPEC hopes that the many other Ghanaian companies would strive to give to the consumer the highest of standards and prescribed qualities as your PETROSOL has done for which they received these further assurance certifications from global standards body.”
COPEC also stressed that though PETROSOL meets all the standards prescribed for the Ghanaian downstream, the company’s continuous efforts at becoming one of the best if not the best is commendable.
Source:www.energynewsafrica.com
Nigeria, DR Congo, Ethiopia Named Top Three Countries With Electricity Deficits Globally
Africa’s most populous nation, Nigeria, has been listed among Democratic Republic of Congo and Ethiopia as the countries with the largest electricity deficits in the world.
In a report titled: ‘Universal access to sustainable energy will remain elusive without addressing inequalities’, which was launched by the World Bank on Monday, it noted that “Significant progress has been made since 2010 on various aspects of the Sustainable Development Goal 7.”
The report, however, noted that progress has been unequal across regions.
“While more than one billion people gained access to electricity globally over the last decade, COVID’s financial impact has made basic electricity services unaffordable for 30 million more people, the majority located in Africa.”
According to the Bank, unless efforts are scaled up significantly in countries with the largest deficits, the world would still fall short of ensuring universal access to affordable, reliable, sustainable and modern energy by 2030.
Nigeria was also listed among the top 20 countries that lacked access to clean fuel and technologies for cooking.
“Of the top 20 countries with greatest number of people lacking access to clean fuel and technologies for cooking, 10 are located in Sub-Saharan Africa (Nigeria, Ethiopia, Democratic Republic of the Congo, United Republic of Tanzania, Uganda, Kenya, Mozambique, Madagascar, Ghana, Niger).
“Six are in Eastern Asia and South-Eastern Asia (China, Indonesia, Philippines, Myanmar, Viet Nam, the Democratic Republic of Korea) and four are in Central Asia and Southern Asia (Afghanistan, Bangladesh, India, Pakistan).”
The World Bank said during the period of 2010 of 2019, the top five most populous low- and middle-income countries (China, India, Indonesia, Brazil and Pakistan) increased their combined access rate by two percent while progress in all other LMIC remained unchanged or stagnant over the same period.
According to the report, to ensure no one is left behind, the political commitment and financial incentives must be prioritised in all access-deficit countries to achieve the universal target of SDG 7.
Source:www.energynewsafrica.com
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.