The Indian Government has approved a standardised bidding process for the marketing of natural gas.
The move is part of effort of the Indian government to bring reforms in natural gas marketing.
Per the reforms producing company cannot participate in the bidding process. However, its affiliate companies can participate in the bidding process.
Speaking to the journalists, Union Petroleum Minister Dharmendra Pradhan said that the Directorate General of Hydrocarbons (DGH) will suggest an e-bidding platform for users.
He noted that producers will have a choice to opt for a platform adding that there process will be transparent and open bidding process to be conducted for price discovery.
The regulator will also suggest a panel of e-bidding platforms to the producers.
Gas producers will have a choice to opt for a platform and get the best market determined price for their gas.
With the changes in gas pricing regime, government hopes that its objective of developing a gas-based economy will get the necessary push.
Pradhan said the changes will also help increase domestic gas production by an additional 40 million standard cubic meters a day (mmscmd), from the current 84 mmscmd.
Government has already given marketing and pricing freedom for gas from blocks awarded under the Discovered Small Field Policy (DSF), Hydrocarbon Exploration and Licensing Policy (HELP) and Coal Bed Methane (CBM) contracts, and discoveries from difficult fields such as deep water, ultra-deep water and high pressure-high temperature areas.
The new changes approved by the Cabinet will allow gas from all such fields to discover pricing under a common e-bidding platform.
While allowing reforms in pricing, the government has left the existing production of gas from nomination fields untouched.
Accordingly, such gas blocks would continue to be guided by a 2014 government-set formula that takes average rates from global trading hubs to determine domestic prices twice a year – in April and then in October.
Under this formula, the current gas price is at $1.79 per million metric British thermal unit (mmBtu) for the six-month period beginning October 1. Gas producers have been critical of this low pricing that adversely impacts investments in the upstream sector.
Source:www.energynewsafrica.com
The President of the Republic of Ghana, H.E. Nana Addo Dankwa Akufo-Addo, on Wednesday, October 7 commissioned streetlights project in the Upper East Regional capital, Bolgatanga.
The President, reportedly switched on the lights last night to lighten the streets of the Bolgatanga Regional Hospital roundabout that had been in darkness for years.
The President is currently touring the Upper East Region as the West African nation prepares for Presidential and Parliamentary Elections on December 7, 2020.
According to MyNewsGh.com, the commissioning of the streetlights was done amid show and display of excitement from the people in the region, who expressed gratitude to the President for remembering them and providing them with streetlights.
Source:www.energynewsafrica.com
Siemens Energy & partners are holding a major Middle East and Africa-focused virtual conference, entitled ‘Shaping the Energy of Tomorrow’, from October 19 – 21, 2020, to drive forward the sustainability and decarbonization agenda at a defining moment in the energy industry.
With the long-term impacts of Covid-19 and a fundamental shift in energy markets still being realized, now is the moment for the energy industry to collaborate to realize a future that is sustainable, efficient, affordable and accessible, in line with the ideals laid out by UN Sustainable Goal 7.
The MEA Energy Week conference is being held in partnership with the Association of German Chambers of Industry and Commerce (DIHK); the Arab-German Chamber of Commerce and Industry (Ghorfa); the Global Manufacturing and Industrialization Summit (GMIS); and Masdar, a global leader in renewable energy and sustainable urban development, and a wholly-owned subsidiary of the Abu Dhabi government’s Mubadala Investment Company.
The world-class speaker line-up currently features numerous regional ministers, CEOs, energy and finance industry leaders and Siemens Energy experts for the eight panel sessions.
To date, ministers from Benin, Iraq, Jordan, Morocco, Nigeria and the UAE will participate in the conference. Senior executives from Abu Dhabi Transmission and Despatch Company, ADNOC, Crescent Petroleum, DEWA, Euler Hermes, Masdar, Mubadala and Saudi Aramco have also confirmed their participation.
The panelists will address the numerous challenges and opportunities that the energy industry faces amid the twin goals of improving access to energy and meeting growing demand on the one hand, while also doing so in an environmentally and financially sustainable manner.
Topics such as financing sustainable energy projects, integrating renewables into grids, incorporating digitalization and automaton, decarbonizing hydrocarbon intensive industries, and utilizing green hydrogen, will be at the forefront of panel discussions.
The launch of this important and timely event comes shortly after the listing of Siemens Energy on the Frankfurt Stock Exchange on September 28, following a spin-off from Siemens AG. An estimated one-sixth of the world’s power generation is already based on technologies from Siemens Energy. With this important legacy comes significant responsibility; to help shape the direction of the future of energy sector, with a focus on sustainability, innovation, and decarbonization, for the benefit of society.
“Around 850 million people on our planet still lack access to reliable electricity, this must be improved. As an independent company, Siemens Energy has the entrepreneurial flexibility to help shape the global transformation of the energy markets in a sustainable and economically successful manner,” said Dietmar Siersdorfer, Siemens Energy Middle East Managing Director.
“But this change can only be achieved with global awareness, willingness to adapt and strong partnerships. That is what makes this event so important. The impressive list of participants highlights the desire to collaborate on finding solutions to the challenges.”
“The ‘Shaping the Energy of Tomorrow’ virtual conference is a remarkable initiative that aims to create an excellent platform to discuss the essential economic challenges of today and tomorrow. The event brings together energy industry leaders and policymakers at a time of potentially drastic change for the energy industry,” said Dr. Volker Treier, Chief Executive of Foreign Trade and Member of the Executive Board, DIHK.
“Together with Siemens Energy, Arab decision-makers and energy experts joining this conference, we are aiming to generate more collaborations to advance a sustainable energy future through the implementations of ambitious agendas and the adoption of new technologies and innovations,” said Abdulaziz Al-Mikhlafi, Secretary General Ghorfa Arab-German Chamber of Commerce and Industry. “Shaping the path of the energy transition, could be realized only via dialogue and addressing challenges, to ensure sustainable transformation and support the economic recovery following COVID-19”.
“We must continue to focus our effort to change the way we live our lives in order to get ahead of global issues such as climate change that are facing humanity today. This means turning discussions into actions, as seen with our recently launched global initiative – The Green Chain, which aims to decarbonise industry, deploy Fourth Industrial Revolution technologies for global good, accelerate the use of clean energy, and promote social responsibility across borders,” said Badr Al-Olama, Head of the Organising Committee for the Global Manufacturing and Industrialisation Summit (GMIS).
“If 2020 has taught us anything, it is that we need to prepare today to deliver a sustainable future tomorrow – we need to work together to make the transition to a clean energy world. ‘Shaping the Energy of Tomorrow’ aligns with Masdar’s mission to advance the development of viable sustainability solutions, and we look forward to engaging with Siemens Energy and other partners at this pivotal time for the energy sector,” said Mohamed Jameel Al Ramahi, CEO of Masdar.
Source: www.energynewsafrica.com
Oil and gas companies with assets across the Gulf of Mexico have begun to evacuate workers from offshore platforms and rigs in preparation for the arrival of Hurricane Delta – the sixth hurricane this year to disrupt output in the Gulf.
Hurricane Delta is the 25th named storm of the 2020 Atlantic Hurricane season and is sustaining wings of 225 kilometres per hour. It is already a dangerous Category 4 storm which will move from the Caribbean, scrape across Mexico’s Yucatan peninsula, and re-enter the Gulf of Mexico.
According to offshoreenergytoday.com, Shell on Tuesday said it was in the process of shutting in production at all nine of its assets and evacuating all personnel on board as well as finalising the safe pause on its drilling operations.
BP stated that forecasts indicated that the storm would move across central and northeast Gulf of Mexico in the next few days. As a result, BP began evacuating personnel from its platforms and assets and started shutting in production.
The four offshore drilling rigs contracted to BP are also in the process of securing their wells to safely evade the storms. BP added that it was securing and preparing to close its Houma Operations Learning Center in Louisiana.
Chevron, Equinor, and BHP were all shutting in production on platforms and evacuating workers to facilities onshore.
W&T Offshore is another that started evacuations with preparations for shut-ins on its Gulf of Mexico assets.
On Monday, the company made an operational update in which it stated that Tropical Storm Cristobal impacted W&T’s second-quarter 2020 production while Hurricanes Hanna, Marco, Laura, Sally and Beta caused production shut-ins during the third quarter of 2020.
Since tropical storm activity in the Gulf of Mexico is continuing in early October and due to the hurricane season extending until November 30, W&T said that there remains the potential for additional tropical weather impact to production and costs in the fourth quarter of 2020.
The Bureau of Safety and Environmental Enforcement (BSEE) is also monitoring Hurricane Delta, and according to operator reports, it forced the closure of 29.22 per cent of offshore crude oil production in the U.S.-regulated northern Gulf of Mexico on Tuesday, while it shut-in 8.59 per cent of the natural gas production.
U.S. shale oil output has been able to mitigate the market impact of hurricane shut-ins but it is worth noting that there have been six storms starting with Tropical Storm Cristobal in June that have affected U.S. offshore oil and gas operations this year.
Ghana is looking at establishing a Renewable Energy Authority to spearhead the promotion of renewable energy and the full implementation of the Renewable Energy Act 2011 (Act 832) in the West African nation, energynewsafrica.com can report.
This is contained in the Amended Renewable Energy Act 2011 (Act 832) which is currently before Cabinet for awaiting approval and onward submission to Parliament for deliberation, sighted by energynewsafrica.com.
The review of the Act was to ensure active participation of the private sector in achieving the government’s goal of scaling up the penetration of renewable energy in the energy mix.
Government of Ghana, in 2011, passed the Renewable Energy (RE) Act and committed itself under the UNFCCC Paris Agreement on climate change to increase the penetration of the other renewable energy resources by 10/percent mainly from, solar, wind biomass, tidal wave and small hydro power by the year 2030.
According to Section 53 of the amended Renewable Energy Act 2011(Act 832) sighted by energynewsafrica.com, it states that: “Until such time that a Renewable Energy Authority is established, (a) the Renewable Energy Directorate under the Ministry of Energy shall oversee the implementation of renewable energy activities in the country; (b) the Minister may designate any public entity to;(i) execute renewable energy projects initiated by the state or in which the state has an interest; and (ii) manage the assets in the renewable energy sector on behalf of the state as in (i). (iii) undertake a renewable energy activity and any other clean energy alternative activity for the purpose of generating electric power.”
Pursuant to section 53(b) of the Act, the Bui Power Authority Act 2007 (Act 740) has therefore been amended to allow them to assume the role of the Renewable Energy Authority.
Section 25 (1) of the Amended RE Act 2011, Act 832 emphasizes the need for competitive procurement scheme for the purpose of attracting a competitive market rates for electricity generated from renewable energy sources stating that the competitive procurement scheme shall consists of (a) a tendering process; and (b) an auction scheme.
It adds that a public utility shall not negotiate for a Power Purchase Agreement with a generator of electricity or contract power for electricity generated from renewable energy sources unless the contracted power has gone through an open competitive and transparent procurement process.
The Amended Act also makes it mandatory for fossil fuel based electricity suppliers and companies that contribute to greenhouse gas emission to invest in non-utility scale renewable energies to offset their greenhouse emissions.
“A Fossil fuel based wholesale electricity suppliers, a fossil fuel producer, and any other companies that contribute to greenhouse gas emissions shall invest in non-utility scale renewable energies to offset their Green House Gas emissions and mitigate the impact of climate change.”
Speaking to the Director for Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo, who confirmed that the Amended Renewable Energy Act has been forwarded to Cabinet, said the Amended Act has scrapped feed –in- tariffs and replaced with a competitive bidding scheme.
A “feed-in-tariff scheme” is a policy that obliges distribution utilities to buy electricity generated from renewable sources at a higher fixed price over a long period of about 20years to guarantee return on investment.
He explained that at the time the RE act was enacted, the cost of generating electricity from renewable especially solar was so high that distribution utilities were reluctant to buy the power and hence the need to introduce the feed in tariff policy to compel them to buy the power at a higher price of above 18 US Cents /kWh for distribution at a lower price. Today price of electricity from utility scale renewable energy source is now a good choice and should no more be an obligation.
He said instead there has been introduction of a net-metering scheme for the purpose of encouraging self-generation of electricity from renewable energy sources on a power cost reduction or climate change mitigation basis and not for income generation.
Source:www.energynewsafrica.com
U.S oil and gas supermajor, ExxonMobil has hinted of cutting about 1,600 jobs in Europe as part of efforts to rein in costs.
“It is anticipated that up to 1,600 positions would be impacted by the end of 2021 across the company’s affiliates in Europe. Country-specific impacts will depend on the company’s local business footprint and market conditions,” the company said in a statement posted on its website.
According to ExxonMobil, the proposed changes are subject to local information and consultation processes as applicable in each country and result from insight gained through reorganizations and work-process changes made over the past several years to improve efficiency and reduce costs.
“The impact of COVID-19 on the demand for ExxonMobil’s products has increased the urgency of the ongoing efficiency work,” the statement added.
Europe remains an important market for ExxonMobil, as evidenced by recent major investments.
“However, significant actions are needed at this time to improve cost competitiveness and ensure the company manages through these unprecedented market conditions,” the statement concluded.
Source: www.energynewsafrica.com
Ghana’s Minister for Energy, John Peter Amewu has cut sod for the construction of three mini-grids solar power project to connect three island communities in East Ada District in the Greater Accra Region in the Republic of Ghana.
The three mini-grids, with each having a capacity of 50kVA, when completed would deliver green and sustainable electricity to about 300 households or about 2,100 people and 30 micro, small and medium enterprises (MSMEs) in Alopkem, Azizakpe and Aflive communities.
The project which is being funded with a US$2 million grant from the Swiss Government would be executed by Messrs Techno Trama Ambienta of Spain.
Speaking at the sod cutting ceremony, Mr. John-Peter Amewu said when the project is completed, it would be handed over to the Volta River Authority whose mandate covers the operations and activities on the Volta River, own, manage and operate all the mini-grid facilities on islands in the Volta River.
Mr. John-Peter Amewu performing sod cutting ceremony while other dignitaries look on.
According to him, the project forms part of the last mile electrification strategy of the government to provide access of electricity to islands and lakeside communities where grid extension is a major challenge.
He explained that government is implementing the rural electrification scheme to make electricity available and affordable to stimulate economic activities in all rural communities in the country.
However, for island and lake-side communities where grid electricity cannot be extended in the immediate future, the strategy is to deploy decentralized mini-grid systems similar to what is at Pediatorkope.
The Minister hinted that feasibility studies are almost completed for 54 additional mini-grids to be installed in Afram Plain South, Sene , Krachi West, Krachi East, Krachi-Ichumuru, Kpandai, Yeji, Nkwanta South and Nkwanta North Districts.
“The beneficiary communities have already been selected and sites for installation works identified. Procurement process is underway for the award of contract to install and connect approximately 4000 households in these Districts,” he said.
Mr. Amewu who commended the Swiss Government for providing funding for the project charged the contractor to execute the project as quickly as possible and in strict adherence to all the quality standard measures in the contract as well as Covid-19 protocols.
Deputy Minister for Energy in charge of Power, William Owuraku, who said feasibility studies for the construction of mini grids electricity in the area was done about four years ago, was excited that the three inland communities are going to be connected to electricity just as it had been done for those in Pediatorkope.
He pledged his commitment to ensure that the project is executed on schedule.
The District Chief Executive for East Ada, Sarah Dugbakie Pobee, who commended the Ministry of Energy and the Swiss Government for the funding, urged the beneficiary communities to lend their support for the contractors to ensure that the project is completed on time.
Some dignitaries who witnessed the sod cutting ceremony were Director for Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo, Ing Seth Mahu, Swiss Ambassador to Ghana; H. E. Philipp Stalder , Executive Secretary of Energy Commission, Ing Rev. Oscar Amonoo-Neizer, and James Dimitrus.
Swiss Ambassador to Ghana; H. E. Philipp StalderSarah Dugbakie Pobee, District Chief Executive for East Ada in the Greater Accra RegionExecutive Secretary of Energy Commission Ing. Rev Oscar Amonoo-Neizer (Right)William Owuraku Aidoo, Deputy Minister for Energy in-charge of Power, Republic of GhanaSource: www.energynewsafrica.com
Executive Secretary of the African Refiners & Distributors Association (ARA), Engr. Anibor Kragha has called for urgent upgrading of oil refineries and their associated storage and distribution infrastructure to prevent the number of premature deaths caused by air pollution in the developing countries.
According to the World Health Organisation (WHO), each year, air pollution causes seven million premature deaths with 600,000 being children.
“Not only do we need cleaner fuels but also cleaner vehicles to achieve the cleaner air that will prevent the premature deaths that developing economies around the world have experienced.
“To achieve that, we need to urgently attract the requisite financing needed to upgrade our refineries and complementary pipelines, depots and terminals, with rigorous analysis of the socio-economic and supply security benefits of each of these investments, which may often compete with each other,” Mr Anibor Kragha said in a press statement ahead of the ARA WEEK 2020 Conference that was postponed due to constraints imposed by the Covid-19 pandemic.
The ARA Week is held annually in Cape Town, South Africa, in March. However, this year’s event is being held as an online virtual conference from October 5-7, 2020.
With reference to the contention by environmental lobbyists that Africa must leapfrog technology improvements to embrace alternative, less carbon-intensive solutions rather than invest in hydrocarbon fuels, ARA argues that such an approach fails to understand the complexities of African fuel and energy supply chains and could actually make the problem worse by delaying necessary investments to supply cleaner fuels across the continent.
Anibor Kragha
Mr Kragha said: “Whether through product imports or refinery investment, Africa needs both project and trade financing for improved port and storage logistics to meet petroleum products shortfalls. But what is often forgotten is that, Africa needs to embrace the improvements to our vehicle maintenance and controls required to assure that the clean fuels supplied deliver the desired objective of cleaner air; with all the well-documented consequent benefits to public health and economic development.”
ARA has prioritised a two-step path to the future: first, clean fuels and second, climate change mitigation policies.
Mr. Kragha applauded the policies of his predecessor, Joël Dervain, in laying out the policies needed by the downstream (supply, refining, storage, distribution and marketing) sector of the oil industry.
Ultimately, an economic, efficient, safe, secure and sustainable supply chain for clean fuels is essential to address public health concerns, avoid energy poverty and drive industrial expansion and trade across Africa.
“The key is to define ‘sustainable’. Only then can we secure the financing for the projects required to upgrade our refineries and infrastructure and deliver efficient supply chains for clean fuels to let Africa catch up with the rest of the world on the climate change agenda,” he concluded.
Source: www.energynewsafrica.com
Tullow Ghana Limited (TGL), operator of Ghana’s Jubilee and Tweneboa, Enyenra and Ntomme (TEN) fields,in the Western part of the West African nation has announced a significant milestone of 300 million barrels of oil production from the Jubilee Field.
A statement issued by Tullow Ghana and its partners GNPC, Kosmos, Anadarko and Petro SA, said they “are proud to be part of Ghana’s remarkable Jubilee story.
“With the support of the government of Ghana, the Jubilee Field went from discovery to first oil in just 40 months.
“Tullow and its partners have invested US$10.8 billion from 2007 to 2019 in the Jubilee Field and continue to invest in Ghana’s hydrocarbon resources,” the statement said.
It noted that: “In the first half of 2020, Jubilee production averaged 84,700 bopd, and TEN production averaged 50,900 bopd with facility uptime on both FPSOs in excess of 95 percent.”
The Chief Executive Officer of Tullow Oil Plc, Mr Rahul Dhir said: “Reaching 300 million barrels of oil produced from the Jubilee Field is a significant moment for Ghana and for Tullow Oil.
Rahur Dhir, Chief Executive Officer of Tullow Oil Plc
“This could not have been achieved without the hard work and dedication of our employees and contractors and support from and close co-operation with the Government of Ghana and our partners,” he noted.
Tullow Ghana commended all its stakeholders including the government of Ghana, its joint venture partners, contractors and suppliers, its host communities, staff and the people of Ghana for their collaboration and support in reaching this important milestone.
Tullow is a leading independent oil and gas, exploration and production group, quoted on the London, Irish and Ghanaian stock exchanges (symbol: TLW).
The Group has interests in over 70 exploration and production licences across 15 countries.
In Ghana, Tullow Ghana Limited (TGL) holds licences in the Deepwater Tano and West Cape Three Points blocks.
It operates both the Jubilee Field, Ghana’s first producing oil field, and the TEN fields, which first produced oil in 2010 and 2016 respectively.
GHANAS JUBILEE FIELD REACHES 300 MILLION BARRELS OF OIL PRODUCEDSource: www.energynewsafrica.com
As the world is drifting towards the use of renewable energy to power their economies, sub-Saharan Africa has no choice than to focus on exploring the use of oil and gas to support their economies, and this is according to Dr. Babajide Agunbiade, Director for Houston -based National Oilwell Varco.
Speaking in an interview with U.K – based Channel TV Business Desk, on the global rising oil demand, monitored by energynewsafrica.com, Dr. Agunbiade said despite the adverse effect of Covid-19 resulting in lower oil production, demand for oil and gas has peaked as a result of the use of an alternative source of energy that does not require fossil fuel.
He stated, however, that the wind of change is not taking place as much as it should in sub-Saharan Africa.
Dr. Babajide, who has over 20 years’ experience in the oil industry and one of the world’s leading offshore production experts, was of the view that sub-Saharan Africa, China, and India are places where oil demand is rising, unlike the UK, North America, among a host of advanced countries, where a lot of new technologies are coming into play.
“However, in Africa, it is still the only commodity that can satisfy the demands of an increasing population, an expanding middle class, and in some cases, the main source of governments’ earnings. We still have a lot of oil,” he asserted.
Dr. Babajide explained that as a result of the enormous deposits of oil and gas, operators and service companies are doing what they can to optimize production cost and continue producing the commodity.
“As stated, a lot of these African countries do depend substantially on oil revenue for survival. Oil still plays a large role in these sub- Saharan countries’ economies, accounting for up to 40 percent of GDP and 80 percent to 90 percent of governments’ earnings,” he stated.
The Director of National Oilwell Varco, the largest Oilfield equipment manufacturing company in the world, said 90 percent of the earnings of the Government of Nigeria come from oil and the same as Angola, Gabon and the rest of oil-producing countries in sub- Saharan Africa.
With these figures, he was convinced that the shift to renewable energy at the expense of oil and gas in sub-Saharan Africa has not been the focus for now, and this must change.
“There is no push for anything different. They are still aggressively trying to source foreign exchange, which for the most part, they can only do that through oil,” he opined.
According to him, wind energy, electric cars and a lot of other renewable energy options and integrated gasification in the combined cycle, IGCC from coal have to come into play.
Source: www.energynewsafrica.com
Stakeholders of Noble Energy have approved a deal to sell the oil and gas producer to Chevron Corp.
This makes Chevron the No. 2 U.S. shale oil producer and giving it international natural gas reserves close to growing markets.
The all-stock deal values Noble Energy at around $4.1 billion, excluding $8 billion in debt, and the vote cements the first big energy deal since the coronavirus crushed global fuel demand.
The addition of Noble will boost Chevron’s U.S. shale oil holdings, making it the No. 2 producer behind EOG Resources, according to data from Rystad Energy.
It also adds nearly 1 billion cubic feet of natural gas reserves.
Noble’s Leviathan in Israeli waters, one of the world’s biggest offshore gas discoveries of the last decade, began pumping gas from the field late last year.
While 89% of Noble shareholders voted in favor of the deal, just 60% voted for merger-related executive payouts, according to regulatory filings.
Proxy adviser Glass Lewis had recommended voting for the deal but against “excessive” executive payments, which would be triggered by the sale of the company.
The deal has become even cheaper for Chevron since it was announced in July with a value of $5 billion, as shares of both companies have traded down alongside oil. The deal is worth about $4.1 billion based on Friday’s closing price for Chevron of $71.19. Noble investors will receive 0.1191 shares of Chevron for each Noble share.
Activist investor Elliott Management Corp, which took an undisclosed stake in Noble but never came out publicly against the deal, declined on Friday to say how it voted its shares or whether it has sold or kept its stake.
The deal is expected close early this quarter.
It comes during a tumultuous year for the oil and gas industry and “the hurdles remain high for corporate deals,” said Jennifer Rowland, analyst with Edward Jones. “Any deal that requires significant cost savings or a higher oil price to justify the price paid will not be well-received.”
Chevron last year walked away from a deal for Anadarko Petroleum and took a $1 billion break fee, a decision that looked even better as oil prices cratered.
Source: www.energynewsafrica.com
The Nigerian Electricity Regulatory Commission (NERC) has called for the abolition of electricity tariff subsidy
It advised that money meant for the subsidy be channeled to other sectors of the economy such as health and education.
According to reports sighted by energynewsafrica.com, the Commission in a statement signed by its Vice Chairman, Sanusi Garba, said in 2019 the Federal Government spent N540bn subsidising electricity.
The Commission also advocated for service reflective tariffs so that people will pay for the electricity they consume.
He said the tariff review has been shifted two times and such is not in the best of the country
“The time of the review has actually been shifted twice, in consideration of the exigencies that obstructed everybody, particularly the COVID-19 pandemic and other situations.
“But you cannot continue to defer the review indefinitely because you should look at electricity supply as a value chain. Generation companies are spending money to produce electricity and TCN (Transmission Company of Nigeria) is transmitting that electricity to the distribution companies.” NERC said
NERC added that electricity is a commodity somebody has to pay for and rates review cannot be postponed indefinitely.
“If you continue to defer the rates review, unless government has the resources to fill in the gap, the implication is that you will see service plummeting significantly.
“This is because at the end of the day, the generators will not be paid. And if the generation companies are not paid, it means that they will not be able to pay for gas. And so the 3,000 megawatts, 4,000MW and occasionally 5,000MW that we are getting now will significantly come down,” NERC said
Source: www.energynewsafrica.com
Last week marked an important step in the energy cooperation between Equatorial Guinea and Russia, as the first team of Russia’s state-owned joint stock company Rosgeo arrived in Equatorial Guinea to kick off a historic geological mapping project.
The initiative has been in the making for some time, and follows the signing of Memorandum of Understanding (MoU) during the Russia-Africa Summit in Sochi in 2019 between Rosgeo and the Ministry of Mines and Hydrocarbons (MMH).
It was followed by the signing of two firm services contracts in May 2020 with JSC Zarubezhgeologia and JSC Yuzhmorgeologia, internationally operating subsidiaries of Rosgeo, for the initial phase of seismic acquisition in transit zone and state geological mapping in the Rio Muni area in mainland Equatorial Guinea.
As a result, JSC Zarubezhgeologia will be performing scouting works for state geological mapping, and JSC Yuzhmorgeologia will be performing scouting works for complex seismic acquisition in the transit zone of Rio Muni.
The activities are notably aimed at analyzing landscape conditions for geological surveying and prospecting, determining the scope of mapping drilling, researching the possibility of mineralogical sampling of channel deposits, analyzing technical conditions for the arrangement of geological camp in Rio Muni, and other scouting necessary to prepare for next phases of exploration works.
Equally important, the program marks the re-entry of Rosgeo into Equatorial Guinea following successful operations of its subsidiary JSC Zarubezhgeologia back in the 1970s when its activities formed the basis for Equatorial Guinea’s geological exploration industry.
“This is a historic moment for Equatorial Guinea as we welcome once again long-standing partners of our country to explore onshore Río Muni. We expect this region of Equatorial Guinea to become a new natural resources hub both for onshore oil & gas operations but also for mining and minerals. Upcoming exploration activities will provide the foundation for this next phase of growth in our industry, and having Rosgeo on the ground gives us confidence and faith for a successful exploration campaign,” declared H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.
The Rio Muni area is believed to be one of the most promising exploration frontiers in Equatorial Guinea, which could turn the country once again into a hotspot for natural resources exploration. Increased exploration is expected not only to help in sustaining and increasing domestic output of oil and gas, but also in proving additional reserves in key minerals to help Equatorial Guinea further diversify its economy.
Source: www.energynewsafrica.com
Libya’s oil output has risen to 295,000 barrels following a truce in the OPEC nation’s civil war and the lifting of a blockade on energy facilities.
According Worldoil.com sources, fields that feed the newly restarted eastern ports of Hariga, Brega and Zueitina are ramping up production.
Output was 250,000 barrels a day a week ago and will rise further as ships dock and load crude from storage tanks, allowing fields to pump more, the person said.
Libya’s restart is weighing on oil prices just as traders become more bearish about the outlook for energy demand with many nations introducing stricter restrictions to curb the Coronavirus pandemic.
Brega is set to export 1.8 million barrels in October via three cargoes, according to a loading program. Zueitina is set to load five cargoes.
Hariga has loaded two tankers of one million barrels each in the past two weeks.
The loading programs are preliminary and Libya may export more than the schedule suggests.
The country, home of Africa’s largest oil reserves, pumped around 1.2 million barrels a day at the start of the year, before the blockade shut down most ports and fields.
State energy firm National Oil Corp. is evaluating security at Libya’s four other onshore oil ports — including Zawiya, which handles crude from Sharara, the nation’s biggest field — before restarting them. Mercenaries involved in the civil war still occupy or are located near some of them.
Source:www.energynewsafrica.com
BP stated that forecasts indicated that the storm would move across central and northeast Gulf of Mexico in the next few days. As a result, BP began evacuating personnel from its platforms and assets and started shutting in production.
The four offshore drilling rigs contracted to BP are also in the process of securing their wells to safely evade the storms. BP added that it was securing and preparing to close its Houma Operations Learning Center in Louisiana.
Chevron, Equinor, and BHP were all shutting in production on platforms and evacuating workers to facilities onshore.
W&T Offshore is another that started evacuations with preparations for shut-ins on its Gulf of Mexico assets.
On Monday, the company made an operational update in which it stated that Tropical Storm Cristobal impacted W&T’s second-quarter 2020 production while Hurricanes Hanna, Marco, Laura, Sally and Beta caused production shut-ins during the third quarter of 2020.
Since tropical storm activity in the Gulf of Mexico is continuing in early October and due to the hurricane season extending until November 30, W&T said that there remains the potential for additional tropical weather impact to production and costs in the fourth quarter of 2020.
The Bureau of Safety and Environmental Enforcement (BSEE) is also monitoring Hurricane Delta, and according to operator reports, it forced the closure of 29.22 per cent of offshore crude oil production in the U.S.-regulated northern Gulf of Mexico on Tuesday, while it shut-in 8.59 per cent of the natural gas production.
U.S. shale oil output has been able to mitigate the market impact of hurricane shut-ins but it is worth noting that there have been six storms starting with Tropical Storm Cristobal in June that have affected U.S. offshore oil and gas operations this year.
The Minister hinted that feasibility studies are almost completed for 54 additional mini-grids to be installed in Afram Plain South, Sene , Krachi West, Krachi East, Krachi-Ichumuru, Kpandai, Yeji, Nkwanta South and Nkwanta North Districts.
“The beneficiary communities have already been selected and sites for installation works identified. Procurement process is underway for the award of contract to install and connect approximately 4000 households in these Districts,” he said.
Mr. Amewu who commended the Swiss Government for providing funding for the project charged the contractor to execute the project as quickly as possible and in strict adherence to all the quality standard measures in the contract as well as Covid-19 protocols.
Deputy Minister for Energy in charge of Power, William Owuraku, who said feasibility studies for the construction of mini grids electricity in the area was done about four years ago, was excited that the three inland communities are going to be connected to electricity just as it had been done for those in Pediatorkope.
He pledged his commitment to ensure that the project is executed on schedule.
The District Chief Executive for East Ada, Sarah Dugbakie Pobee, who commended the Ministry of Energy and the Swiss Government for the funding, urged the beneficiary communities to lend their support for the contractors to ensure that the project is completed on time.
Some dignitaries who witnessed the sod cutting ceremony were Director for Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo, Ing Seth Mahu, Swiss Ambassador to Ghana; H. E. Philipp Stalder , Executive Secretary of Energy Commission, Ing Rev. Oscar Amonoo-Neizer, and James Dimitrus.
Source: www.energynewsafrica.com
