Government of Ghana has announced plans to relocate the Ameri Power Plant, currently located at Aboadze, in the western part of the West African nation to Kumasi in the Ashanti Region to help stabilise the national grid.
The Ameri power plant, which is made up of 10 power units, are power plants installed on a deck barge and technically referred to as “floating power plants”.
Presenting the 2021 Budget Statement in Parliament on Friday, Ghana’s Caretaker Finance Minister, Hon. Osei Kyei-Mensah-Bonsu stated that although the country experienced adequate power generation capacity in 2020, this decision to relocate the Ameri Plant along with the completion of other power projects will help stabilise Ghana’s power supply.
“Mr. Speaker, in 2020, the country had adequate generation capacity to meet the demand for domestic, commercial and industrial customer…In 2021, the Ameri Plant will be relocated to Kumasi to help stabilise the national grid”.
According to the Caretaker for the Ministry of Finance, this decision by government will also help address the recent power outages experienced in major parts of the country.
Osei Kyei-Mensah-Bonsu further stated that in addition to the above-stated initiatives, Government has resolved to address the present challenges by completing various transmission line projects to support the national grid.
These projects include, Lot 1 (Kumasi – Kintampo) of the 330kV Kumasi-Bolgatanga Transmission Line Project, which according to Mr Osei Kyei-Mensah-Bonsu, is near completion and the A4BSP (Pokuase Bulk Supply Point) that is 92 per cent complete.
The 161kV Volta-Achimota-Mallam Transmission Line Upgrade Project, that also has completion rate of 53 percent for the Volta-Achimota section, and 31 percent completion rate for the Achimota-Mallam transmission line.
The remedial works on the Aboadze-Prestea 330kV Transmission Line is also said to be 90 per cent complete.
Other projects to be pursued by government this year include “the construction of a new substation at Dunkwa-on-Offin, reconstruction of over-aged 161kV transmission lines from Aboadze through Dunkwa to Asawinso with higher capacity, and the reconstruction of the existing 330kV and 161kV Aboadze Switchyards.”
He also informed the House that the 200MW Amandi Power Project is currently at the last phase of commissioning.
“Phase 1A of the 400MW Early Power Project (147MW) is currently going through commissioning,” he added.
Source; www.energynewsafrica.com
Consumers of petrol and diesel in the Republic of Ghana are expected to pay more for the commodity in the coming weeks.
This is because the Government of Ghana has reviewed the Energy Sector Levies Act (ESLA) and introduced two new taxes on the commodity which is expected to see a 5.7 percent jump in the price of petrol and diesel.
This comes at a time when consumers are lamenting over the consistent increases in prices of petrol and diesel.
Presenting the West African nation’s 2021 Budget and Economic Policies of the Government of Ghana in Parliament on Friday, Osei-Kyei Mensah Bonsu, who is Minister for Parliamentary Affairs, said: “Government is proposing a Sanitation and Pollution Levy (SPL) of 10 pesewas on the price per litre of petrol/diesel under the Energy Sector Levies Act (ESLA). Energy Sector Recovery Levy (Delta Fund), Mr. Speaker, it would be recalled that when crude oil prices increased substantially between 2017 and 2018, the government abolished excise taxes and reduced the special petroleum tax from 17.5 percent to 13 percent to mitigate the impact on domestic petroleum prices.”
Kyei- Mensah-Bonsu said: “I should note that on the basis of existing world crude oil prices, the implementation of the two proposed levies for sanitation and pollution, as well as to pay for excess capacity charges, would result in a 5.7 percent increase in petroleum prices at the pump.”
He said the COVID-19 pandemic has caused additional health spending that far exceeds the government’s annual budget for health.
Kyei-Mensah-Bonsu said the pandemic has brought unprecedented challenges to the country and that there is the need to provide the requisite resources to address these challenges and fund some major projects of the government.
“Mr. Speaker, it has become very necessary for the government to consider a review of the energy sector levies. The Energy Sector Recovery Levy of 20 pesewas per litre on petrol/diesel under the ESLA is hereby submitted to this House for approval,” he said.
Source: wwww.energynewsafrica.com
The Government of Ghana is hoping to realize an approximately US$886 million as petroleum revenue for 2021.
This is made up of Royalties of US$201.0 million, Carried and Participating Interest of US$524.9 million, Corporate Income Tax of US$158.5 million and Surface Rentals of US$1.30 million.
In accordance with the Petroleum Revenue Management Act (PRMA), the government has proposed to allocate US$283.00 million to Ghana National Petroleum Corporation (GNPC) for its Equity Financing Cost of US$179.33 million and share of the net Carried and Participating Interest of US$103.67 million.
Additionally, 70 per cent of the Benchmark Revenue of US$602.70 million, which is US$421.89 million, will be set aside for the Annual Budget Funding Amount (ABFA).
The Ghana Petroleum Fund will receive US$180.81 million, being 30 per cent of the Benchmark revenue. Out of this amount US$126.57 million will be allocated to the Ghana Stabilisation Fund and US$54.24 million to the Ghana Heritage Fund.
Presenting the 2021 budget on behalf of the Finance Minister, Majority Leader and Minister of Parliamentary Affairs, Mr. Osei Kyei Mensah Bonsu, disclosed that a total crude oil production of 66.9 million barrels was recorded for 2020, as against 71.4 million barrels realized in 2019.
“As of December 2020, GNPC had lifted twelve parcels of crude oil on behalf of the State and transported 88,418.9 million standard cubic feet of gas to the Ghana National Gas Company (GNGC).”
According to him, total petroleum receipts as at end-December 2020 stood at US$666.4 million, equivalent to GH¢3.8 billion, compared with the receipts of US$937.6 million, equivalent to GH¢4.9 billion recorded in the same period in 2019.
“These receipts were allocated based on the provisions of the PRMA (as amended). In particular, the GNPC was allocated a total of US$198.6 million, made up of Equity Financing Cost of US$154.8 million and its share of the net Carried and Participating Interest of US$43.8 million.”
ABFA received a total of US$273.4 million while the GPFs received US$166.6 million. The Petroleum Funds, he said,” were distributed to the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF) in the ratio of seven is to three, consistent with the PRMA. Thus, the GSF received US$116.6 million while the GHF received US$49.9 million.”
Sourcewww.energynewsafrica.com
The Nigerian Navy will today begin the trial of some its personnel and civilians allegedly involved in crude oil theft.
The Information Officer, Western Naval Command (WNC), Commander Thomas Otuji, said in a statement issued Thursday that the court martial of those arrested in connection with the maritime crimes would begin at 9a.m. today.
The trial will take place at WNC Officers Mess, Naval Base Apapa, Lagos State, according to the statement.
Royal Dutch Shell has revealed that the volume of crude oil spills caused by sabotage in Nigeria’s oil-rich Delta dropped by 40% in 2020 to 1,400 tonnes.
The total number of major spills caused by theft and sabotage also dropped to 122 incidents in 2020 from 156 incidents the previous year, Shell said in its annual report.
Shell is the operator of Nigeria main onshore oil and gas joint venture SPDC which has struggled for years to contain spills in the Delta caused due to operational incidents, theft and sabotage.
Ghana’s power utilities regulator, Public Utility Regulatory Commission (PURC), says it is investigating the recent power outages being experienced in the country.
The commission said it will not hesitate in taking appropriate regulatory action against any utility service provider in the power value chain found noncompliant with regulatory standards and benchmarks.
Several parts of the West Africa nation have been experiencing power outages.
However, the situation was compounded last Sunday when the entire nation was thrown into total darkness.
The country’s power transmission company, GRIDCo, in a statement, explained that its investigation revealed that there was a technical fault on its Prestea-Obuasi transmission lines at about 2:10pm, leading to shutdown of all generating plants at that time.
Reacting to the development, the power utilities regulator, in a statement issued and signed by its Executive Secretary, Mami Dufie Ofori, on Thursday, acknowledged that the outages have been on the increase in the past few weeks.
“The poor service was compounded by the total system collapse that occurred in the transmission network, resulting in a nationwide blackout on Sunday, 7th March, 2021,” the commission noted.
While acknowledging the press release from GRIDCo, ECG, and NEDCo on these incidences, the PURC assured consumers that it is investigating the issue and would take appropriate regulatory action against any utility service provider in the power value chain found noncompliant with regulatory standards and benchmarks.
“The Commission invites affected consumers to submit their complaints to the utility service provider in the first instance, and if not resolved, forward them to the PURC offices in their respective areas for investigation and redress,” the commission concluded.
Source:www.energynewsafrica.com
Ghana’s newly appointed Minister for Energy, Dr. Matthew Opoku Prempeh has served notice to management of Tema Oil Refinery (TOR) and staff of the refinery that the government will not hesitate in taking action against those whose activity is affecting the growth of the company.
According to him, TOR is a strategic national asset and so the government will keep it and ensure that it grows stronger than it has been.
“TOR is not in a healthy state. And anyone working here…management or ordinary worker who thinks his activity will not lead to the promotion of TOR should find himself a better place to work,” he warned.
Workers of the West African nation’s only refinery, in recent times, have been up in arms with management and Board of the refinery for failing to manage the refinery efficiently.
They accused management of failing to turn the refinery around to bring improvement in their working condition.
In view of this, they demanded the removal of the board and some of the management whose actions, they claimed, are affecting the progress of the refinery.
Addressing management and staff of the refinery at a durbar on Thursday, Dr Matthew Opoku conscientised staff of the refinery that it is not their duty to tell who manages the refinery and who does not.
“It is not the duty of the workers to tell who manages TOR. It is the duty of management of TOR to ensure that TOR grows to become a profitable and healthy entity. And if they are not up to it, then, the owner, which is the Government of Ghana, will do everything possible to bring the necessary changes,” he stated.
The Energy Minister told the gathering that President Akufo-Addo’s vision is to see TOR being run so efficiently to become the premier refinery that is able to export refined product to other African countries.
Dr. Matthew Opoku Prempeh, who pledged the commitment of the government to ensuring that the refinery gets a partner, indicated the government’s resolve to remove those who would be a stumbling block.
The Energy Minister was accompanied by Chief Director of the Ministry, Mr. Lawrence Apaalse, Kwasi Adjei (Accountant of the Ministry), Ernest Wiafe (Internal Auditor of the Ministry),Benjamin Asante (Director for Upstream at the Energy Ministry), Lawrence Lartey and other officials of the ministry.
The Managing Director for Tema Oil Refinery, Mr. Francis. A.T Boateng thanked the Minister for choosing TOR as the first SOE to be visited.
The TOR MD, who described the visit by the Minister to the refinery as both an honour and privilege, said the Energy Minister’s visit emphasised his commitment to helping bring TOR back to life, a promise he gave during his vetting.
Mr Francis Boateng, Managing Director of TOR
Mr. Francis Boateng lauded the Minister for the immeasurable role he played in ensuring that funds were made available to TOR for the purpose of completing and commissioning the second furnace to replace the one which exploded in January 2017.
The TOR MD further thanked the Ministry of Finance and SIGA for their support to Tema Oil Refinery.
He said the completion of the furnace project would return TOR to its nameplate capacity of 45,000 barrels per stream daily, thus, doubling the refinery’s revenue generation potential.
Source: www.energynewsafrica.com
OPEC said on Thursday a recovery in oil demand will be focused on the second half of the year as the impact of the pandemic lingers as a headwind for the group and its allies in supporting the market.
In a monthly report, the Organization of the Petroleum Exporting Countries said demand will rise by 5.89 million barrels per day (bpd) in 2021, or 6.5%, up slightly from last month. But the group cut its forecasts for the first half.
“Total oil demand is foreseen to reach 96.3 million bpd with most consumption appearing in the second half,” OPEC said in the report.
“This year’s demand growth will not be able to compensate for the major shortfall from 2020 as mobility is forecast to remain impaired throughout 2021.”
The latest forecasts could bolster cautious views among OPEC and its allies, known as OPEC+, on how quickly to unwind more of last year’s record oil output cuts. OPEC+ last week decided to mostly extend current curbs into April.
Oil held onto most of an earlier gain after the report was released, trading close to $69 a barrel. Prices have risen to pre-pandemic highs this month, boosted by hopes of economic recovery and OPEC+ supply restraint.
OPEC raised its forecast of world economic growth this year to 5.1% from 4.8% as activity accelerates by the end of the first half. Still, it sees the mobility restrictions continuing to dampen oil demand, despite faster growth.
“Oil-intensive sectors, especially travel and transportation, will remain disproportionately affected, with a larger negative impact on 2020 oil demand and a lower positive contribution to 2021 oil demand, relative to global economic growth,” OPEC said.
The report also showed lower OPEC oil output in February as most OPEC+ members returned to output restraint and Saudi Arabia pledged a voluntary cut of 1 million bpd for February and March.
OPEC said its February output fell by 650,000 bpd to 24.85 million bpd, driven by the Saudi move. Riyadh told OPEC it made almost all of the reduction, lowering production by 956,000 bpd to 8.147 million bpd.
Saudi Arabia as part of last week’s OPEC+ decision extended the voluntary cut into April.
OPEC+ cut supply by a record 9.7 million bpd last year to support the market as demand collapsed. The producers as of February were still withholding about 8.1 million bpd.
While those curbs persist, rivals are boosting supply and OPEC raised its forecast of non-OPEC output growth to almost 1 million bpd led by Canada, the United States, Norway and Brazil – although U.S. shale output is still expected to drop.
Partly due to the higher non-OPEC supply forecast, OPEC trimmed its estimate of global demand for its crude to 27.3 million bpd this year. This would still allow for higher average OPEC production in 2021.
Source: Reuters
Ghana’s newly appointed Minister for Energy, Dr Matthew Opoku Prempeh, has charged the power sector players to identify the causes of the frequent power outages and resolve them as soon as possible.
He gave the charge when he received officials from three power sector players namely; Ghana Grid Company, Electricity Company of Ghana (ECG) and Volta River Authority (VRA).
Ghanaians have been experiencing intermittent electricity supply due to some challenges in the transmission sector.
The West African nation was thrown into total blackout after GRIDCo’s Prestea–Obuasi transmission line tripped, causing all the power plants to shutdown.
In a Facebook post sighted by energynewsafrica.com, Dr Matthew Opoku Prempeh indicated that officials of GRIDCo, ECG and VRA have assured him of their resolve to resolve all the technical issues in order for the country to enjoy stability in electricity supply.
“Constant electricity supply is crucial for our daily activities and economic growth. I have requested that these key institutions in charge of electricity identify the causes of the frequent outages and nip them in the bud. The Energy Ministry is ready to support them to resolve this issue as soon as possible.
“In relying on the technical expertise of our power generators, transmitters and distributors, I entreat all Ghanaians to be patient as the issues are promptly resolved,’’ his post read.
The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).
The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.
The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.
Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.
While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official on the briefing revealed.
“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”
The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.
Source:www.energynewsafrica.com
Saudi Arabia will take the necessary measures to keep its oil resources and facilities safe and ensure the security of global oil supply, the Kingdom’s Foreign Minister, Prince Faisal bin Farhan, said on Wednesday, after the latest attacks on Saudi oil infrastructure.
On Sunday, Yemen’s Houthi rebels said they had fired 14 drones and eight ballistic missiles at oil facilities at the Saudi port of Ras Tanura and military targets in three other Saudi cities.
Oil prices spiked early on Monday as markets opened. For a brief period on Monday, Brent Crude prices jumped above the $70 per barrel mark for the first time since January 2020, but reversed gains after it became clear that there would be no disruption to supply from the world’s largest oil exporter.
Since 2015, Saudi Arabia and Iran have been essentially fighting a proxy war in Yemen, where the Saudis lead a military Arab coalition to “restore legitimacy” in the country, while the Houthi movement, which holds the capital Sanaa, is backed by Iran.
“The failed attempts to target the port of Ras Tanura do not only target the security of the economy and Saudi Arabia. They target the global economy and its oil supplies and the global energy security,” Prince Faisal bin Farhan said at a news conference with visiting Russian Foreign Minister Sergey Lavrov.
“The kingdom will take necessary and deterrent measures to protect its national resources to preserve global energy security and stop the terrorist attacks to ensure stability of energy supplies and security of petroleum exports,” Prince Faisal bin Farhan said.
According to the Saudi foreign minister, Iran is supplying the Houthi movement with drones and ballistic missiles.
Saudi Ambassador to the U.S., Princess Reema Bandar Al Saud, described in a statement Sunday’s attacks as “egregious terrorist attacks carried out by Iranian-backed militias against Saudi Arabia, calling them a threat to innocent civilians and an assault on global energy security.”
Source:Oilprice.com
Cairn Energy Plc, one of the Europe’s leading oil and gas firms has reshuffled its portfolio, selling $460 million of assets in the U.K. North Sea and buying projects in Egypt’s Western Desert from Royal Dutch Shell Plc.
Both deals, announced Tuesday and seen completing in the second half of 2021, follow a pickup in oil and gas acquisitions after 2020’s pandemic-driven slump. Cairn’s retreat from the North Sea comes after several other international producers have withdrawn from the aging region. Meanwhile its purchase in Egypt enables Shell to chalk up proceeds in an ongoing divestment program.
“Cairn needed to rejuvenate its investment case, and this move does that,” Al Stanton, an analyst at RBC Capital Markets, said in a note. “However, shareholders are faced with a steep learning curve” and Egyptian assets typically provide “limited oil-price leverage.”
Cairn tumbled as much as 7.4% in London trading, and was down 4.2% at 190.3 pence as of 11:07 a.m. local time.
The deal in Egypt, back on after delays last year, consists of Shell’s interest in 13 onshore concessions and in Badr El-Din Petroleum Co. The U.K.’s Cairn, together with Cairo-based Cheiron Petroleum Corp., will buy the assets for $646 million and make additional payments of as much as $280 million by 2024, “contingent on the oil price and the results of further exploration,” Shell said in a statement.
The deal “will enable Shell to concentrate on its offshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea,” the Anglo-Dutch oil major said.
Cairn, in turn, is selling its stakes in the U.K.’s Catcher and Kraken fields to Waldorf Production U.K. Ltd. for $460 million with a further uncapped contingent consideration dependent on oil-price and production performance. The fields are moving “into decline phase,” the company said.
Cairn will keep some exploration operations in the North Sea, including the Nelson project in partnership with Shell.
Waldorf, which made its first investment in the region just over a year ago, said Tuesday the North Sea is “uniquely suited” for smaller players. In addition to Cairn’s assets it’s also buying stakes in exploration blocks from Delek Group Ltd.’s Ithaca unit, including the Fotla prospect.
Source: worldoil.com
Ghana’s Vice President, Dr. Mahamudu Bawumia says it’s about time Africans cooperated in the development of regional assets, including establishing refineries and logistical assets.
“We should cooperate in the development of regional assets, including refineries and logistical assets to achieve economies of scale required for commercial viability,” Dr. Bawumia said while delivering a speech as a Special Guest of Honour at the opening of this year’s edition of Ghana International Petroleum Conference (GhIPCON) which went virtual.
The West African nation’s second most important personality noted that the establishment refineries and logistical assets will help the continent to be self-sufficient in such events when national oil companies may not be able to meet the demand of the continent.
He stressed the need for Africans to look within and do business with one another, saying: “We trade about 85 percent with the world but just 15 percent with one another on the continent.
“This situation must change if we are truly committed to Africa’s economic transformation,” he suggested.
Dr. Bawumia said “the outbreak of Covid-19 and the protectionists’ initiatives by the major suppliers to Africa is a wakeup call for African nations to collaborate in building a self-sustaining continent.
“Sometimes, national oil producing companies could not meet the large volumes, but if we collaborate as sector players, there will be a possibility of supplying to the continent,” he said.
The Ghana International Petroleum Conference (GhIPCON) is Ghana’s foremost Petroleum Downstream Conference spearheaded by Chamber of Bulk Oil Distributors, where policy makers, industry operatives and experts converge to deliberate on issues of policy and operations as well as share ideas and experiences.
The Secretary General of the African Continental Free Trade Area Secretariat, Wamkele Mene said he’s optimistic that the various plans put in place by the African Union to move industrialization to the next level will support major transformation in the petroleum sector of Africa.
Source:www.energynewsafrica.com
The Millennium Development Authority (MiDA), an implementing agency for the Ghana Power Compact II has taken delivery of three power transformers for the Kasoa Bulk Supply Point (BSP) Project in the Central Region.
The equipment, each rated at 145 MVA, were procured through Siemens Energy SAS, Contractors for the BSP Project.
The Kasoa BSP, a Gas Insulated Switchgear (GIS) Substation, is expected to enhance power delivery to the fast growing Awutu Senya East Municipality, which covers Kasoa and its environs. Currently, electricity consumers in the Municipality, experience low voltages and frequent outages as a result of increasing demand for electricity for commercial and domestic uses and the absence of some vital power infrastructural assets.
A Static Synchronous Compensator Transformer (STATCOM), rated at 66 MVA, also procured for the BSP Project, was delivered to the Project Site on February 10, 2021.
“The STATCOM will significantly improve the stability of the country’s power system”, said Ing. William Amuna, Technical Controller at MiDA.
He explained that “the equipment will help to reduce the incidences of transmission grid collapse and the time it takes to restore the grid after any major disturbances in the system.”
According to Ing. Mawunyo Rubson, MiDA’s Senior Project Manager of the Project, “the arrival of these major equipment in Ghana represents a significant milestone for the Project, considering the challenges posed by the COVID-19 pandemic to manufacturing, testing and other supply chain activities across the
globe”
The 435MVA Kasoa BSP Project will be the second largest in the country, after the 580 MVA Pokuase BSP, currently under construction.
Both Projects are part of the major infrastructural investments envisaged under the ECG Financial and Operational Turnaround (EFOT) Project. The EFOT Project seeks to make investments in ECG’s network in order to reduce technical, commercial, and collection losses and improve service quality.
When completed, the Kasoa BSP will improve the quality and reliability of electric power, boost socio-economic activities and support Government’s development agenda in the Awutu Senya East Municipality and the neighboring communities. By reducing transmission and distribution system losses suffered by GRIDCo and ECG respectively, the Project will ultimately improve the operational and financial performance of these Utility providers.
Both BSPs are being funded under the Ghana Power Compact Program by the Millennium Challenge Corporation (MCC), a United States Government Agency.
Source: www.energynewsafrica.com
The Energy Minister was accompanied by Chief Director of the Ministry, Mr. Lawrence Apaalse, Kwasi Adjei (Accountant of the Ministry), Ernest Wiafe (Internal Auditor of the Ministry),Benjamin Asante (Director for Upstream at the Energy Ministry), Lawrence Lartey and other officials of the ministry.
The Managing Director for Tema Oil Refinery, Mr. Francis. A.T Boateng thanked the Minister for choosing TOR as the first SOE to be visited.
The TOR MD, who described the visit by the Minister to the refinery as both an honour and privilege, said the Energy Minister’s visit emphasised his commitment to helping bring TOR back to life, a promise he gave during his vetting.
Source: www.energynewsafrica.com
