UAE Targets Carbon-Capture Hydrogen To Reduce Greenhouse EmissionsThe American Petroleum Institute (API) has said in a report last year that a ban on new federal oil and gas development would result in job losses, weaker energy security, and increased reliance on oil imports. According to API, U.S. offshore oil production would drop by 44 percent by 2030, while offshore natural gas production would fall by 68 percent. “A ban on new leasing, if permanent, would mean that by 2035 US offshore oil and gas production would be about 30% lower than if lease sales had continued,” Wood Mackenzie said in a snapshot overview of the Biden Administration effect on the U.S. energy sector. Referring to the suspension of permitting for new drilling on federal land and waters, Chevron’s CEO Michael Wirth said on the Q4 earnings call last month that “the risks are probably greater in the Gulf of Mexico.” “If conditions in the U.S. become so onerous that it really disincentivizes investment, we’ve got other places where we can take those dollars,” Wirth noted. Source:Oilprice.com
US Administration Cancels Gulf Of Mexico March Oil & Gas Lease Sale
The Bureau of Ocean Energy Management (BOEM) has rescinded the Record of Decision for the oil and gas lease Gulf of Mexico planned for March, effectively canceling this auction as part of the Biden Administration’s review of new drilling activities on federal land and in offshore waters.
The lease sale would have offered 78.2 million acres for a region-wide Gulf of Mexico lease in March 2021, or 14,594 unleased blocks – all of the available unleased areas in federal waters of the Gulf of Mexico.
However, President Joe Biden directed in an executive order last month the Secretary of the Interior to pause new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review and reconsideration of Federal oil and gas permitting and leasing practices.
“Cancelling this huge offshore Gulf oil auction helps protect our climate and life on Earth. President Biden understands the urgent need to keep this oil in the ground,” Kristen Monsell, oceans legal director with the Center for Biological Diversity, said in a statement.
Nigeria: Electricity Workers Commence Indefinite Picketing Against KEDCO
Electricity sector workers in the Republic of Nigeria, on Monday, began picketing at the premises of Kano Electricity Distribution Company (KEDCO) and its facilities.
The industrial action, which was announced by the senior staff Association of Electricity And Allied Company and National Union of Electricity Employees, is intended to get some staff’s grievances resolved.
The workers are accusing the authorities for failing to pay their 2019/2020 (13 months) salary, mileage allowances, shift allowance, selective implementation of conditions of service, as well as failure to provide adequate working tools or logistics.
Nigeria: Electricity Consumers Want NERC To Put In Place Compensation RegimeIn a statement signed by Comrd. Raji A. R of SSAEAC and Comrd. Pukat B. Ayuba of NUEE of ZOS 1Northwest, they said they would not work until their grievances were resolved.
Ghana: Gov’t Slapped With $134m Judgment Debt For Abrogating GCGP’s Power Agreement
The International Court of Arbitration has awarded a cost of $134 million and an interest of $30 million against the Government of Ghana over the cancellation of an Emergency Power Agreement with GCGP limited.
According to sources, GCGP Limited acquired a land at the Free Zones enclave in Tema, Republic of Ghana, to put up a power plant but the Akufo-Addo-administration terminated the agreement alongside other power purchasing agreements signed by the erstwhile Mahama-administration on the basis that the country did not need those power agreements.
The ruling by the International Court of Arbitration ordered the Government of Ghana to pay to “GPGC the full value of the Early Termination Payment, together with mobilisation, demobilisation and preservation and maintenance costs in the amount of US$ 134,348,661, together also with interest thereon from 12th November, 2018, until the date of payment, accruing daily and compounded monthly, at the rate of LIBOR for six-month US dollar deposits plus six per cent(6%).”
The Government of Ghana was also to pay GPGC an amount of “US$ 309,877.74 in respect of the Costs of the Arbitration, together with US$ 3,000,000 in respect of GPGC’s legal representation and the fees and expenses of its expert witness, together with interest on the aggregate amount of US$ 3,309,877.74 at the rate of LIBOR for three-month US dollar deposits, compounded quarterly.”
Senegal: President Sall Calls For Better Industry Communication, Local Content Amendment
Senegalese President H.E. Macky Sall, has directed that information exchange in the oil and gas sector be improved, in order for all participants to be equally well informed.
The President made this announcement in a meeting he chaired on 9 February 2021, in which talks were held to assess the state of oil and gas project execution in Senegal.
“We need increased vigilance from the State, especially with regard to the men and women in the public sphere engaged in the execution and monitoring of oil contracts. We must understand that we are there to serve. There is a chain which turns with links, and each link in the chain plays its own important role,” he said.
Additionally, in the meeting, the President called for the local content law to also be applied to the mining sector, and that the National Oil and Gas Institute (INPG) take on the function of issuing certifications.
Marathon Oil Lays Off Around 100 Employees In The U.S.
Houston-based oil and gas company Marathon Oil has laid off around 100 employees in the U.S. or around five per cent of its total workforce.
The lay-off of the workers came only two weeks after the oil and gas producer cut salaries of top executives and board members by 25 per cent.
The company’s actions were part of its “commitment to continuously optimise our cost structure“.
The company had about 2,000 full-time employees worldwide at the end of 2019, according to its latest available employment figures, with 74 per cent working in the United States.
Although oil prices have raced back above the pre-pandemic level of $60 per barrel in recent months, producers are focusing on improving balance sheets instead of raising output, as demand forecasts hinge on vaccine rollouts.
World oil demand in 2021 will rebound more slowly than previously thought, the Organization of the Petroleum Exporting Countries (OPEC) said on Thursday, adding to a series of downgrades as the impact of the pandemic lingers.
Angola’s Oil And Gas Industry Can Thrive Alongside Its Rich Biodiversity
(By Verner Ayukegba)
Last month, reports that Angola was drafting legislation to permit oil, gas and mining activities in 14 national conservation areas, including the Luengue-Luiana National Park, which represents part of the Kavango-Zambezi Transfrontier Conservation Area stretching across Angola, Namibia, Botswana, Zambia and Zimbabwe led to protests by environmentalist groups. Local environmentalists were outraged; likely weary of test drilling that had begun days earlier on the Namibian side of the Okavango Delta, an internationally recognized biodiversity hotspot.
On January 21, Angola’s Minister of Mineral Resources, Petroleum and Gas, H.E Diamantino Pedro Azevedo responded, providing clarifications in which he noted that, Angola’s existing stringent environmental legislation would be complied with and the interests of local populations would be safeguarded, as the country holds an upcoming public tender for the assessment of several onshore interior basins. Further clarifications have also been provided by Angola’s industry regulator, the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG).
“It was necessary to review the legislation on protected areas, but this does not mean the end of biodiversity,” said Minister Azevedo. “There is a need to explore these resources – the solution is balance. We are sensitive to environmental issues, but we are also rational. There are those who, for political interests, defend extreme positions, but it is necessary in politics to be rational.”
As sub-Saharan Africa’s second-largest oil producer, Angola has taken one of the most balanced approaches to global Environmental, Social and Governance (ESG) standards in the region when it comes to oil and gas exploration, placing environmental protections and continued hydrocarbon production on equal footing within its constitution and national agenda. Angola’s 2010 constitution in Articles 12 and 24 explicitly outline protection for the environment, providing a basis for the country’s Environmental Framework Act. According to Article 12, The State shall promote the protection and conservation of natural resources guiding the exploitation and use thereof for the benefit of the community as a whole. …and as per Article 24, All citizens shall have the right to live in a healthy and unpolluted environment. The State shall take the requisite measures to protect the environment and national species of flora and fauna throughout the national territory and maintain ecological balance. Acts that damage or directly or indirectly jeopardise conservation of the environment shall be punishable by law.
Offshore exploration, especially during the boom years of 2002 to 2008 made Angola one of the most prized destinations for the oil and gas industry globally. Output rose to nearly 2 Million barrels per day, providing Angola with much needed resources for its post-conflict reconstruction and making the country Africa’s second largest oil producer. These boom years, were also only possible, because Angola provided and continues to provide an environmental framework that is second to none globally. It is industry standard, particularly in a country that is home to all major International Oil Companies, that the highest environmental standards are adhered to when companies engage into exploration projects in Angola. Environmental Impact Assessment (EIA) plans mandated by Angola’s regulator (Currently the ANPG), are of the highest industry standards, when compared to other basins like Brazil and Mexico. In Angola, these assessments have to comply with a plethora of decrees and regulations that include mandatory public consultations, environmental auditing, restrictions on biodiversity, water and waste management. It is worth mentioning, that no major environmental disasters were registered, and some of the new technologies and exploration techniques developed in Angola under these stringent regulations were exported to other basins for the betterment of the entire industry.
Of the approximate 520,000 km² of sedimentary inner basins of Kassanje and Etosha/Okavango – the two regions in question – only 20% are in protected areas and as little as five percent of protected areas are being considered for responsible exploration and production activities, following the completion of environmental due diligence.
Yes – the proposed law will have implications for protected areas. It is intended to further ensure their protection whilst advancing oil and gas activity in the country in a responsible manner and in accordance with Angola’s constitution., The Environmental Impact Assessment (EIA) – carried out in coordination with the Ministry of Culture, Tourism and Environment – aims to ensure that Angola’s rich biodiversity is protected. By identifying and assessing the impact of potential projects on the given ecosystem, as well as presenting appropriate mitigation measures, the EIA serves as a tool for making environmentally informed decisions regarding the division, allocation and development of resource-rich basins. Furthermore, exploration activities will be prioritized in areas outside of environmental protection zones and drilling will only be undertaken if no or minimal impact to the ecosystem is found.
It is worth noting that surface samples of crude oil and gas have been already collected in certain parts of the inner basins of Kassanje and Etosha/Okavango, in which there is a high probability that hydrocarbons are present.
To deny the acquisition of further geological knowledge of the area not only erodes the basic tenet of resource sovereignty – that each State has the right to know of the existing resources in its territory – but also attempts to make a unilateral decision on behalf of the wider population.
The foundation for the draft legislation has been laid in both the National Development Plan 2018-2022 and revised Hydrocarbon Exploration Strategy 2020-2025 – authorized by Presidential Decree 282/20 – which seeks to intensify, research and geologically evaluate concessions and free areas of sedimentary basins.
In this respect, Angola’s regulator is ensuring stability and transparency, which lies in stark contrast to other major hydrocarbon producers where regulation is politically driven and does not always ensure environmental considerations. For example, former U.S. President Donald Trump authorized the lease to the Arctic National Wildlife Refuge – 1,790 km² of protected ecosystem in Alaska – two weeks before leaving office, while newly elected President Joe Biden countered with an immediate moratorium on new oil and gas leases on federal land. Angola is seeking to establish a long-term, institutional framework that provides for environmental considerations and ensures that hydrocarbon exploration is executed in a socially responsible manner as it happens, when it happens.
Given the growing role of ESG criteria in reducing risk and attracting global investors – coupled with rising pressure on energy firms to “green” their portfolios – oil and gas multinationals and Angola’s National Oil, Gas and Biofuel’s Agency are acutely aware of the implications of fossil fuel investments for both their firms and the country.
As a result, the ANPG, under the leadership of industry veteran Paulino Jerónimo, and multinationals have strengthened their commitment to ensure environmental due diligence, conducting impact assessments, implementing stricter environmental preservation measures and preventing or eliminating oil spills, water pollution, carbon emissions and habitat disruption associated with oil and gas drilling. In other words, the decision to develop any acreage will not be taken lightly, nor will Angola pursue any development without taking into consideration local community interests and the environmental impact of such a development.
Ghana: We Need Collective Decision To Save TOR- Dr Opoku Prempeh
Ghana’s Minister- designate for Energy, Dr. Matthew Opoku Prempeh has expressed that only a collective decision can save the West African country’s only oil refinery, Tema Oil Refinery (TOR) instead of leaving it in the hands of politicians alone.
Tema Oil Refinery was built in 1963 with a capacity of 45,000 bpd during the regime of Ghana’s first President, Dr. Kwame Nkrumah.
The Osagyefo’s vision for establishing TOR was for reforming and transforming the country’s oil and gas sector to ensure efficiency while meeting the energy demands of Ghana and the sub-region.
However, despite Ghana exploiting oil in commercial quantities, the refinery’s bad management, under successive governments, has left the refinery in a poor state, leaving over 900 workforce living under poor working conditions.
Ghana: Nuclear Power Plant Is Needed For Reliable Electricity-Energynewsafrica.com Managing EditorThe Tema District Council of Labour, the umbrella body of workers in Ghana’s industrial city, recently, petitioned the seat of Government to replace the current management with strategic thinkers since the current management has failed. Answering a question from Honourable Patrick Yaw Boamah, a member of the Appointments’ Committee of Parliament on Friday, 12, 2021, on his assessment of TOR and what he would do to change the situation, Dr Matthew Opoku Prempeh, Energy Minister-designate, noted that the refinery’s indebtedness continues to balloon. According to him, there is the need to put people with the right skills to turn things around, as well as a right partner to ensure that the refinery works again.
Ghana: Nuclear Is The Safest, Cleanest-Dr Opoku Prempeh
The Minister–designate for Ghana’s Energy Ministry, Dr Matthew Opoku-Prempeh has backed his country’s decision to introduce nuclear energy into its energy generation mix.
In his view, energy from ‘nuclear is the safest and cleanest’ and, therefore, underscored the need for the country to pursue its nuclear power agenda.
Ghana’s nuclear power agenda dates back in 1963 when the Ghana Atomic Energy Commission was established with the launch of 2MW research reactor.
The decision was, however, suspended until 2008 when a Cabinet decision was taken to include nuclear in the electricity generation mix.
Since then, successive governments have shown maximum support and cooperation towards the realisation of this goal.
In 2017, the current administration proceeded to establish the Owner/Operator Organisation-Nuclear Power Ghana (NPG) which has been duly registered as a limited liability company for the Nuclear Power Plant.
However, Institute for Energy Security IES, an energy think tank in the Republic of Ghana, has opposed the country’s plan to add nuclear energy into the energy mix, citing the cost involved in its construction and time frame.
But responding to a question at the Appointments’ Committee of Parliament on Friday, February 12, 2021, Dr. Matthew Opoku Prempeh noted that the country has made progress in its quest towards nuclear power energy addition into the energy mix.
He said almost all successive governments have supported the agenda of adding nuclear energy into the energy mix.
He explained that the country has got to a state where it would be selecting a vendor, adding that the vendor would decide on the technology to be used.
Source: www.energynewsafrica.com
Ghana: There Was No Corruption In PDS Deal–Attorney General Designate
Ghana’s Minister –designate for Justice and Attorney General, Godfred Yeboah Dame, has refuted claims that there was corruption in the Power Distribution Services (PDS) deal with the Electricity Company of Ghana.
According to him, there was actually no basis for the allegations which were peddled by some members of the public to the effect that there was corruption in the whole transaction.
“There is actually no basis for the allegations of corruption in this transaction,’’ he said while answering questions before the Appointments’ Committee of Parliament on Friday, February 12, 2021.
The Government of Ghana, through ECG and private entity Power Distribution Services (PDS), entered into an agreement for the latter to take over the distribution services business of ECG under the Ghana Power Compact II from March 1, 2019.
Ghana: Boost For Ghana-Burkina Faso Transmission Network As EU Approves €9.7 Million Grant For GRIDCoHowever, the government, in October same year, terminated the transaction on the basis of invalid insurance guarantee issued by Al-Kook, a Dubai-based insurance company to PDS. Responding to the a question from Alexander Afenyo Markins, a panel member and MP for the Ewutu Constituency at the Appointments’ Committee of Parliament, the nominee stated that there was no corruption in the deal, adding that Ghana did not lose anything in the transaction. He commended ECG whose due diligence led to the detection of the invalid demand guarantee. “It was actually the ECG itself …the Board and MD of ECG that ascertained the authenticity of the demand guarantee that had been issued…it was actually the effort of the ECG and it must commended,’’ Mr. Dame said.
Ghana: Akosombo International School Introduces Shift System Over Covid-19 Outbreak
Ghana’s state largest power generation company, the Volta River Authority (VRA) has introduced a shift system at the Akosombo International School as part of measures to curtail the spread of covid-19 which struck the school.
In a statement issued by the Corporate Affairs and External Relations Department of VRA, it said those who tested positive are doing well under the management and treatment by the VRA medical team.
The statement added that precautionary measures such as temperature checks, social distancing, hand washing and sanitising would continue to be observed with strict adherence.
Ghana: Energy Minister-Designate Faces Appointments’ Committee Today
The Ministerial nominee for Ghana’s Energy Ministry, Dr Matthew Opoku Prempeh, is expected to appear before the country’s Appointments’ Committee of Parliament Friday afternoon, February 12, 2021, to be vetted on his understanding of the sector.
Dr Opoku Prempeh would be grilled on a wide range of issues in the energy sector covering both power and oil and gas (downstream and upstream).
Key areas where questions are likely to come from would be on Ghana’s Commitment to the Paris Agreement on Climate Change, Energy Sector Debt, Cylinder Recirculation Model on LPG, Ameri Power Deal, the botched PDS deal, Ghana’s Nuclear Power Programme, the government’s commitment towards rural electrification and universal access to electricity and impact of Covid-19 on operations at the upstream.
Nigeria: World Bank Approves $500m To Improve Electricity AccessDr Opoku Prempeh, popularly known as Napo, is a Member of Parliament for South Manhyia Constituency in the Ashanti Region. He is a Medical Doctor and served as a Minister for Education in the first term of H.E Nana Akufo-Addo. In his Facebook post sighted by energynewsafrica.com, Dr Matthew Opoku Prempeh said: “I look forward to an engaging session to discuss both my record as the immediate past Minister for Education and my thoughts and perspectives on various aspects of the energy sector.” Source: www.energynewsafrica.com
Nigeria: Be Ready To Bear Pains Of High Petrol Cost-Sylva To Consumers
Nigeria’s Minister of State for Petroleum Resources, Chief Timipre Sylva has admonished Nigerians to be ready to bear the pains of increased petrol pump price as crude oil price climbs above $60 per barrel.
Speaking at the official launch of Nigerian Upstream Cost Optimisation Program earlier this week, Sylva said with no provision of subsidy in the 2021 budget, Nigerian National Petroleum Corporation, NNPC, cannot continue to bear the cost of under-recovery.
Presently, the pump price of petrol ranges from N160 –N165, the price set when crude traded just above $43 per barrel, four months ago.
According to the Minister, while government revenue has improved by the rise in crude oil price, it cannot be fretted away in subsidy payment.
He said: “Since we are optimizing everything, NNPC needs to also think about the optimization of product cost because as we all know oil prices are where they are today, $60.
“As desirable as this is, this has serious consequences as well on product prices. So we want to take the pleasure and we should as a country be ready to take the pain. “Today the NNPC is taking a big hit from this. We all know that there is no provision in the budget for subsidy.
“So, somewhere down the line, I believe that the NNPC cannot continue to take this blow. There is no way because there is no provision for it. “As a country, let us take the benefits of the higher crude oil prices and I hope we will also be ready to take a little pain on the side of higher product prices”, he stated.
Source:www.energynewsafrica.com
Ghana: Parts Of Accra To Experience Power Cuts From Thursday, February 11
Ghana’s southern power distribution company, Electricity Company of Ghana (ECG) has served notice that there will be power cuts in parts of Accra beginning Thursday, February 11, to March, 15th, 2021.
According to ECG, the planned blackouts are to enable a contractor to commence excavation works to interconnect the Pokuase Bulk Supply Point to the Kanda and Airport substations.
A public announced issued by ECG listed the affected areas which include Airport Residential Area, Mamoobi, Accra Girls, ECG Roman Ridge District office, Kotobabi Polyclinic and Alajo.
The statement also indicated that the areas will experience a six-hour daily power cut between 10 am and 4 pm for a period of seven days.
Shell Signs Deal To Supply Amazon With Renewable Power
Shell Energy Europe BV (Shell) has signed an agreement with Amazon to provide renewable power from a subsidy-free offshore wind farm being constructed off the coast of The Netherlands.
The Amazon-Shell HKN Offshore Wind Project will enable Amazon to power more of its business with clean energy.
It will move the company closer to its pledge to become net-zero carbon across its business by 2040 and continue its path to power its operations with 100% renewable energy by 2025 – five years ahead of its 2030 target. Shell’s ambition is to be a net-zero emissions energy business by 2050 or sooner, in step with society.1
The wind farm will be operated by The CrossWind consortium, a joint venture between Shell and Eneco. Starting in 2024, Amazon will offtake 250 megawatts (MW) from Shell and 130 MW from Eneco, for a total of 380 MW.
“Supplying Amazon with electricity from this offshore wind farm contributes to their net-zero pledge while progressing our own ambition to be a net-zero emissions business by 2050 or sooner,” said Elisabeth Brinton, Executive Vice President of New Energies at Shell.
“We are delighted to continue strengthening our strategic relationship with Amazon Web Services (AWS) across Shell New Energies. Our collaboration is enabling us to continue pushing the boundaries of innovation.”
Shell and Amazon have already achieved milestones together.
In July 2020, Amazon’s air cargo network secured up to six million gallons of sustainable aviation fuel supplied by Shell Aviation.