COVID-19: IEA Hosts Africa Ministerial Roundtable Tomorrow

The Covid-19 pandemic and global economic shocks are testing the resilience of the energy sector in countries across Africa. While the outlook remains uncertain, these shocks are certain to have major and varied implications for the development of the continent’s energy sector. Assessing the nascent impacts across the energy sector can help inform the policies and define the actions that will pave the way to economic recovery. The immediate impacts confronting policy-makers across the continent are varied. For some, the availability, security and reliability of power systems is putting at risk an effective response to the health crisis, underscoring once again the importance of universal energy access. Confinement policies and the consequent drop in energy demand is increasing pressure on power systems, calling into further question the financial health of state-owned utilities that were already under financial stress. And for others, the disruption to global oil and gas markets has delivered a sudden and sharp drop in export revenue streams. The resulting financial constraints mean that new investments may face delay or cancellations. These conditions of uncertainty create risks and competition for tightening finance, with potential security and sustainability challenges in the longer term. Setting priorities is vital to ensure action on much-needed energy sector investments, which can stimulate broader economic growth. Opportunities may also arise to rethink African countries’ future energy systems and market structures. In this challenging environment, governments will need to ensure that momentum towards SDG 7 is not lost while they are addressing significant immediate crises. It will be important to consider investment frameworks that help attract the necessary investment to the energy sector in times of need. Concerted action and international support can help countries respond to this crisis. The IEA’s Africa Energy Outlook analysis, published in 2019, has already shown what Africa’s energy future could look like. To sustain Africa’s economic transformation and deliver energy access for all, we have to ensure energy investments in Africa remain a priority. Views shared during this Africa Ministerial roundtable will feed into IEA’s enhanced work with African partners as well as the IEA Clean Energy Transitions Summit that will take place on 9 July 2020. • To take stock of the effects of Covid-19 and its economic reverberations across the energy sector in Africa; • To explore the vital role of energy investments to Africa’s economic recovery; • To share views on what actions can be taken to ensure that energy investments in Africa remain a priority, and clarify the role that the IEA can take to support these efforts. Key objectives Co-hosts • H.E. Mr. Mouhamadou Makthar Cissé, Minister of Petroleum and Energy, Senegal • Dr. Fatih Birol, Executive Director, International Energy Agency Keynote Speakers • H.E. Mr. Samson Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa • Ms. Amina J. Mohammed, Deputy Secretary-General, United Nations Speakers Governments • H.E. Mr. Dona Jean-Claude Houssou, Minister of Energy, Benin • H.E. Mr. Abdourahmane Cissé, Minister for Petroleum, Energy and Renewable Energy, Cote d’Ivoire • H.E. Mr. Mohamed Shaker El-Markabi, Minister of Electricity and Renewable Energy, Egypt • H.E. Mr. Frehiwot Woldehanna, State Minister for Energy, Ethiopia • Ms. Ditte Juul Jørgenson, Director-General for Energy, European Commission • H.E. Mr. Fafa Sanyang, Minister of Petroleum and Energy, Gambia • H.E. Mr. Andreas Feicht, State Secretary, Federal Ministry for Economic Affairs and Energy, Germany • H.E. Mr. John-Peter Amewu, Minister of Energy, Ghana • H.E. Ms. Alessandra Todde, Under Secretary of State of Economic Development, Italy • H.E. Mr. Claude Turmes, Minister for Energy and Spatial Planning, Luxembourg • H.E. Mr. Aziz Rabbah, Minister of Energy, Mines, and Sustainable Development, Morocco • Eng. Mr. Pascoal Alberto Bacela, National Director for Energy, Ministry of Energy and Mineral Resources, Mozambique • Hon. Mr. Tom Alweendo, Minister of Mines and Energy, Namibia • H.E. Ms. Kitty van der Heijden, Vice-Minister for International Cooperation, Netherlands • H.E. Mr. Goddy Jedy Agba, Minister of State for Power, Nigeria • Hon. Dr. Kandeh Yumkella, MP, Sierra Leone • Sir Simon MacDonald, Permanent Under-Secretary and Head of the Diplomatic Service, Foreign and Commonwealth Office, United Kingdom • Thomas (T.L.) Cubbage, Deputy Under-Secretary for Science, Department of Energy, United States • Hon. Francis R. Fannon, Assistant Secretary for the Bureau of Energy Resources, Department of State, United States International organizations and private sector • Mr. Bertrand Walckenaer, Deputy CEO, AFD • H.E. Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy, African Union • Mr. Claudio Descalzi, CEO, ENI • Mr. Abebe Aemro Selassie, Director of the Africa Department, IMF • Mr. Francesco La Camera, Director-General, IRENA • Mr. Hiroto Kamiishi, Deputy Director-General and Group Director for Energy and Mining, JICA • H.E. Mr. Mohammad Sanusi Barkindo, Secretary General, OPEC • Mr. Mark Carrato, Acting Coordinator, Power Africa • Ms. Damilola Ogunbiyi, CEO & UN SRSG for SEforALL • Dr. Vera Songwe, Under-Secretary-General of the United Nations, and Executive Secretary, United Nations Economic Commission for Africa (UNECA) • Ms. Frannie Leautier, Senior Partner, SouthBridge Group • Mr. Riccardo Puliti, Global Director, Head of the Energy and Extractive Industries Global Practice and Regional Director, Infrastructure for Africa, World Bank

Ghana: GTPCWU Petitions Energy Minister On behalf Of 70 Schlumberger Workers

The General Transport, Petroleum and Chemical Workers Union (GTPCWU), an umbrella body of oil and gas sector workers in the Republic of Ghana, has petitioned the country’s Ministry of Energy to intervene to address an unfair labour practice by the Management of Schlumberger against its members. In a three-paged document intercepted by energynewsafrica.com, GTPWU revealed that management of Schlumberger, an international oil and gas service provider operating in Ghana in, May, this year, issued letters to majority of workers to go home for 12 months without pay. “The local union entered into negotiations on the 13th and 14th of May, 2020, to determine a redundancy package to those workers to be affected by the exercise. Barely two hours after adjournment of the meeting on 14th May, 2020, management called a meeting of all employees and threatened that if they (Ghanaian emplyees) would not accept management’s offer of 2.5 month consolidated for every year of service, they would not to pay salaries henceforth. “On 15th May, 2020, just after close of work, a number of employees were issued with letters of suspension from employment taking effect from Monday, 18th May, 2020, to last for a period of 12 months despite the ongoing negotiations at the level of Standing Negotiating Committee.” The Union claimed in their petition that conditions attached to the suspension was that the affected workers would not be paid a dime for the twelve-month period and this, they maintained is unfair and, therefore, want the Minister’s intervention.

How Josh Kalisa’s One Africa Business Solution Ltd Is Addressing Energy Gaps In East, Central Africa Using Solar Products (Article)

It is very rare in our part of the world for individuals and companies that are doing well to keep silent over their achievements. It is common to see individuals and companies use traditional and social media to tell the public what they have achieved. However, that is not the case with Josh Kalisa, Managing Director of One Africa Business Solutions (Pty) Ltd, a South African-based social entrepreneurship company that is specialised in Renewable Energy solutions for the local communities with a focus on solar energy. Josh and his brother, Sammy, established One Africa in 2016 after an extensive research and studies on energy challenge in East Africa between 2014 and 2015. Despite initial funding challenges, Josh and Sammy never gave up on their dream, but rather continued to pursue their mission to improve the quality of life in rural and poor communities through manufacturing, supplying of solar products as well as building off-grid solar plants. Within the few years of the existence of One Africa, the company has made impact on thousands of lives in rural communities through their solar products in East and Central Africa. In spite of the tremendous achievements and impact his company is making, Josh has decided to be on the quiet side and not open One Africa to any media publicity until recently when he accepted an interview request from energynewsafrica.com. One Africa supplies solar lanterns in East Africa especially in Tanzania, Kenya, Rwanda and Eastern DRC. In 2017, the company signed a Memorandum of Understanding (MoU) with World Share Tanzania, a Korean Non-profit organisation that deals with supporting children and empowering women around the world. Since then, it has been supplying them solar lanterns. In 2018, One African won an award for being Solar Energy Implementation of the Year from Alleem Business Congress Awards, a UAE-based company.
Josh Kalisa (left) receiving an award from the Chairman of SEWA (Sharjah Electricity & Water Authority) and Alleem Knowledge Centre: H.E Dr Rashid Alleem.
In the same year, it signed an MoU with Alleem Research and Development. In 2019, it launched a new product (Nara solar backpack) for supporting students. One Africa is hoping to establish a solar factory in East Africa by 2025 to help them address many challenges on energy poverty and socio-economic issues. Below is an excerpt of an interview with Josh Kalisa via mail: What kind of solar products do you produce? One Africa has three types of solar lanterns namely (Nightlight (mushroom) Solar Candle, Solar Jar and Solar Top, power bank and solar cooking stoves. • Nightlight solar candle have life span of four to five years depending on how it used, it can light up between 6 to 7 hours once is full charged, it is a water resistant. • Solar jar and solar top are one of best selling products. They can be used for different purposes. They are waterproof. They can light up between ten to twelve hours once they are full charged. • Nara solar backpack is recycled bag made with PVC billboards, banners and other waste materials. This bag is has a transparent pocket which a solar top is placed in and can charge while a student is on the way to or from school and during studying hours at school. Products and value chain • Nara solar backpack is a waterproof school bag made from recyclable materials like PVC billboards, banners etc (which make them eco-friendly products). The bags are integrated with solar lanterns which can be charged during the day time when a child is on the way to or from school. These two helps the learners to carry their school books in safe environment and also at the same time charge the solar lantern which they will use later at night when they doing homework and studying. • The solar lanterns and bags are designed and made here in South Africa (Proudly South African products). The majority of people who are making these great products were not fortunate with formal education background mostly are (women and youth from townships and informal settlements) and they were unemployed but after soft skills trainings offered and equipping them with tools, today they have permanent job and they are contributing in South African economy. Another positive impact is that they can send their children to school and sustain their families. Who are the beneficiaries? Our primary beneficiaries are people who live in rural areas and poor communities which are not connected to electricity. We are focusing on students and small businesses. How is your company’s initiative addressing shortfall in electricity in beneficiary communities? To address the energy poverty in these areas, we decided to focus on education and small businesses. So we started Nuru Education Initiative (Nuru is Swahili word which means light) and, together with our partners mainly NGOs, we supply solar lanterns and Nara solar backpacks to schools that are located in rural areas and under-privileged communities so that they would be able to study and also do their homework at night more comfortably than using kerosene lamps or candles, which have a lot of health consequences. So far, we have received a number of great testimonies from students, parents and teachers, which is a great success and proof that when students are empowered, they can perform well at school and get excellent results. At the same time, we have been working closely with street vendors who are playing a huge role in most under-privileged communities where their businesses need lights because most of them work till late night especially in cities or towns. We identified their challenges quite easily, hence, they use kerosene lamps and, sometimes, the kerosene lamp can spill kerosene over their products like foods and other essential items and that affects their daily sales. Street vendors are happy to use solar lanterns over kerosene lamp because per day, a street vendor can use up to one litre of kerosene, which is roughly around $ 0.38 a day and $ 11.4 per month. If you compare it with one of our solar lantern which costs roughly $11.76 and can be used between two to three years with the capacity of lighting between 10 to 12 hours once it is fully charged, you can see there is huge financially benefit for them and most importantly for their health benefit too. So switching from fossil fuel to solar energy will change a lot in our communities.
Solar bags for school children
Is your company facing any challenge? One Africa, like any other companies we are facing challenges in different factors, I can mention few. • Rural and underprivileged households typically have unpredictable cash flows and may not be able to immediately pay for our products. • Mistrust of solar technology; there is general mistrust among rural and underprivileged households of solar technology. Several local shops and vendors have been selling cheap solar lanterns and solar panels home systems that are defunct within a year of purchase. This has caused general mistrust of the technology among rural and underprivileged communities. • Underestimating and devaluing made in Africa products (like our solar lanterns and bags) is something we encounter always to a point many would even dare to ask why we don’t buy Chinese products and bring them as cheap and sale. • Trade information and communication is very low and this make it hard to do business around the continent because it has became as norm that every products must come from China or elsewhere so we take this as huge challenge. • Lack of regulations to deal with counterfeit products which are available to the markets. • Lack of policies and information that clarify the incentives given to solar products, because some countries have different policies on customs, (VAT and Import duty). Some have exempted the VAT and import duties in order to promote clean energy, however some haven’t done that. Sometimes we are forced to pay the VAT and Import duties while the policies are in place but not applied by custom officials. • Logistics is another big challenge we are facing and this affects the prices and services. • We are still struggling to get financial support from local banks, this disadvantage us as local company to grow because we are in a competitive market which we share with big economies which are industrial countries that produce in mass what we are doing so when we can’t get financial support from our own banks, how will we stand the foreign companies that are coming with financial supports from their own countries and can easily get a quick support even our governments than us who are trying hard to manufacture and create jobs? What can African governments do to ensure that island communities without electricity have access to power? So far, African governments in recent years have invested in the energy sector especially by building hydropower plants and also promoting renewable energy. But a lot of work needs to be done to reach those in remote and isolated areas. We have seen many clean energy companies investing in Africa for the past ten years. However, African governments must improve partnership with private sector in the energy field by promoting Power Purchase Agreements (PPAs) with Independent Power Producers. We can attract many local and foreign investors to build off-grid electrification once the government is willing to buy the power. However, this can be achieved if there are friendly renewable energy policies that enable the spread of solar technologies to isolated communities and also political will and commitments to support these investments. This means, even local financial institutions like our banks will be able to engage with energy companies and set renewable energy loans so that we, as local companies, can take up loan for clean energy projects. This can be achieved when these institutions have guarantee that governments are going to buy electricity from the independent power producers. So partnership is very essential between all actors from public and private sector. The larger population of sub-Saharan Africa lives without electricity and we know once a village is connected to power, it changes rapidly economically and socially. We have seen this improvement even in our solar initiatives. I believe solar energy is very suitable to many African countries because we have a long period of sunny days, and all we need is to invest in the energy sector and at the same time moving quickly in manufacturing solar products here in Africa. If we have more producers in our continent, this will decrease the high cost of solar products compared to current costs. One Africa is currently engaging several partners and seeking capital investment for solar factory that we want to build in one of the East African countries based on market strategies for the entire region. So, we are still in talks and hoping the best for this project. We believe that manufacturing solar lanterns, panels and other solar products like batteries in Africa will bring a great benefit in energy sector and offer jobs to young men and women and add to the value chain. This means from manufacturing to end users, many people will be involved. We cannot continue with old habit of buying final products from overseas because it does not add up value to us and that is why solar energy is still perceived as an expensive energy alternative because all products are imported. Here, I can say that India is doing a lot to boost domestic solar cell and module manufacturing capacity. Why can’t Africa do that while we have young people from formal and informal sectors who can work in the factories? This will address the high unemployment rates that African youth are currently facing. Lastly, in 2018, the South African government, through Eskom, signed 27 independent renewable energy agreements with a combined investment value of 56 billion rands and capacity of 2,300 MW. We need to see more of these kind of partnerships in Africa. I strongly recommend all actors to work together if we want to see a huge change between now and 2030. We must work hard to achieve Affordable and Clean Energy as one of United Nations Sustainable Development Goals because if we have enough electricity, we have power to turn Africa into industrial hub that will boost our economies. The African Continental Free Trade Area will not benefit us if we don’t have products made within our continent. This means, African governments must give the energy sector the priority. Source: www.energynewsafrica.com

APICORP Issues A Benchmark US$750 Million 5-Year Bond

The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has announced the issuance of a benchmark USD750 million dollar-denominated five-year bond in the RegS markets. The latest issuance, part of APICORP’s USD3 billion Global Medium-Term Note (GMTN) program, will bolster the corporation’s business operations. This also includes undertaking a countercyclical role in 2020 aimed at supporting the MENA energy sector in mitigating the impact resulting from the COVID-19 pandemic as well as oil price fluctuations. The issuance attracted robust and diverse investor demand, with more than USD1.1 billion in orders for the debt sale from over 40 investors of various types from within and outside the MENA region. The five-year note’s fixed cost of funding (1.46%) is the lowest in the history of APICORP. Moreover, the spread of 110bps is the lowest in the region compared to the sovereign, semi-sovereign and MDB peers’ US Dollar issuances that came to the market since the COVID-19 outbreak.
African Lives Matter, Too; Energy Policy Decisions Should Consider Their Needs (Article)
APICORP is currently the only financial institution in the MENA region rated ‘AA’ by Fitch and ‘Aa2’ by Moody’s, both with stable outlook. Dr. Ahmed Ali Attiga, APICORP’s Chief Executive Officer, commented: “Despite challenging market conditions, the successful issuance of this benchmark US dollar bond, with this level of competitive pricing, reflects the confidence that global investors have in APICORP. We are appreciative that more than 50% of the investors for this issuance are central banks and official institutions, both from within and outside the region. We are also pleased with the number and profile of our investors spanning MENA, Asia, Europe and the Americas. As a trusted financial partner for supporting the sustainable development of the MENA region’s energy sector, this milestone is another step towards fulfilling our mandate and a testament to our position as a leading MDB.” Dr. Sherif Elsayed Ayoub, Chief Financial Officer of APICORP, said: “The remarkable achievements of this benchmark issuance, including the repricing of APICORP’s curve, attests to the effectiveness of our approach which is anchored by strong fundamentals with clear pricing and quantum objectives. Indeed, this issuance reinforces our strategic objective of meeting our operational ambitions by way of cost-effective financing that can add value to our partners and solidify APICORP’s profile as a high-grade issuer that is firmly within the sovereign, supranational and agency (SSA) space.” The Global Coordinators, Joint Lead Managers and Bookrunners included Citibank, Emirates NBD, Goldman Sachs International and Standard Chartered, whereas the billing and delivery agent was Standard Chartered. Furthermore, Allen & Overy served as the issuer’s counsel, while Clifford Chance served as the banks’ counsel. KPMG undertook the role of the auditor on the issuance.

Nigeria: Ikeja Electric Fixes 120,000 Households With Meter

Ikeja Electric, a power distribution company in the Republic of Nigeria has announced that it has metered 120,000 households between 2018 and June 2020. This, according to the company, is in line with its commitment to bridging the metering gap in Nigeria. The company’s head of corporate communications, Felix Ofulue, said in order to achieve the mandate of the Nigerian Electricity Regulatory Commission (NERC) to bridge the metering gap and reduce the incidence of estimated billing, the company has doubled its efforts to realise its objective of metering all its customers in the shortest possible time. “The company plans to meter another 400,000 customers over the next two years. Apart from eradicating estimated billing, Ikeja Electric’s metering programme has also provided jobs, directly and indirectly, for thousands of Lagosians and Nigerians in general, particularly during the lockdown,” Ofulue said. He said the metering of customers under the Meter Asset Provider (MAP) scheme is ongoing, despite logistical challenges emanating from the COVID-19 pandemic. The company has also metered Maximum Demand (MD) customers in the network and conducted periodic recertification of the meters in line with regulatory procedures. “In addition to consumer metering, Ikeja Electric has also metered all the 33kV /11kV feeders from the injection stations ensuring energy accountability across its delivery points. In addition, the local distribution transformers have also been metered up to 100% while the metering of newly installed transformers after completion of the project is ongoing,” he explained. Ofulue urged customers who are yet to apply for meters, to take advantage of the Meter Asset Provider (MAP) scheme and apply through map.ikejaelectric.com, using their Ikeja Electric’s account number on the bill to log into the portal and update their KYC (Know Your Customer) details. He noted that Ikeja Electric has set up a debt resolution panel in the Six Business Units to address complaints on outstanding bills and other related issues to ensure reconciliation while customers are processing the application for meters. With regard to payment for meters, Ikeja Electric spokesperson stressed that “customers must always pay into the designated bank account provided by the MAP and they must always include their Application Reference Number (ARN) when making these payments”. Ofulue also explained that with the upward review of meter prices by the Nigerian Electricity Regulatory Commission (NERC), the new price for Single Phase Meter is now N48, 263.37 while Three Phase Meter is now N89, 069.33. All prices are inclusive of VAT and became effective June 1, 2020. However, customers who have paid before 1 June 2020 under the MAP scheme, but yet to be metered should forward their payment evidence stating Account Name, Application Reference Number (ARN), and IE Account Number to [email protected] for prompt confirmation. Ofulue advised customers not to pay or give money to either Ikeja Electric staff or MAP for meter and installation. Rather, they should send an email to [email protected] or call the Nigerian IE Customer Care helplines 01-4883900, 01-7000250, 09087980825 for clarification on issues that are not clear.

India To End Federal Control Of Gas Prices, Lift LNG Transport Use

India will gradually end federal controls on gas pricing as it seeks to attract foreign investment and technology to lift local output, oil minister Dharmendra Pradhan revealed on Friday. India, which is a large emitter of greenhouse gases and has multiple gas pricing regimes, aims to raise the share of gas in its energy mix to 15 per cent by 2030, from 6.2 per cent. “This is an incentive we are giving to investors to come to India and take advantage of pricing and marketing freedom and produce more and invest more,” Pradhan said at the BNEF summit. To boost gas usage, India is expanding infrastructure including building new liquefied natural gas (LNG) import plants and connecting households with an expanding gas pipe network. New Delhi said recently that no authorisation was needed to set up LNG dispensing facilities for vehicles. India’s top gas importer Petronet LNG said on Friday it wants to partner with fuel and gas retailers on LNG stations along highways for long-haul trucks and buses.
Ghana: Maritime Authority Seeks Help Of Supreme Court To Seize, Destroy Boats Used In Illegal Fuel Trade
Petronet wants to set up 5 LNG stations in the fiscal year ending March 2021, and 300 by 2023. It eventually aims to have 1,000 LNG stations across India, it said on its website. Meanwhile, Indian Oil Corp, the country’s top refiner and fuel retailer, said this week it wants to start LNG retailing through its fuel pumps. GAIL (India) Ltd’s executive director Rajeev Mathur said his firm is looking for partners to set up LNG dispensing facilities. Mathur said India’s gas demand is expected to rise by 3 per cent-4 per cent between October 2020 and March 2021, after witnessing a huge fall in April-May due to a coronavirus lockdown. Imported LNG accounted for about half of India’s 60.8 billion cubic meters of gas consumption in the fiscal year to March 2019.

Covid-19: Let’s Pay Attention To Lessons Of The Pandemic To Make Africa Self-Reliant – Senyo Hosi

The Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD) in the Republic of Ghana, Senyo Hosi , is urging African leaders to pay close attention to the lessons from Covid-19 pandemic for the continent to be self-reliant. Mr. Hosi was speaking during a panel session on the theme “COVID-19: Pathways to Africa’s Economic Recovery and Growth – The place of policy response and private sector mobilization in Africa’s recovery efforts” at the virtual Africa Summit 2020. Hosi, who is also an economic policy analyst told the panel that the coronavirus pandemic has pushed the continent to look within to solve its problems. “Africa has a perfect opportunity under Covid-19 to reset its thinking and to trigger the paradigm shift that it has been waiting for. We’ve always said that Africa is going to be the next economic frontier, but the question is, a frontier for who? Is it going to be a frontier for ourselves? If Covid-19 hasn’t taught us anything at all, I think it should tell us the need for ourselves to be self-reliant on very key issues and basic things and to be a bit more futuristic in our thinking and our planning,” Hosi said. According to Africa Union, 359, 606 people in Africa have been infected with Coronavirus with 9,283 deaths and 172,974 recoveries as at Saturday, June 27, 2020.
Ghana: BOST Commences Repair Works On Buipe-Bolga Pipeline (Video +Photos)
Many African countries have closed their borders in line with the imposition of lockdowns and other restriction measures to deal with the pandemic. Although this may have caused a strain on economic activities, the halt on importation meant the continent had to look within to fill the gap. In Ghana, indigenous companies took charge of the production of personal protective equipment such as facial masks, ventilators and alcohol-based sanitizers. This somewhat spurred economic activity. Senyo Hosi said it is no longer be acceptable for the continent to be dependent on foreign support while she [Africa] sits on arable lands and has a vibrant youth population. He believes the proper use of agriculture, human resource, education and value addition are the surest ways for the continent to recover from the pandemic and achieve economic development. Vice president of Liberia Jewel Howard-Taylor, a keynote speaker, maintained it was Africa’s job to keep its economies afloat during the pandemic but said it was more important not to miss the negative effect of Covid-19 on women and girls because of their significant roles. “There’s a lot of loss of income for women, there’s a loss of mobility (where to go to settle sexual reproductive health issues), there’s a loss of empowerment of women but most importantly there is an increase in sexual and gender-based violence across our world.” She called for the prioritization of empowering women and girls during this global crisis. The virtual Africa Summit 2020, organised by the Africa Leadership Magazine (ALM) had other speakers including Prime Minister for Eswatini H.E. Ambrose Dlamini, Secretary-General of the Commonwealth Patricia Scotland, Former Director of Communications of the African Development Bank Dr. Victor Oladokun and Member of the UK House of Lords and Prime Minister’s Envoy to Uganda and Rwanda Lord Dollar Popat.

ExxonMobil Hints Of Major Job Cuts

U.S oil and gas giant ExxonMobil is preparing to let go between 5% and 10% of its US-based employees subject to performance review. According to Bloomberg, Exxon’s job cuts will be characterized as performance-based and not considered layoffs. Employees who are not subject to performance reviews will not be affected, a source reportedly told Bloomberg. Exxon has not been immune to the drastic effects of the coronavirus pandemic and the oil price war that has destroyed demand for crude oil and eaten into profit margins for that reduced demand, and it has attempted to tighten its belt in response.
Ghana: 70 Staff Of Schlumberger Asked To Go Home For 1 Year Without Pay
Exxon booked a loss of $640 million in the first quarter of 2020, first in a decade after a $2.9 billion market-related charge. It also cut 2020 capex by a staggering $10 billion—a 30% cut. It has also cut its production from the Lisa field in Guyana, although that was related to the risk of excessive flaring and not the coronavirus or prices. In addition to offloading some lower-performing employees, the oil giant is preparing to rid itself of its UK North Sea assets, for which it can no longer expect as much money thanks to the downturn. The news comes as Minnesota and D.C. launch climate-related lawsuits against Exxon—and others–alleging that they have deceived oil consumers for years about the effects of climate change, and about their role in causing climate change. Exxon, headquartered in Irving, Texas, employed nearly 75,000 people globally at the end of 2019. Shares in Exxon fell on Friday by 3.43% by 4:11 pm EDT, to $43.62

Ghana: 70 Staff Of Schlumberger Asked To Go Home For 1 Year Without Pay

About 70 workers of Schlumberger, an international oil and gas service provider operating in the Republic of Ghana, have been asked to go home for one full year without pay. According to the workers, management gave them letters last month to go home without pay with the explanation that COVID-19 was having impact on the company. However, the workers view management’s action as unfair labour practice and are protesting it. The workers believe it is not likely the company would recall all the suspended workers, hence, are demanding full severance package as agreed in their 2016 Memorandum of Understanding (MOU).
Ghana: Minister Charges Oil Companies To Sit Up To Curb Spread Of COVID-19
The Chairman of the Schlumberger Workers’ Union, Bright Kwabena Danquah said some might move on after one year without pay, hence, their demand for their full severance package as has been given to their counterparts in Nigeria, instead of the 40 percent package. “Management served us letters last month to negotiate on a redundancy package. We met to negotiate, but after the third sitting of negotiations, management started becoming recalcitrant and also started issuing out unlawful letters of suspended employment without pay for one year to members. Some of the conditions in the letter are so appalling. So all we are trying to make management aware is that when we are on the negotiation table, you do not do such things. The moment you start doing such things, then, you’re putting us under duress to accept something that is not right. We have an MOU signed with management in 2016, which I took my time to read the document to management so that the document would guide all of us in our negotiations. They said that they have heard, but instead of paying us our four months’ consolidated salaries, they are choosing to pay us something around 40 percent of that. The union, including the national [union], rejected it since that cut is in breach of the MOU.” According to him, they want the same package as has been given to their Nigerian counterparts. “When we asked why they are trying to cut our benefits, they said COVID-19. But this company has been making millions of dollars, in fact, one particular department can make 8 million dollars in revenue a month, and this same company is telling us they are broke because of COVID-19. We should be fair to ourselves, when workers elsewhere have been paid their redundancy packages. Our point is that they should give us what is due us and let us go home. I don’t know my future if I’m going to get a job now. We have expatriates that have gone home and paid almost 2 million dollars. In fact, they are cutting off about 60 percent of what is due us when, in Nigeria, they have paid all the workers their due. So why is it that when it comes to Ghana, they do that? They took the matter to arbitration and as we speak, the Petroleum Commission and Labour Commission are not sitting because of this COVID-19.” Bright Danquah said the suspended workers are disappointed in the role Ghanaian managers and lawyers of Schlumberger are playing in this unfair treatment. The Ghanaian Petroleum workers have, thus, called on the Energy Ministry and the Petroleum Commission to quickly intervene and resolve the matter. Meanwhile, Accra-based Citi FM has quoted an HR representative of the company, Emefa Efua Dzamefe as saying that the company was addressing the issues in line with Ghana’s national labour guidelines. “The world is going through an unprecedented global health and economic crisis sparked by the COVID-19 pandemic. The effect of this crisis on the oil and gas industry was amplified by a battle for market share between the world’s largest oil producers. This combination has created shocks in both oil supply and demand, resulting in the most challenging environment for the industry in many decades. As a direct result of this environment, our activity level is drastically reduced; much of our operational capacity is unneeded.” “In Ghana, GOS Limited is therefore aligning its resources with activity level. In this context, we are in dialogue with union executives about workforce rationalization. These decisions are always very difficult, as we understand the impact on our employees and the local community. GOS Limited is addressing the situation in accordance with the national labour guidelines. Our priority remains the safety of our employees and contractors, and to make this transition as smooth as possible to maintain business continuity for our customers.” Meanwhile, information available to energynewsafrica.com indicates that Petroleum Commission has scheduled a meeting with the workers and management of Schlumberger on Monday, June 29, 2020. Source:www.energynewsafrica.com

Nigeria: NNPC Produces 218.37billion Cubic Feet (BCF) Of Natural Gas In March

The Nigerian National Petroleum Corporation (NNPC) has said that 218.37billion Cubic Feet (BCF) of natural gas was produced in March 2020, translating to an average daily production of 7493.65Million Standard Cubic Feet per Day (mmscfd). This was contained in NNPC Monthly Financial and Operations Report for March 2020. A release by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, said 3,119.89BCF of gas was produced for the period March 2019 to March 2020, representing an average daily production of 7,912.05mmscfd during the period. It explained that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and 8.95 per cent, respectively, to the total national gas production. Out of the 218.37BCF of gas supplied in March 2020, according to the report, 120.73BCF of gas was commercialized, consisting of 33.45BCF and 87.28BCF for the domestic and export market respectively, translating to 1,235.56mmscfd of gas to the domestic market and 3,817.40mmscfd of gas supplied to the export market for the month. The report said 55.63% of the average daily gas produced was commercialized, while the balance of 44.37% was re-injected, used as Upstream fuel gas or flared.
Mozambique LNG: Where Do We Stand? (Article)
Gas flare rate was 9.08 per cent for the month under review i.e. 679.54mmscfd, compared with average gas flare rate of 8.43 per cent i.e. 666.90mmscfd for March 2019 to March 2020. During the month under review, the report also announced a trading deficit of ₦9.53billion for March 2020 compared to the ₦3.95billion surplus posted in February 2020. The report declared that the over 300 per cent decline in March 2020 earnings was due primarily to the huge decrease of 181 per cent in the National Oil Company’s Upstream Subsidiary, Nigerian Petroleum Development Company’s (NPDC) due to the decline in crude oil prices precipitated by the Coronavirus-induced global slowdown which it stated led to reduced exports and dwindling world oil consumption; combined with deficits posted by the refineries, among others. The NNPC MFOR indicated a total crude oil & gas export sale of $256.19million in March 2020 which decreased by 30.89 per cent, compared to last month’s. Of the total sales, crude oil export sales contributed $184.59million (72.05 per cent) of the dollar transactions compared with $281.14million contribution in the previous month; while the export gas sales amounted to $71.60million in the month. The March 2019 to March 2020 crude oil and gas transactions indicated that crude oil & gas worth $4.95billion was exported. In the Downstream, to ensure continuous availability of Premium Motor Spirit (PMS) otherwise called petrol, and effective distribution of the product across the country, 1.73billion litres of PMS, translating to 59.72mn liters/day were supplied for the month. The corporation stated that it had continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation. Within the period under review, 19 pipeline points were vandalized representing about 47 per cent decrease from the 32 points recorded in February 2020. Atlas Cove-Mosimi accounted for 53 per cent, while Mosimi-Ibadan recorded 21 per cent and Suleja-Minna accounted for the remaining 26 per cent. The report assured that NNPC, in collaboration with the local communities and other stakeholders, continuously strived to reduce the menace to the barest level. The March 2020 MFO report of the NNPC is the 56th edition in the series that began in 2016. The corporation carried its adherence to transparency and accountability a notch higher last week, 19th March, 2020 when it published its 2018 Audited Financial Report, a move that has received accolades from transparency watchdogs locally and internationally, in addition to endorsement by many Nigerians who encouraged other government agencies to follow suit.

Equatorial Guinea: MMH Adopts New Petroleum Regulation

The Ministry of Mines and Hydrocarbons (MMH) of the Republic of Equatorial Guinea has announced the adoption of the new Regulation of Petroleum Operations, Regulation No. 2/2020 of June 15th, 2020. The new Regulation modernizes Equatorial Guinea’s existing regulatory framework and is intended to maintain the country’s attractiveness for foreign investors. It notably covers key matters such as the extension of the productive life of mature fields though mechanisms allowing operators to generate greater value from these assets; the exploration of marginal and onshore fields along with investments in deep and ultra deep water acreages; the monetization of gas and the development of the petrochemicals industry, along with further integration of the national workforce and local companies across the value-chain. “This new Regulation gives an opportunity to the Republic of Equatorial Guinea to continue being a world reference in the hydrocarbons sector. To maintain our position, we must be prepared, with updated norms and policies, to respond to the great challenge that the recovery of commodity prices, the creation of employment and the execution of projects after the Covid-19 pandemic will pose for the sector,” H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons said. “It is for this reason that the Ministry of Mines and Hydrocarbons, in its desire to continue betting on the growth and economic diversification of the country, has decided to update the regulations to answer all the questions of the industry, as well as create a space of trust with all the actors in the country’s hydrocarbon sector,” he added. The new Regulation is seen as a pillar of Equatorial Guinea’s recovery strategy post Covid-19, and clarifies several aspects of petroleum operations in the country. It also comes as Equatorial Guinea pushes for additional local participation across the value-chain, and is developing several gas monetization and downstream projects. The Regulation notably stipulates that refining, petrochemicals and commercialization activities can be realized under a specific license granted by the MMH (Article 93) on the basis of technical and financial capabilities notably. It also strictly prohibits gas flaring, except under very specific circumstances, and stipulates that Field Development and Production Plans must always be designed in such a way as to allow the use, conservation or commercial exploitation of associated gas (Article 149). It also clarifies new rules and frameworks on exploration and production from mature and marginal fields, defining the former as a field that has entered into decline and is no longer economically viable, and the former as a field that has produced 90% of its proven hydrocarbons reserves (Article 41). Such fields will benefit from 10-year contracts, which can be renewed every five years after study and assessment by the MMH. Source:www.energynewsafrica.com

South Africa: Africa Oil & Power Confirms New 2021 Date For Africa’s Energy Conference

The fifth edition of Africa Oil & Power (AOP) returns to Cape Town’s International Convention Center on October 5-7, 2021 for three days of deal-making and discussions focused on Africa’s energy transition, industrialization, regional business and economic transformation. The event has been rescheduled from September 15-17, 2020. In its 2021 edition, AOP will also invite global attendees to participate via a new virtual format, alongside the in-person conference. Under the theme #InvestWithoutBoundaries, the conference enjoys the partnership and endorsement of the Department of Mineral Resources and Energy of South Africa, the South African Chamber of Commerce and Industry, the South African Oil & Gas Alliance and the South Africa-China Economic and Trade Association. In the midst of the COVID-19 pandemic, governments across the world are looking at implementing policies to stimulate investment and kickstart the growth of energy economies. As global economies recover, international partners and continental actors are looking at African opportunities anew, and re-evaluating LNG, renewables, privatized power and oil and gas projects. The current downturn in the global oil sector is expected to see an uptick as lockdowns are lifted and the global economy is restarted. A price recovery, coupled with renewed interest and activity in the energy sector, will act as major catalysts for African growth and intra-African economic activity. Meanwhile, the African Continental Free Trade Agreement will lure investment, encourage job creation and place an emphasis on the need for new technology and cross-border collaboration post COVID-19. For the first time, AOP will host the Africa Renewables Forum, the Africa LNG Forum and the Energy Finance Forum, in line with the vision of South Africa’s Department of Mineral Resources and Energy and government and private sector partners from all four corners of the continent. AOP 2021 is the culmination of a 2021 program of events which includes Mozambique Gas & Power taking place in Maputo 8-9 March 2021; Gabon Oil & Power which will be held in Libreville on 15-16 March 2021; Nigeria Oil & Power in Lagos on 30 March – 1 April 2021; Angola Oil & Gas 2021; South Sudan Oil & Power 2021 and AOP’s first ever event in Uganda.

Diesel To Surpass Petrol Prices For 1st Time In India

In an unexpected development, the pump price of diesel is all set to surpass the petrol price in New Delhi, capital of India, making it the most expensive transport fuel for the first time in a long time. Globally, diesel is priced slightly above petrol prices due to the very nature of the product that has a higher cost of production. However, in India, due to the lopsided taxation structure, diesel attracts lesser of the tax between the two auto fuels keeping its prices lower than petrol for last several years. Diesel is currently priced at Rs 79.40(1.05 dollars) a litre in the Capital, just 36 paise short of petrol price that is being retailed at Rs 79.76 a litre. Going by the trend of price movement in the two products for the last few days where diesel prices have consistently increased by 50-60 paise per litre while the daily increase in petrol prices have fallen to just 20 paise on Tuesday, it is set to surpass petrol prices in next few days. “Diesel price movement is sharper in international market and if oil companies follow the global price trend, diesel prices will surpass that of petrol later this week. It will be after many years that this would happen and is expected to sustain for some time unless government changes the tax structure of the petroleum products again,” an oil sector expert from one of the big four audit and advisory firms asking not to be named. Interestingly, even in India the base price of diesel is expensive than petrol. According to the Indian Oil Corporation (IOC), while the base price of petrol in Delhi currently comes to Rs 22.11 per litre, the same for diesel is higher at Rs 22.93 per litre (effective from June 16, 2020). This has been the case for a long time, but retail price of petrol can be higher than diesel due to central and state taxes. What has now brought diesel prices to a whisker of petrol prices in the capital is the Delhi government’s decision early May to increase the Value Added Tax on diesel from 16.75 per cent to 30 per cent and on petrol from 27 per cent to 30 per cent. This increased the retail price of diesel and petrol in Delhi by Rs 7.10 and Rs 1.67 a litre respectively. With Central taxes on the two products already reaching identical levels, the Delhi governments move hastened price parity between petrol and diesel. Currently, the Central excise on petrol is Rs 32.98 a litre while that on diesel it is Rs 31.83 a litre. The VAT on petrol in Delhi is Rs 17.71 a litre and that on diesel is Rs 17.60 a litre. While the movement of retail pricing is being seen with a sigh of relief by vehicle owners whose cars run on petrol, those buying the relatively expensive diesel cars are now repenting on their decision. The development is also being seen with caution by automobile companies who have spent millions to ramp up their facilities for diesel run vehicles. The expectation is that demand for such cars will now fall, causing more damage to companies where sales are already impacted due to persistent economic slowdown and now the spread of COVID-19 pandemic. “The pricing development would push automobile companies to strategies being followed by companies in the western markets where diesel run cars are not sold on fuel pricing differential, but on overall make and quality that puts them ahead of petrol run cars,” the expert quoted earlier. Yes, but for commercial vehicle sector the rising price of diesel had not been welcomed. In fact, the commercial transport sector had time an again threatened strike against the move to raise fuel prices. With petrol and diesel retail prices closing, the case for adultering fuel has also gone down much to the relief of vehicle owners.

Africa Summit 2020: Senyo Hosi, Liberia VP, Others To Speak About Africa’s Economic Recovery Today

The CEO of the Chamber of Bulk Oil Distributors (CBOD) in the Republic of Ghana, West Africa, Senyo Hosi will be speaking alongside the Prime Minister for Eswatini H.E. Ambrose Dlamini, Vice President of Liberia Jewel Howard-Taylor as well as the Secretary-General of the Commonwealth Patricia Scotland QC at the Africa Summit 2020 organised by the Africa Leadership Magazine (ALM). The virtual summit which is themed: “COVID-19: Pathways to Africa’s Economic Recovery and Growth” is scheduled for the 25th of June 2020 via teleconferencing at 2 pm GMT.
Ghana: PIAC Tasks Parliament To Find The Whereabouts Of $1.5 Billion Petroleum Fund
Senyo Hosi, a Ghanaian thought leader, economic policy analyst and CEO, with vast experience in the oil and gas industry will speak in a panel about the place of policy response and the private sector mobilization in Africa’s recovery efforts in light of the coronavirus pandemic. In Ghana, Mr. Hosi is leading private-sector corporations and individuals in the Ghana COVID -19 Private Sector Fund (GCPSF) to build the first-ever infectious disease, isolation and treatment facility in the capital Accra. The project, which is nearing completion, begun about eight weeks ago and has been funded by both private and public organisations and individuals and also through crowdfunding. Mr. Hosi and all other trustees GCPS Fund have been commended by Ghana’s President Akufo-Addo for their bold initiative. For more information about the fund, visit https://ghanacovid19fund.com/.