The Institute for Energy Security (IES), an energy think tank in the West African nation, Ghana, has welcomed the decision by the National Petroleum Authority (NPA) to withdraw a directive to OMCs to increase BOST and Unified Petroleum Price Fund (UPPF) margins.
According to the IES, had the decision by the NPA to review upward the UPPF and the BOST by GHp1 (one pesewa) and GHp3 (three pesewas) respectively made to stand, it would have automatically increased the price of fuel at the pumps.
Ghana’s petroleum downstream regulator, NPA, last Sunday, directed Oil Marketing Companies (OMCs) to review the two margins but consumer advocacy group, COPEC and the Minority in Parliament opposed it.
Commenting on the issue, Executive Director of Institute for Energy Security (IES), Paa Kwesi Anamua Sakyi said the IES was very much concerned about the increase in especially the BOST Margin.
He said aside impacting on consumers negatively as they would have had to cough more cedis to get a gallon of gasoline, for instance, it would have served as a fertile ground for BOST to be more inefficient in the delivery of its mandates.
“BOST must deal with the waste in its system, and, then, there wouldn’t be the need to increase their margin as applied on the PBU. BOST’s open justification of the increase in the margin is untenable.
“How could the Managing Director of BOST suggest that the upward review of the margin is necessary to make BOST efficient?” he posed.
“If you must be regarded as efficient, then, you rather require less resources to deliver a bigger or larger output instead of a much bigger resource which may deliver the same outcome or even less,” he added.
Mr Anamua Sakyi noted that over the past few years, BOST has failed to activate fully its existing infrastructure (storage tanks and pipelines etc), and been unable to keep strategic fuel stock for the country, enough stock to cushion the country from supply and price shocks.
He said until the Management of BOST can justify and show proof of prudent use of resources and infrastructure currently at its disposal, the IES would not support any review in the BOST Margin.
Noble Energy, an independent exploration and production company has announced that it will voluntarily transfer its stock exchange listing to the Nasdaq Global Select Market from the New York Stock Exchange, effective December 27, 2019 after market close.
Noble Energy common stock is expected to begin trading as a Nasdaq-listed security on December 30, 2019. The Company will retain its current ticker symbol “NBL”.
“Our stock exchange move will allow us to leverage Nasdaq’s cutting-edge technology and information in serving our shareholders, while furthering our focus on cost efficiencies throughout the organization. We are excited to be joining many of the world’s largest and most innovative companies on Nasdaq,”David L. Stover, the Company’s Chairman and CEO said.
About Noble Energy
Noble Energy is an independent oil and natural gas exploration and production company committed to meeting the world’s growing energy needs and delivering leading returns to shareholders.
The Company operates a high-quality portfolio of assets onshore in the United States and offshore in the Eastern Mediterranean and off the west coast of Africa.
Founded more than 85 years ago, Noble Energy is guided by its values, its commitment to safety, and respect for stakeholders, communities and the environment. For more information on how the Company fulfills its purpose: Energizing the World, Bettering People’s Lives®, visit https://www.nblenergy.com.
The Institute for Energy Security (IES), an energy think tank in the Republic of Ghana, has predicted that prices of fuel across the pumps in the second pricing window will remain stable.
Even though the depreciation of the cedi against other major international currencies especially the US dollar, has gone beyond 10 per cent since the beginning of the year, IES said in a statement on Monday that it “foresees prices of fuel on the local market remaining largely stable”.
The release signed by IES Research and Policy Analyst, Raymond Nuworkpor, however, added that “the continuous depreciation of the Ghana cedi to the US dollar in the last few days may have an adverse effect on the selling price of fuel within the second Pricing-window of December 2019”.
The prediction of stable prices is contrary to the forecast of another energy think tank, the Chamber of Petroleum Consumers-Ghana (COPEC-Ghana). COPEC-Ghana stated last week.
“Fuel prices across most of the major Oil Marketing Companies (OMCs) have seen an increase by almost one per cent since 7 pm on Friday, December 6, 2019” and “the depreciation of the cedi if left unchecked will certainly see prices going up again and even higher in the second window of this month”.
Below is the full statement from IES:
16 TH DECEMBER, 2019CEDI DEPRECIATION EXERTING PRESSURE ON LOCAL FUEL PRICES
REVIEW OF DECEMBER 2019 FIRST PRICING-WINDOWLocal Fuel Market Performance
Prices of petroleum products experienced an increment in the Pricing-window under review. Fuel prices within the first Pricing-window of December 2019 saw the Oil Marketing Companies (OMCs) adjusting prices of Gasoline and Gasoil upwards to GH¢5.41.
This represents an average of 0.93 increment. The current national average price of fuel per litre at the pump is pegged at GH¢5.36 for both Gasoline and Gasoil. For the Pricing-window under review, Zen Petroleum, Benab Oil, Pacific, SO Energy and Alinco Oil sold the least-priced Gasoline and Gasoil on the local market according to IES Market-Scan.
World Oil Market
Crude oil prices continue to remain above the $60-dollar margin for two consecutive windows as OPEC reached consensus with its partners including Russia on Friday, December 6, 2019 to strengthen output cuts in an effort to trim the global supply and stabilize prices. According to reports, the cuts will increase the existing agreement by an extra 500,000 barrels per day (bpd) reduction in the first quarter next year. OPEC’s current consensus is a supply cut of 1.2 million bpd and the increased amount represents about 1.7 per cent of global oil output. On Average, Brent crude rose marginally from $62.54 per barrel to close at $62.87 per barrel; thus recording a change of 0.52 per cent. According to Standard and Poor’s Global Platts benchmark for fuels, Average Gasoline Price decreased by 1.51 per cent to close at $590.32 per metric tonne, from a previous average of $599.36 per metric tonne; while Gasoil increased marginally by 0.23 per cent to close trading at $580.70 per metric tonne from a previous $579.36 per metric tonne.
Local Forex
IES data collected and analyzed indicate a 2.10 per cent depreciation of the local currency (GH¢) against the U.S Dollar ($) over the past two weeks. The dollar currently trades at GH¢5.71 as against GH¢5.59 in the previous window.
PROJECTIONS FOR DECEMBER 2019 SECOND PRICING-WINDOW
Taking into consideration the relative stable prices of Crude oil and Gasoil on the international market, as well as the over 1.51 per cent decrease in the price of Gasoline; the Institute for Energy Security (IES) foresees prices of fuel on the local market remaining largely stable. However, the continuous depreciation of the Ghana Cedi to the US Dollar in the last few days may have an adverse effect on the selling price of fuel within the second Pricing-window of December 2019.
Signed:
Raymond Nuworkpor
Research & Policy Analyst
Ghana’s Ministry of Energy has rejected claims by a former CEO of the country’s national oil company (GNPC) that figures recently put out by the President as savings to be made from the utilisation of natural gas by 470MW Karpowership was fabricated.
Alex Mould, a former CEO of GNPC, in a piece, said: “The savings numbers are fabricated, US$170m savings a year for Karpower whose HFO is almost as cheap as the Eni Ghana Gas.”
He added that “the movement of the barge, in the first place, was not an economic decision but a practical one.”
But the Ministry, in a statement signed by Head of Communications, Nana Kofi Damoah insisted that the figure quoted by President Akufo-Addo was factual.
The Ministry, in its analysis, explained that the generation cost of the Karpowership is 17.33 USCts/kWh and 12.19 USCts/kWh on HFO and natural gas respectively. Switching from HFO to gas alone yields a 25 psrcent saving in the cost of generation.
“Specifically, the switch of the Karpowership to Natural Gas (NG) would save electricity users an amount of USD170.5 million per annum and a projected amount of USD1.2 billion over the remaining term of the contract by way of reduced electricity charges to consumers.
“The total annual savings for both gas and electricity is estimated at about USD650.5 million and a projected USD5.2billion over the remaining period of the PPA,” the statement said.
In the view of the Ministry, Ghana would have made more savings if GNPC, under Alex Mould, had not negotiated a very high OCTP gas price considered the highest globally for similar projects and which now stands at $10.9/mmbtu. Ghanaians demand answers from him.”
Below is the full statementSAVINGS TO BE MADE THROUGH THE RELOCATION OF THE KARPOWERSHIP FROM TEMA TO SEKONDI
Introduction
The Ministry of Energy has picked from myjoyonline.com, comments made by Mr. Alex Mould that “Akufo-Addo’s savings from the relocation of the Karpowership from Tema to Sekondi in the amount of USD170 million per annum was fabricated.
Whilst we disagree with the statement from Mr. Alex Mould, we wish to seize the opportunity to give a little bit of a background to the relocation project and the benefits to be derived from it.
Background
In alignment with the promotion of the use of gas as the primary fuel for power generation and also to ensure the maximum utilization of indigenous gas (OCTP gas) in the Western Region, to reduce to the barest minimum or to eliminate the financial consequences under the take-or-pay obligation, the ministry initiated the relocation of the 450MW Karpowership from its location in Tema to the Sekondi Naval Base.
The Karpowership Relocation Project (KRP) besides the physical movement of the powership, consisted of three (3) main activities namely; Construction of 10km 330kV Power Evacuation Transmission Line from the Aboadze thermal Enclave to the relocation site – The line has been completed, energized and currently in service by GRIDCo.
Construction of 10km 20 inch Gas Interconnection Pipeline from the Ghana Gas Regulation and Metering Station (TRMS) at Aboadze to the relocation site. The gas infrastructure also includes an Onshore Terminal Station (OTS) which preconditions (regulate and heat) the gas to the Karpowership.
Construction of Marine Works (Marine receiving facilities) within the breakwater of the Sekondi Naval Base. The works are completed and currently accommodating the 450MW powership at the Sekondi Naval Base.
Other activity undertaken was the conversion of the Karpowership engines from the use of Heavy Fuel Oil (HFO) to the use of Natural Gas. The Powership has successfully converted over 90% of the engines and currently receiving gas from Ghana Gas.
Benefits of the Relocation
It is to be noted that, the Karpowership was not relocated for the sake of it. Several benefits to be derived from that exercise, informed the decision for the relocation. These included:
Energy Mix
Advancing the government policy regarding the energy mix, which places emphasis on natural gas as the preferred fuel for thermal power generation to reduce cost of power generation and the environmental impacts.
Environmental Impact
Converting the Karpowership from HFO to natural gas supports the promotion of low carbon fuels and would help to mitigate the negative environmental externalities and emissions from power generation. This is consistent with Ghana’s commitment to the SDG goal seven.
Savings Effect on take-or-pay
The Sankofa gas price in 2019 is USD10.4/mmbtu and Government pays on the average USD 40-50 million monthly for gas from OCTP. Utilization of the gas is averagely about 80mmscf and about 90mmsfc is paid for but not used. The relocated Karpowership would take approximately 50% of the volume of the Take-or-Pay Sankofa gas for power generation over the remaining period of the Power Purchase Agreement (PPA). This would provide GNPC with a firm source of revenue for the OCTP gas commitments. This saves Ghana a monthly take-or-pay cost of USD40million and a projected annual saving of USD480million.
Impact on cost of energy
The Generation cost of the Karpowership is 17.33 USCts/kWh and 12.19 USCts/kWh on HFO and Natural gas respectively. Switching from HFO to gas alone yields a 25% saving in the cost of generation.
Specifically, the switch of the Karpowership to Natural Gas (NG) would save electricity users an amount of USD170.5million per annum and a projected amount of USD1.2billion over the remaining term of the contract by way of reduced electricity charges to consumers.
The total annual savings for both gas and electricity is estimated at about USD650.5 million and a projected USD5.2billion over the remaining period of the PPA.
Now specifically to the comment made by Mr. Alex Mould, we wish to note as follows:
The savings of USD170.5million per annum was estimated after a critical analysis of the monetary saving with the use of natural gas by the Powership at prevailing operating conditions, which include the following:
Fuel Recovery Charge
The Karpowership had a Fuel Recovery Charge of 0.09371166 USD/kWh when it was operational on HFO. This amount decreased to 0.05175904 USD/kWh with the conversion to natural gas. Non fuel Variable Operation and maintenance (NFVOM)
The charge for NFVOM also decreased from 0.010483 USD/kWh to 0.0083 USD/kWh with the conversion. The NFVOM includes the operation and maintenance cost which is expected to decrease after the conversion from HFO to gas.
Annual Energy Charge
Based on an expected annual energy of 3,863,160,000 kWh from the Powership to the national grid, the total annual energy cost on HFO was USD 402,520,642.73 as compared to the total annual energy cost of USD 232,017,681 on natural gas. This annual energy charge is a factor of the fuel recovery and the Non fuel Variable Operation and maintenance charge. The difference between the annual cost of energy on HFO and natural gas resulted in the annual saving of USD170.5million referred to above.
We wish to note further that the savings to the state would be more if GNPC under Alex Mould had not negotiated a very high OCTP gas price considered the highest globally for similar projects and which now stands at $10.9/mmbtu. Ghanaians demand answers from him. How patriotic Ghanaian could negotiate such a price.
SIGNED
NANA DAMOAH
HEAD OF COMMUNICATIONS
French oil giant Total has acquired interests in two new licenses offshore Angola in view of developing a new production hub. In addition, Total has extended all Block 17 production licenses until 2045.
Total said on Monday it had signed a sale and purchase agreement with state-owned Sonangol of Angola to acquire interests in Blocks 20/11 and 21/09 in the Kwanza Basin, offshore Luanda.
Subject to the approvals of the competent authorities and partners, the group will hold a 50% working interest, alongside Sonangol (20%) and BP (30%), in Block 20/11, located in the central Kwanza Basin in water depths ranging from 300 to 1,700 meters.
In addition, the group will hold an 80% working interest alongside Sonangol (20%) in Block 21/09, located in the south-central Kwanza Basin in water depths ranging from 1,600 to 1,800 meters.
The wells drilled so far in the two blocks have produced four discoveries — Cameia, Mavinga, Bicuar and Golfinho — and Total and its partners will seek to unlock the value of these prospects by creating a development hub. The group has also committed to explore for additional potential resources in the blocks.
As part of the agreement, Total will become operator of the development of the two licenses before putting in place an operating company together with Sonangol three years after the production start-up.
As per the transaction terms, Total will pay to Sonangol $400 million at closing, to which will be added $100 million at FID and some additional payments along the life of the project depending on production and crude oil price for a maximum cumulative amount capped at $250 million.
“We are very pleased to demonstrate once again our pioneer spirit and our commitment to continue developing Angola’s energy sector by becoming the first company to undertake a development in the Kwanza Basin,” stated Patrick Pouyanné, Chairman and Chief Executive Officer of Total.
“Sonangol welcomes Total as new operator of these strategic blocks,” added Sebastião Gaspar Martins, Chairman and Chief Executive Officer of Sonangol.
“We are confident that Total’s recognized offshore expertise will help to quickly unlock discovered resources in order to continue sustaining the Angola’s production.”
Production license extended to 2045
In addition, Total, operator, and its partners Equinor, ExxonMobil, and BP have signed an agreement with national oil, gas and biofuels agency ANPG and state-owned Sonangol of Angola, to extend their consortium’s production licenses to 2045.
As part of the agreement, Sonangol will obtain a 5% interest in Block 17 on the effective date and an additional 5% interest in 2036. Additionally, the consortium will pay some production bonuses to the State of Angola along the life of the license and will spend $20 million for social programs.
Located 150 kilometers off the Angolan coast in water depths ranging from 600 to 1,400 meters, Block 17 has been a true success story, with almost 3 billion barrels of oil produced since 2001 by four floating production, storage and offloading (FPSO) units: Girassol (2001), Dalia (2006), Pazflor (2011) and CLOV (2014).
Currently producing around 440,000 barrels of oil equivalent per day, the potential of this very prolific block is still high, with more than 1 billion barrels yet to be produced.
Three short-cycle brownfield projects — Zinia Phase 2, CLOV Phase 2 and Dalia Phase 3 — are currently under development on Block 17 to add 150 million barrels of resources, and other brownfield projects for extending the production of Pazflor, Rosa, Girassol and Dalia are under study. Additional exploration campaigns might also help unlock further resources and two wells are already planned to be drilled in 2020.
“We are very pleased to continue the Block 17 success story in Angola. This golden block has allowed us to demonstrate our deep offshore excellence over the past 20 years with numerous technological developments and innovations,” Patrick Pouyanné, Chairman and Chief Executive Officer of Total said.
“This is a significant milestone in our long history in the country and illustrates our commitment to continue developing Angola’s energy sector.”
“We are confident that Total and its partners are committed to examining a number of short-term investment opportunities that have already been identified in order to maintain the production above 400,000 barrels of oil equivalent per day through 2024,” Paulino Jeronimo, Chief Executive Officer of ANPG commented.
“We also look forward to exploring the vicinity in order to add further resources to the Block 17 and, more broadly, for the Country.”
“Sonangol is proud to further diversify its portfolio through this impressive asset and to join the successful Golden Block adventure,” Sebastião Gaspar Martins, Chairman and Chief Executive Officer of Sonangol noted.
After the entry of Sonangol, the Block 17 contractor group comprises Total, operator with a 38% working interest, alongside Equinor (22.16%), Exxon Mobil (19%), BP (15.84%), and Sonangol (5%).
Equatorial Guinea’s Ministry of Mines and Hydrocarbons has said it is aware the new financial measures passed by the Bank of Central African States (BEAC) will create restrictions for international oil companies.
In view of that, MMH says it is prepared to provide continued support to its foreign operators as they put more capital into Equatorial Guinea’s resources.
In June, the BEAC introduced new rules to bring order to a monetary bloc flooded with petrodollars – which often end up in offshore bank accounts after bypassing local economies completely – and curb money laundering and diminishing foreign exchange reserves that are causing cash flow shortages across the CFA union.
The new rules state that all foreign exchange transfers over $1,680 be vetted for approval by the bank, and that all export proceeds above $8,400 be repatriated in 150 days to a local bank account. These stringent rules have resulted in transaction delays of up to three months.
“Equatorial Guinea understands the need to be proactive in promoting investment and reaching out to global energy stakeholders. We will continue to support investment into our hydrocarbon sector, despite challenging circumstances. We welcome all investors to help us further develop our oil and industry,” H.E Gabriel Obiang Lima, Minister of Mines and Hydrocarbons, Equatorial Guinea said.
The central African CFA union comprises Chad, Congo Republic, Equatorial Guinea, Gabon, Cameroon and Central African Republic – all but the last of them among sub-Saharan Africa’s top oil producers, whose financial dealings are among the world’s most opaque.
The newly-appointed Managing Director for the Electricity Company of Ghana (ECG), Kwame Agyemang-Budu says his administration will transform the power distribution company by ensuring expenditure reduction, power supply reliability, improved revenue collection and efficient customer service delivery.
He stated that technical and commercial loss reduction will also be of cardinal focus in his administration.
This, he said, would be done through the intensification of bush clearing activities, system maintenance and improvement works, line patrols, capturing of uncaptured meters, measures to significantly reduce illegal connection, among others.
Mr Agyemang-Budu, who was the Deputy Managing Director of ECG in-charge of customer service before his elevation, urged the staff of the company to ensure that the private sector work ethics, which were exhibited during the company’s takeover by the Power Distribution Services (PDS), be sustained and improved to reflect the abilities of staff to transform the company.
Commenting on expenditure reduction, Mr Agyemang-Budu underscored the need to enhance on project assessment, which, according to him, must bring value for money.
He emphasised that this would be achieved only by ensuring due diligence and the pursuance of standard procurement practices.
He bemoaned the sorry state of ECG’s revenue fortunes but promised to institute awards and incentives for staff who work to improve the situation.
He also expressed his commitment to providing logistics needed to realise the company’s revenue targets.
The Managing Director also touched on customer service and stressed that service delivery would be greatly improved in his two-year plan through the introduction of best business practices, continuous penetration of smart meters, amongst others.
Mr Agyemang-Budu said he had rescheduled non-critical planned maintenance works in order to ensure that there is regular supply of power during the Christmas festivities.
He added that fault intervention team has been well-resourced and assured stakeholders and Ghanaians of ECG’s commitment to regular supply of power in the distribution services.
Speaking to energynewsafrica.com about his recent tour of ECG’s operation regions, Mr Agyeman-Budu said the tour gave him the opportunity to interact with staff to bring before them his vision for the company.
The tour, which started on November 18, 2019, took the form of regional durbars where staff of the company were afforded the opportunity to raise their concerns and grievances to the MD.
The staff requested logistics and also urged for the reduction of political interference in the day to day activities of the ECG.
They were of the view that the absence of political interference or its minimisation would empower them perform better and propel the company to an enviable level.
To that end, leadership of the Public Utilities Workers Union (PUWU) pledged their support to the new ECG boss and expressed their commitment to help improve the company’s corporate culture and bottom line.
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has reversed its earlier directive to Oil Marketing Companies (OMCs) in the West African nation to increase the Bulk Oil Storage and Transport (BOST) margin on petroleum products by GHp3.00
According to a source at NPA, a Memo to reverse the decision was sent to the Oil Marketing Companies earlier today.
The BOST margin was expected to have been increased from GH¢0.03 to GH¢0.06 per litre while the Unified Petroleum Price Fund (UPPF) component saw an increase from GH¢0.01 to GH¢0.22 per litre.
But the Chamber of Petroleum Consumers (COPEC) kicked against the move describing it as nonsense and needless.
According to COPEC, the directive will further increase the price of petroleum products.
“This move by the NPA to slap additional levies on fuel prices at this critical point of Christmas makes a complete nonsense of the efforts by the Finance Ministry and the BOG to intervene to ensure availability of dollars at this time for petroleum importation with the view to forestalling any further increases on already neck-breaking fuel prices in the country.”
Per the directive which is expected to take effect on Monday, 16/12/2019, all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPG-MCs) are to apply an upward review of a combined GH¢0.04 increase to Ghanaian pump prices.
Per the directive, the controversial BOST margin which currently stands at 3p/litre or some cumulative 10,200,000.00 from consumers is to be increased by 100% to a new rate of 6p/ litre or some cumulative 20,400,000.00 from consumers based on current conservative estimates of some 340 million litres of fuel consumed monthly, the UPPF component also gets increased by 4.7% or 1p from the current 21p/litre to 22p/ litre or some 3,420,000.00 cumulative monthly.
Fuel prices across pumps within the country went up by some 1% just last week following from days of a sharp depreciation of the cedi and is believed could go up further in the next window starting tomorrow as the cedi continues to depreciate.
In a statement reacting to the news of NPA reversing its earlier decision, Mr Duncan Amoah, Executive Secretary of COPEC, said information from official sources indicated that President of the Republic and the Chief of Staff stepped in to direct the NPA to immediately reverse their decision.
“COPEC Ghana will like to use this opportunity to thank the President and his chief of Staff for the swift intervention in averting further hardships on Ghanaian petroleum consumers,” the statement said.
Ghana’s president Nana Addo Dankwa Akufo-Addo, has cut the sod for the construction of a Forward Operating Base in Ezilinbo, in Jomoro, in the Western Region, to protect the country’s oil and gas infrastructure
The president revealed that the project is in fulfilment of a pledge he made to the Ghana Armed Forces at this year’s WASSA, on 21st March, 2019.
According to President Akufo-Addo, considering the enormous potentials of the oil and gas sector, and the need to confront the general maritime security challenges in the Gulf of Guinea, Government, through the Ministry of Defence, initiated plans for the establishment of Forward Operating Bases (FOBs) at selected locations along the country’s coast to augment existing naval port infrastructures.
“These locations include Keta in the Volta Region, Winneba and Elmina in the Central Region, and Ezinlibo in the Western Region. Today, I am delighted to be cutting the sod for the first of these bases here in Ezinlibo,” he said.
The infrastructure, whose construction is to be executed by Messrs Amandi and Vuluxx, will include a breakwater and a jetty with double lane tarred road, berthing facilities, and accommodation for one hundred and fifty (150) military personnel.
“As part of the project, Government has also contracted Hawkmoor Co. Ltd. to supply six (6) Phantom boats, and provide other equipment to enhance operational efficiency of the Base. When completed, the Base will serve as an advance military, operational location from where the security of our offshore oil fields, TEN, SANKOFA and JUBILEE, can be co-ordinated and maintained,” the President added.
Congratulating the Minister for Defence, Hon. Dominic Nitiwul, MP, for bringing this maritime security operational plan, which has been on the drawing board since Ghana commenced the exploration of oil and gas in commercial quantities, to reality, President Akufo-Addo stated that the benefits the benefits of the oil and gas industry to the nation’s economy and citizenry are evident for all to see.
The oil and gas sector, the President explained, has witnessed continuous growth, offering jobs and sustainable livelihoods for many Ghanaians.
With more offshore explorations and discoveries being made, and with the country’s daily production rate rising from eighty thousand (80,000) barrels to over two hundred thousand (200,000) barrels per day, this is expected to double to some four hundred (400,000) in the next four years.
“It is evident that huge capital investments in this nascent offshore oil and gas industry come with attendant security challenges, and should, thus, be jealously protected,” President Akufo-Addo added.
Currently, piracy and armed robbery in the Gulf of Guinea continue to pose significant threats to national and regional maritime activities, including the operations of the facilities of the offshore oil and gas sector.
“Aside these major threats, incidents of theft, including illegal oil bunkering, kidnapping at sea for ransom, illegal fishing, terrorism and drug trafficking, are common threats across our territorial waters. These transnational crimes do not only affect national and regional peace and stability, but also impose significant costs on our economy and those of our neighbours, he stated.
The President was grateful to Chiefs and people of Ezinlibo for giving their full support to the project, stressing that it holds good prospects for Ezinlibo and surrounding communities, and the oil and gas industry.
“I expect the project to be completed on time, and I urge the contractors and the consultant to ensure the construction is done in accordance with the designs of the project.
The Ministry of Defence, the Ghana Armed Forces, and all implementing agencies must monitor and provide adequate supervision for the smooth completion of the project,” he added.
The decision by Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA) to increase BOST Margins and Unified Petroleum Price Fund (UPPF) has angered Chamber of Petroleum Consumers, a consumer advocacy group in the Republic of Ghana.
According to COPEC, the directive will further increase the price of petroleum products at the pumps.
In a Memo copied to the Oil Marketing Companies (OMCs) in the West African nation, the NPA said: “We write to inform you of the review of the Unified Petroleum Price Fund (UPPF) and BOST margins in the Price Build Up (PBU) of the Petroleum effective 16th December 2019.”
The UPPF Margins have been increased by GHc1.00 while the BOST Margins have been increased by GHc3.00.
However, COPEC, in a statement copied to energynewsafrica.com described the move as complete ‘nonsense and insensitivity’ on the part of NPA.
Duncan Amoah, Executive Secretary of COPEC
“This move by the NPA to slap additional levies on fuel prices at this critical point of Christmas makes a complete nonsense of the efforts by the Finance Ministry and the BOG to intervene to ensure availability of dollars at this time for petroleum importation with the view to forestalling any further increases on already neck breaking fuel prices in the country.”
COPEC challenged the authority in issuing a memo to OMCs asking them increase UPPF and BOST Margins, saying NPA has no such authority to impose new taxes, levies or margins without the appropriate approvals by Parliament.
It called on them to reverse its decision else they would be compelled to use all available means to test the law.
Energynewsafrica.com‘s checks at BOST revealed that the GHc3.00 increase BOST Margins would translate into 0.56 percent, less than one percent.
Read the full statement from COPEC below.WITHDRAW THE INSENSITIVE INCREASES IN BOST MARGINS AT THE TIME THE CEDI DEPRECIATION IS ALREADY TAKING A TOLL ON FUEL PRICES
Our attention has been drawn to a Memo from the National Petroleum Authority ( NPA ) dated Friday 13/12/2019, to all Petroleum Service Providers indicating a decision to further increase some elements on the already high petroleum price build-up and fuel prices.
Per the directive which is expected to take effect tomorrow, 16/12/2019, all Oil Marketing Companies ( OMCs ) and LPG Marketing Companies ( LPG-MCs ) are to apply an upward review of a combined 4 pesewas increase to Ghanaian pump prices.
Per the directive, the controversial BOST margin which currently stands at 3p/litre or some cumulative 10,200,000.00 from consumers is to be increased by 100% to a new rate of 6p/ litre or some cumulative 20,400,000.00 from consumers based on current conservative estimates of some 340 million litres of fuel consumed monthly, the UPPF component also gets increased by 4.7% or 1p from the current 21p/litre to 22p/ litre or some 3,420,000.00 cumulative monthly.
Fuel prices across pumps within the country went up by some 1% just last week following from days of a sharp depreciation of the cedi and is believed could go up further in the next window starting tomorrow as the cedi continues to depreciate.
This move by the NPA to slap additional levies on fuel prices at this critical point of Christmas makes a complete nonsense of the efforts by the Finance Ministry and the BOG to intervene to ensure availability of dollars at this time for petroleum importation with the view to forestalling any further increases on already neck-breaking fuel prices in the country.
Whiles admitting BOST needs some capital injection in their operations, it is completely needless to push such needed investments into their operations onto the already high fuel price build-up and affirms our long-held position of the need to properly restructure that institution to cut back on the completely needless waste of resources at the said institution.
Some Past managers of BOST are widely known to have simply fleeced the company for their private gains and till date, not a single one of them has been made to account or refund whatever they probably looted.
The proverbial adage of using a basket to fetch water seems to be case in this instance as we believe other private depots and Tema oil refinery who do not get any margins at all for the maintenance of their tank farms from the price build-up are able to manage their operations and even record profits sometimes but the inverse seems the case with BOST.
It is a widely held contention that what BOST needs currently is restructuring and repositioning to make it sustainable such that it doesn’t become a burden on the already burdened fuel consumer.
Attempts should be made to diversify Bost and where the necessary list on the stock market to ensure the continuous plundering of resources by appointees within this institution is effectively curtailed.
We use this opportunity to further remind the NPA it has no such authority to impose new taxes, levies, or margins without the appropriate approvals by parliament and hence this memo must be withdrawn immediately and reconsidered as we will not hesitate to test the law on this particular move to further burden all of us within the country.
The apparent insensitivity by some functionaries of State must also cease forthwith as it is becoming evident the suffering of the trotro, taxi and ordinary Ghanaians falls on deaf ears anytime we complain of these increases.
Signed.
Duncan Amoah
Executive Secretary
GE Renewable Energy has won a contract from Holmen, a Swedish forestry and paper corporation, to supply 26 of its Cypress class wind turbines for the Blåbergsliden wind farm. The turbines should be installed and ready for operation by the end of 2021.
The total output of those turbines will be 143 MW, enough to power 135,000 homes, according to the Swedish Energy Agency and the Swedish Bureau of Statistics.
This marks the second time that GE Renewable Energy has been selected to provide onshore wind turbines for use in Sweden. The contract includes a provision making GE Renewables responsible for maintenance for 25 years after the turbines are installed.
A unique feature of the Cypress turbines is their two-piece blade design which allows them to be transported to and erected in places that are usually inaccessible to conventional wind power equipment.
The two-part blades allow for taller pylons that can produce more power which helps lower costs. When operational, the Blåbergsliden wind farm is expected to save more than 13,000 tons of greenhouse gas emissions annually, according to a GE Renewables press release.
“The benefits of the Cypress platform make it the perfect fit for the Nordics region. That’s why we’re confident that this deal with Holmen can be one of many in the market,” Peter Wells, CEO of onshore wind in Europe for GE Renewables, said.
The Cypress onshore wind platform enables significant Annual Energy Production (AEP) improvements, increased efficiency in serviceability, improved logistics and siting potential, and ultimately more value for customers.
The two-piece blade design enables blades to be manufactured at even longer lengths and improves logistics to drive costs down and offer siting options in locations that were previously inaccessible, according to the company.
GE has taken it on the chin lately as its steam generation business, once a staple of the company’s portfolio, collapsed. But the Renewables division is fighting to take up some of the slack in GE’s earnings with cutting edge wind power technology like the two-piece blade design for its Cypress wind turbines.
Ghana’s leading oil marketing company, GOIL, has, begun rewarding 920 customers nationwide who patronise the company’s products since the launching of ‘Efie Ne Fie’ promotion to reward.
Sixty customers are expected to receive GHc1, 000 worth of fuel, three hundred customers would receive GHc500 worth of fuel while five hundred and sixty customers would receive GHc300 worth of fuel.
The commencement of the rewards, which began at the Burma Camp Goil Service, Accra, last Thursday, saw 19 people in the West African country’s capital city receiving their rewards.
Some of the customers who received GHc1,000 worth of fuel coupon were Forgive Amoah and Danjumah Musah, both from Kasoa, Samuel Ofusuhene of West Hills Mall and Emmanuel Antwi from Amasaman.
Other customers who also received GHc500 cedis worth of fuel coupons were Frederick Aduful from Liberia Camp, Yaw Sarpong from Madina, and Eric Oduro from Tema who received GHc300 worth of fuel.
‘Efie Ne Fie’ in the Ghanaian parlance means ‘home is home’ and the promo, according to the company, is to appreciate their customers for their continuous loyalty to the brand.
The promotion is running in all the 390 GOIL service stations across the West African nation and will end in January 2020.
Patrons of GOIL, who buy a product worth GHc100, GH¢50 and GH¢30 will automatically receive a reward.
According to GOIL, 645,812 drivers are expected to benefit from this promotion while 2,500 tantalising rewards are also on offer for ultimate reward throughout the period of the promotion.
Speaking at the presentation of the rewards, Managing Director and Acting Group Chief Executive Officer of GOIL Company Limited, Kwame Osei-Prempeh said: “At GOIL, we appreciate our customers so every year, we use ‘Efie ne fie’ promotion to reward our loyal customers.
“You’re all witnesses to what has happened here. You saw what we have given to our customers,” Mr Osei Prempeh told reporters at the event.
He stressed that the promotion was not a raffle, saying every customer who bought GH¢100, GH¢50 or GH¢30 worth of fuel or more from GOIL would get instant reward made up of thousands of cedis of airtime credited on mobile phones, dusters, face towels, tissue boxes, T- shirts and other gifts.
He urged Ghanaians to be patriotic and patronise from GOIL since it is a wholly Ghanaian-owned in order to help grow the Ghanaian economy.
“If you buy from GOIL, the money will stay in the country unlike our competitors who will repatriate the money home,” he said.
Benjamin Okyere, a tipper truck driver, who received GHc1000 worth of fuel coupon, said he received similar reward last year.
He called on drivers to buy from GOIL, saying “when you buy from GOIL, because the fuel is of quality, you won’t have any problem with your engine and pump.”
Chief Operating Officer for GOIL, Josiah Adzew told energynewsafrica.com that GOIL was recently named as the third most respected company at the Ghana Club 100.
Mr Adzew, who described GOIL as the biggest Oil Marketing Company (OMC) which is supporting the country’s economy, urged Ghanaians to patronise the company’s products.
The Abu Dhabi National Oil Company (ADNOC) has signed, a Framework Agreement with Reliance Industries Limited (RIL) to explore development of an Ethylene Dichloride facility in Ruwais, Abu Dhabi.
The signing of the agreement was witnessed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Mr. Mukesh D. Ambani, RIL Chairman and Managing Director.
The agreement was signed by Mr. Abdulaziz Alhajri, Executive Director of ADNOC’s Downstream Directorate, and Mr. Nikhil R. Meswani, RIL Executive Director.
Under the terms of the agreement, ADNOC and RIL will evaluate the potential creation of a facility that manufactures EDC adjacent to ADNOC’s integrated refining and petrochemical site in Ruwais, Abu Dhabi and strengthen the companies’ existing relationship supporting future collaboration in petrochemicals.
ADNOC would supply ethylene to the potential joint venture and provide access to world-class infrastructure at Ruwais, while RIL will deliver operational expertise and entry to the large and growing Indian vinyls market, in which it is a key participant.
EDC is a basic building-block for manufacture of PVC, a polymer product in increasingly higher demand globally. PVC plays a critical role in the housing and agriculture sectors, and demand for PVC, particularly in the Indian vinyls market, is expected to grow significantly.
“The agreement with Reliance Industries Limited is a product of our strong relationship, spanning over two decades, and a testament to ADNOC’s continued ability to cultivate smart and mutually beneficial international partnerships. We look forward to working closely with RIL to identify opportunities to capitalize on the strengths of the Ruwais ecosystem, while delivering a compelling new commercial platform for satisfying the large Indian PVC market, as well as demand for other fast-growing segments in the region, ”Mr. Abdulaziz Alhajri.
On his part, Executive Director for Reliance Industries Limited Mr Nikhil Meswani said: “This is a significant step towards Reliance’s commitment to pursue backward integration and will pave the way for enhancing PVC capacity in India to cater to the fast growing domestic market. This co-operation ideally combines advantaged feedstock and energy from the UAE with Reliance’s execution capabilities and the growing Indian market.”
ADNOC’s expansion and new investment in downstream will accelerate the delivery of its 2030 strategy, powered by a $45 billion investment, and create a more flexible, resilient and diverse energy business, optimizing its performance and stretching the dollar from every barrel of oil it produces. Ruwais’ appeal as a unique feedstock engine, capable of producing the full range of essential building blocks along the petrochemical value chain will see the Ruwais Derivatives and Conversion Parks become a global destination of choice for investors and manufacturers wishing to establish a strategic presence in the UAE. Such investments have the potential to generate numerous specialized local career opportunities, while significantly boosting ADNOC’s in-country value creation.
About ADNOC
ADNOC is one of the world’s leading diversified energy and petrochemicals groups with a daily output of about 3 million barrels of oil and 10.5 billion cubic feet of natural gas. With 14 specialist subsidiary and joint venture companies, ADNOC is a primary catalyst for the UAE’s growth and diversification.
US oil and gas giant ExxonMobil, has presented $50,000 to CitySquare to help advance the organization’s efforts to fight poverty in the Dallas/Fort Worth area.
The contribution marks the 14th annual ExxonMobil Chairman’s Holiday Gift, which benefits and highlights a deserving nonprofit organization in the North Texas region.
CitySquare’s programs help lift low-income individuals and families out of poverty
ExxonMobil’s $50,000 contribution will support services that address hunger, health and housing
Annual holiday gift program highlights and benefits a local nonprofit organization in North Texas
“ExxonMobil is committed to investing in the communities around the world where we live and work,” Darren Woods, who is ExxonMobil chairman and chief executive officer of ExxonMobil said.
“We chose to support CitySquare this year because of its dedication to combatting the causes and effects of poverty through programs that address focus areas such as hunger, housing, health and hope.”
Since its creation in 1988, CitySquare has grown into a broad community development organization that today provides 22 social service programs, including health care and housing assistance, workforce readiness, legal aid, a food pantry, crisis intervention and financial coaching. Its social service programs reach more than 50,000 individuals annually.
“On behalf of all of us at CitySquare and our neighbors who will benefit from this generosity, I want to thank Chairman Woods and ExxonMobil,” Larry James, chief executive officer of CitySquare said.
“ExxonMobil’s support will make a meaningful difference in the lives of those struggling to lift themselves out of poverty every day.”
ExxonMobil established the Chairman’s Holiday Gift in 2006 to help fund the work of nonprofit organizations in North Texas, home to the company’s corporate headquarters. Recent recipients have included Family Compass, Promise House, The Gatehouse and Jonathan’s Place.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world.
About CitySquare
CitySquare is the largest public housing provider in North Texas, providing more than 700 housing units in Dallas. It operates a food pantry and child nutrition program, offering free meals to children after school and during summer, and its clinic provides medical services for uninsured children and adults. CitySquare also offers pre-employment training programs and legal services to help build financial stability to help individuals break the cycle of poverty.
Other customers who also received GHc500 cedis worth of fuel coupons were Frederick Aduful from Liberia Camp, Yaw Sarpong from Madina, and Eric Oduro from Tema who received GHc300 worth of fuel.
‘Efie Ne Fie’ in the Ghanaian parlance means ‘home is home’ and the promo, according to the company, is to appreciate their customers for their continuous loyalty to the brand.
The promotion is running in all the 390 GOIL service stations across the West African nation and will end in January 2020.
Patrons of GOIL, who buy a product worth GHc100, GH¢50 and GH¢30 will automatically receive a reward.
According to GOIL, 645,812 drivers are expected to benefit from this promotion while 2,500 tantalising rewards are also on offer for ultimate reward throughout the period of the promotion.
Speaking at the presentation of the rewards, Managing Director and Acting Group Chief Executive Officer of GOIL Company Limited, Kwame Osei-Prempeh said: “At GOIL, we appreciate our customers so every year, we use ‘Efie ne fie’ promotion to reward our loyal customers.
“You’re all witnesses to what has happened here. You saw what we have given to our customers,” Mr Osei Prempeh told reporters at the event.
He stressed that the promotion was not a raffle, saying every customer who bought GH¢100, GH¢50 or GH¢30 worth of fuel or more from GOIL would get instant reward made up of thousands of cedis of airtime credited on mobile phones, dusters, face towels, tissue boxes, T- shirts and other gifts.
He urged Ghanaians to be patriotic and patronise from GOIL since it is a wholly Ghanaian-owned in order to help grow the Ghanaian economy.
“If you buy from GOIL, the money will stay in the country unlike our competitors who will repatriate the money home,” he said.
Benjamin Okyere, a tipper truck driver, who received GHc1000 worth of fuel coupon, said he received similar reward last year.
He called on drivers to buy from GOIL, saying “when you buy from GOIL, because the fuel is of quality, you won’t have any problem with your engine and pump.”
Chief Operating Officer for GOIL, Josiah Adzew told energynewsafrica.com that GOIL was recently named as the third most respected company at the Ghana Club 100.
Mr Adzew, who described GOIL as the biggest Oil Marketing Company (OMC) which is supporting the country’s economy, urged Ghanaians to patronise the company’s products.
