The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN) have threatened to embark on a three-day strike beginning Wednesday, June 24, 2020 over alleged forceful enrolment of members into the Integrated Payroll and Personnel Information System, (IPPIS).
According to the Vanguard, the oil workers have hinted of shutting down all oil installations across the West African nation.
Sources say NUPENG and PENGASSAN had written to the Minister of State for Petroleum Resources, Labour, and Employment, protesting the decision of the Federal Government to stop the payment of salaries of oil workers in government parastatals, who are yet to be roll unto the IPPIS platform as at Thursday, June 18.
An official of PENGASSAN lamented that the oil workers’ unions had been meeting with the management of IPPIS over the matter for a long time without any headway, insisting that oil workers in the public sector have rejected IPPIS.
According to him, “we have intimated Minister of Labour and Employment as well as Minister of State for Petroleum Resources.
“The ball is in the court of the Federal Government to apprehend the matter before it degenerates. Even up till last Friday, we still wrote letters to the government on the need to address the matter. “We have already asked our members to be ready for any eventuality. So, between Monday and the close of work on Tuesday, if nothing concrete comes from the Federal Government, we will have no option than to direct our members to proceed on three days warning strike from Wednesday, June 24.”
The letter to the Minister of State for Petroleum Resources, dated June 19, 2020, was entitled: ‘Re: Enrolment of Federal Ministries, Departments and Agencies into the Integrated Payroll and Personnel Information System, IPPIS, reminder.
The letter of threat to strike over IPPIS, signed by General Secretary of PENGASSAN, Lumumba Okungbowa and General Secretary of NUPENG, Olawale Afolabi, called on the minister, Chief Timipre Sylva, to intervene in the matter and prevail on the Accountant-General of the Federation to desist from forcefully enrolling its members.
“We are in receipt of a copy of a directive from the office of the Accountant-General of the Federation, directing the Federal Ministries, Departments and Agencies to register their staff on the Integrated Payroll and Personnel Information System, IPPIS, platform on or before Thursday, June 18; threatening further release of Personnel Cost if the directive is ignored.
“Please be informed that the Association/Union apprehension about the IPPIS platform stems from the fact that it discountenances the peculiarities of the oil and gas industry with regards to Collective Bargaining Agreement, CBA, and approved pay structure between Union and Federal Government though the Salaries, Wages, Income Commission. “Recall that through a committee set by the Ministry of Labour and Employment, we have been meeting with the IPPIS to consider its peculiarities in coming unto the IPPIS platform, instead of a blanket implementation.
“These talks have not been concluded and we called for a resumption of talks in order to resolve the issues raised and, where required, provide additional information to the IPPIS,” then added their threat to strike over IPPIS,” the letter stated.
Source:www.energynewsafrica.com
The management of Ibadan Electricity Company Plc (IBEDC) in the Republic of Nigeria has expressed concern over what it described as “incessant cases” of vandalism of electrical installations across its network.
A statement issued by the company and signed by the Chief Operating Officer, Mr John Ayodele, said the activities of vandals have plunged lots of households, businesses, and communities into darkness while costing the company revenue losses worth millions of naira.
The company noted that the alleged vandals mostly target transformers and Up-riser cables worth millions of naira.
“From January to April 2020, more than 38 Transformers have been vandalized amounting to 1154.9 Mwh undelivered energy.
“For instance, in the Olulana community under Ijeun business hub, the 300KVA Transformer has been vandalized several times, also in Ogun state, Victory 500KVA Transformer in Mowe community was vandalized on different occasions. The Transformers at Iragbbiji and Orororowu communities under the Ikirun business hub in Osun State were dismantled by vandals, leaving the people in total darkness for months,”the company said.
It added that the vandals also recently carted away cables of a 330KVA and 500KVA transformers at Surulere and Kuponniyi substations at Oyo State. This is as he urged community leaders, youth associations, and security agencies to work with the distribution company in the protection of electrical installations within their communities.
The company called on vigilante groups and any other patriotic members of the communities with useful information to report cases or culprits of vandalism promptly, adding that the company will continue to collaborate with security agencies to track the vandals and prosecute them.
It warned that anyone caught would be made to face prosecution, adding that it would no longer be business as usual for the vandals.
According to the company, the vandals risk being electrocuted and cautioned that offenders and collaborators in the crime when apprehended would be liable for up to life jail term.
Source: www.energynewsafrica.com
Africa Oil & Power and the African Energy Chamber, have hosted webinar under the theme: ‘Closing Deals: Advancing FID During COVID-19 to explore the future of deal-making and African energy financing in the short- and long-term, following the unprecedented impact of COVID-19 on the sector.
As operators continue to face uncertainty and a low-price oil environment, a range of survival strategies have been employed in the short term, including halting non-essential activities; adopting furlough or layoff strategies; slowing output; refining sales and purchase agreements and utilizing financial hedging instruments to market crude.
In the long term, however, COVID-19 will necessitate a reassessment of project development plans, many of which carry operating costs incompatible with a $40-barrel price.
“We are in unchartered waters. The IMF is estimating a 3% reduction in global GDP for 2020. The effect is almost triple to that of the 2008 financial crisis,” Marcia Ashong, Founder and Executive Director of TheBoardroom Africa and Brace Energy said.
“Africa remains largely a commodity-based economy, and raw materials make up one-third of the continent’s export income. The road to recovery will be extremely slow and arduous. The full effect of COVID-19 on our economies is not fully recognized yet. From the oil and gas perspective, it has derailed major projects. For example, the Aker decision in Ghana [to postpone FID] will postpone further work on its Pecan discovery,” she added.
While the financial viability of oil exploration and production projects has been called into question against a low barrel price, natural gas monetization projects appear to tell another story. In February, Total announced that its Mozambique LNG project is still on track to come online before 2025.
“There has definitely been a difference between oil and gas globally. In oil, COVID-19 has impacted mobility, and demand dropped as low as 72 million barrels in April,” Paul Eardly-Taylor, Oil & Gas Coverage, Southern Africa, Standard Bank said.
“Bizarrely, in the world of liquefied natural gas (LNG), things have been a bit different. As of last week’s IA report, LNG demand was up 8.5% year-on-year globally. That is feeding through to Africa. For an African project [Total’s Mozambique LNG] to raise $15 billion in debt financing in the middle of COVID-19 is an astonishing achievement. With no material second wave occurring and from an energy perspective, the world could be right side by the end of the year. Hopefully 2021 will be Africa’s 2020.”
In terms of FIDs on the continent, only a few definitive delays have been encountered. In Mozambique, ExxonMobil has indefinitely delayed FID on its natural gas project in the Rovuma basin. In Uganda, FID taken by Total for the Tilenga project has been postponed until 2022, while initially planned for the end of 2019.
“We are seeing that if your project is squarely in the energy transition, at worst, it will be delayed by a year or so,” Eardley-Taylor said. “Mozambique is case-in-point. ExxonMobil is even expected to go ahead next year once it has secured a cheaper EPC price. Of the projects that are traditionally funded in Africa and are in the headlights of the energy transition, to what extent can they be achievable and fundable? In Uganda, there has been a strong alignment between stakeholders and lead sponsor Total. There is every expectation that even an onshore oil project with a long ride to the coast may take FID in the coming months or year.”
The lending behaviour of financial institutions will also be impacted by the environmental dynamics of projects, with access to attractive funding terms and project development support then further driving the shift to renewable energy investments.
“The African Development Bank is keen to put money toward renewable energy. Climate change has come into play as constraining financial capabilities of oil and gas companies,”Arron Singhe, Chief Oil Sector at the African Natural Resources Centre, African Development Bank said.
“COVID-19 is sending a significant message to the African oil and gas industry that the paradigm is changing. As an industry, we need to review the way in which we re-develop projects. When the fundamentals of a project are strong and the sponsors have the financial power and leverage from the market, the project has a higher chance of succeeding. It is very important for private investors to look at the environmental situation in the project. How much of your project is contributing to preserving the environment? Beyond COVID-19, this will influence the financial flow of the oil and gas industry in Africa.”
In terms of mergers and acquisitions driven by COVID-19 as companies attempt to consolidate assets, the trend is expected to defy that of previous financial downturns.
“From 2014 onward, we saw a scramble for assets,” Ashong said. “At that stage, company valuations were at their lowest. This time, the trend is the opposite. Companies that will most likely be acquired face several more challenges beyond just acquiring cheaper assets. They have put disposal plans in place to meet cost reduction targets. There are severe constraints on capital and dwindling cash reserves are being prioritized for divided payments. Acquisition targets are also not as attractive as we wished them to be.”
Going forward, there are various financial models that can be utilized to alleviate individual risk and reduce financial exposure of companies in the face of an uncertain operating environment.
“Angola is a strong example of this, as the country essentially moved down this route two to three years ago, explicitly with the marginal field terms and gas law,” Eardley-Taylor said. “Our general understanding is that on a case-by-case basis, individual concessions have been able to amend fiscal terms. For three different concessions, Angola did a ‘blend and extend.’ By getting a longer contractual term for the concession, a percentage of equity was then given to Sonangol that it previously didn’t have.”
Sasol, a South Africa-based integrated energy and chemical company has announced plans to look beyond the near-term measures and position its business for sustained profitability in a low oil price environment.
The Group’s new strategy is to focus on core portfolios of chemicals and energy.
This decision is part of Sasol’s response to address the impacts of the oil price volatility and the COVID-19 pandemic.
“A focused and robust review of the business, and the associated workforce structures, is underway and a detailed update will be provided to stakeholders alongside the full-year results,” the company said in a statement.
A key decision as a result of this includes the discontinuation of all oil growth activities in West Africa.
“The reset of the strategy necessitates a revised operating model, which is still under development and will be announced in the second quarter of the financial year 2021,” read part of the statement.
Sasol explained that revision of the Group’s strategy aims to have a greater focus on enhanced cash generation, value realisation for shareholders and business sustainability.
While the chemicals business will focus on its activities in speciality chemicals, where it has differentiated capabilities and strong market positions which can be expanded over time.
The energy business will comprise the Southern African value chain and associated assets and will pursue greenhouse gas emission reduction (GHG) through a focus on gas as a key feedstock and renewables as a secondary energy source.
This will be a key enabler to achieve the 2030 and longer-term aspirations to shift to a lower-carbon economy.
“The redesign of the organisation to enable our sustainability at lower oil prices will have an impact on our workforce structure. We have accordingly issued a notice to our representative trade unions in South Africa in terms of section 189 of the Labour Relations Act number 66 of 1995, inviting them to enter into consultation with Sasol. A similar process will be followed with the relevant recognised bodies in our other jurisdictions,” the statement concluded.
Source:www.energynewsafrica.com
Burkina Faso’s national energy supplier, SONABEL, has worked with MAN Energy Solutions to increase the country’s generation capacity by 55MW with the expansion of one of its power plants.
The power plant which is located in Kossodo – a suburb of the capital city, Ouagadougou will use three MAN 18V51/60TS engines to increase generation capacity by almost 20% in Burkina Faso.
The plant is owned by SONABEL, with local company Tecmon BF as the main contractor.
“At present, only 30% of Burkina Faso’s population has access to electrical energy. The government now wants to change this and is planning to significantly increase generation capacity in the next years. We are proud of our contribution to this through our new engines in Kossodo,” Waldemar Wiesner, head of Middle-East Africa for power plant sales at MAN Energy Solutions said.
The three engines incorporate two-stage turbocharging. Gensets of this design have both a low- and a high-pressure compressor, which operates in series to deliver an increase in power density and efficiency.
This simultaneously guarantees maximum fuel efficiency and a more compact system design.
Wiesner further commented: “… the high service quality that we have demonstrated over the years in maintaining various engines already in operation was decisive for winning this order.
“In addition, SONABEL has chosen an innovative engine setup for the power plant in Kossodo, making it, by far the most efficient power plant in the country and clearly meeting the emission guidelines of the World Bank.”
Source:www.energynewsafrica.com
The Board of Directors of the African Development Bank (AfDB) has approved a €225 million ($253 million) loan to finance Egypt’s Electricity and Green Growth Support Programme (EGGSP).
The funding will help meet the government of Egypt’s financing requirements in the light of the COVID-19 pandemic and support a sound electricity infrastructure base, a key enabler for the private sector and for the country’s competitiveness.
The EGGSP reform programme seeks to promote a sustainable, competitive and diversified electricity sector that ensures secure supply and supports climate change mitigation and green growth.
“Accelerated deployment of the EGGSP reform programme is instrumental to meet energy needs, combat climate change and promote sustainable development in Egypt. This multi-partner programme provides a model for effective coordination among development partners as we continue to collaborate with all development partners to promote for a green recovery,” Minister for International Cooperation, Dr Rania Al Mashat said in released copied to energynewsafrica.com.
“The EGGSP aims to improve the security of energy supply by increasing the share of renewable energy and improving the financial sustainability of the electricity sector with a view to ensuring greater participation of the private sector in injecting more investments in renewable energy,” Dr. Mohamed Shaker, minister of electricity and renewable energy, noted.
Over the last few years, Egypt has implemented robust reforms aimed at correcting macroeconomic imbalances and improving the business environment and fostering inclusive growth. This progress, however, is threatened by the impact of COVID-19 on the different economic sectors, including the power sector, and on the vulnerable.
The bank’s Director General in charge of North Africa Region, Yacine Fal noted that although the pandemic has put extreme pressure on the economy and the social situation of Egypt, the economic reforms undertaken by the government of Egypt and the Central Bank of Egypt, over the past few years have helped to create greater resilience and also provided a buffer against shocks such as that of COVID-19 pandemic.
The financing provided under the EGGSP support will buttress measures being taken by the government of Egypt to combat the pandemic and to protect the most vulnerable during these difficult times.
It will also help stimulate new private investments in the electricity sector and increase the deployment of clean energy in line with Egypt’s targets for green growth.
The AfDB’s Country Manager for Egypt, Malinne Blomberg, highlighted that the newly approved programme is a continuation of the Bank’s partnership with the government of Egypt on the country’s reform agenda.
In addition to the partnership with the national authorities, the AfDB is collaborating with the French Development Agency and Japan International Cooperation Agency on the Programme.
Chief Executive Officers of Hydropower generation companies across the globe who participated in a meeting convened by the International Hydropower Association (IHA) to discuss how hydropower can contribute to global recovery efforts are of the view that an economic stimulus packages involving investment in sustainable hydropower among other renewables will be essential to Covid-19 recovery efforts.
Eddie Rich, International Hydropower Association’s CEO, and eleven hydropower CEOs and top executives from IHA’s membership, presented a united message on the need for sustainable hydropower as part of the energy mix for a green recovery.
The General Manager for Yalong River Hydropower Development Company, China Mr. WU Shiyong, said, “Increasing hydropower investment will support the economic revival in China. It is expected that we will start construction of a project involving investment of around USD20bn in the second half of this year. In other parts of the world there is a need for increased investment in hydropower to recover from the crisis.”
Contributing to the discussion Irene Cañas who is CEO of Instituto Costarricense de Electricidad, Costa Rica, said, “I believe that in the recovery from Covid-19 we should be sure to do it in a sustainable way and thinking not just of electricity but also of water. These two needs are very important in the world right now.”
“We hope the IHA and IEA can support hydropower sustainable development and help in setting up national energy policies so that we have tax incentives, green bonds, and fast-track approval by the authorities; and also potentially look at internationalising the renewable energy certificate initiative,” James Ung Sing Kwong, CEO, SEB Power, Malaysia said.
On his part, Gil Maranhao Neto, Chief Strategy, Communications & CSR Officer of ENGIE Brasil, Brazil noted that a good measure done by the Brazilian gov’t was the declaration of suspension of financing and debt service payments for projects being done by the federal bank for up to six months. This could be followed by other countries.”
Neto added: “Brazil is not building any hydropower at this time. Getting even basic engineering design and environmental studies required for the licensing takes between two to three years. We should urgently resume the preparation of projects.”
“One of the main concerns is the low cost of electricity around the world; it will be very difficult to finance hydropower projects. We see that sustainable hydropower projects are competing with wind and solar for example with green subsidies. It’s important to find ways to get the right long-term market conditions to support hydropower development,” Hörður Arnarson, CEO, Landsvirkjun, Iceland.
“This technology of hydro has proven you can run it during a pandemic situation so if you look through the lens of future modernisation, how do we pandemic-proof our hydro plants? How do you minimise the impacts?” Herbie Johnson, General Manager, Southern Company, US.
“It is important to focus on maintaining the existing capacity of the hydropower fleet through refurbishment activities. We would also like the IEA to support a long-term framework for the future,” Hilde Bakken, Executive Vice President, Statkraft, Norway.
Anton-Louis Olivier, CEO of REH Group, based in South Africa, said: “With the growing emphasis and prevalence of solar and lower cost but intermittent resources, we should not neglect the need for hydro to create the base on which these lower-cost technologies can also enter into the market.
“My message to the IEA in dealing with the international financial sector and multilaterals guiding the future of the energy sector in Africa is to remember that hydro, large and small, can still play a significant role in the continent, and can contribute to a growing and decarbonised power sector.”
Yves Marie Giraud, Director of EDF-Hydro, France, said hydropower was the best way and the only way to store energy in large quantities and over long periods, but markets should be designed better to reflect this.
“Usually, we do not have the appropriate market design nor the mechanisms to support storage in general, and pumped storage plants in particular.”
This, view was echoed by Stephen Davy, CEO of Hydro Tasmania, Australia, who said: “Pumped hydropower investment is the easiest and most straightforward way to maximise solar and wind generation in the energy system. In Australia, we are promoting the market measures required to properly value storage and flexibility.”
The Executive Director of IEA, Dr Birol acknowledged the points made by the hydropower CEOs, including about the importance of storage, modernising plants, and keeping long-term policy support; as well as the multiple non-energy benefits of hydropower, such as flood and drought control, irrigation and climate resilience.
As well as feeding into this week’s IEA World Energy Outlook special report, the discussion will be considered for the IEA’s Clean Energy Transitions Summit on 9 July 2020. Dr Birol pledged to take the feedback from the meeting to the government ministers and policymakers attending the Summit.
Roger Gill, IHA President, said the meeting was very timely for the hydropower sector to outline the measures needed to spur sustainable hydropower and support the recovery, particularly relating to incentivising storage and modernisation projects.
The OPEC+ technical committee that met on Wednesday did not make any additional recommendations for further cuts in oil production.
Rather, it focused on members, who are failing to adhere to the current agreement,
Another purpose of the meeting was to review the impact of the cut.OPEC’s second-largest producer, Iraq, is also historically the least compliant member of OPEC+.
Nevertheless, even Iraq has made significant cuts in its crude oil exports this time around.
Exports from Iraq fell by 300,000 barrels per day (bpd), or by 8 percent, in the first two weeks of June compared to May.
These figures suggest that Iraq is continuing to improve on its compliance with the record production cuts, thanks in part to some sound strong-arming from Russia and Saudi Arabia, who refused to sign onto another month of high-level production cuts unless the laggard members do their part.
But coming closer to the agreed-upon cuts in June is two months too late—for a two-month pact.
According to the OPEC+ sources, Iraq, along with Kazakhstan, is expected to present at today’s JMMC meeting their plans for how they will make up for the extra barrels they produced in May and so far in June.
The group will likely expect the laggard members to make up for their overproduction, barrel for barrel, in July and August.
OPEC+’s compliance was 87% in May.
The OPEC+ cuts of 9.7 million barrels per day have had a modest positive effect on oil prices so far, not least because the amount of crude oil in storage around the world is still rather excessive. And there are growing fears, including within the oil industry, that some of that lost demand is not coming back anytime soon.
The Uganda oil and gas market is undergoing a rapid transformation over the recent past.
The country offers a strong growth outlook with significant new investment opportunities in the medium to long-term future. In particular, domestic and foreign companies planning to expand their operations in the Uganda midstream and downstream oil and gas industry will witness new opportunities.
Amidst the series of latest market developments, OGAnalysis – the leading oil and gas research and consulting company published a comprehensive guide for strategy formulation and business development decision-makers interested in Uganda oil and gas.
The Uganda oil and gas industry research includes comprehensive data and analysis on the country’s oil and gas trends, oil and gas projects, planned investments, competition and market developments to 2025.
The study presents short term and long term trends shaping the future of Uganda oil and gas markets. The report also presents reliable forecasts for the production and consumption of Uganda crude oil, natural gas, motor gasoline, diesel, Fuel oil, LPG along with Primary energy demand, economic growth, and population. Further, the plant-by-plant capacity outlook of refining (CDU, coking, FCC, HCC), oil and chemicals storage terminals, LNG liquefaction terminals/regasification terminals are provided to 2023.
The analytical report details all major operational, planned and proposed oil and gas projects in Uganda. In addition, investment opportunities in the country’s oil and gas sector are detailed. The study evaluates the country’s energy infrastructure, market conditions, investment potential and competitive landscape of oil and gas upstream, LNG, storage, and downstream refining markets.
To assess the real prospects and restraints of expanding or operating in the Uganda oil and gas market are identified through detailed SWOT Analysis. Further, the country’s oil and gas market is benchmarked against its peer markets in the region. It also highlights Uganda’s market potential and project feasibility. In-depth data on exploration blocks, refineries, storage and LNG terminals along with required capital investments (CAPEX), status, planned commencement dates, companies and organizations involved in planned projects are detailed.
The report also analyzes three leading oil and gas companies operating in the Uganda oil and gas value chain. Business operations, SWOT Analysis and financial performance of these three companies are included in the research. All recent developments in the industry and their impact on Uganda oil and gas market and companies are included in the study.
The report scope includes-
• The outlook of Supply and Demand of Oil, Gas, LPG, Gasoline, Fuel Oil, Diesel, LNG, Primary Energy Demand, GDP, and Population to 2028
• The outlook of project wise, company wise and country wise capacity of Refining (CDU, Coking, Fluid Catalytic Cracking, Hydrocracking), LNG (Liquefaction, Regasification), Storage to 2023
• Analysis across Uganda oil and gas value chain- oil and gas fields, blocks, oil, products, chemicals storage, underground gas storage, refineries, LNG, and others
• Strategic analysis review comprising SWOT Analysis, comparison with peer markets, drivers and restraints
• Identifying potential investment projects with current status, owners, construction developments of planned refineries, new units, expansions and upgrades, exploration blocks on offer, LNG terminals, new storage facilities
• Field wise production, 2012- 2019, exploration blocks on offer, bidding round information is included
• Market structure and market share of leading five companies in each of the oil and gas segments are provided
• Business profiles of three leading companies including their business operations, SWOT and financial details
• Recent industry deals and news in Uganda oil and gas market
Source:www.energynewsafrica.com/marketresearch.com
Global oil demand will rebound next year as the world emerges from the Coronavirus pandemic, but recovering to pre-crisis levels may take a couple of years, the International Energy Agency (IEA) has predicted.
Fuel use around the world will remain 2.5% lower next year than in 2019, largely because of the “the dire situation of the aviation sector,” the Paris-based agency said in its first detailed assessment of 2021.
The projections add to a fragile outlook for the oil industry, coming a day after BP Plc wrote off billions in assets on concern over long-term demand. Still, the report contains some good news for producers.
The first half of this year is “ending on a more optimistic note” because demand losses during lockdowns to curb the spread of coronavirus were not as severe as expected, it said. Output cuts by OPEC+ and shutdowns in the U.S. should put the market into deficit in 2021, depleting the massive 1.5 billion-barrel surge in inventories seen so far this year.
Falling Short
Oil prices were trading above $40 a barrel in London on Tuesday, double the levels seen in late April, as economic activity resumes and the Organization of Petroleum Exporting Countries and its allies slash supply.
The IEA — which advises most major economies on energy policy — bolstered its demand estimate for the second quarter by 2.1 million barrels a day, tempering some of the massive drop. Lifestyle changes such as working remotely will not trigger a long-term leveling off in fuel use, said Fatih Birol, the agency’s executive director.
Nonetheless, world crude consumption is still on course for a record contraction of 8.1 million barrels a day this year.
While it will climb by 5.7 million barrels a day next year, the average of 97.4 million a day will remain 2.4 million barrels a day below 2019 levels. Demand may not return to 100 million barrels a day until 2023, Neil Atkinson, the IEA’s head of oil markets and industry, said in a webinar after the release of the report.
For now at least, the physical oil market is tightening.
Stockpiles are on track to diminish rapidly over the next six months, and — in theory — decrease during each quarter of 2021, according to the agency’s forecasts.
OPEC+ made a “strong start” to its latest round of output curbs last month, delivering 89% of its pledge to cut 9.7 million barrels a day, the IEA said. Earlier this month, the alliance agreed to press on with the strategy, and members that have not yet implemented their share vowed to make up for it.
Next year, global demand is on track to exceed supply, with the projected recovery in oil production to be less than a third of the increase in fuel use, at 1.7 million barrels a day.
That could change however, if the OPEC+ coalition is tempted to revive output as consumption rebounds or if rising prices reinvigorate American shale drillers, the IEA cautioned.
Source:www.energynewsafrica.com
Ghana’s strategic oil company, Bulk Oil Storage and Transportation (BOST) Company Limited has commenced repair works on its Buipe-Bolga pipelines.
The 270km pipeline, which was used to transport fuel to the northern part of the West Africa nation, as well as neighbouring Burkina Faso, had been out of use for many years because of its poor state.
The company had been struggling to repair the pipeline due to lack of funds.
However, sources within BOST indicate that repair works on the Buipe-Bolga pipeline commenced this week.
A video sighted by energynewsafrica.com, shows engineers and personnel from the Ghana National Fire Service working on the pipeline.
The Government of Ghana, on June 1, this year, announced a GHp3 increment in BOST Margin and by this, the company expects to generate about GHC10 million monthly.
Managing Director of BOST, Edwin Provencal, has expressed his commitment to ensuring that the company is run efficiently to become a dividend paying entity.
Ghana’s quest to join the nuclear power producing countries in the world is on course, energynewsafrica.com can report.
The West African nation is hoping to generate about one gigawatt of power from nuclear to add to the country’s energy mix.
The project is expected to commence in 2024 and completed in 2030. The country has, so far, successfully completed the first phase of the three phases required by the International Atomic Energy Agency (IAEA) before the development of a national infrastructure for nuclear power.
Ghana has been given the greenlight to move to the second phase after having successfully completed the first phase.
The second phase involves developing the institutions, building expertise/capabilities, liaising with stakeholders, developing regulatory framework, electrical grid studies/upgrade as well as procurement site preparation and contracting.
To this end, officials of the sector ministry, last Friday, held a meeting with the Minister for Environment, Science, Technology and Innovation, as well as other stakeholders to discuss the second phase of the project.
Speaking in an exclusive interview with energynewsafrica.com, Coordinator of the Ghana Nuclear Power Programme (NPP), Dr Robert B. M. Sogbadji said the government had already identified four sites for the project but declined to disclose their exact locations.
“When IAEA gives us the nod for the phase two, like they had given us in the phase one, then, we go to phase three, where we construct the power plant. We are expecting that this phase three will also end by 2030 when we will connect the nuclear power plant to the grids to integrate into our energy to diversify our energy mix.”
According to him, this purpose is to diversify the country’s fuel supply mix so that it would enhance the amount of renewable energy resources Ghana needs as a clean base load to be able use variable energy resources as well.
Touching on the cost of the project, Dr Sogbadji explained that for a 1,000MW to 1,200 MW installed capacity of nuclear, the price ranges from $4 billion to $6 billion, however, they are having quotations from 700 MW, which was around $2 billion from the other countries, so they would take best decision to procure the one that would be more economically benefit to Ghana.
He was of the view that, though nuclear programme is involving, once Ghana reaches the end of phase three, it would become a beacon of Africa and “it is going to improve on our industry in diverse ways, in our construction of robotics, healthcare and even water supply.”
Click on the video below to listen to Dr Robert Sogbadji:
The Government of Ghana has rejected the appointment of Tullow Ghana’s new Managing Director, Wissam Al Monthiry.
Wissam Al Monthiry was appointed in the middle of May to replace Kweku Andoh Awotwi who is due for retirement on June 30.
However, speaking on an Accra-based Asaase Radio, Ghana’s Energy Minister, John-Peter Amewu revealed that the government, through his Ministry, had sent a strong worded letter to the company objecting to the appointment of a non-Ghanaian.
“As a country, we’re not going to accept that appointment. Unfortunately that person is sitting in London,” the Minister said.
According to the Minister, Tullow’s action defeats the government’s localisation agenda, stating that the government frowns on that action.
He said the government would ensure that the appointment of Wissam Al Monthiry is reversed.
“We will make sure that a Ghanaian is appointed, “he iterated.
Source:www.energynewsafrica.com
Source: IES 2020
In spite of the relative price stability on the international market, the prices of Gasoline and Gasoil on the domestic market has seen a significant rise between quarter 1, 2017 and quarter 1, 2020. Both Gasoline and Gasoil prices recorded a surged in excess of 30 percent to sell at roughly Gh¢5.2 per liter at a point in time. The current national average price of GH¢4.38 per liter for both Gasoline and Gasoil have only been occasioned by the coronavirus pandemic which sent international oil and fuel prices plummeting. However, the gains consumers have so far enjoyed February may be eroded, as the prices on the international market have taken an upward journey since end May.
The current high prices paid by for consumers in the country can therefore be largely attributed to the fast depreciation of the Ghana Cedi against the US Dollar, which sold at roughly Gh¢4.3 in January 2017 but currently being traded at Gh¢5.7 plus; compelling importers and marketers of the fuels to pass on to consumers all the costs associated with bringing the products to the pump, including the foreign exchange exposure.
Also even though some taxes such as the Special Petroleum Tax (SPT) on fuels saw a downward review in 2017, there have been some upward review of taxes and levies such as the Road Fund Levy (RFL), the Energy Debt Recovery Levy (EDRL), and the Price Stabilization and Recovery Levy (PSRL) in August 2019; as well as the recent upward adjustment in the BOST Margin.
And so even though fuel prices is deregulated for market forces to dictate price, and to ensure full cost recovery, the government have the sole mandate to manage the forex risk, and the taxes/levies imposed on fuels. And so can partly be blamed for the higher prices we are seeing at the pump, since it could influence fuel prices positively and in favour of consumers by turning its attention to the taxes/levies, and also strengthen the local currency against major trading currencies.
Written by Paa Kwasi Anamua Sakyi (aka Nana Amoasi VII), Institute for Energy Security (IES) ©2019
Email: [email protected]
The writer has over 23 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst
Managing Director of BOST, Edwin Provencal, has expressed his commitment to ensuring that the company is run efficiently to become a dividend paying entity.
