The Bulk Oil Storage and Transportation Company Limited (BOST) has dismissed claims by Kwame Awuah Darko, a former Managing Director of the state owned entity under the erstwhile National Democratic Congress administration, that the company was profitable during his tenure.
According to the current Management, led by Edwin Provencal, the claims by the former MD are false and wondered why he chose to spew lies in the public space when evidence available contradicts his claims.
At a media interaction on Monday, November 9, Awuah Darko took on his predecessor, Edwin Provencal, for claiming that BOST accounts, covering 2014 and 2016, were not audited. He also disputed the fact that the company made profit under his tenure.
“I am sure they are making all these claims because of the current state of corruption at BOST and TOR. PricewaterCoopers, an audit firm contracted by the government to audit BOST, presented a report that stated that we made profit. Would the government say the firm did a bad job in its findings and report? If that is the case, then, they should call for their arrest. Why would the government deny a report that they paid huge amount to conduct?” Awuah Darko queried.
He added: “Looking at this report, one could clearly tell that all these claims are aimed at watering down the quality of progress TOR and BOST had made over the years, under my leadership. We made huge profit and that remains the fact. For a Managing Director, who is paid GH¢100,000.00 per month from BOST in salary and allowances, you should be able to at least recognise.”
However, a statement signed by Corporate Communications Manager of BOST, Marlick Adjei, in response to Awuah Darko’s claim, gave a detailed explanation of the mess Mr. Darko created before leaving BOST.
Although, the statement acknowledged the fact that BOST made some profit under the National Democratic Congress administration, it was rather in the year 2012 when Dr. Yaw Akoto was the MD.
According to the statement, BOST made losses in three consistent years under the leadership of Kwame Awuah Darko.
The statement noted that a report prepared by PricewaterhouseCoopers in 2015 and 2016 showed that BOST made GHS36,341,669 and GHS458,638,724 in 2015 and 2016 respectively.
Meanwhile, the 2014 audit report, which was prepared by Tema-based Opoku, Andoh and Co., also showed that BOST made a loss of GHS89, 365,054.
The statement revealed that Conveniio Energy, a company owned by Kwame Awuah Darko, lifted products worth GHS2.3 million from BOST during his tenure and till date, the money has not been paid.
‘‘Due to lack of proper structure and adherence to procedure in the sale of products on credit to dealers, a chunk of the receivables, including that of his company, have not been paid BOST yet. We have proceeded to engage private debt collection firms in this enterprise and we are hopeful of retrieving all those monies owed BOST including that of the company he leads as CEO, Convenio Energy,’’ the statement said.
On his leadership of BOST and TOR at the same time, the statement said the two companies had separate board of directors and Mr. Darko had no deputies in this enterprise and, therefore, run a one man show.
‘‘In the final analysis, BOST, under his watch, was made to pay US$5.50 per barrel in tolling fees to TOR while the same TOR is today charging a tolling fee of US$2 per barrel in refining products for private businesses. Despite the high charges, Mr Awuah Darko ensured that TOR over-paid US$5.2 million as captured in the BOST and TOR debt validation carried out by Deloitte in November 2018.
‘‘A total of US$10 million, which Sahara Oil should have paid to BOST in respect of products sold to the NNPC of Nigeria, was also retained by Sahara in settlement of TOR debts because the two companies were mistakenly bundled
together and handed to one man to be sent to the slaughter house.
‘‘We maintain that his stewardship left BOST with a total debt of US$624 million to suppliers and related parties and a total debt of GHS273 million, which was owed to banks in the country including GCB, Standard Chartered and Universal Merchant Bank,’’ the statement concluded.
Below are portions of the Audited Accounts of BOST
Source:www.energynewsafrica.com
The Independent Power Producers in the Republic of Ghana have served notice to shut down their plants infinitum.
A shutdown notice, which was delivered to CEO of GRIDCo, Ghana’s power transmission company, and copied to the Energy Minister John-Peter Amewu and sighted by energynewsafrica.com reads: “We would like to inform you about our firm resolve to withdraw our services in the coming days infinitum.”
According to CIPDiB, the umbrella body of the IPPs, the action follows ECG and Gov’t of Ghana’s failure to settle, at least, 80 percent of their overdue receivables worth US$1 billion.
“The respective Central Control Rooms (CCRs) of the IPPs are expected to communicate with the GRIDCo’s System Control Centre. Any inconvenience is deeply regretted,’’ he warning notice concluded.
Ghana has about 21 power plants with total installed capacity of about 5,050MW.
Out of the 21 power plants, the state owns 10 with a total capacity of 2,270MW while the IPPs own 11 with a total capacity of 2780MW.
Meanwhile, in a letter dated 4th November 2020, addressed to the Energy Minister John-Peter Amewu, and copied to President Nana Akufo-Addo on Wednesday, Chairman of CIPDiB Board, Togbe Afedi expressed worry about how their calls for government to pay them for the services they have rendered to the nation has been misconstrued.
“It seems that our cry for help in our petition to the Father of the Nation, His Excellency the President, as a last ditch effort and last resort to help address our imminent and increasing financial distress and its constraining adverse effect our ability to sustain our operations and continue our business of generating power for the nation has unfortunately been misconstrued in certain quarters within government as constituting blackmailing government. We wish through you, Honourable Minister, to unequivocally re-assure Government, that there is no iota of substance in such misconception. All IPPs are genuinely committed to working with Government to address’s the challenges of the energy sector. We have always made, and willing to continue making , all possible efforts to assist Government in addressing the sector challenges. We hope we can continue this important collective national collaborative effort devoid of any blame-game,’ part of the letter stated.
Should the IPPs go ahead with their threats, the country is likely to experience power outages if the government fails to act.
Below is the data of the various generating power plants as at today, November 12, 2020.
A consumer advocacy group in the Republic of Ghana, Chamber of Petroleum Consumer (COPEC) has charged Oil Marketing Companies (OMCs) across the country to make improved investments into training their frontline staff as well as provide high-quality products on a consistent basis in order to remain competitive.
The remarks follow the completion of the second Consumer Satisfaction Survey for the month of October by COPEC, in some parts of the capital Accra.
The survey targeted eighteen (18) Oil Marketing Companies with retail outlets spread across the regions as well as a total of five hundred (500) respondents made up of commercial transport operators and private car owners.
According to the survey, over 50 percent of drivers within the catchment area of the survey, that is Amasaman and the Tema Metropolis, perceive GOIL to be the leader when it comes to the quality and quantity of fuel dispensed as well as the leader when it comes to the speed of service.
Based on the same parameters of speed of service, quality and quantity of fuel dispensed, Vivo Energy Ghana or Shell as well as Total came in second and third receiving approval from about 30 percent and about 19 percent of respondents surveyed respectively.
According to the Executive Secretary of COPEC, Duncan Amoah the OMC’s need to ensure sustained investments to improve the quality of their service and products to customers, to maintain or improve their markets share.
“If you relax, consumers will start making different choices which will impact your sales, profitability and overall sustainability of your brand. So this is to encourage the brands to improve their services. Those who are struggling per the survey, need to focus on training their pump attendants. They also need to look into improving the quality of their products to attract more customers and improve how they are perceived by drivers.”
Meanwhile, in the same survey conducted, OMCs like Goodness Oil, Allied Oil, and Benab Oil came as the most admired of the rest of the OMC’s outside of the top 3 when it came to pricing, speed of service, quality and quantity of fuel dispensed.
Uganda has for the third time in a row emerged as the top performer in this year’s Electricity Regulatory Index Report published by the African Development Bank.
The East African country, along with Namibia, Tanzania, Zambia and Kenya, the other top performers, have regulators with the authority to exert the necessary oversight on the sector.
However, the overall electricity regulatory frameworks of African countries is poorly developed, and most countries experience major regulatory weaknesses.
The ERI, a flagship report of the African Development Bank, is a composite index which measures the level of development of electricity sector regulatory frameworks in the African countries against international standards and best practices.
“The African Development Bank has been at the forefront of efforts to mainstream electricity sector regulation issues in Africa within the broader sector discourse, recognizing the importance of establishing robust legal and regulatory frameworks to support the financial sustainability of the sector and attract private sector investment,” said Dr. Kevin Kariuki, Vice President, Power, Energy, Climate and Green Growth, at the African Development Bank.
The third edition of the ERI report was launched during the Digital Energy Festival of the Africa Energy Forum, on 5 November 2020. The event brought together more than 70 stakeholders in the energy sector, regulators, international organizations, and development finance institutions like Africa50 and the World Bank.
The Director for Energy Financial Solutions, Policy and Regulations, at the African Development Bank, Wale Shonibare, said COVID-19 related restrictions had increased residential electricity demand and decreased industrial/commercial demand. This had resulted in shortfalls in the projected revenues of utilities.
“To address these challenges, regulators will be required to play an even more critical and central role post-Covid, to ensure that the sector recovers with minimal and controlled impact on consumers and utilities,” Shonibare said.
Koffi Klousseh, Director of Project Development at Africa50, praised the ERI as a great tool for assessing the readiness of the electricity sector for private sector investments.
Main findings of the ERI 2020 report
• 69% of countries surveyed have regulatory mechanisms in place to facilitate electricity access.
• In 21 of the 36 countries surveyed, the utility is not involved in funding rural electrification. The government, NGOs and consumers do this.
• In 90% of the countries surveyed, the Executive holds the power to appoint board members and heads of regulatory institutions who report to them. This removes the core of decision-making independence from regulators, who are subjected to subtle and direct political pressure to skew key regulatory decisions towards the political inclination of the government in power.
• Most countries have legislation to deal with conflict of interest among commissioners and heads of regulatory institutions while in office. However, few have adequate mechanisms to regulate conflict of interest and other ethical issues, affecting the integrity of regulatory decisions.
• Political authorities have significant influence on the finances of regulatory authorities. In many instances, laws establishing regulatory institutions do not clearly indicate sources of funds for the institution.
Other participants also shared views on the sector:
The CEO of Uganda’s Electricity Regulatory Authority, Ziria Tibalwa Waako, said:“Regulation is a catch-up game. If there are gaps, be happy to review your process and methodology.”
Foibe Namene, CEO of Namibia’s Electricity Control Board: “Regulatory independence is a balancing act between multiple stakeholders while maintaining high level of integrity in the regulatory processes and actions.”
Peter Twesigye, Head of Electricity Regulation Programme, Power Futures Lab, at the University of Cape Town: “Regulators should support utilities through tariffs to finance investments in the backbone feeders with outage management systems that will enable them to monitor reliability and the quality of power on these feeders.”
At least fourteen people have reportedly been injured following an explosion at Mighty Gas Co. Ltd Filling Station in Ho, in the Volta Region, Republic of Ghana.
The victims are currently receiving treatment at the Ho Teaching Hospital.
The explosion occurred few minutes after 5am of Wednesday November 11, 2020.
It is not clear what might have caused the inferno.
Eyewitnesses say they heard the sound of an explosion at the station and drew the attention of residents who called the officials of the Ghana National Fire Service.
It took the swift intervention of the servicemen to douse the fire.
According to reporters, five drivers and passengers who were purchasing gas sustained various degree of burns.
Management of the filling station have temporarily halted operation with a ‘No Gas’ notice at the facility.
Ghana’s indigenous Oil Marketing giant, GOIL Company Limited, won big at the 7th Ghana Oil and Gas Awards ceremony held in Accra.
The company secured three major awards.
Apart from grabbing the covetous OIL MARKETING COMPANY OF THE YEAR award for the third consecutive year, GOIL Burma Camp Service Station was awarded the ‘PETROLEUM RETAILER/DEALER OF THE YEAR ‘for the second consecutive year.
GOIL’s Group CEO & MD, Kwame Osei-Prempeh was also adjudged ‘CEO OF THE YEAR’ for the DOWNSTREAM Petroleum sector.
Mr. Osei Prempeh was particularly honored for creating partnerships with allied sectors to expand and diversify the company’s operations as well as playing a key role in building on the best business practices in the industry.
The annual awards night is one of the largest initiatives dedicated to championing excellence in the Oil and Gas Sector. It also recognizes achievements from local and international Oil companies who are playing a defining role in advancing the sector.
Commenting on the awards, the MD & Group CEO, Mr. Osei-Prempeh, said GOIL will continue to serve the interest of all Ghanaians and provide quality products to the satisfaction of all customers.
He assured the public that GOIL will not relent in its efforts in providing the best of service.
Ghana’s Minister for Energy, John-Peter Amewu says the government is supporting investment towards the development of the country’s gas infrastructure to ensure significant shift from oil based power generation to gas based power generation.
According to him, there is the need to harness the abundant discoverable gas resources as the country gears towards industrialisation to ensure cheaper electricity.
Mr. Amewu said this in a speech read on his behalf by the Chief Director of the Ministry of Energy, Lawrence Apaalse, at the second day of the Ghana Economic Forum 2020 with focus on the energy sector.
The Ghana Economic Forum was under the theme: ‘Resetting The Economy Beyond Covid-19; Building Economic Resilience and Self Sufficiency’.
He said as part of a long term plan to ensure cheaper and cleaner energy source to support the country’s commitment towards the combat against climate change, steps have been taken to invest in nuclear power.
He said Ghana has included nuclear power in the energy generation mix and has initiated the process for the construction of the first nuclear power plant in the country.
“We have fulfilled the conditions of the International Atomic Energy Agency. The Owner Operator of the first nuclear power plant (Nuclear Power Ghana) has also been established and currently in the process of identifying a suitable site, as well as an investor country for the construction of the first nuclear power plant,” he said.
Touching on steps the current administration has taken upon assumption of office, Mr Amewu said since 2017, the Ministry has ensured significant investments in the transmission network.
“These include upgrading the transmission lines in the Bono regions, high grid upgrade systems which are currently being extended from Tamale to Burkina Faso. GRIDCo is undertaking this with just a short stretch left to be completed,” he said.
Mr. Lawrence Apaalse, Chief Director of the Ministry of Energy
He added that just about a month ago, the President approved US$130 million grant for ECG to replace the obsolete equipment, which changes are ongoing. They are introducing the VIT Systems to forestall complete shutdown of area lines in case of local power problems.
In the area of power contracts, Mr Amewu said the government has successfully renegotiated the price of some power agreements downwards and has reduced capacity charges by over 30 percent, stressing that negotiations are still underway for the remaining power agreements.
In addition to the long existing power export to Togo-Benin (120 MW) and the exchange arrangement between Ghana and La Cote d’Ivoire, the completion of the 225 kV Ghana-Burkina Faso Interconnection Project, is allowing the export of 140MW of power to Burkina Faso, making a total of 260MW export to our neighbours.
In the renewable sub-sector, Mr Amewu said the government realised that the previous administration signed Renewable Energy Power Purchase Agreements (PPAs) to the tune of 2,265MW, with an average price of Cents19/KWh.
However, Mr Amewu said this government has reduced the capacities from 2,265MW to 515MW, which can be accommodated within the country’s electricity network.
“We have also re-negotiated and reduced the price/KWh from an average of Cents19/KWh to Cents12/KWh. Our ultimate goal at the Ministry is to achieve tariffs below Cents10/KWh, for which reason we are further engaging with scheduled PPAs. Other actions we have taken include developing a Renewable Energy Master Plan which clearly provides the capacity and investment required on yearly basis,” he said.
Mr Wisdom Ahiataku-Togobo, Director Renewable and Alternative Energies at the Ministry of Energy
Source: www.energynewsafrica.com
Tullow Oil Plc. has completed the sale of its assets in Uganda to Total, raking in some $500 million.
A statement issued and posted on the company’s website said Tullow is also due to receive a further $75 million when a Final Investment Decision is taken on the development project, plus contingent payments linked to the oil price payable after production commences.
The closing of this transaction follows the satisfaction of all deal conditions announced on 21st October, 2020, which included the execution of the binding Tax Agreement, the approval for the transfer of Tullow’s interests to Total and the transfer of operatorship for Block ‘2’.
Although Tullow will retain a financial link to the development project, through the potential contingent payments, the closing of this transaction marks Tullow’s exit from its licences in Uganda after 16 years of operations in the Lake Albert basin.
Tullow now has a net debt of $2.4 billion and available liquidity of $1 billion.
Rahul Dhir, CEO, and Les Wood, CFO, will lay out their plans for the Group in the coming years at a Capital Markets Day on 25th November, 2020.
Commenting on the deal, Rahul Dhir, Chief Executive Officer of Tullow Oil Plc, said: “The closing of our transaction with Total clearly evokes mixed emotions within Tullow. While we are sad to be exiting Uganda after many years, the $575 million of proceeds form an important part of our plan to strengthen Tullow’s balance sheet and improve our financial position. We will watch the progress of Uganda’s oil & gas industry with much interest and all of us at Tullow wish the people and Government of Uganda and our former Joint Venture Partners every good fortune as they take this important project forward.”
Source:www.energynewsafrica.com
South Africa’s utility company, Eskom, has reported that there was cable theft at Groenvoerlande substation outside Free State, which resulted in fire outbreak.
The incident happened at about 2am, Tuesday, and it led to curtailment in power supply to parts of Bethlehem.
A statement issued by Eskom said the fire had been contained after causing excessive and costly damage to infrastructure at the substation.
“Eskom condemns such unacceptable acts of theft and vandalism,” the company said in the statement.
Ghana’s Parliament has passed the Renewable Energy (Amendment) Bill, 2020.
According to energynewsafrica.com’s sources, the Bill was passed last Friday, November 6, 2020.
The West African nation passed the Renewable Energy Act 2011 (Act 832) to spearhead the promotion of Renewable Energy.
Section 25 (1) of the Amended RE Act 2011, Act 832 emphasises the need for competitive procurement scheme for the purpose of attracting a competitive market rates for electricity generated from renewable energy sources.
It states that the competitive procurement scheme shall consist of (a) a tendering process and (b) an auction scheme.
It adds that a public utility shall not negotiate for a Power Purchase Agreement with a generator of electricity or contract power for electricity generated from renewable energy sources, unless the contracted power has gone through an open competitive and transparent procurement process.
The Amended Act also makes it mandatory for fossil fuel based electricity suppliers and companies that contribute to greenhouse gas emission to invest in non-utility scale renewable energies to offset their greenhouse emissions.
“A fossil fuel based wholesale electricity suppliers, a fossil fuel producer, and any other companies that contribute to greenhouse gas emissions shall invest in non-utility scale renewable energies to offset their Green House Gas emissions and mitigate the impact of climate change.”
Section 53 of the Amended Act also empowers the Minister to designate any public entity to execute and manage RE projects initiated by the state or in which the state has an interest.
Accordingly the BPA amendment Bill has also been passed to enable BPA to undertake RE and other cleaner energy projects designated to them by the Minister.
The amended Act, also defines hydro as a water based energy system which produces electricity. By this definition, Akosombo kpong and Bui power dams are defined as renewables.
Speaking to the Director for Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo, who confirmed the passage of the RE (Amended) Bill, said the Amended Act has scrapped feed-in-tariffs and replaced with a competitive bidding scheme.
A ‘feed-in-tariff scheme’ is a policy that obliges distribution utilities to buy electricity generated from renewable sources at a higher fixed price over a long period of about 20 years to guarantee return on investment.
He explained that at the time the RE Act was enacted, the cost of generating electricity from renewable especially solar was so high that distribution utilities were reluctant to buy the power and, hence, the need to introduce the feed-in-tariff policy to compel them to buy the power at a higher price of above 18 US Cents/kWh for distribution at a lower price. Today, price of electricity from utility scale renewable energy source is a good choice and should no more be an obligation.
He said, instead, there has been an introduction of a net-metering scheme for the purpose of encouraging self-generation of electricity from renewable energy sources on a power cost reduction or climate change mitigation basis and not for income generation.
Source: www.energynewsafrica.com
The Institute for Energy Security (IES), an energy think tank in the Republic of Ghana, has been adjudged the Policy Activist of the Year at the 2020 Oil& Gas Awards held in Accra.
IES beat Africa Centre for Energy Policy (ACEP) to emerge winner for the category.
According to the organiser’s, the energy think tank raised alarm about dirty and contaminated fuel on the market, particularly around Ashaiman, in the capital city, and advocated sanctions for the culprits.
They added that IES again, raised alarm about oil spillage and pair trawling on Ghanaian waters.
Commenting on the award, Executive Director of IES, Nana Amoasi VII said: “We are grateful to all Ghanaians and international bodies who have found IES as the preferred Energy think tank. Good work speaks for itself and we are happy it is being recognised. Our independent work is the reason for which the media have made us their first point of reference. We look forward to many more years of impact in the energy space.
“I dedicate this award to the young men and women at IES. I have come to admire their dedication to delivering top-notch analysis on energy related data, and critique of policies.”
The African Energy Chamber has announced the release of the African Energy Outlook 2021 report.
The report explores the forces shaping up continent’s energy market after the historic shocks of 2020, and analyses the upcoming recovery on the back of the global energy transition and persisting market uncertainties.
After a year of historic crisis, the Outlook offers guidance and solutions for African energy stakeholders to navigate troubled waters and support a strong recovery in 2021 and beyond.
The pandemic notably came at a particularly difficult moment in Africa, exacerbating already challenging market conditions on the back of a competitive American shale industry, the delaying of major projects due to regulatory uncertainty, and increasing global attention to decarbonisation.
The African Energy Chamber notably expects a CAPEX spending cut of $30bn over the 2020-2021 period, and has identified a further $80bn of investment whose sanctioning will depend on improving market conditions, along with bold policy and fiscal reforms from African regulators.
The report provides detailed information in areas of critical importance, and includes sections examining jobs and employment, cash-flow and profit forecasts, the expenditure and investment outlook, carbon emissions, oil and gas market projections, and regional production outlook. Pressing issues including notably the OPEC’s production cuts, ongoing regulatory reforms, the impact of the COVID-19 by region and country, and offshore drilling demand across multiple continental shelves are analysed in detail.
‘’It goes without saying that Africa has witnessed its fair share of difficult times this year. Even though oil and gas activities have taken a hit, optimism surrounding African projects, fiscal regime and investments still exist but requires all of us as stakeholders to do more. There has always been opportunity in drastic and unprecedented times, which gives us a lot to look forward to,” declared Nj Ayuk, Executive Chairman of the African Energy Chamber.
The Outlook is the result of strong regional and international cooperation between actors of government, and public and private sector stakeholders across sub-Saharan Africa. It gathers the latest available data on sub-Saharan Africa’s hydrocarbons markets, and benefits from the insights of key local, regional and international companies, experts and economists, making it the most comprehensive resource to date on the future of African energy markets.
‘’The report highlights the expected outcome of post COVID-19 mitigation strategies to the African energy sector in 2021 and beyond. It also assesses Africa’s competitiveness compared with other frontiers, and highlights the countless opportunities that continue to emerge and exist across our entire energy value chain. We look forward to this report serving as a basis for sound decisions towards a thriving energy industry in Africa,’’ said Senior-Vice President, Verner Ayukegba of the African Energy Chamber.
Source: www.energynewsafrica.com
Nigeria will lose $24 billion in investments in the oil and gas sector between 2020 and 2025, due to effects of the COVID-19 pandemic on the global petroleum industry, a report published by the African Energy Chamber has claimed.
The Chamber, in its African Energy Outlook 2021, disclosed that with the $24 billion loss of investments in the oil and gas sector, Nigeria would account for 30 per cent of the total of $80 billion loss of investments that would be recorded in the petroleum industry across Africa.
“The detrimental impact of COVID-19 on global energy markets is also expected to have an impact on African activity. Compared to pre-COVID19 expectation, about $80 billion less investments are expected in Africa towards 2025, with the years 2020 to 2022 carrying the brunt of the difference.
“Out of these $80 billion, Nigeria is by far the most adverse impacted country with about $24 billion moving out of the 2020-2025 windows,” the Chamber said.
The Chamber further projected a delay in the Nigerian Liquefied Natural Gas, NLNG, Train 7 project, as well as other gas projects in the country, occasioned by the pandemic, which had also negatively impacted the price and demand of crude oil in the international market.
According to the chamber, upcoming gas projects would take a hit and run a risk of delays, while it noted that some oil majors operating in the country had already started shifting the timelines for their gas projects.
It said: “The majority of the projects in Africa that were up for sanctioning were planned assuming an oil price of between $55 and $60 per barrel, bbl. The oil price currently hovering around $40/bbl therefore spells bad news, especially as the top upcoming Final Investment Decisions, FID, in Africa have a breakeven crude price of over $45/bbl, with some even close to $60/bbl.
“ENI and ExxonMobil have both stated that they will focus on developing projects with a breakeven crude price of less than $35/bbl.
“In its latest announcement, Shell distanced itself from deep-water mega-projects off the coast of Nigeria, placing the Bonga Southwest-Aparo, a 150,000 barrels of oil per day, bpd, Floating, Production, Storage and Offloading, FPSO, development that was soon coming up for FID, on the backburner for now.
“Upcoming gas projects will also take a hit and run a risk of delays. Although Nigeria approved the development of NLNG train 7 last year, the upstream gas developments that were planned to supply feedgas to this development might now take a back seat.”
However, the AEC projected that at a higher crude oil price of $50 per barrel, and additional investments of up to $10 billion, Nigeria would be able to produce a total of two billion barrels of crude oil between 2020 and 2030.
The chamber said: “With an additional capital expenditure of $10 billion in investment over the 2020-2030 period, the additional capital expenditure is estimated at $49 billion at the $35 /bbl threshold increasing towards $100 billion as the $50/bbl threshold is approached. “Breaking down the uplift in additional resources produced and the additional capital expenditure unlocked reveals Nigeria as the country with most potential. Nigeria will effectively be able to produce about 2 billion barrels more than otherwise while justifying $10 billion more investments.” However, the AEC stated that: “From a spend perspective, that is, all money spent on investments and operations, we can expect a more stable outlook for Africa’s share. While Africa is projected to consistently represent about 8-9 per cent of the global spend between 2012 and 2025, its share of global production is also expected to decline over the same period.
“Unfortunately, the only conclusion to be drawn from such facts is once again that of a deteriorating competitive position for African petroleum resources. With the exception of a few jurisdictions, producing a barrel of oil from African soil remains less competitive than producing the same barrel elsewhere,” the Chamber concluded.
Source: Vanguardngr.com
The Bulk Oil Storage and Transportation (BOST) Company Limited in the Republic of Ghana, which was choking on huge legacy debts under the former administration, is now breathing as greater part of its debts has been cleared.
The state-owned strategic petroleum stock keeping company had a debt portfolio of about US$623,602,303 when the current administration took over in January 2017.
That comprised legacy trade debts (US $668million), GCB loan (GHS 58.4million), UBA loan (US$20million), Stanchart loan (US $137million), UMB loan (US $10million) and BDC’s claim ($36 million).
According to the current management of BOST led by Mr. Edwin Provencal, US $566,190,869 million out of the US623,602,303 debts was paid as at 30th June, 2019.
The company’s outstanding legacy debt now stands at US$57,411,434.
According to a document presented by Dr. Mohammed Amin Adam, Deputy Energy Minister, at the Energy Manifesto Town Hall organised by CBOD, six out of 15 petroleum storage tanks which were not in used because of poor condition had now been repaired.
Among the other achievements of the current administration was the repair of one tag boat and two river barges which are currently operational.
The document also mentioned the ongoing depots upgrading, GRA tax savings of GHS11 million and the ongoing rehabilitation of Tema-Akosombo Petroleum pipeline.
Source:www.energynewsafrica.com
Below is the data of the various generating power plants as at today, November 12, 2020.
According to the Executive Secretary of COPEC, Duncan Amoah the OMC’s need to ensure sustained investments to improve the quality of their service and products to customers, to maintain or improve their markets share.
“If you relax, consumers will start making different choices which will impact your sales, profitability and overall sustainability of your brand. So this is to encourage the brands to improve their services. Those who are struggling per the survey, need to focus on training their pump attendants. They also need to look into improving the quality of their products to attract more customers and improve how they are perceived by drivers.”
Meanwhile, in the same survey conducted, OMCs like Goodness Oil, Allied Oil, and Benab Oil came as the most admired of the rest of the OMC’s outside of the top 3 when it came to pricing, speed of service, quality and quantity of fuel dispensed.
Commenting on the awards, the MD & Group CEO, Mr. Osei-Prempeh, said GOIL will continue to serve the interest of all Ghanaians and provide quality products to the satisfaction of all customers.
He assured the public that GOIL will not relent in its efforts in providing the best of service.
Source: www.energynewsafrica.com 
