Saudi Arabian state oil giant Aramco has reported a 44.6% drop in its third-quarter net profit as the coronavirus crisis continued to choke demand and weigh on crude prices.
Share prices of global oil companies have been hammered this year as investors fret over the impact of the pandemic on energy demand and the long-term shift away from fossil fuels.
Oil prices have recovered only slightly since tumbling to their lowest in almost two decades in March, prompting Aramco and other majors such as Shell RDSa.L and BP Plc BP.L to slash capital expenditure this year and next.
Weaker refining and chemicals margins also hit Aramco’s net profit, which fell to 44.21 billion riyals ($11.79 billion) for the three months ended Sept. 30, in line with an analyst estimate of 44.6 billion riyals provided by Refinitiv but down from 79.84 billion riyals in the same period of last year.
“We saw early signs of a recovery in the third quarter due to improved economic activity, despite the headwinds facing global energy markets,” Saudi Aramco Chief Executive Officer Amin Nasser said in a statement as carried by Reuters.
Aramco’s shares rose as much as 1% and were 0.6% higher at 34.4 riyals by 0830 GMT. Although down 2.3% year to date, Aramco has outperformed the likes of Exxon XOM.N, BP and Shell, which are down by more than 50% while Chevron CVX.N is down by 40%.
Analysts say that is partly because of the broader performance of the Saudi stock market, on which Aramco is listed, but also because the company has guaranteed its dividend payment.
Aramco said it would distribute a dividend of $18.75 billion for the quarter, in line with its plan to pay a base dividend of $75 billion for 2020.
But equity analyst Yousef Husseini at investment bank EFG-Hermes said Aramco would likely have to increase its debt financing in the short- to medium-term or further cut capital expenditure, in order to be able to maintain the dividend unless oil prices recovered to at least $55 a barrel.
Dividends from the world’s top oil producing company, which went public last year, play a critical role in helping the Saudi government manage its fiscal deficit.
Aramco’s net profit almost doubled from 24.62 billion riyals in the second quarter, which the company attributed to higher oil prices, although it noted that was partly offset by a drop in volumes sold.
Saudi Arabia has slashed its crude production since May under a global supply cut pact with OPEC and its allies, a group known as OPEC+, to support oil prices and demand.
Aramco had free cash flow of $12.4 billion in the third quarter, compared with $6.1 billion in the second quarter.
Abu Dhabi Department of Energy (DoE), has reported that Abu Dhabi’s energy sector’s total electricity generation reached 85 Gigawatts hours in 2019 – an increase of 1.33 percent from 2018.
The department, which is responsible for regulating the UAE capital’s energy sector, also revealed that the total available electricity generation capacity was 17,636 Megawatts, MW, in 2019, an increase of 6 percent from 16,623 MW in 2018.
Sultan Naser Al Shkeili, Energy – Pricing & Tariffs Director at DoE, said: “The electricity sector is of fundamental importance within the energy ecosystem in Abu Dhabi, as it is the main engine for operations in all sectors, especially industrial and residential. Abu Dhabi is witnessing an increasing demand for electricity as a result of the emirate’s sustained economic growth. This requires us to develop more policies regulating the electricity sector – policies that guarantee the provision of services of the highest quality and efficiency at all times.”
He added: “Abu Dhabi’s electricity sector is characterised by durability, high flexibility, and a large production capacity that can meet the needs of all sectors. In order to continuously enhance the sector’s capacity, we are committed to promoting the use of modern technology in the various stages of electricity production and distribution and through enhancing infrastructure, including facilities and buildings. We are also counting heavily on generating energy from renewable and clean sources in order to enhance our efforts to achieve sustainability across the entire energy sector in Abu Dhabi.”
Demand for electricity in Abu Dhabi continued to grow during 2019 driven by a slight increase in system demand in the emirate and a higher increase in demand resulting from exports to the Northern Emirates (also known as global demand). In 2019, global electricity demand in Abu Dhabi peaked at 15,223 MW on June 18, with Abu Dhabi system peak reaching 11,179 MW and exports to the Northern Emirates reaching 4,220 MW – an increase of 0.89 percent and 3.5 percent respectively from the previous year.
With regard to electricity generation technologies in Abu Dhabi, DoE revealed the percentages of energy generated through different technologies over the 12-month period. Combined Cycle Gas Turbines (CCGT) contributed 85% of the total energy produced, with the share of co-generation stations, Co-gen, and open cycle gas-turbine being 13 percent. Renewables from SHAMS and Noor accounted for around 2% of the electricity generation mix in Abu Dhabi.
DoE confirmed that the share of clean energy will continue to grow in the coming years in light of the Barakah Nuclear Energy Plant. Located in the Al Dhafra Region in Abu Dhabi, the plant – with its planned commissioning in 2021 – will generate up to 1,400 MW of electricity when fully operational. With its four APR1400 reactors, the Barakah Nuclear Energy Plant will be one of the most technologically advanced nuclear reactor designs in the world and will meet the highest international standards for safety and performance.
The department also pointed out that it is natural gas that is the predominant fuel type used within the sector to generate electricity and produce water in Abu Dhabi. Both Abu Dhabi National Oil Company, ADNOC, and Dolphin Energy Limited, DEL, continued supplying the sector with natural gas throughout the year without the need to burn any back-up fuel (more than the regular amounts used to carry out operational tests to maintain liquid fuel supply system ready on standby). It reported that both ADNOC and DEL delivered around 796,289,326 MBTU of natural gas to the sector in 2019, which is 3 percent less than the previous year’s figure of 820,751,096 MBTU.
DoE indicated that the peak demand load of Abu Dhabi Distribution Company, ADDC, grew by 0.9 percent from 2018 to reach 6,081 MW in 2019, while that of Al Ain Distribution Company, AADC, grew by 2.4 percent to reach 2,376 MW.
With respect to energy transmission, DoE stated that Abu Dhabi Transmission and Despatch Company, TRANSCO, is the sole electricity transmission licensee in the Emirate of Abu Dhabi. It operates the high voltage network (400 – 132 Kilovolts, KV, transporting large volumes of electricity from production companies to distribution companies, high demand customers connected at the transmission system and to the northern emirates. TRANSCO is also interconnected with the 400 KV GCC interconnection.
DoE also highlighted that the emirate has 468 primary substations and 36,004 distribution stations, while the length of electricity cables and overhead lines is 71,640 km and the number of electricity connected customers are 543,950. It also indicated that ADDC and AADC own and operate the medium voltage network (33 – 22- 11kV) transporting electricity from the transmission system to homes and businesses across the emirate.
Source: Emirates News Agency
The Chief Executive Officer of Volta River Authority (VRA), Ghana’s largest state power generation company, Ing. Emmanuel Antwi-Darkwa, has underscored the need for the country’s Ministry of Energy to revisit policy directives in the industry to ensure energy efficiency and sustainability in pandemic situations in the future.
In a speech to mark the 4th Ghana Energy Awards in Accra on October 30, 2020, themed: ‘Excelling in Crisis: The Energy Sector in a Covid-19 era’, he urged the sector ministry to laisse with captains of the industry to come out with a pragmatic, prudent and a more efficient and sustainable energy policy directive and initiatives not to catch the country off-guard during future events such as the Covid-19.
“From policy perspective, I will like to remind the Minister what Covid-19 has done. It has created an opportunity for us to revisit our energy conservation and efficiency perspective. Consumers, who as a result of Covid-19 have less disposable income, are the right candidates to embrace energy conservation,” Ing. Antwi-Darkwa advised.
According him, the West African country needs to swiftly take advantage of the COVD-19 situation now and re-write the energy situation to safeguard the resource availability for domestic and industry use in future pandemics.
Though Ghana, VRA and other institutions in the energy and water supply-chain services have been able to sustain their mandates in this critical era, the VRA boss was of the view that, they need support to even perform per-excellence in future.
“Mr Minister, Covid-19 underscores the need to support electricity and water to our health and critical services,” he noted.
This, he said, would help such institutions to come in handy to help in future pandemic situations.
Touching on revenue generation for VRA in this Covid era, Ing. Antwi-Darkwa lamented, “There was one thing that unsurprisingly materialised.
“So as we speak, the ECG, NEDCO and ourselves continue to find ways to insentivise consumers who genuinely have difficulties to pay for electricity.”
He suggested to the government, as the last option, to consider assisting the utilities sector providers to ensure their efficiency and sustainability.
Commenting on the windfall that Covid-19 brought, he stated that it offered businesses innovative ways of operation, refocus on safety and health needs of employees and fully embracing the digital age.
While commending the government for proving free electricity and water to cushion all Ghanaians, the VRA boss acknowledged that, it is early days yet to fully assess the full impact of the pandemic.
In his remarks, the Special Guest of Honor, who also chaired the function, His Royal Majesty, Akwamuhene in the Eastern part of Ghana, Odeneho Kwafo Akoto III, also challenged the country to, as a matter of urgency, explore other renewable energy sources to augment its energy needs.
He specifically mentioned thermal and solar to produce inexpensive sources of energy to help the speedy development of the Ghanaian economy.
Odeneho Kwafo Akoto III was of the opinion that should Ghana take full advantage of the numerous renewable energy sources, the country will have energy sufficiency and sustainability would not be a major concern in the future.
He commended nominees and awardees of this year and urged other energy industrial stakeholders to strengthen their roles to fast-track the West African nation’s socioeconomic drive.
The decision by the Federal Government of Nigeria to scrap the country’s National Oil Company (NNPC), and rather create NNPC Limited has been hailed by Dr Jide Agunbiade, a Director at National Oilwell Varco, the largest oil and gas equipment manufacturing company in the world headquartered in Houston Texas, USA.
President Muhammadu Buhari, on September 2020, proposed the scrapping of the NNPC for the creation of NNPC Limited, in the new Petroleum Industry Bill 2020 submitted to the National Assembly.
Sharing his opinion on the Nigerian Petroleum Industry in an article, Dr Agunbiade, who has over 20 years’ experience in the global oil and gas company, was hopeful that the creation of NNPC Limited would mark a turning point for the petroleum industry in Nigeria.
In his view, he said that the challenges that the sector has faced for many years would be addressed and remedied through that.
According to him, an assessment of the Nigerian petroleum industry revealed that the NNPC has been one of the inefficient government institutions in Nigeria, with heavy political interference, ambiguities, corruption and nepotism.
“Recent investigations and probes into government corruption in Nigeria reveals that a substantial part of governments’ corruption, originates from the activities that relate to the management of the oil and gas proceeds, supposed to be channeled towards the growth and development of the nation.”
He argued that despite the monetary resources remitted to its coffers, NNPC had since been facing challenges in funding its upstream operations and obligations.
“NNPC has also failed to effectively manage the downstream sector, which is characterised by moribund refineries, scarcities, inconsistent and uncompetitive fuel prices. Despite the abundance of petroleum commodities in Nigeria, the country’s largest import is from the petroleum products, which increases the supply and reduces the value of the Naira in the foreign currency market,” he said.
“Consequently, NNPC has lost its international goodwill because of its inconsistency and political interferences, and this has caused doubt and high business risk in the Nigerian oil industry.
“Though an oil rich country, Nigeria is the world’s headquarters of poverty, which explains further the poor management of the oil resources in the country.
“Nigerian petroleum industry has also been negatively impacted by a number of external factors such as a surplus of global crude supply, leading to global oil price decline, competition from renewable energy, the devastating impact of the Covid-19 pandemic on the global oil economy, as well as the 2020 fracturing of the OPEC+ alliance (with Russia) leading to a sharp decline in oil prices in 2020. Many of these challenges, though near to medium term, have the potential to continue for the longer term,” he concluded.
Source:www.energynewsafrica.com
Norwegian oil and gas major Equinor has revealed its ambition to become a net-zero company by 2050 as its new boss is taking over his position. The new CEO is meant to speed up the company’s push towards energy transition.
Anders Opedal is taking over the role of Equinor CEO from Eldar Sætre, who is retiring after six years as CEO and more than 40 years in the company.
Opedal is meant to accelerate Equinor’s development as a broad energy company and increase value creation for the company’s shareholders through the energy transition.
In an update on Monday, Equinor firmed up its ambition and commitment to become a net-zero energy company by 2050.
According to Equinor, the ambition includes emissions from production and final consumption of energy.
It sets a clear strategic direction and demonstrates Equinor’s continued commitment to long-term value creation in support of the Paris Agreement.
Anders Opedal, who officially took over the position as Chief Executive Officer (CEO) and President of Equinor on Monday, said: “Equinor is committed to being a leader in the energy transition. It is a sound business strategy to ensure long-term competitiveness during a period of profound changes in the energy systems as society moves towards net zero. Over the coming months, we will update our strategy to continue to create value for our shareholders and to realise this ambition”.
“Equinor has for years demonstrated an ability to deliver on climate ambitions and has a strong track record on lowering emissions from oil and gas. Now, we are ready to further strengthen our climate ambitions, aiming to reach net zero by 2050”, Opedal said.
Equinor also said it expects to deliver an average annual oil and gas production growth of around 3 per cent from 2019 to 2026.
The Norwegian major noted it will continue to develop competitive and resilient projects whilst maintaining industry-leading recovery rates, unit costs and carbon efficiency by optimizing its portfolio through financial discipline and prioritization.
The net-zero ambition will strengthen future competitiveness and value creation at the Norwegian continental shelf (NCS). Equinor’s plans for production, development and exploration at the NCS remain firm.
Equinor is preparing for an expected gradual decline in global demand for oil and gas from around 2030 onwards. Value creation, not volume replacement, is and will be guiding Equinor’s decisions.
In the longer term, Equinor expects to produce less oil and gas than today.
To develop Equinor as a broad energy company, renewables will be a significant growth area.
Equinor has previously set ambitions for profitable growth within renewables and expects a production capacity of 4-6 Gigawatts (GW) by 2026 and 12-16 GW by 2035.
Equinor now plans to expand its acquisition of wind acreage, with the aim of accelerating profitable growth and will continue to leverage its leading position in offshore wind.
The African Centre for Energy Policy, an energy Think Tank in the Republic of Ghana, was on Friday, adjudged the Energy Consultancy Service Organisation of the Year 2020 at the 4th Edition of the Ghana Energy Awards.
ACEP beat Institute for Energy Security(IES), Institute for Sustainable Energy and Environmental Solutions (ISEES) and Arthur Energy Advisors to emerge the winner in that category.
In a twitter post sighted by energynewsafrica.com, it said: “While this may be a recognition of how far we’ve come, we deem it a duty placed on us by you, stakeholders to do even more.”
Abu Dhabi National Oil Company (ADNOC), UAE’s biggest energy producer, is seeking Indian companies for partnership in its ambitious $45 billion downstream petrochemical expansion plans.
During a virtual conference session Prime Minister Narendra Modi had with global energy chief executives recently, ADNOC CEO Sultan Ahmed Al Jaber, sought opportunities to strengthen the UAE-India energy relationships, a company statement said.
Speaking at the roundtable, Al Jaber said India has always been and will always remain one of the UAE’s closest friends and one of its most important trading partners.
Strategic ties between the two nations, he said, have strengthened in recent years, particularly in the field of energy.
Indian companies are present in UAE oilfield concession, he said referring to ONGC Videsh Ltd and its partners in 2018 acquiring a 10 per cent in a large offshore oilfield for $600 million.
This was the first time any Indian company set foot in the oil-rich Emirate.
“As we continue to work together, I see significant new opportunities for enhanced partnerships, particularly across our downstream portfolio. As you know, we have launched an ambitious plan to expand our chemicals, petrochemicals, derivatives and industrial base in Abu Dhabi and I look forward to exploring partnerships with even more Indian companies across our hydrocarbon value chain,” Al Jaber said.
ADNOC in 2018 unveiled plans to invest $45 billion with partners to develop its local downstream activities, including the expansion of its Ruwais refinery and petrochemical capacity in the industrial hub.
The company has courted international investors to expand its oil and gas production and monetise its assets.
“India’s remarkable growth as an economic power has cemented its place as one of the world’s largest energy consumers.
“In fact, it represents the second biggest market for ADNOC. This is a position we hope to build on, in line with the huge expansion of India’s ambitions for growth,” Al Jaber said.
ADNOC, he said, is ready to meet India’s growing demand across the full portfolio of products.
He added ADNOC is proud to be a key supplier to India’s Strategic Petroleum Reserves and is keen to expand the commercial scale and scope of this strategic reserves partnership.
ADNOC was the first foreign company to hire space at the underground crude oil storage India has built as an insurance against supply and price disruptions.
“In the past two years, ADNOC has enhanced its strategic energy links with India – a key growth market for crude, refined and petrochemical products. In addition to its partnership in the strategic reserves program, ADNOC is also a stakeholder in one of India’s largest refinery and petrochemical projects, to be constructed on India’s west coast,” he said.
ADNOC along with Saudi Aramco have together taken a 50 per cent interest in the massive 60 million tonnes a year refinery-cum-petrochemical complex planned on Maharashtra coast at a cost of $44 billion.
Concluding his remarks, Al Jaber said he believes both countries have only scratched the surface of the opportunities that could benefit both India and the UAE in the energy sector, the statement said.
“I believe that by seizing these opportunities, we can in fact enhance the speed of post-Covid economic recovery. I very much look forward to expanding our relationship across multiple areas and I am absolutely certain that we can remove any barriers that may stand in our way,” he said.
The objective of the roundtable is to deliver a global platform to understand best practices, discuss reforms, and inform strategies for accelerating investments into the Indian oil and gas value chain.
Indian companies have steadily increased their participation in the UAE’s energy sector. In March 2019, a consortium of two Indian oil companies were awarded the exploration rights for an onshore block in Abu Dhabi. This followed the award in February 2018 of a 10 per cent participating interest in Abu Dhabi’s offshore Lower Zakum Concession to OVL and its partners Bharat PetroResources Ltd (BPRL) and Indian Oil Corp (IOC).
The Institute of Energy Securities (IES), an Energy Think Tank in the Republic of Ghana has said fuel prices at various pumps on the local market is expected to remain stable in the first pricing window of November 2020.
Prices of petroleum products within the second Pricing-window of October 2020 saw majority of Oil Marketing Companies (OMCs) maintaining prices of Gasoline and Gasoil.
Presently, the average price of fuel at various pumps across the country stands at GH¢4.53.
Brent crude price averaged about $42.38 per barrel mark for the Pricing-window under assessment.
The crude price increment has been a result of the announcement by OPEC+ to ease production cuts by 2 million barrels per day (bpd) as of January 2021.
Following this, Brent crude price appreciated by 1.15% from an earlier average price of $41.90 per barrel recorded at the end of the first Pricing-window of October to close at $42.38 per barrel on average terms at end of the second Pricing-window of October.
At about 13:40 GMT on Monday WTI was trading at $35.65 while Brent crude was sold at $37.86
“Owing to the 1.15% increment in price of International Benchmark- Brent crude oil on the international market, the 1.82% increment in prices of Gasoil, the 5.08% decrease in Gasoline prices and the 0.35% depreciation of the local currency; the Institute for Energy Security (IES) foresees prices of fuel on the domestic market maintaining their stability as we enter the first half of November 2020,” IES said.
Local Fuel Market Performance
Prices of fuel on the local market remained stable within the window under review. Prices of petroleum products within the second Pricing-window of October 2020 saw majority of Oil Marketing Companies (OMCs) maintaining prices of Gasoline and Gasoil. The current national average price of fuel per litre at the pump is pegged at GHC 4.53
For this Pricing-window, Zen Petroleum, Benab Oil, SO Energy and Alinco Oil sold the least-priced Gasoline and Gasoil on the local market according to IES Market-Scan.
World Oil Market
Brent crude price averaged about $42.38 per barrel mark for the Pricing-window under assessment. The crude price increment has been a result of the announcement by OPEC+ to ease production cuts by 2 million barrels per day (bpd) as of January 2021. Following this, Brent crude price appreciated by 1.15% from an earlier average price of $41.90 per barrel recorded at the end of the first Pricing-window of October to close at $42.38 per barrel on average terms at end of the second Pricing-window of October.
Gasoline and Gasoil prices as monitored on Standard and Poor’s global Platts platform shows an increase in prices of Gasoil and a decrease in prices of Gasoline. Gasoline saw a decrease in prices by 5.08% to close the window at $381.07 per metric tonne from an earlier $401.48 per metric tonne. Gasoil prices saw an increase by 1.82% to close trading at $334.02 per metric tonne from $328.05 at the end of the second pricing window.
Local Forex
Data collated by IES Economic Desk from the Foreign Exchange (Forex) market shows the Cedi depreciated marginally against the U.S. Dollar, trading at an average price of Gh¢5.77 to the U.S. Dollar over the period compared to Gh¢5.75 in the previous window representing a 0.35% depreciation.
PROJECTIONS FOR NOVEMBER 2020 FIRST PRICING-WINDOW
Owing to the 1.15% increment in price of International Benchmark- Brent crude oil on the international market, the 1.82% increment in prices of Gasoil, the 5.08% decrease in Gasoline prices and the 0.35% depreciation of the local currency; the Institute for Energy Security (IES) foresees prices of fuel on the domestic market maintaining their stability as we enter the first half of November 2020.
The Managing Director of Bulk Oil Storage and Transportation Company (BOST), Edwin Provençal, has responded to what he described as ‘untruths’ being peddled by former President and Presidential Candidate of the opposition NDC Mr. John Dramani Mahama about the state of BOST and TOR before his administration exited power.
He expressed shock as to how the former Ghanaian leader, whom he says he respects so much, could spew untruths to Ghanaians.
The presidential candidate of the National Democratic Congress (NDC), John Dramani Mahama, has given the assurance that his next governement would revive the Tema Oil Refinery.
The NDC’s presidential candidate for the upcoming December 7 General Elections was interacting with members of the Tanker Drivers’ Association and liaison officers of the oil marketing companies in Tema on Thursday.
He said, “When the NDC assumed office, BOST was highly indebted but through proper management, the government was able to transform it to become one of the best performing state enterprises.”
Mr Mahama accused the Akufo-Addo-led administration of mismanaging BOST and TOR, assuring that should NDC return to power, it would work to revive the ailing state agencies.
However, responding to the claims by the former Ghanaian leader, Managing Director of BOST, Edwin Provencal gave a detailed account of the sordid state of BOST when the current administration took over the company.
He further gave details of what the current administration has been able to do within the three years and ten months.
Below is the full response of MD of BOST to Mr John Mahama’s claimADDRESSING FORMER PRESIDENT MAMAMA’S UNTRUTHS
As the current CHIEF SERVANT of BOST, I cannot stand aloof when the former 1st gentleman & commander-in-chief of the land, who I respect so much, decides to spew UNTRUTHS to the general public.
These are the unalienable facts:
BOST AS AT JANUARY 2017
1) As at January 2017, BOST had a backlog of unaudited accounts covering the period from 2014 to 2016. How can u declare profits during this period?
2) The Press encounter in 2015 which declared that BOST made profit on its operations by the then Managing Director was FALSE but a calculated attempt to throw dust into the eyes of stakeholders as revealed per the audited accounts which showed a loss of GHS36.342 million.
3) The 2016 audited accounts reflected a total loss of GHS459million from BOST operations. This was the HIGHEST LOSS EVER in the history of BOST.
4) In January 2017 BOST owed $624 million to suppliers, BDCs and related parties in respect of crude oil imports for processing at TOR and refined products which got lost from BOST tanks (documents available).
Can you imagine how many hospitals, schools & roads this $624million could have built?
5) Products not accounted for by BOST from BDCs between 2010 and 2014 amounting to $35.913 million hanged on the neck of the company from eight (8) BDCs.
6) As at January 2017, 15 out of 51 tanks owned by BOST across the country were non-operational, thus, decommissioned.
7) As at January 2017, The Tema-Akosombo-Product-Pipeline (TAPP) had been non-operational since 2013.
8) As at January 2017, the 77Km 12” pipes that BOST had previously acquired in 2008 for construction of a pipeline between Accra Plains and Akosombo Depots were still stuck in Houston and incurring huge additional costs AFTER 9 years.
9) In January 2017, 100% of our marine assets (all four BOST river barges, tug boat and floating dock) were broken down and non-operational, which limited transportation of petroleum products across the country. Our BOLGA-BUIPE pipeline & BOLGA DEPOT were not operational.
10) The CBM which was built on a Build-Operate-Transfer basis for BOST was transferred to TOR and subsequently leased to a South African Company under the single management for BOST and TOR. As we speak, BOST receives no revenue from this operation and TOR is only limited to dividends declared and paid by the South African Company.
11) The Tema Oil Refinery, TOR owed BOST to the tune of $13.3 million as at January 2017.
Fellow Ghanaians, PLEASE HOW CAN THIS BE EVIDENCE OF GOOD MANAGEMENT OF THESE NATIONAL ASSETS?
BOST FROM JANUARY 2017 to TODAY, 31st OCTOBER, 2020 UNDER THE LEADERSHIP OF HIS EXCELLENCY NANA ADDO-DANKWA AKUFO-ADDO.
1) The audited accounts for 2014 to 2018 has been completed with 2019 audited accounts expected to be completed by Q1-2021.
2) Whereas the 2018 account showed a 70% reduction in losses from the previous year, the 2019 management account further indicated a 41% reduction in the loss level from the year 2018. This steady decline in the loss level of the company, from 2017 to 2019, shows that during the year 2020, the company WILL LIKELY MAKE A PROFIT OR AT-WORST, BREAK EVEN.
3) With respect to the $36 million claim by eight (8) BDCs, an in-house committee vetted the figures and reviewed the volume of claims downwards to $15 million after diligent reconciliation with the claimant BDCs. This represents a potential savings of $21 million.
4) Of the $624 million owed to suppliers and related parties by BOST, 97% has been settled as at October 2020. This is huge progress at getting the company to work again. It must be noted that, some of these debts accrued out of losses on BOST/TOR crude import and refinery.
5) Of the US$566 Million, BOST paid US$408 Million from its own resources amounting to an average of US$136 Million per year. The amount paid from the companies internally generated resources amounts to 72.08% of the total amount settled out of the outstanding debts to suppliers and related parties as at 1/1/2017. Who will refer to this as a total mismanagement of a strategic state enterprise?
6) Government gave a support of US$138 Million through the Ghana National Petroleum Corporation, GNPC to help reduce the exposure of the company to the suppliers. This amounts to 24.4% of the amount paid.
7) Among other things, BOST has made a payment of $534,000 towards the rehabilitation of the Tema-Akosombo-Petroleum-Product-Pipeline. The work is expected to be completed in Q2-2021. The amount was raised from BOST’s in-house operations-storage and transmission of petroleum products.
8 ) In October 2019, two (2) of the four river barges which have been out of operations since 2013 were brought back on stream and are currently operational. These two barges generate GHS 400,000 per voyage between Akosombo and Buipe depots; an additional source of revenue to the company.
9) For the safety of the BOST depot in Buipe and the lives of people in the area, an amount of money was donated for the repair of the fire tender at the Buipe Station in January 2020. The repair works are over and the equipment is on standby to provide fire safety for the depot and the people in the area.
10) Repair works on the Bolga-Buipe petroleum Product Pipeline is complete and export of products is to commence in November 2020.
We are on the PATH TO TRUE TRANSFORMATION!
FELLOW GHANAIANS, the evidence is clear and Ghana IS working again under the leadership of HIS EXCELLENCY NANA ADDO-DANKWA AKUFO-ADDO.
#4MoreToDoMore4U
Striking petroleum tanker drivers in the Republic of Ghana have resumed work effective today, energynewsafrica.com can report.
Their resumption to duty on November 1, 2020, follows an emergency meeting at the instance of the Ministry of Employment and Labour Relations.
Members of the Ghana National Petroleum Drivers’ Union have been lamenting on some unresolved grievances which they explained have been a source of worry.
Key among the grievances were the harassment by police officers at Nchaaban in the Western Region and those on the Cape Coast-Mankessim road, as well as the ban on some 86 LPG stations.
The strike action by the transporters resulted in shortages of fuel products in parts of Accra, Tema, Ashaiman and their environs.
However, a statement issued and signed by the Deputy Minister for Employment and Labour Relations and the leaders of Gas Tanker Drivers’ Union, General Transport Petroleum and Chemical Workers’ Union and Ghana National Petroleum Tanker Drivers’ Union said a consensus had been reached for the drivers to resume duty.
The statement assured that government would take all the necessary steps to resolve the matter with all the urgency it deserved.
Ghana’s largest indigenous oil marketing company, GOIL COMPANY Limited has grabbed two prestigious awards at the 2020 Ghana Energy Awards and the Ghana Business Awards 2020.
The highlight was the conferment of the ‘CEO OF THE YEAR- PETROLEUM’ category to the Group Chief Executive Officer and Managing director of GOIL, Mr. Kwame Osei –Prempeh at the Ghana Energy Awards.
The Award recognized the effort of Mr. Osei Prempeh among five other nominees for his contribution to the Petroleum sector, and especially pursuing excellence in the midst of the COVID-19 Pandemic.
Responding, Mr. Osei Prempeh dedicated the award to the hardworking staff of GOIL and all consumers for their loyalty to the brand.
He was hopeful the award will spur the company on ‘to rise and soar like an eagle for the benefit of not only staff and shareholders but for mother Ghana’.
In another development, GOIL has been recognized as the ‘OIL & DOWNSTREAM COMPANY OF THE YEAR’ at the third edition of the GHANA BUSINESS AWARDS.
The awards noted the excellent contribution of GOIL as not only the number one Oil Marketing Company, but also the biggest indigenous oil entity committed to partnership and innovation.
The award was received by Mr, Martin Olu-Davies, Head of Administration and Human Resource.
Source:www.energynewsafrica.com
The Chief Executive Officer of Ghana’s largest state power generation company, Volta River Authority (VRA), Ing. Emmanuel Antwi Darkwa, was, on Friday, adjudged the CEO of the Year for the power sector category at the 4th Ghana Energy Awards.
Ing. Emmanuel Antwi Darkwa beat MD of ECG Kwame Agyeman-Budu, CEO of GRIDCo Ing. Jonathan Amoako Baah,CEO of SunPowrr Innovations Ernest Amissah, CEO of Bui Power Authority Fred Oware and CEO of Meinergy Technology Kevin Wu to become the power sector CEO of the Year.
The prestigious energy event, which took place at the plus h Movenpick Ambassador Hotel, Accra, capital of Ghana, also saw VRA winning the Corporate Social Responsibility of the Year award.
Meanwhile, VRA which Ing. Emmanuel Antwi Darkwa heads also won the Corporate Social Responsibility(CSR) Company of the Year. The Authority was also awarded for its outstanding role in the fight against Covid-19 pandemic.
Other award winners in the power sector category were Bui Power Authority, Sunon Asogli Ghana and GRIDCo,
Ghana’s second largest power generation company, Bui Power Authority’s (BPA), is set to commission the first phase of its 50MWp solar power park in the Bono Region in the Republic of Ghana.
The 50MWp solar power park, which is situated on 200 acres of land (equivalent of 151 football pitch), is in two phases.
The BPA targeted 10MWp out of the 50MWp for the first phase but the Authority has surpassed it and as at last week, it had installed more than 15MWp.
Briefing the press after the Board of BPA inspected the facility, its Chief Executive Officer, Fred Oware said they are targeting to install between 20MWp and 25MWp, adding that “this will be commissioned in the middle of November.”
He said after the commissioning of the first phase, they would continue to add on until they reach the 50MWp target.
“We’re going to have 100megawatts on this site and will do it in 50s. But even with the 50MW, we will do them in bits, so we planned to do 10MWp but currently we have surpassed that,” he said.
Members of the BPA Board in a group photograph after inspecting the solar plant
Explaining the broad vision of the Bui Power Authority, regarding renewable energy to energynewsafrica.com, Mr Oware said the Authority has planned to construct a solar park with a capacity of 250 megawatts.
He explained that apart from the 50MW solar park, which is currently ongoing, they are also constructing 1MW floating solar park on the reservoir of the Bui Dam.
Mr Oware said the 1MW floating solar park is scheduled to be completed by the end of this year, adding that the Authority intends to scale it up to 5 megawatts.
He said the Authority has also acquired sites in the Northern Regions and is planning to undertake solar projects including wind power by next year.
According to him, per the Authority’s plan, it would be able to develop 2500MW of renewable energy in line with the government’s vision to ensure that 10 percent of the country’s energy mix is from renewable.
Touching on the journey towards the construction of the solar power park, Mr Oware said, initially, some staff of the Authority were not in support, but along the line, they came to appreciate the need for the project.
On how the covid-19 pandemic impacted on the project, he said way back in December, when it became obvious that the covid-19 could be a global problem, the Authority started putting in place measures to avert its impact on the project.
Among the measures the Authority instituted were that no staff was allowed to go outside the project site and also banned entry of outsiders from visiting the project site including family members of the workers.
He said the Authority provided all the logistics including food for the staff to ensure that the project continued despite Covid-19
He commended the engineers and all the staff for rallying behind him to see the project on course.
Board Chairman of BPA, Amb. Afare Apeadu Donkor who said he was satisfied with the state and progress of work, also commended the staff for working to ensure that the project was completed to add on to the country’s energy mix.
Other Board Members who were present at the inspection of the facility are Mrs. Sylvia Maria Asare,Dr Adams Sulemana Achanso, Mr Kwaku Bowiansa Abrefa and Mr Gabriel Osei (MP).
Earlier, this year, the Director of Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo who led a team from the Ministry to tour the facility, said the team was impressed by the level of progress and was hopeful that the first phase would be completed as planned.
He commended the Bui Power Authority for giving Ghana value for money by using quality materials for the project.
Mr. Ahiataku-Togobo noted that the project formed part of the government’s efforts toward increasing the penetration of renewable energy (RE) by 10 percent by 2030 as outlined in the Paris Agreement of Ghana’s Intended National Determine Contribution (INDC).
With the recent commissioning of the VRA’s 6.54MWp solar park at Lawra in the Upper West Region, Ghana’s total utility scale installed solar capacity now stands at 49MW.
In terms of total renewable energy capacity (both hydro and solar) in the country’s energy mix, Ghana now boast of about 1,633MW.This comprise Bui Generation Station 400MW + 4MW turbine, Akosombo Dam 1020MW, 160 Kpong Generating Station 160MW, Navrongo Solar Park 2.5MW, Lawra Solar Park 6.54MWp, BXC’s 20MW at Gomoa Onyaadze,
Meinergy 20MW and Safisana 0.1MW at Ashaiman.
The successful completion of the Bui Power Authority’s project will play a significant role in achieving the government’s target for 2020.”
Source:www.energynewsafrica.com
In a twitter post sighted by energynewsafrica.com, it said: “While this may be a recognition of how far we’ve come, we deem it a duty placed on us by you, stakeholders to do even more.”
The awards noted the excellent contribution of GOIL as not only the number one Oil Marketing Company, but also the biggest indigenous oil entity committed to partnership and innovation.
The award was received by Mr, Martin Olu-Davies, Head of Administration and Human Resource.
Source:www.energynewsafrica.com
Source:www.energynewsafrica.com