In what could be described as a very rare achievement, Ghana’s only state refinery, Tema Oil Refinery (TOR) Limited has suddenly become a preferred choice for major oil traders, both local and international who are now seeking for opportunities to process their crude oil at the West African nation’s refinery at a fee.
With the confidence of traders and some finance houses restored in the refinery, TOR, which, hitherto, was in the news for lack of crude, has continuously processed circa 4 million barrels of crude oil out of a total of 11 million barrels since August 2019.
This follows the signing of a tolling crude oil processing agreement between Tema Oil Refinery and Woodfields Energy Resources Limited, a wholly Ghanaian-owned oil trading company, backed by the world’s largest oil and gas trader.
Woodfields Energy’s long history with the refinery and knowledge of the energy business in Ghana, in Africa, led them to originate and lead this transaction.
The contract would ensure that TOR continues processing of crude oil into the foreseeable future.
According to the Managing Director of TOR, the refinery is currently operating a tolling model where it processes crude oil for/on behalf of third parties at a fee.
This arrangement places minimum or no risk at all on the refinery as the processor since the crude oil is purchased, transported and marketed by the third party.
Mr Isaac Osei explained that the third parties who enter into tolling agreements with TOR are confident in the new operating efficiency philosophy, as well as the transparency at TOR and are, thus, motivated to do business with TOR.
He said although the current arrangement covers processing crude oil at CDU, the RFCC, which is currently under nitrogen pressure, would also soon be engaged after negotiations between TOR and some potential partners are completed.
Mr Osei, who was answering questions from energy reporters on the side-lines of the just ended African Refiners Association conference in Accra, mentioned that aside the current tolling agreement with Woodfields Energy, TOR is also negotiating to sign similar tolling agreements with other international traders like Gemcorp, BP and other traders.
The former COCOBOD CEO attributed this development at TOR to guarantees on plant efficiency and effectiveness.
“After a careful diagnosis of TOR’s challenges, the Board and Management met with the workers and charged them to work in an efficient manner in order to restore the company to its glorious days, and I’m happy to announce that with this new operating philosophy at TOR, our trading partners have realised that TOR is technically viable and could indeed give them value for money with the right structures in place,” Mr Osei stated.
He explained that TOR’s new philosophy of ‘operating efficiency’ is centred around the company’s utilities section (Power House), the power generation hub of the refinery.
Currently, TOR uses Refinery Fuel Gas (FG) that is generated as a by-product of the refining processes at RFCC and CDU. This fuel gas generated at TOR is, however, inadequate to fire the various heaters in the refinery.
The short fall, Mr Osei explained is made up with Fuel Oil in the form of AR or Cracked Fuel Oil, a high value product, a situation Mr Osei observed used to erode the refinery of its profit margins.
To surmount this challenge, Mr Osei revealed that the commerce and technical teams ensured that TOR came up with both long and short term strategies.
In the short term, the company has negotiated that all processing agreements with third parties should cater for the challenge of using AR to power the boilers in the refinery.
In the long term, however, TOR has set up a technical team which has presented an actionable plan to link TOR to VRA (Volta River Authority) to tap gas from the WAPCO (West African Gas Pipeline Company) pipeline to fire the furnaces and boilers instead of using Fuel Oil,” Mr Osei stated.
It would be recalled that when the Isaac Osei team took over the company in 2017, the plants at TOR had missed three cycles of scheduled shut down maintenance and that affected its reliability and performance.
The Board at one of its earlier meetings, therefore, decided to embark on the much needed shut down maintenance to improve upon the performance and reliability of both the CDU and the RFCC.
Mr Osei further touted a number of milestones TOR has crossed in the utilities department of TOR including the full payment for a 120tph Steam Boiler which will increase steam generation capacity for plant operations and ensure reliability of the refinery’s utilities system.
The Boiler, which arrived in Ghana in the third week of October 2018, is currently being installed and is expected to augment TOR’s power generation activities after its commissioning, which is expected by next year.
Mr Osei lauded the Nana Akufo- Addo government for the current positive developments at TOR.
He mentioned the immense support the government has given to TOR through the Ministries of Finance and Energy.
“TOR has reached this stage because the government believed in the strategic role we play here at TOR and has, thus, assisted us in many ways, including restoring our capacity and ensuring efficiency in our power generating activities. I’m happy to inform you that with the support of the government, TOR has completed the payment for its second heater and our capacity would be restored to the nameplate capacity of 45,000 bpsd, by the end of the first quarter of 2020. This means TOR will be able to refine one million barrels of crude oil in just 22 days, thereby, making room for more companies to refine their crude oil at TOR.”
The TOR MD further revealed that the TOR Board of Directors have been extremely supportive in this new development. He said the workers of TOR bought into the new challenge when they were tasked by the Board and management to embrace the new operating philosophy of efficient TOR.
Nonstop crude oil flow does not seem to be the only feat chalked by TOR.
Mr Osei said through the ingenuity of the maintenance division, loading rack 3, which was gutted by fire in 2010, has now been rebuilt at the loading gantry.
He was hopeful this would reduce the turnaround time at TOR’s loading rack and further help in serving customers better.
Source: www.energynewsafrica.com
Australian offshore oil and gas safety regulator NOPSEMA has resumed its assessment of Equinor’s environment plan for the Great Australian Bight drilling following the oil company’s re-submission of the plan requested by the regulator in November.
Equinor submitted the environment plan for the drilling of the Stromlo-1 exploration located in the Great Australian Bight in April 2019. NOPSEMA wasn’t able to make a decision within 30 days so, in late June, it requested further information from Equinor.
Equinor then in August requested more time and NOPSEMA resumed the assessment process in September.
Early last month, NOPSEMA issued a notice to Equinor “requiring them to modify and resubmit their environment plan for proposed drilling in the Great Australian Bight.” Equinor was given 21 days to provide NOPSEMA with further information about matters relating to consultation, source control, oil spill risk and matters protected under Part 3 of the Environment Protection and Biodiversity Conservation Act 1999.
On November 29, 2019, Equinor re-submitted its environment plan for proposed drilling activity in the Great Australian Bight, following an opportunity to modify and resubmit as a standard component of the assessment process.
In accordance with the Environment Regulations, NOPSEMA has resumed its assessment of Equinor’s environment plan, the regulator said on Monday, December 2.
The next decision point in the assessment process is scheduled to occur by December 30, 2019. Prior to this point, NOPSEMA will continue to assess the environment plan and consider potential environmental impacts from the proposed activity to ensure appropriate precautions are taken.
NOPSEMA noted it could extend the timeframe of the assessment if additional time is required.
Equinor’s planned well is located in the Ceduna sub-basin, off southern Australia. The well is located approximately 400 km southwest of Ceduna and 476 km west of Port Lincoln and in a water depth of approximately 2240 meters.
According to Equinor’s plan, the petroleum activity will occur anytime between October and May during the three years validity period from 2020 to 2022. No drilling will take place between June to September inclusive.
The duration of the drilling of the Stromlo-1 well is expected to be approximately 60 days, with the drilling planned to begin in late 2020.
In related news, Australia-based Karoon Gas has recently decided to ditch its exploration permit located in the Great Australian Bight area thus joining oil majors Chevron and BP who had previously abandoned their Bight permits.
Source:www.energynewsafrica.com
The Gas Exporting Countries Forum (GECF) last Friday launched a document titled Declaration of Malabo) at the 5th Heads of State Summit held in Malabo, Equatorial Guinea (November 26-29).
The Declaration outlines the way in which GECF member countries can cooperate to secure a long-term and sustainable energy transition.
The official Declaration of Malabo was submitted on Friday as the result of the Gas Exporting Countries Forum (GECF) 5th Heads of State Summit held in Malabo (November 26-29).
The declaration was presented by H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea, and H.E. Yury Senturyin, Secretary General of the GECF.
Drafted during a week of Ministerial and High-Level Ad Hoc Working Group meetings, the document reaffirms the importance of retaining sovereign rights of member countries over natural gas resources; securing an energy transition and meeting sustainable development goals; attracting investment to gas infrastructure projects; fostering coordination among GECF member countries; and establishing pricing mechanisms, among other key objectives.
“One of the positions of the GECF is to specifically designate the terms and conditions of the contracts between producers and consumers. Our community insists that pricing connected to oil indexation should serve in favor of our member countries,” said H.E. Yury Sentyurin, Secretary General of the GECF. “Producers need to have a reliable flow of revenue to be able to ensure investment. With the connection between pricing and indexation, we try to ensure comfortable conditions for producers to ensure that their projects are implemented.”
The 5th Heads of State Summit represents the first time that the event was held on the African continent, reflecting increased efforts to attract African gas-producing countries to the organization.
“Mozambique and Tanzania have had huge gas discoveries…So many African countries have their own resources and they need to learn to manage them by themselves,” H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for Equatorial Guinea. Said.
“The objective of this summit is to attract more African countries. This increases our numbers. The future is gas.”
The Declaration of Malabo builds on the existing frameworks for cooperation outlined by the declarations of GECF Summits held in Doha, Qatar (2011), Moscow, Russia (2013), Tehran, Iran (2015) and Santa Cruz de la Sierra, Bolivia (2017).
Source:www.energynewsafrica.com
The Head of Energy Desk at Accra-based Oman FM and Editor for energynewsafrica.com in the Republic of Ghana, Michael Creg Afful, has been adjudged the best energy news reporter for 2019.
Creg Afful won the award for the second year running against stiff competition from Kobina Amonoo of Angel TV, Francisca Dickson Arhin of the EIB Network and Jessica Acheampong of the Graphic Business, a state newspaper.
After winning the 2018 Energy Reporter of the Year, Creg Afful created energynewsafrica.com with the objective of using the platform to disseminate energy news in Africa and beyond.
At the recent launch of the news portal, after one of its creation, it emerged that energynewsafrica.com had reached over 55,000 people in 153 countries in the world.
Michael Afful(left) with Dr Mohammed Amin Adam, Deputy Minister for Energy in-charge of Petroleum, Republic of Ghana
The 3rd Ghana Energy Awards ceremony held under the theme: ‘Energy, the key to a sustainable economy for industrialisation’, was organised by the Energy Media Group.
The ceremony was to recognise and celebrate tremendous hardworking efforts of excellent stalwarts of the Ghanaian energy sector competing under the various categories.
Michael Afful(left) with Rev. Oscar Amonoo-Neizer(right), Executive Secretary of Energy Commission
In his opening remarks, the Chief Executive Officer for Energy Media Group, Mr Henry Teinor said the Energy Awards has become a benchmark in the annals of Ghana’s award ceremonies and that they, as an entity, had worked tirelessly to implement innovative ideas to make it stand tall among award ceremonies in Ghana.
He was glad the Energy Awards ceremony has gained strong footings not only in Ghana but Africa at large.
Michael Afful with Mr. Emmanuel Antwi-Darkwa, CEO of Volta River Authority(VRA)
“We shall not stop until our ceremony becomes the Oscars of the African continent,” he said.
He indicated that previous award winners were mandated to share their life experiences with students in Senior High Schools and that it is his hope that the status quo would be maintained by this year’s awardees.
Michael Afful with Seji Saji, Deputy Director at NADMO
On his part, Dr Kwame Ampofo, the Chairman for the Awarding Panel thanked the organisers and partners for their hard work and tenacity for keeping faith with the awards ceremony over the years.
He explained that the panel members were very fair in executing the mandate assigned to them.
“The award winners were meticulously chosen through a rigorous, free and fair procedure devoid of fear or favour to anyone.
“None of us panel members know who the award winners for the various categories were,” he emphasised.
Dr. Kwame Ampofo(left), former Chairman of Energy Commission with Michael Afful
Dr Ampofo, who was the past Chief Executive for the Energy Commission, congratulated the awardees and urged them to be spurred by the recognition and do more beneficial things for the society.
In an interview after receiving the award, Mr Creg Afful said it was an honour to receive the award for the second time.
He praised God for the strength and energy which helped him to go about fishing for information to disseminate to readers both home and abroad.
He thanked his colleagues and Management of Oman FM for the support and opportunity.
Mr Afful further appealed to players in the energy sector to help in building the capacity of reporters who have shown interest in reporting on energy.Mr Kwame Jantuah(left), a member of Ghana Energy Awards panel with Michael AffulMichael Afful with J K Ahiadome aka Majaro
Michael Afful with Mr Wisdom Ahiataku Togobo, Director Renewable Energy and Nuclear Energy at the Ministry of EnergyMichael Afful with Senyo Hosi, CEO of Chamber of Bulk Oil Distributors(CBOD)Source:www.energynewsafrica.com
The Chief Executive Officer of the West African National Gas Company, Ghana Gas, Dr Benjamin K. D. Asante, has been adjudged the Energy Personality of the Year for 2019 at an awards ceremony organised by the Energy Media Group.
Dr Asante competed for the award with Mr Gilbert Kofi Adarkwah, Advisor to CEO, Aker Energy, Wisdom Ahiataku Togobo, Director for Renewable and Nuclear Energy, Ministry of Energy, Michael Bozumbil, CEO-Petrosol, Dr Theophilus Acheampong, Energy Consultant, Emmanuel Antwi-Darkwah, CEO -VRA, Chris Chinebuah, CEO, For, Yang Qun, Chairman, Sunon Asogli, and Mr Fred Oware, CEO of Bui Power Authority.
Dr Ben Asante has been very instrumental as far as the development of Ghana’s gas infrastructure development is concerned.
With his over 21 years’ experience in gas industry, both home and abroad, Dr Asante has steered the affairs of the West African nation’s indigenous gas company so well that the country has made millions of dollars in savings.
Ms Augustina Osei(3rd left ) receiving the award on behalf of Dr Benjamin K.D. Asante
Under his leadership, Ghana made US$42.6 million savings due to utilisation of processed gas from Atuabo in place of Light Crude Oil (LCO) in 2017 and US$206 million in 2018.
Receiving the award on his behalf, Ms Augustina Osei commended the organisers of the awards for recognising the tremendous work the recipient, Dr Asante, has done at Ghana Gas.
Other award winners are below:
Energy news reporter-Michael Creg Afful
Emerging Energy Comp-Webber Energy
3.Brand of the Year- Vivo Energy
CSR of year- Kosmos Energy
Innovation Project-VRA
Energy Consultancy-ACEP
Off grid Energy Solution-TOTAL GH
Energy Efficient Organisation Private – Ashesi University
Energy Efficient Public-Energy Commission
Energy Institution – Petroleum commission
Excellence in power generation- Karpowership
Strategic Deal-Springfield
Clean Energy Initiative-
Rising Star- Ernest Amissah
Rising Star company, Renewable –
16.Energy Company Power-Bui Power Authority
Energy Company, Petroleum-Ghana Gas
18.Energy Company Renewable – Strategic Security System
Industry Leadership Power- GRIDCo
Industry Leadership Petroleum-GOIL
Energy Business Leadership, Male- Senyo Hosi
22.Energy Business Leadership Female – Efuwa Quansah
Board Chairman of Power Distribution Services (PDS) Ghana Limited, Philip Ayesu has denied media reports suggesting that he had a conversation with Gabby Asare Otchere Darko and Edward Akufo-Addo, who are family members of President Nana Akufo-Addo over how to share PDS shares.
According to him, the alleged conversation never happened, hence, the voice recording making the rounds is fake.
PDS signed a concession agreement with the West African nation’s Electricity Company of Ghana on March 1, 2019, but the government terminated the agreement on the basis of what it described as fundamental and material breaches of the contract by PDS.
Since the agreement was terminated, there has been media discussions about the issue with some blaming some members in the Akufo-Addo administration.
Ghanaweb.com, on Friday, November 29, 2019, published a story that suggested the accused, Mr Philip Ayesu, of wrongdoing.
The conversion on the alleged audio recording is transcribed below as published by the Ghanaweb.com.The conversation is transcribed below:
Gabby: So you can’t go below 40?
Phili Ayensu: No sir…
Gabby: At all…?
Philip Ayensu: Gabby, you see, you know we’ve come far ooo.
Gabby: Me, I’m just… I’m just trying to…
Philip Ayensu: No, I can’t go below the 40… I will rather prefer getting off and getting something out of it and getting off…
Gabby: Ok so? I see…
Philip Ayensu: This is to demonstrate that this is for me and not for anybody… And…and that is something I want to come very strong on on…
Edward Akufo-Addo (Bumpty): if that’s your final position, then,we have to let the other know, sign all the documents
Philip Ayensu: Ok sir. I appreciate you sir. Thank you very much…
Edward Akufo-Addo (Bumpty): Ok all right…
Philip Ayensu: Thank you.
However, in a statement issued and copied to energynewsafrica.com, Mr Phillip Ayensu described the audio recording as fake.
He added that he had referred the defamatory comments, which is aimed at tarnishing his hard won reputation, to his lawyers and would also be lodging a complaint with the Ghana Police Service.
“I can strongly confirm that the said recording is fake and pregnant with mischief to score an expensive political point using me as a pawn, since no such conversation ever occurred. It is but an elaborate fabrication with the help of an artificial intelligence-based software. It only reminds me of the reported voice spoofing video recording of President Donald Trump and Speaker Nancy Pelosi which was exposed by CNN, and recently a similar recording of British Prime Minister, Boris Johnson, and opposition leader Corbyn,” Mr Ayesu said in a statement.
Below is Mr Phillip Ayensu’s full statement:
PHILIP AYESU RESPONDS TO FAKE VOICE RECORDING
My attention has been drawn to a 29th November, 2019, Ghanaweb publication headlined: “PDS SCANDAL…” of an alleged recording of a conversation between myself and Gabby Asare Otchere Darko, discussing PDS shares.
I would like to put on record that this is a mischievous and totally fabricated story. It never happened. I have never hazarded the thought of owning 40% of the shares in PDS, and never owned anything close to that amount of shares in PDS for any person to have suggested to me for my shares to be reduced below 40%, and the records faithfully attest to this. I have never discussed any such thing with my lawyers or other shareholders, let alone with a third party.
I can strongly confirm that the said recording is fake and pregnant with mischief to score an expensive political point using me as a pawn, since no such conversation ever occurred. It is but an elaborate fabrication with the help of an artificial intelligence-based software. It only reminds me of the reported voice spoofing video recording of President Donald Trump and Speaker Nancy Pelosi which was exposed by CNN and recently a similar recording of British Prime Minister Boris Johnson and Opposition leader Corbyn.
Suffice to say, in any event, as an individual entrepreneur, I am at liberty to take advice from anybody I choose and also discuss with whomever I wish to discuss my private business, without the remote threat of breaching any law or agreement with any other party. But, it must be stressed that this particular purported conversation with Gabby Asare Otchere-Darko never happened. It is purely false and fake.
The perpetrator of this falsehood has been persistent in lies about myself and PDS in which one of my other companies has some equity participation and even extends it to my advisors.
I have consistently resisted any urge to respond to issues which have come into the public domain; however, the circulation of a conversation purportedly involving me which borders on criminality warrants a response and the taking of appropriate actions.
I have referred this defamatory mischief calculated to tarnish my hard-earned reputation to my lawyers and will be lodging a complaint with the Ghana Police Service.
Thank you.
Signed
Philip Ayesu.
Source: www.energynewsafrica.com
The Power Distribution Services (PDS) Ghana Limited has hinted of its plans to use all the necessary legal steps to seek redress following the Akufo-Addo’s administration’s decision to terminate the concession agreement signed with the Electricity Company of Ghana (ECG).
The Akufo-Addo-administration terminated the concession agreement the power distributor, PDS, signed with ECG on March 1, 2019, over claims of material and fundamental breaches in the agreement by PDS.
However, PDS says it disagrees with the government especially when the agreement clearly stated steps that should be taken in an event of the government declaring its intention to cancel the contract.
In a 40-point statement PDS issued to its stakeholders and intercepted by energynewsafrica.com, it said: “PDS does not accept the basis on which ECG and GoG assert their right to terminate the Transaction which, therefore, triggers a dispute as between PDS and ECG on one hand and PDS and Ghana on the other hand.”
According to PDS, “All the Transaction Agreements, i.e. the LAA, BSA and GSA have made provision for dispute resolution. The process in all cases starts from an attempt at a negotiated settlement and concludes with arbitration with the final award by any arbitration tribunal being binding on the parties.
“The LAA has elaborate provisions on post termination actions that the parties are required to take. A transition period of 180 days is required within which the parties are to retransfer in the same manner as was done prior to 1st March, 2019. Further within that Transition Period per the terms of the LAA, PDS is to remain responsible for the operation and management of the utility covering the Southern Distribution Zone and assures the power consuming public of its responsible behaviour.
“PDS remains a responsible Contracting Party with or without the supervision of the MCC. As such, PDS is committed to seeing through its obligations under the Transaction Agreements i.e.: the LAA, BSA and GSA per their terms and within the framework of Ghanaian law which is the governing law of the Transaction.
“PDS is carefully weighing its options and continues to reserve all its rights under the Transaction Agreements and Applicable Laws to pursue all available causes of action,” the statement said.
PRESS STATEMENT BY POWER DISTRIBUTION SERVICES GHANA LTD (PDS) ON TERMINATION OF CONCESSION BY ECG AND GOVERNMENT OF GHANA
On 31st July, 2019, the Government of Ghana through the Ministry of Information issued a statement announcing the suspension of the Concession (Transaction Agreements) between the Electricity Company of Ghana (ECG) and PDS, and Government of Ghana (Ghana) and PDS.
That single step set in motion a series of events that have culminated in the notification of termination by ECG of the Lease and Assignment Agreement (LAA) and Bulk Supply Agreement (BSA) between it and PDS on 23rd October, 2019; and the notification of termination by Ghana of the Government Support Agreement (GSA) between it and PDS on 28th October 2019. These events include a purported cancellation of the Electricity Distribution and Electricity Sale Licences of PDS by the Energy Commission (EC), both of which occurred on 23rd October, 2019 supposedly on the back of the notice of termination of ECG.
PDS respects the rights of Ghana and ECG to terminate the Transaction Agreements but notes that such termination even if permissible must be done in a manner that is contemplated within the framework of the Transaction Agreements and appropriate under Ghanaian Law.
PDS notes that some of the information available to the general public does not accurately reflect the events leading up to the suspension of the Transaction Agreements, and matters that arose thereafter which culminated in the events of 23rd October, 2019; the issuance of the notice of termination by ECG, the actions of the Energy Commission; and the subsequent issuance of a notice of termination by Ghana through the Ministry of Finance.
In order to put things in the appropriate perspective for the Ghanaian public and all other relevant stakeholders, we have released as part of this statement a document titled “Frequently Asked Questions on the ECG-PSP with PDS as Concessionaire”. We hope the information being shared will enable persons desirous of understanding the transaction and its fallouts appreciate the events that have occurred. Copies of all the Transaction Agreements will be made available on various platforms.
PDS continues to reserve all its rights under the Transaction Agreements and will take the necessary steps to ensure that the sanctity of those Agreements is respected.
PDS continues to reassure all Ghanaians that it remains a conscientious and responsible contracting party and will support any process that ensures consumers within the Southern Distribution Zone receive uninterrupted power supply.
Frequently Asked Questions on the ECG-PSP with PDS as Concessionaire
What is the ECG-PSP programme and when did it start.
The Electricity Company of Ghana (ECG) Private Sector Participation (PSP) programme is one of the key components of the Millennium Challenge Corporation’s (MCC) Compact II. Compact II is part of the Power Compact, signed by the Government of Ghana and the United States Government represented by the MCC in August 2014. The Compact aims to “reduce poverty through private sector-led economic growth”. One of the six (6) key programmes of the Compact is the “ECG Financial and Operational Turnaround” (EFOT). This involves, among others, private sector participation through the Concession to operate, manage and invest in the electricity distribution business of ECG (Concession). The Concession took effect on July 3, 2018 following an international tender administered by the Millennium Development Authority (MiDA) to select a qualified Concessionaire. The Concession agreements were ratified by the Parliament of Ghana on July 24, 2018. From the Effective Date of the Concession until February 28, 2019 (Transition Period), the Government of Ghana (GoG), ECG, and the Concessionaire diligently worked together to complete the Conditions Precedent for the transfer of the operation and management of the electricity distribution business of ECG to the Concessionaire. Following the agreement between the Parties that all Conditions Precedent were satisfied or converted into conditions to be fulfilled after the Transfer (Conditions Subsequent), the Concessionaire commenced its distribution operations on March 1, 2019.
What is Power Distribution Services Ghana (PDS) to do as Concessionaire
PDS is the sole entity responsible for the operation, management and investment in the distribution utility covering the Southern Distribution Zone (SDZ) hitherto serviced by ECG. PDS, as a licensed distribution utility, is regulated by the Public Utilities Regulatory Commission (PURC) and the Energy Commission (EC). Under the Concession, PDS is obligated to: (a) invest $580 million, (b) reduce Aggregate Technical and Commercial loss by 4.8 percentage points; and (c) reduce Collection loss by 11.8 percentage points from March 1, 2019 to February 28, 2024.
Was ECG supposed to supervise PDS as Concessionaire
Under the Concession agreement ECG and PDS have distinct roles. ECG remains the asset owner of the distribution network and bulk energy supplier to PDS. PDS is the primary operator, manager, and investor, of the distribution network serving the SDZ. Regulatory supervision of both PDS and ECG is under the PURC and EC. ECG and PDS relationship is governed by the Transaction Agreements. The Transaction Agreements comprise of the Lease and Assignment Agreement (LAA), the Bulk Supply Agreement (BSA) and the Government Support Agreement (GSA)
How many companies participated in the bidding process
In accordance with international best practice, the process opened with the publication of a Request for Expression of Interest (EoI) on September 30, 2015. Eighty-three (83) local and foreign entities expressed interest to participate in the process.
In April 2016, MiDA issued the Request for Qualification (RfQ) to the entities which expressed interest to participate. This required the interested entities to submit corporate documents and credentials to demonstrate their compliance to the qualifications set by MiDA. The qualification criteria comprised the legal, financial, technical, and operational capabilities deemed essential to operate and manage a distribution utility of the size and complexity of ECG. 3
Following the issuance of the RfQ, Eleven (11) entities submitted their Application for Prequalification. In keeping with MiDA’s commitment to transparency, the MiDA Board constituted a seven (7)-member Panel of experts to evaluate the Applications. The Panel comprised representatives from ECG, Ministry of Finance, Energy Commission, Ministry of Petroleum, Ministry of Power (the last two Ministries eventually being merged into one Ministry for Energy), and two representatives from the Office of the Attorney-General and Ministry of Justice. At the end of the evaluation exercise, the Panel shortlisted six (6) out of the eleven (11) Applicants.
The six (6) Shortlisted Applicants were:
Manila Electric Company (Meralco) from the Philippines,
Consortium of the CH Group/ EDF SA/LMI Holdings/Veolia SA,
BXC Company Ghana Ltd/Xiaocheng Technology Stock Company Limited/Shaanxi Regional Electric Power Group Company Limited,
Engie Energie Services, SA
Enel S.P.A and
Tata Power Company Limited/CDC Group Plc.
The Shortlisted Applicants were subsequently issued the Request for Proposal (RfP) document on August 30, 2016. The RfP outlined the requirements of the tender, instructions to the bidders, evaluation, and selection process, and drafts of the Transaction Agreements, PURC Rate Setting Guidelines, Distribution License, and Retail Sale License. In November 2017, after extensive discussions with GoG stakeholders and two Bidders’ Conferences, MiDA issued an Amended and Restated RfP. The amendments included an increase in the minimum Ghanaian equity participation from 20% to 51% and reduction of the term of the Concession from 25 years to 20 years.
By the deadline for submission of Proposals on March 26, 2018, MiDA received proposals from the Meralco-led Consortium and BXC. On the same day, the CH Group Consortium including EDF and Veolia submitted a letter withdrawing from the bidding process. Earlier withdrawals were received from Enel S.P.A on 7th October 2016, Engie Energie Services on 28th September 2017, and Tata Company/CDC Group Consortium on 12th February 2018.
By the end of the technical and financial evaluation, the Meralco-led consortium emerged as the Preferred Bidder.
Consequently, the Meralco-led Consortium (organised as PDS), remains qualified and in full compliance with the selection criteria.
Why did most of the companies withdraw from the bid.
According to MiDA, the other pre-qualified bidders withdrew from the process due to the changes introduced in the Amended and Restated RfP, primarily the changes in the minimum local Ghanaian participation of 20% to 51%.
When was the Meralco-led Consortium formally introduced to MiDA
Following the issuance of the RfQ, the Meralco-led Consortium comprising of Manila Electric Company (Meralco) of the Philippines, as Developing Country Operator, Operation and Financial Lead, AEnergia SA of Angola, GTS Engineering Services, Santa Baron Ventures Ltd and TG Energy Solutions Ghana Ltd formally made submission to MiDA on 26th February 2018. Subsequently, MiDA approved the Consortium and recognized the group through the acceptance of its Proposal on March 26, 2018.
What due diligence was conducted on the consortium members
Following the RfQ, each member of the Consortium presented relevant documentation which included, but was not limited to, corporate registrations, financial statements, and industry experience.
When did the Consortium submit its Proposal
The Meralco-led Consortium submitted its Proposal on 26th March 2018.
When was the Consortium selected as the Preferred Bidder
On 12th April 2018, MiDA notified the Meralco-led Consortium that the “Technical Proposal achieved a Technical Score above the minimum threshold provided in Section 4.3 of the RfP”. Following the evaluation of the Financial Proposal of the Meralco-led Consortium, MiDA determined the Consortium as the Preferred Bidder.
What was the next step after the Preferred Bidder was selected.
Under the Amended and restated RfP, the Bidders were given the opportunity to submit a “List of Exceptions” as part of the Bidder’s Proposal. The Exceptions were discussed and resolved between the GoG and PDS during the Negotiation Period that ensued in the course of May 2018. The outcome of these negotiations were utilised to complete the Transaction Agreements.
Who were the parties involved in the negotiations
The parties involved in the negotiation on the part of GoG, were ECG as owner of the asset to be leased, the Ministry of Finance (MoF) as representative of the shareholder (Ghana) of ECG, the Ministry for Energy (MoEn), the Ministry of Justice and Attorney-General’s Department (MoJAGD), the Energy Commission (EC), and the Public Utilities Regulatory Commission (PURC) as regulators of the sector. MiDA, and its advisers, and MCC were also participants in the negotiations.
What are the Transaction Agreements
The Transaction Agreements refer to three distinct agreements which govern the Concession. These are the Lease and Assignment Agreement (LAA), the Bulk Supply Agreement (BSA) and the Government Support Agreement (GSA). The Transaction Agreements were all executed on 3rd July 2018 and subsequently received Parliamentary approval on 24th July 2018.
Who are the Parties to the Transaction Agreement
The LAA and BSA were executed between ECG and PDS. While the GSA was executed between Ghana, represented by the Ministry of Finance (MoF), and PDS.
What is the Lease and Assignment Agreement (LAA)
The LAA is the primary agreement which governs the relationship between ECG and PDS with respect to PDS leasing the assets of ECG for the 20 years term of the Concession. The LAA sets out the rights and obligations of both ECG and PDS, including the standards which the parties are required to maintain. The LAA includes the PURC Rate Setting Guidelines, Distribution License and Electricity Retail Sale License.
What is the Bulk Supply Agreement (BSA)
The BSA sets out the terms and conditions on which ECG sells power capacity and energy, which PDS purchases. The BSA requires that the Capacity and Net Electrical Output will be provided from the Volta River Authority (VRA) and a group of Independent Power Producers (IPPs) whose Power Purchase Agreements (PPAs) with ECG have been designated as part of Portfolio PPAs under the BSA.
What is the Government Support Agreement (GSA)
The GSA sets out the framework of the relationship between Ghana and PDS. It also sets out the expectations of Ghana from PDS, which include compliance with the terms of the other Transaction Agreements and the threshold set for local equity participation in PDS; as well as further assuring the rights of PDS.
When and why was PDS incorporated
As part of the terms of the RfP, the Meralco-led Consortium was required to incorporate a Ghanaian entity which would enter into the Transaction Agreements with ECG and Ghana. As such PDS was incorporated on 29th June 2018 and entered into the Transactions Agreements on July 3 2018.
Who approved the investment plan and the structure.
The Investment Plan formed part of the Proposal submitted by the Meralco-led Consortium. This was the basis of MiDA’s determination that the Meralco-led Consortium garnered a “Technical Score above the minimum threshold provided in section 4.3 of the RfP.
How much were the shareholders of PDS required to invest in PDS over the initial 5 year period
PDS was required to invest a total of US$580 million, over the first 5 years of the Concession, at an average of US$115 million per year as a minimum (the Minimum Distribution Investment Commitment (“MDIC”)). The Shareholders of PDS, as a minimum, were required to invest equity of 30% of the MDIC for the period in the ratio in which each of the Shareholder Companies holds shares in PDS.
What had been the progress since the takeover i.e. Transfer Date.
Revenue to sales collection of PDS increased to 95.92%, from a region of not more than 90% at the time of takeover. PDS was appointed as collection agent by ECG on its Retained Accounts Receivable (customer bills issued by ECG) and collections were remitted to ECG.
PDS started with a system loss level of 27.3% but, through various technical and commercial interventions, was able to reduce the figure to 18.6% by the end of June 2019.
Official reports indicate that accumulated debt by ECG had been reduced from GH₵3.365billion to GH₵2.6billion within the first four months of the Concession. Such effective revenue collection meant adequate availability of funds to fuel the entire electricity matrix loop. There was also a reduction of outages through improved efficiencies under the leadership of PDS. Outages of 665 times per week as of Transfer Date in March 2019 had been reduced to 219 times per week. Technical records indicate that the System Average Interruption Duration Index (SAIDI) of 24.87hours from the previous year has been reduced to 17.26hours as of June 2019. This was equivalent to a 30.6% improvement as compared to the same period in 2018 which translated into stable power supply.
What are the Conditions Precedent (CPs)
The CPs refer to 45 actionable points that the Parties to the Transaction Agreement, that is Ghana, ECG and PDS were required to complete between the Effective Date (i.e. the date of signing of the Agreement which was 3rd July 2018) and the Transfer Date which was agreed on as 1st March 2019 by the parties.
Were all the CPs completed before the Transfer Date.
Most of the CPs were satisfied before the Transfer Date, i.e., March 1, 2019. However, for legal and procedural reasons, some CPs were converted into Conditions Subsequent that were to be completed within the first six (6) months post-Transfer Date.
Were the issuance of Payment Securities part of the CPs
Yes. As part of the CPs, PDS was required to present two payment securities, either in the form of Letters of Credit or Demand Guarantees.
Were the requirement to post the Payment Securities converted from CP to CS
No. Despite non-availability of retail tariffs to be issued by PURC for PDS and the full Portfolio PPA capacity and energy costs as at Transfer Date, MiDA indicated that the Payment Security requirements had to be satisfied.
What were the Payment Securities meant to cover
The provision of the Payment Securities were to ensure that ECG would have access to a pool of funds should PDS fail to meet its monthly payment obligations under the LAA or BSA. The Transaction required the issuance of 3-month cover of the payment obligations under both the LAA and the BSA. The LAA Demand Guarantee (Payment Security) was to cover 3-month lease payment which would be due to ECG based on a Public Utilities Regulatory Commission (PURC) approved figure whereas the BSA Demand Guarantee (Payment Security) was to cover 3-month cost of purchasing Capacity and Net Electrical Output under the terms of the BSA.
The payment securities were not meant to secure the assets of ECG but to secure the obligations of PDS to ECG under the LAA and BSA respectively.
How many Payment Security options were available to PDS
Under the LAA and BSA, PDS had two Payment Security options, namely, the provision of a Demand Guarantee or a Letter of Credit. The templates for the payment securities either as letters of credit or demand guarantees are provided for under the LAA and BSA. The LAA and BSA also allowed PDS to provide other forms of payment security as long as such other form reasonably comply with the terms provided by the LAA and BSA.
How were the amounts covered by the Payment Securities determined
Due to the lack of tariff information, there was no objective determination of quantum. MiDA provided the amounts to be covered to PDS. The approved tariff though should have determined the approved Lease Payment, and cost of Capacity and Net Electrical Output (Power Purchase Cost) and therefore the amounts to be covered by the Payment Securities.
What did banks, with rating specified by the LAA and BSA, require from PDS in providing the Payment Securities
All the Banks approached by PDS, including the prospective Mandated Lead Arrangers, required the commercial information on the Concession i.e. the tariff that PDS is authorized to charge end-users. Since the banks required a level of comfort, they were particular on the determination of the revenues of PDS based on the PURC approved tariff that allows the pass-through of all relevant costs. But due to the absence of the PURC approved tariff, the banks could only issue a cash-backed security. However, the banks’ themselves advised against this option as this was not a commercially viable option.
Why did PDS opt for the provision of the Payment Securities by way of Demand Guarantees and not Letters of Credit.
The LAA and BSA gave the options of either Demand Guarantees or Letters of Credit. All relevant parties agreed that due to the lack of the tariff, PDS was to take the Demand Guarantee option which could be provided by an insurance entity.
Why did PDS not wait to have all the information needed to secure the Payment Securities from a Bank.
MiDA informed PDS that the issuance of the Payment Securities could not be converted from a CP to a CS. Given the Compact II timeline, it was imperative to satisfy these CPs in order to comply with the Transfer Date of March 2019.
Since there was no tariff approved as of March 1, 2019, what tariff did PDS use to charge end users as at the Transfer Date.
PDS implemented the existing tariffs approved by the PURC before the Transfer Date. To make the tariff consistent with the Transaction Agreements, Ghana, ECG and PDS entered into an interim arrangement. This arrangement set out a revenue sharing methodology among the various players within the industry to ensure liquidity, i.e. power producers, including VRA (to be paid through ECG), GridCo, as the transmission service provider, and ECG itself, as leased asset owner, and PDS, as the distribution entity. This arrangement was put in place because the tariff in place prior to 1st March 2019 was not compliant with the Transaction, specifically, the PURC’s Rate Setting Guidelines.
Following the announcement by the PURC of new Tariffs effective July 1, 2019, was the value covered by the Payment Securities issued by PDS consistent with the PURC approved power purchase costs and lease payments
Under the approved tariffs which came into effect on July 1, 2019, with update on October 1, 2019, the 3-month lease payment and power supply costs was 22% less than the amount covered by the Demand Guarantees issues on behalf of PDS.
How much did PDS pay to secure the Demand Guarantees and how was the payment made.
The Demand Guarantees cost PDS a total of Twelve Million Two Hundred and Fifty Thousand Dollars ($12,250,000), as an all-in fee to CAL Bank (CAL) as advisor and arranger of the Payment Securities issued through Donewell Insurance Company Ltd (Donewell). Two-thirds of the fee was payable upfront prior to issuance of the Demand Guarantees and this was paid by some of the Ghanaian Shareholders of PDS. No portion of the Demand Guarantee fee was paid from ECG’s revenue at any point in time. The cost of the Demand Guarantees which is to be borne annually is an operational (mandated) cost that is to be paid by PDS as part of its operating expenses.
What was the issue with the Payment Securities i.e. Demand Guarantees
The attention of PDS was drawn to a letter dated 16th July 2019 from AlKoot Insurance and Reinsurance of Qatar (AlKoot) on 29th July 2019. AlKoot being the reinsurer of Donewell. AlKoot allegedly denied its obligation under the Demand Guarantees due to purported forgery committed by one of its employees and what it stated constituted fraudulent breach of trust. Two days after, on July 31, PDS was unceremoniously suspended through a mere press release from the Ministry of Information, effectively denying PDS the right to due process. Although suspension is not an option provided in the Transaction Agreements. Subsequently GoG constituted a fact finding mission which included the Minister of Interior and a Deputy Attorney-General and Minister of Justice. The report of the fact finding mission absolved PDS of any collusion for purposes of any wrong doing. The MCC also through MiDA, commissioned FTI Consulting, an independent forensic auditor, to carry out an investigation into the Demand Guarantees. Based on the forensic audit, PDS and all relevant stakeholders are cleared of any wrongdoing in the procurement of the payment securities.
On what basis has the Concession been terminated
ECG sent PDS a Notice of Termination dated 23rd October 2019. Per ECG’s Notice of Termination, ECG has taken the position that the transfer of assets and operations from ECG to PDS never occurred due to what it says is a failure of the Demand Guarantees. ECG states that the Notice of Termination takes effect from 28th February 2019. ECG has also indicated that it takes the position that the transfer of Staff from ECG to PDS never occurred and as such the Transferred Staff at all material times remained the Staff of ECG.
PDS further received a Notice of Termination from Ghana through the Ministry of Finance dated 28th October 2019. GoG’s Notice of Termination indicated that it is based on a term of the GSA which provides for buy-out payment to be received by PDS if the termination is to become effective.
What actions if any have been taken by the Regulators of PDS and ECG
The Energy Commission by two letters dated 23rd October 2019 purported to cancel both the Electricity Distribution Licence and the Electricity Sale Licence issued to PDS for a period of 20 years from the 1st of March 2019. The Energy Commission states that the cancellation of the licences is founded on the termination of the LAA and BSA by ECG. However, PDS has not accepted that decision and is entitled to pursue its rights under the terms of the Electricity Distribution Licence and the Electricity Sale Licence, as well as the Energy Commission Act, 1997 (Act 541) against the Energy Commission in its status as an administrative body being subject to law.
What are the effects of the Notices of Termination
PDS does not accept the bases on which ECG and GoG assert their right to terminate the Transaction which therefore triggers a dispute as between PDS and ECG on one hand and PDS and Ghana on the other hand.
38. What is the effect of the occurrence of a dispute
All the Transaction Agreements, i.e. the LAA, BSA and GSA have made provision for dispute resolution. The process in all cases starts from an attempt at a negotiated settlement and concludes with arbitration with the final award by any arbitration tribunal being binding on the parties.
What are PDS’ rights post Notice of Termination from ECG and GoG
The LAA has elaborate provisions on post termination actions that the parties are required to take. A transition period of 180 days is required within which the parties are to retransfer in the same manner as was done prior to 1st March 2019. Further within that Transition Period per the terms of the LAA, PDS is to remain responsible for the operation and management of the Utility covering the Southern Distribution Zone and assures the power consuming public of its responsible behaviour.
What is PDS current position on the termination by GoG and ECG
PDS remains a responsible Contracting Party with or without the supervision of the MCC. As such PDS is committed to seeing through its obligations under the Transaction Agreements i.e.: the LAA, BSA and GSA per their terms and within the framework of Ghanaian law which is the governing law of the Transaction. PDS is carefully weighing its options and continues to reserve all its rights under the Transaction Agreements and Applicable Laws to pursue all available causes of action.
Source: www.energynewsafrica.com
NNPC Retail Limited, the downstream subsidiary of the Nigerian National Petroleum Corporation (NNPC) in charge of retail sales and marketing of petroleum products, has announced its entry into the lubricant market with the unveiling of a broad range of high performance engine oils to provide better options to customers across the country.
The package has on offer Nitro (Diamond, Gold, Super, 2T) and Nitro Super 40, all designed for petrol-power engines, while the diesel propelled engines have the Rhino (Rhino HD40 & Rhino X) engine oils.
The event which took place at the Amphitheatre of the NNPC Towers in Abuja was presided over by Mallam Mele Kyari, Group Managing Director of the Corporation, in the presence of highly elated crowd made up of management and staff of NNPC Retail Limited as well as dealers and representatives of the 380 NNPC Downstream subsidiary company’s outlets across Nigeria.
Unveiling the products, Mallam Kyari said the entry of NNPC into the lubricant market was to ensure that the corporation opened up new areas of revenue generation while ensuring stakeholders reaped bountifully from the participation of the corporation in the entire value chain of the Oil and Gas Industry.
The GMD said NNPC Retail Limited had a history of accuracy, saying when it sold a litre of product, the customers actually got a litre.
He stated that overtime, the company had built trust in customers, expressing the expectation that it would not only maintain the trust, but also carried it into the lubricant business to give Nigerians value for money.
He assured that the NNPC would continue to provide the needed support and encouragement to its Retail unit to keep up the required standards and fulfil its mandate and obligation to stakeholders.
Engr. Yemi Adetunji, Chief Operating Officer, Downstream, whose unit superintends the operations of NNPC Retail Limited, expressed confidence that the entry of the company into the engine oil market would provide refreshing options to customers. He informed that the new products have all the required ISO certification, noting that the company would take full advantage of its massive outreach across Nigeria to push the products to all corners of the country.
He said the coming of NNPC lubricants would bring prosperity to all stakeholders.
“Its prosperity for our partners, prosperity for NNPC Retail Limited, prosperity for NNPC and prosperity for all Nigerians who now have a product they can truly call their own,’’ he said.
In his remarks, Sir. Billy Okoye, Managing Director of NNPC Retail Limited, said though the products had been in the offing for such a long period, the wait was worthwhile because NNPC Retail Limited took advantage of the period to consolidate research on the lubricant.
He informed that come February next year, the lubricants would be available in all the 774 Local Government Areas in Nigeria, declaring that dealers and stakeholders have been fully mobilized in this regard.
The Millennium Development Authority (MiDA) is set to provide streets light on the Accra-Tema Motorway.
The Accra-Tema Motorway street lighting forms part of MiDA’s
plans to provide some 18,000 streets lights in Accra, capital of Ghana.
The exercise, which is expected to cover about 200km, will lead to installation of street lights at areas where there are no street lights and replacement of non-functioning existing street lights.
The 19-km Accra-Tema Motorway, which was built during the era of Dr Kwame Nkrumah, Ghana’s first President in 1965 to link the harbour city of Tema and Accra, has been without street lights for ages.However, in June 2002, there was a report by the Ghana News Agency that the government of the West African nation was to spend 1.95 million cedis to light the motorway.
The project was to commemorate the country’s Golden Jubilee in 2007.
The project had some challenges that delayed its completion.
The late President Atta Mills’ administration commenced the motorway street lights project but the project couldn’t be completed.
Unfortunately, criminals along the motorway stole most of the electrical cables while irresponsible and reckless drivers knocked down most of the poles.
Many users of the road have lamented over the poor visibility on the road especially in the night.
It was the hope of many users of the road that one day the government would be concerned about the sad situation and act.
Source:www.energynewsafrica.com
Construction work on the 330kV Bulk Supply Point at Pokuase in the Greater Accra Region of the Republic of Ghana is progressing steadily, with contractors assuring that the project will be completed on schedule.
So far, the project is about 38% completed.
The BSP, which is the first project under the Ghana Power II, spearheaded by the Millennium Challenge Corporation (MCC), through the Millennium Development Authority, is expected to be completed in the first quarter of 2021.
The US$60 million project, when completed, will boost power supply in many places including Pokuase, Nsawam, Adenta, Kwabenya, Legon, Oyibi and the surrounding communities.
It is being executed by Elecnor of Spain, with earth moving works sub-contracted to Cymain while Mikadu and Oakley have also been sub-contracted for the construction of GRIDCo and ECG/PDS offices respectively.
When officials of Millennium Development Authority, ECG and GRIDCo took journalists to the project site on Thursday, contractors were seen busily working.
The office building for Ghana’s power transmission company, GRIDCo, had progressed and the contractor working on it would soon cast concrete for the first floor.
GRIDCo’s office building under construction
The foundation for the sitting of five transformers had also been done.
The inspection team from Millennium Development Authority (MiDA) included Ing. William Amuna, Technical Advisor at MiDA, Julius Kwame Kpekpena,
Chief Operating Officer at MiDA.
Briefing the media after inspecting the ongoing work, Project Manager for the Pokuase Bulk Supply Point (BSP), Patrick Oppong expressed satisfaction about the progress of work done by the contractors.
“So far, GRIDCo’s building has gotten far. They are about to cast concrete for the first floor,” he said.
Arrival of Equipment
Mr Oppong said they have already submitted designs and placed orders for the manufacturing of all the equipment including transformers to be used.
According to him, officials of MiDA, PDS, ECG and the contractors would visit Turkey, Germany, Italy, USA, India, as well as Switzerland where the order for the equipment has been placed to inspect them in the first quarter of next year to ensure that they are of standard before they are shipped to Ghana between February and May 2020.
Job Creation
The project has employed about 160 workers so far, with more people to be employed as the project progresses.
According to the Country Manager of Elecnor, Mr Mate Perez they hope to employ about 250 people.US$5million injection In Ghanaian Economy
Contractors working on the project have been paid US$10 million by MiDA.
Mr Perez said half of the amount has been retained in the Ghanaian economy through payment of salaries and procurement of local materials including cement.
He assured that the project would be executed according to specification to ensure value for money.
Member of Parliament for Trobu, Moses Anim, who is also the Deputy Majority Chief Whip in Ghana’s Parliament, commended MiDA and the contractors for the speed with which they are executing the project.
He added that he expects quality work to be executed and a proper maintenance culture ensured after the project is completed to benefit future generations.
“We are expecting a quality scope of work to be done and that after the project has been handed over, a maintenance culture will be there for this project to span its lifetime for all to benefit,” he said.Source:www.energynewsafrica.com
The World Bank Group, through its Scaling Solar programme, and the government of Côte d’Ivoire have signed an agreement to help the West African country develop its supply of affordable, reliable clean energy.
Côte d’Ivoire has plans to reach at least 42% of its power from renewable sources by 2030.
IFC, a member of the World Bank Group, signed the agreement with the government of Côte d’Ivoire to help the country, one of West Africa’s largest economies, develop 60MW of grid-connected solar power through two public-private partnership (PPP) projects, which will power thousands of homes and businesses in the country.
Abdourahmane Cissé, Côte d’Ivoire’s Minister of Petroleum, Energy and Renewable Energy, said: “Developing and diversifying our energy supply is a top priority for Côte d’Ivoire as we grow our economy and increase the number of countries to which we export electricity. In accordance with our COP21 climate change commitments, Scaling Solar will help us tap our abundant solar resources and bring clean power to the people of Côte d’Ivoire, especially those in rural areas.”
Aliou Maiga, IFC Regional Director for West and Central Africa, added “Scaling Solar has set a new standard for developing solar power in Africa while consistently reducing its costs. The World Bank Group programme will help Côte d’Ivoire diversify its sources of power generation, opening up new markets for clean energy production and distribution, and bringing clean, affordable energy to the largest economy in the West Africa Economic and Monetary zone.”
Under the agreement with Côte d’Ivoire, Scaling Solar will support the development, tendering, and financing of two utility projects in the country, which has West Africa’s third-largest electrical system with an installed generation capacity of 2,200MW.
The planned utility-scale solar photovoltaic installations will complement other planned solar projects to help Côte d’Ivoire achieve its goal of generating 400MW of solar power by 2030, contributing to climate change mitigation.
Côte d’Ivoire joins Zambia, Senegal, Togo, Madagascar, and Uzbekistan as members of the Scaling Solar programme, which provides a package of transaction structuring advice, project documents, risk management products, finance, and insurance to support solar energy projects.
Scaling Solar is supported by USAID’s Power Africa, the Ministry of Foreign Affairs of the Netherlands, the Ministry of Foreign Affairs of Denmark, and the Infrastructure Development Collaboration Partnership Fund.
Ghana’s power transmission company, Ghana Grid Company, has assured Ghanaians of uninterrupted power supply despite threats by the company’s workers to embark on an industrial action in the next few days.
Board Chairman of GRIDCo, Ambassador Kabral Blay-Amihere, who gave this assurance during the company’s 10th AGM in Accra, capital of Ghana, said the leadership has taken all the necessary step to ensure that the company’s mandate as the backbone of power delivery in the West Africa nation remains consistent.
GRIDCo’s Senior Staff Association recently held a press conference demanding payment of unpaid debts totaling over GHS1billion from key institutions including Electricity Company of Ghana (ECG), Volta Aluminum Company(Valco) and Northern Electricity Distribution Company(NEDCo)
The union further threatened a strike action beginning December 4, 2019, if government fails to heed their demands.
However, Ambassador Blay-Amihere assured that regular engagements with key stakeholders are ongoing to resolve the differences and ensure that Ghanaians enjoy consistent provision at all times.
“The Board and Management have spent the last three years restoring the needed stability to the operation of the company and I’m proud to say that we are on a revival to carry on our mandate without fail,” he added.
Chief Executive of GRIDCo, Jonathan Amoako-Baah, in his remarks at the AGM, was quick to rule out media reports that a brief power outage across the country some days ago was directly linked to the intended staff strike action.
“There’s no linkage at all. What happened some days ago was purely a technical challenge arising from power swings on our transmission line to Cote D’Ivoire.”
In a related development, the State Interests and Governance Authority (SIGA), representing government, said pragmatic initiatives have been taken to support GRIDCo deliver on its mandate.
CEO of SIGA, Stephen Asamoah-Boateng indicated that ECG has taken steps to settle its debts to the energy transmitter.
“Government has also taken steps to commit some of the debts owed GRIDCo into equity to shore up the performance of the company. We will support GRIDCo to a point where the company can confidently begin paying dividends,” he added.
Source: www.energynewsafrica.com
Norwegian multinational oil company, Equinor, as well as Shell and Total have begun drilling the 31/5-7 Eos wildcat well to investigate whether the reservoir in the deep Johansen Formation was suitable for storage of carbon dioxide (CO2) as part of the Northern Lights project.
The Norwegian Petroleum Directorate (NPD) said on Thursday that this would be the first exploration well drilled where the objective was not to find oil or gas.
The well is being drilled south of the Troll field in the North Sea using Seadrill’s West Hercules rig. The Johansen Formation is situated at a depth of around 2,700 meters in the relevant area.
According to the NPD, this will be the first well to be drilled in exploitation license 001, and the objective of the well is to prove sandstone and the storage potential for CO2 in the Cook and Johansen geological formations.
If the well indicates good reservoir properties, and a decision is subsequently made to use the formations for CO2 storage, the first CO2 injector will be drilled as a sidetrack from the wildcat well.
NPD assistant director exploration Wenche Tjelta Johansen said: “In Norway, we have lots of experience and good expertise when it comes to safe storage of CO2 under the seabed.”
Since 1996, CO2 has been removed from the Sleipner Vest gas and injected in the Utsira Formation. One million tonnes of CO2 is stored subsurface every year.
Since 2007, 700,000 tonnes of CO2 per year have also been stored at the Snøhvit field. It is separated from the gas in the processing facility on Melkøya before it is sent by pipeline down into a reservoir located around 140 kilometers from land.
It is worth noting that estimates show that, in theory, the reservoir volume on the Norwegian shelf could accommodate more than 80 billion tonnes of carbon dioxide, which is equivalent to 1,000 years of Norwegian CO2 emissions at the current level.
The Northern Lights drilling is part of the Norwegian full-scale project for capture, transport, and storage of CO2.
This project includes the capture of CO2 from two industrial firms in Eastern Norway, as well as transport of liquid CO2 to a terminal in Western Norway. From there, the liquid CO2 will be transported via pipeline and pumped into a reservoir at a depth of nearly 3,000 meters under the North Sea, where it will be permanently stored.
To remind, the authorities gave Equinor and its partners an exploitation license for storage of CO2 in January this year.
According to the plan, Northern Lights will submit a plan for development and operation in the spring.
If the development plan gets a green light, Northern Lights has made a commitment to store 1.5 million tonnes of CO2 for the authorities, every year for 25 years.
Also, Equinor received consent from the Petroleum Safety Authority (PSA) to drill an exploration well for CO₂ verification in the North Sea using the West Hercules rig in late September.
Source: www.energynewsafrica.com
The CEO of Springfield E&P, an independent Ghanaian upstream player has been selected among the top 25 ‘Movers and Shakers’ list to watch by the continent energy body, African Energy Chamber.
Kelvin Okyere’s Springfield E&P recently discovered significant oil at its Deepwater block in the western part of the West African nation.
The African Energy Chamber’s list profiles key individuals who stand to contribute significantly in shaping the continent’s energy economy.
The list, not confined to actors from the continent, features key industry deal makers such as Alinko Dangote, Chairman of the Dangote Group, which is nearing completion of its 650,000 bpd Lagos-based game-changing refinery; United States President Donald J. Trump, whose America-first oil politics is likely to affect global prices and the appetite of American majors to look outside; Ghana’s Kevin Okyere who sits on one of the continent’s most promising assets after his Company Springfield’s West Cape Three Points Block 2 discovery, and many more.
“With this list, we hope to put all key role players to task. We want to challenge them and pose the questions: What’s next? Are you going to deliver on your plans and promises? How will you and your organisation contribute to the development of Africa’s oil and gas sector?” NJ Ayuk, Executive Chairman of the African Energy Chamber and author of Amazon best-selling book, ‘Billions at Play: The Future of African Energy and Doing Deals’ said in a statement copied to energynewsafrica.com after the launching in South Africa.
“This year alone, the continent has seen improved cooperation and investment, large scale discoveries, world-scale projects coming online that make Africa the world’s hottest oil and gas frontier. The next step is to find out how we can maintain this momentum and the people on this list can certainly provide answers. Africans should demand more from them,” he added.
The Top 25 ‘Movers and Shakers to Watch’ list forms part of the African Energy Chamber’s African Energy Outlook which has set out to provide a comprehensive overview of the oil and gas sector across sub-Saharan Africa, focusing on strategic, operational and investment trends in the industry.
“We watch developments in the industry closely and speak to a wide range of stakeholders. What we have noticed is that a new breed of African oil men and women are playing an even greater role in the development of the continent’s resources, including resources mobilised on the continent. This is a trend we applaud. However, cooperation with international partners who still possess the technology needed to successfully undertake projects is very welcome,” Mickael Vogel, Director of Strategy at the African Energy Chamber, said.
Below is the list of Top 25 ‘Movers & Shakers’
ALIKO DANGOTE CHAIRMAN, DANGOTE GROUP
KELVIN OKYERE, FOUNDER & CEO, SPRINGFIELD GROUP, GHANA
DONALD J. TRUMP PRESIDENT OF THE UNITED STATES PRESIDENT DONALD TRUMP
MOHAMMAD SANUSI BARKINDO SECRETARY GENERAL, OPEC
DIAMANTINO PEDRO AZEVEDO MINISTER OF MINERAL RESOURCES AND PETROLEUM, ANGOLA
NOËL MBOUMBA MINISTER OF MINES, PETROLEUM, HYDROCARBONS AND GAS, GABON
KOLA KARIM CHAIRMAN, SHORELINE ENERGY
IRENE MULONI MINISTER OF ENERGY AND MINERAL DEVELOPMENT, UGANDA
MUSTAFA SANALLA CHAIRMAN, NATIONAL OIL CORPORATION, LIBYA
DR OMAR MITHÁ CHAIRMAN & CEO, ENH MOZAMBIQUE
PATRICK POUYANNÉ CHAIRMAN & CEO, TOTAL
MACKY SALL PRESIDENT OF SENEGAL
GABRIEL MBAGA OBIANG LIMA MINISTER OF MINES AND HYDROCARBONS, EQUATORIAL GUINEA
GUIDO BRUSCO EXECUTIVE VICE PRESIDENT SUB-SAHARAN AFRICA, ENI
CATHERINE NORMAN MANAGING DIRECTOR, FAR LTD
ANDREW G. INGLIS CEO, KOSMOS ENERGY
AIDAN HEAVEY FOUNDER, BORU ENERGY
BENEDICT OKEY ORAMAH PRESIDENT AND CHAIRMAN, AFREXIMBANK
KAMEL EDDINE CHIKHI CEO, SONATRACH, ALGERIA
PRINCE ARTHUR EZE CHAIRMAN, ATLAS ORANTO INTERNATIONAL/ORANTO PETROLEUM
TOPE SHONUBI MANAGING DIRECTOR, SAHARA ENERGY
MEDARD KALEMANI MINISTER OF ENERGY, TANZANIA
AUSTIN AVURU CEO, SEPLAT PETROLEUM DEVELOPMENT CO, NIGERIA
CATHERINE UGU IFEJIKA CHAIRMAN/CEO, BRITANNIA-U GROUP
He praised God for the strength and energy which helped him to go about fishing for information to disseminate to readers both home and abroad.
He thanked his colleagues and Management of Oman FM for the support and opportunity.
Mr Afful further appealed to players in the energy sector to help in building the capacity of reporters who have shown interest in reporting on energy.
However, in June 2002, there was a report by the Ghana News Agency that the government of the West African nation was to spend 1.95 million cedis to light the motorway.
The project was to commemorate the country’s Golden Jubilee in 2007.
The project had some challenges that delayed its completion.
The late President Atta Mills’ administration commenced the motorway street lights project but the project couldn’t be completed.
Unfortunately, criminals along the motorway stole most of the electrical cables while irresponsible and reckless drivers knocked down most of the poles.
Many users of the road have lamented over the poor visibility on the road especially in the night.
It was the hope of many users of the road that one day the government would be concerned about the sad situation and act.
Source:www.energynewsafrica.com 
Mr Oppong said they have already submitted designs and placed orders for the manufacturing of all the equipment including transformers to be used.
According to him, officials of MiDA, PDS, ECG and the contractors would visit Turkey, Germany, Italy, USA, India, as well as Switzerland where the order for the equipment has been placed to inspect them in the first quarter of next year to ensure that they are of standard before they are shipped to Ghana between February and May 2020.
Job Creation
The project has employed about 160 workers so far, with more people to be employed as the project progresses.
According to the Country Manager of Elecnor, Mr Mate Perez they hope to employ about 250 people.
US$5million injection In Ghanaian Economy
Contractors working on the project have been paid US$10 million by MiDA.
Mr Perez said half of the amount has been retained in the Ghanaian economy through payment of salaries and procurement of local materials including cement.
He assured that the project would be executed according to specification to ensure value for money.
Member of Parliament for Trobu, Moses Anim, who is also the Deputy Majority Chief Whip in Ghana’s Parliament, commended MiDA and the contractors for the speed with which they are executing the project.
He added that he expects quality work to be executed and a proper maintenance culture ensured after the project is completed to benefit future generations.
“We are expecting a quality scope of work to be done and that after the project has been handed over, a maintenance culture will be there for this project to span its lifetime for all to benefit,” he said.
Source:www.energynewsafrica.com
