The 35th edition of Abu Dhabi International Petroleum Exhibition and Conference, ADIPEC 2019 has been opened.
The four day exhibition is being held at the Abu Dhabi National Exhibition Centre from 11th to 14th November, with the participation of over 2,200 exhibitors.
ADIPEC’s exhibition halls will provide a showcase for 2,200 exhibiting companies exhibiting across 160,000 gross sqm of floorspace, including the waterfront Offshore and Marine Exhibition.
Demonstrating the event’s international reach, exhibitors will include 35 National Oil Companies, NOCs, and 16 International Oil Companies, IOCs, a combined 12 percent increase, along with 23 national pavilions.
In total, more than 10,400 delegates and 1,000 speakers are set to participate in more than 160 conference sessions. This includes 123 sessions in the technical conference programme, supporting working oil and gas professionals.
Organisers have seen a record number of 3,652 abstract submissions for the technical conference, which marks a 29 percent year-on-year growth.
His Highnesss Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs who opened the conference, said that the UAE, under the leadership of His Highness Sheikh Khalifa, has become a centre of global dialogue on developments and trends in the oil and gas sector, as well as of predicting the future of this important sector.
He added that ADIPEC, which witnesses considerable local and international participation can help create a prosperous future for the oil and gas industry and identify the best ways of adapting and dealing with the future of global energy.
Following the opening of ADIPEC, Sheikh Mansour toured the pavilions of participating countries and companies, including the stand of the Abu Dhabi National Oil Company, ADNOC, where he was received by Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State and ADNOC Group CEO.
During the visit, Sheikh Mansour was briefed about ADNOC’s strategy to implement the “Oil and Gas 4.0” concept, to cope with future developments and increase the UAE’s profitability and economic returns.
He was also briefed about ADNOC’s new business models, which are based on its strategic partnerships.
ABU DHABI, UNITED ARAB EMIRATES – November 11, 2019: The Honourable Condoleezza Rice Former US Secretary of State (C) speaks during the opening of Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), at the Abu Dhabi National Exhibition Centre. Seen with HE Suhail bin Mohamed Faraj Faris Al Mazrouei, UAE Minister of Energy (R) and John Defterios, CNNMoney Emerging Markets Editor (L). ( Hamad Al Kaabi / Ministry of Presidential Affairs ) —
He then learnt about the use of the latest technologies to enhance output and develop resources to add maximum value to the company’s business, through utilising Artificial Intelligence, big data and blockchain to increase operational efficiency and improve performance.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry, said that the UAE is a leading player in the global energy sector, due to its role in finding solutions to the challenges of energy sustainability, diversifying sources and shaping a new energy landscape.
The UAE Energy Strategy 2050 aims to reduce carbon emissions from electricity production by 70 percent over the next three decades and generate 50 percent of the country’s energy through green sources, he said.
Pointing out that oil exploration and new hydrocarbon reserves enhance the UAE’s position as a reliable source of energy, he expressed his optimism for the global oil market.
A number of senior officials attended the event.
The Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, His Highness Sheikh Mohamed bin Zayed Al Nahyan, has received Patrick Pouyanné, CEO, Total, on the sidelines of the 4th Abu Dhabi CEO Roundtable, where 30 of the world’s leading oil and gas companies gathered to discuss key industry challenges and opportunities in today’s fast evolving global economy.
The fourth annual gathering of its kind in the Middle East was held on the eve of the Abu Dhabi Petroleum Exhibition and Conference, ADIPEC, the world’s premier oil and gas conference, taking place in the UAE’s capital, from 11th-14th November.
According to Emirates News Agency, His Highness Sheikh Mohamed bin Zayed discussed the prospects of joint cooperation between the French oil and gas companies and their Emirati counterpart across energy sectors.
Sheikh Mohamed and his French guest touched on the agenda of the three-day ADIPEC, which will get underway on Monday, 11 November. As a global platform for industry best-practice and innovation, ADIPEC will set the agenda for the future of the energy, oil and gas sector.
Dr. Sultan Al Jaber, Minister of State, and ADNOC Group CEO, and Mohammed Mubarak Al Mazrouei, Under-secretary of the Abu Dhabi Crown Prince’s Court.
Ghana’s energy sector (power and gas) is confronted with severe financial threats notwithstanding the energy sector levy (ESLA) introduced by the previous administration and bequeathed to the present Government. Indeed, the sector is currently experiencing an unprecedented financial crisis and according to the Energy Sector Recovery Plan (ESRP), as of January 2019, the net sector arrears stood at US$ 2.748 Billion. If nothing is done, electricity production will grind to a halt and deprive Ghanaians of a regular and adequate supply of power for domestic and commercial use.
Of this indebtedness, a whopping $851 million is owed to the private sector. Furthermore, the ESRP document emphasises that unless there is an intervention, an additional $1.268 Billion will be added to this deficit by close of 2019. It is projected that at this rate, by 2023, the net arrears will balloon to about $12.524 billion.
The purpose of this article, therefore, is not only to draw the attention of the government and other sector stakeholders to this imminent energy sector catastrophe but also to reveal that gas contracts signed by this government, refusal of MDAs to pay for the power they consume, government interference in the running of the PURC, EGG’s technical and commercial losses including the PDS saga and the delay in the completion of the Tema-Takoradi interconnection pipeline among others have together conspired to create this unprecedented financial fracture in the energy sector.
In addition, this article aims to prompt Government to outline viable strategies in the imminent 2020 budget in order to resolve the financial threats to Ghana’s energy sector instead of hoping to spin the problem away with capacity charges allegations.
Ministries, Departments and Agencies (MDAs) Indebtedness to ECG
Every year, the Electricity Company of Ghana loses revenue of over US$180 million because consumers fail or refuse to pay their liabilities. Eighty per cent (80%) of this amount, US$150 million, constitutes the indebtedness of MDAs to ECG due to both suppressed budgetary allocations and a blatant refusal by MDAs to pay for their energy cost. Over and above mismanagement of the ESLA funds and choking energy sector debts, the current government appears to have abandoned the laudable initiative of the Mahama government which ensured a continuous replacement of post-paid (credit) meters with pre-paid meters.
You may recall, the NDC government replaced both post-paid meters and in some cases prepaid meters with smart meters that provided customers confidence in the metering system. The, then, government also initiated the installation of smart boundary meters to equip district managers of power to take full responsibility and account for electricity supplied to their jurisdictions.
Edward Bawa, MP for Bongo ConstituencyThe Financial Loss of US$190 Million Due To The PDS Saga
The overall technical and commercial losses in the power sector as of 2018 was 23%. In monetary terms, it amounted to US$400 million annually. The altruistic quest to improve the technical and operational efficiency of ECG motivated the NDC administration to opt for the Millennium Challenge Corporation’s Compact II. As a result, the Government of the United States of America has, so far, injected about US$300 million into Ghana’s energy sector. But not anymore – because the additional US$190 million which was expected to address the technical challenges of ECG has been cancelled.
Unfortunately, this huge financial loss is due to the present Government’s handling of the compact and has caused the US Government to terminate the arrangement. A simple procurement process which transitioned ECG’s operational functions to PDS on March 1, 2019, was botched due to cronyism, nepotism and an unbridled quest for self-gain. The consequential loss was easily avoidable hence unforgivable.
Delays in Gas Infrastructure Completion
So far, avoidable delays in the construction of gas infrastructure have constrained and continue to impede gas offtake in Takoradi and Tema. The cost to Ghana is estimated at US$750 million (US$20-30 million every month since September 2017 when the project should have been completed as envisaged by the Mahama administration).
President Mahama recognised the need to implement the reverse flow project to interconnect the West Africa Gas Pipeline and the Ghana Gas Pipeline System in Takoradi. As earlier stated, the project was to be completed in September 2017. This innovation was envisaged to provide flexibility in the use of gas by thermal plants located in the eastern and western parts of Ghana with the ultimate view of ensuring regular supply of power to Ghanaians and industry even when gas supply from the West Africa Gas Pipeline fluctuates.
Unfortunately, the Akufo-Addo government has delayed this project under the guise of conducting a forensic audit. Three years on, no report has been produced on the so-called audit; yet there has been an expensive delay of the project. In addition to this, has been the twin delays: in relocating the Karpowership from Tema to the Sekondi Naval Base; and in upgrades at the Tema metering station.
These projects were aimed at allowing optimum utilization of gas produced from the Offshore Cape Three Point Sankofa fields and also to reduce payments for unutilized natural gas.
Excess Gas Supply
In 2019, gas demand was lower than the contracted supply. This was mainly due to avoidable infrastructure bottlenecks. This resulted in a gas supply revenue shortfall of about US$168 million. The state was obliged to pay for this under its obligations to Offshore Cape Three Points (OCTP) Sankofa agreement. In the midst of plenty gas, and curiously, the NPP government has gone to pursue other LNG contracts: the Takoradi (due in 2020) and the Tema (due in 2023) LNG projects.
According to the Energy Sector Recovery Plan, in 2020, excess gas supply will increase by an additional 250 mmcfd, carrying a take-or-pay obligation of $ 822 million annually at an assumed Brent Crude oil price of USD 66 per bbl. Furthermore, in 2022, excess gas supply will increase by a further 180 mmcfd, also increasing the take-or-pay obligation by another US$523 million annually at an assumed Brent Crude oil price of $ 66 per bbl.
Like capacity payments for excess power generation, the current PURC gas tariff methodology does not include take-or-pay commitments in the tariff, so costs are incurred without a source of revenue.
Questions to ask are, in the face of gas glut and no present national emergency because the Mahama administration fixed ‘dumsor’, why will the Akufo-Addo government go-ahead to contract new LNG projects on a take or pay basis? I call on Government to immediately terminate the two LNG projects and announce the same in the 2020 budget if Ghana is to avoid any unnecessary burdening of the sector with more crippling debts.
Excess Power Generation Capacity and Government’s Empty Spin
According to Government, in 2018 power generation capacity in Ghana was in excess and it led to an estimated US$320 million in capacity charges. Their spin is that the NDC procured too much generation capacity which resulted in increasing debts from “take or pay” contracts. Did I hear too much generation capacity? Too much generation capacity in an economy that should have been celebrating one factory in every district by now; if the government had been truthful and sincere about its One-District-One-Factory promise?
Indeed, government maintains that with new power plants coming on stream in 2019, the excess generation capacity will grow and increase the capacity charge costs to US$620 million annually. Government further contends that under the current PURC electricity tariff methodology, capacity charges for excess capacity in electricity are neither included in the tariff nor are financing costs for any shortfall.
But, what the Government has deliberately hidden from Ghanaians is that the NDC government entered into a number of Power Purchase agreements which were scheduled to come on-stream in a step-by-step manner at later dates, to address annual electricity demand increases, meet the existing suppressed demand, cater for the deficits that will be occasioned when emergency plants with shorter tenure are taken off-stream and replace obsolete plants like the TAPCo plant that are old enough to be decommissioned.
The government as part of its spinning machinery suggests that, the net dependable capacity as of December 2018 was 3,982 MW, which is expected to increase to approximately 4,650 MW by the end of 2019. At peak hours the demand for electricity is 2700MW.
Again what government is not telling Ghanaians is that for the system to run effectively at all times, best practice dictates that Ghana has a spinning reserve of 540MW. The spinning reserve is an ancillary service in any electricity market and provides the excess capacity to meet urgent and emergency requirements if called upon by the system operator.
Equally, Government’s spin doctors do not tell Ghanaians that we still have about 14% of Ghanaians who in this 21st century do not have access to electricity and must be hooked to the national grid in order to free them from poverty and enhance their chances of economic prosperity. I will not over-stretch VALCo’s need for 300MW to enable them to increase their operations to five potlines so as to create the needed jobs in the integrated aluminium downstream industry.
Beyond consumption within Ghana, under President John Dramani Mahama’s administration, the transmission line from Ghana to Burkina Faso was being upgraded from a 161kV to a 330kV. This was to enable Ghana export power to our northern neighbours. From the schedule, Ghana should have been exporting about 400MW of power to Burkina Faso and other Sahelian countries, by now.
Unfortunately, this project was suspended because Agence Française de Development (AFD), the financiers of the project, felt that the financial covenants that GRIDCo had entered into with them had all not been met because of the avoidable liquidity crisis GRIDCo is experiencing presently even though the ESLA funds continue to accrue to Government coffers.
I am informed AFD is currently requesting a government of Ghana guarantee before the resumption of disbursement of the remaining funds.
I, also, expect the Finance minister to outline concrete steps to enable GRIDCo to pursue this AFD project. The market within the sub-region is large and lucrative. Therefore, if managed well – as was done under the NDC administration which made the Volta River Authority exceed their revenue targets in 2018 mainly because of export of power – we can derive even greater profit from our neighbouring countries.
Conclusion
I have sought to draw attention to the unprecedented financial crisis in which the energy sector of Ghana has been plunged into by the Akufo-Addo administration notwithstanding the continuous presence of the ESLA funds. I have also shed light on how mismanagement of the MCC Compact II has caused a direct financial loss of US$190 million to the energy sector of Ghana through the nepotistic PDS scandal.
Furthermore, the refusal of MDAs to pay for power due to inadequate budgetary allocations coupled with needless and avoidable delays in the completion of the Tema-Takoradi interconnection pipeline and the AFD sponsored Ghana-Burkina Faso transmission lines to upgrade projects have also been shown to be contributory factors to the sector’s crisis.
From the foregoing, it is important that in the 2020 budget which essentially is going to be the last budget for this government, the Minister for Finance must, in addition to addressing these crippling debts, state clearly how he is going to: Help GRIDCo complete the 330Kv Transmission Line to Bolgatanga to enable, VRA and ECG export excess power to Burkina Faso and its environments; Ensure that Valco gets its full complement of power requirement at a tariff that makes them competitive to create jobs for Ghanaians;
Aggressively extend the national grid to 14% of Ghanaians who do not have access to power in the midst of excess capacity; Handle the LNG contracts that have been signed by the current government on a take or pay basis even in the face of gas glut; Ensure that government’s indebtedness to the Power SOEs are settled and new ones not occasioned; Help the Utility companies reduce their technical and commercial losses through the deployment of new and modern infrastructure; Fully complete the Takoradi-Tema Interconnection pipeline to evacuate stranded gas in the west to the eastern power enclave; and Complete the relocation of the Karpowership to Takoradi to make use of excess gas in the Aboadze enclave. Failure to adequately address these germane issues will spell doom not only for Ghanaians but also, for the next government of the NDC from 2021 and beyond, the time to take action is now.
Edward Abambire Bawa (MP)Bongo Constituency
The 25th annual Halliburton Charity Golf Tournament raised $4.5 million for over 100 nonprofit organizations in Houston and across the U.S, once again making it one of the largest non-PGA golf tournament fundraisers in the U.S.
This amount includes a $1.5 million matching contribution from Halliburton in recognition of Halliburton’s 100th anniversary, which the Company is celebrating this year.
The tournament raised more than $23 million over the past 25 years, and this year represents the highest annual amount since the tournament first teed-off.
More than 400 golfers participated in the fundraiser held at The Clubs of Kingwood, and over 140 organizations sponsored the event.
“We are grateful for our sponsors of all levels who made this event possible and whose generous contributions helped the tournament break another record. It is an honor to provide the funds to outstanding charities whose work makes a positive difference in the lives of thousands of individuals in dozens of communities every day,” Jeff Miller, Halliburton chairman, president and CEO said.
This year’s golf tournament participating charities are:
Astros Foundation
Be An Angel
Books Between Kids
Brighter Bites
Bucker Children and Family Services
Casa de Esperanza de los Niños, Inc.
Child Advocates
Communities In Schools of Houston, Inc.
Dress for Success Houston
Dynamo Charities
El Centro de Corazón
Freedom Service Dogs of America
Girls Incorporated of Houston
HAWC (Houston Area Women’s Center)
High Sky Children’s Ranch
Houston Food Bank
Houston Health Foundation
Houston Police Foundation
Impact a Hero
Inspiration Ranch
Interfaith Ministries for Greater Houston
Kids Meals, Inc.
Partners for Harris County Children, Inc.
Search Homeless Services
The ALS Association, Texas Chapter
The Council on Recovery
The Landing
The Montrose Center
The Village Learning and Achievement Center
Trees for Houston
YES Prep Public Schools, Inc.
To honor both the 25th anniversary of the tournament and as part of its 100th year, Halliburton will provide grants to 70 additional charities across the U.S, allowing the tournament to benefit 100 total nonprofit organizations.
Centrica and SWM have reportedly launched a sale process of the North Sea oil producer Spirit Energy.
Reuters on Monday cited a document sent to prospective buyers, according to which Centrica wants to sell its 69 percent ownership in Spirit Energy. Reuters also said that SWM would evaluate proposals for the remaining stake.
Spirit Energy was established in 2017, through a combination of Centrica’s E&P business with Bayerngas Norge. Centrica plc owns 69% of Spirit Energy, with Bayerngas Norge’s former shareholders, led by Stadtwerke München Group (SWM), holding 31%.
The company’s 2018 production was 46.8 million barrels oil equivalent (mmboe), proven and probable (2P) reserves of 270 mmboe, and contingent (2C) resources of 512 mmboe.
Per the company’s 2018 summary document, Spirit Energy had operated and non-operated interests across the UK, Norway, the Netherlands, and Denmark, with 33 producing fields and 148 exploration licenses.
The South African Wind Energy Association (SAWEA) estimates that South Africa will need to produce roughly 640 wind turbines each year until 2029 to meet the energy goals outlined in the country’s Integrated Resource Plan (IRP) announced last month.
Fortunately, capacity already exists in the country to produce 150 steel wind towers per year as well as related components, according to Marubini Raphulu, CEO of investment group Hulisani, which has an effective 25% shareholding in local wind tower producer GRI Renewable Energies.
In addition, there is capacity to produce concrete towers and introduce new local steel wind tower manufacturers.
Industry players are calling for urgency in procurement to feed new wind energy into the power grid by 2022 given the three-year lead time from procurement to production – an additional 1,600MW of additional wind power capacity will be added to South Africa’s generation mix every year between 2022 and 2030.
“We support this call, as the GRI operational plant is already producing 150 steel wind towers per year with the capacity to produce more. This equates to the towers required to produce 450MW to 750MW of the allocated capacity using 3MW to 5MW wind turbines respectively,” Raphulu said in a report filed by Esi-Africa.com
He added: “The remaining balance can be provided by concrete towers or new steel tower manufacturers. The business managed to keep operating during the delay in the publication of the new IRP and has exported wind towers over the past two years. While we will need to procure additional capacity to meet South Africa’s wind energy goals, we must ensure that local content procurement rules are enforced to ensure that we not only retain but grow employment, develop skills and reduce costs in the longer term.”
Local production creates jobs
Located in Atlantis, Western Cape, GRI opened its wind tower manufacturing plant in 2014, creating over 300 jobs in an area with high unemployment rates and developing specialised skills in the process.
GRI is a significant contributor to the wind industry in South Africa and produces additional components required for wind farms.
Atlantis has been declared a Special Economic Zone, which makes the business more competitive as it prepares to further grow its manufacturing capacity.
South Africa also has an established steel industry which will benefit from higher local consumption of steel.
“The investment has already been made in the manufacturing plant and skills. GRI supports the local industry while exporting world class products and skills. It therefore makes sense to procure as many towers locally as possible instead of importing them,” Raphulu concluded.
Parts of Greater Accra and Eastern Region of the Republic of Ghana, West Africa, are witnessing power outage following a heavy downpour on Sunday evening.
The rains, which started at about 6pm and lasted for an hour, came with thunderstorm and lightning.
Ghana’s Meteorological Service gave a prior warning before the rains set in.
Energynewsaftica.com‘s monitoring team captured comments some persons in the affected areas made on social media.
“Oh Ghana small rains and there is blackout. What’s this?
“Yes, Nungua; there’s black out.
“Yes, Dome, Kwabenya no light.
Same at Labone.
“Pantang junction; there’s black out.
“Ashaiman is in total darkness.
“Light out at Nsawam,” were some of the comments some Ghanaians posted on various social media platforms.
The newly appointed Managing Director of Ghana’s electricity distribution and retail company, Electrical Company of Ghana (ECG), Kwame Agyeman-Budu has assured Ghanaians that he is taking the necessary steps to ensure that the ongoing realignment of staff positions, following the return of PDS workers to ECG, which has resulted in some agitations, does not affect its core mandate.
The ECG MD explained that his outfit is working in collaboration with the Public Utilities Workers Union (PUWU) to ensure customers are not affected.
Information gathered by energynewsafrica.com on Friday indicated that there were agitations among ECG staff due to the ongoing realignment of staff positions.
But in a statement issued and signed by the MD, it said “management wishes to take this opportunity to assure staff, the general public and all stakeholders that, in collaboration with the Public Utilities Workers Union (PUWU), the current situation will not interfere with the core mandate of the Company: To deliver safe, quality and reliable power to our cherished customers.”
Source:www.energynewsafrica.com
Two years ago, U.S. Secretary of Energy Rick Perry attended Africa Oil Week to promote his country’s policies for energy on the continent. This the U.S. Assistant Secretary for Fossil Energy, Steven Winberg, attended to highlight the importance the United States places on fostering relationships with the continent.
The first question on everyone’s lips was how the recent announcement of Secretary Perry’s resignation would affect the U.S. outlook towards Africa. “If you are asking if there is going to be an Africa policy change, the answer is clearly no,” he says. “As you know, Deputy Secretary Brouillette has been nominated by the President, and he will go through the confirmation hearing. But I can tell you that the Secretary and the Deputy Secretary are in lockstep, as is the President, with policies such as Prosper Africa and Power Africa. The objective for the United States is not changing as it relates to Africa.”
Supporting U.S. Businesses in Africa
Winberg points to the fact that Prosper Africa is a cross-government initiative that involved the Department of Energy and the State Department. It is designed to support United States business and energy activities in Africa. “There are 54 countries in the continent of Africa, and we think that there are great opportunities for the United States to bring our technology and our capital to bear, especially in the energy space. I think we also have the opportunity to counter malign actor influence. And finally, and probably most importantly, Prosper Africa provides opportunities for sustainable economic development and economic development with transparency.”
“That is what the United States brings to Africa, and we are pleased to be here. We are pleased to be at this conference to help develop relationships and help develop understanding between the United States and the 54 countries in Africa.”
The strategy is for the U.S. government to work with U.S. companies that want to do business in Africa and to work with countries in Africa that want to do business with U.S. companies. “We can indeed shine a bright light on these opportunities,” Winberg adds. “We can also assist African enterprise and African countries by introducing them to US companies, and vice versa.”
“We also have opportunities for African countries to come over to the United States and work with some of our departments so they can understand how we do business and how we create a transparent business climate. We have 17 National Labs. And we are very open about what those labs do. Numerous countries send representatives to visit those labs so that they can understand the technologies that we are working on and how those technologies might be applicable to their situation. We are going to continue that activity so that we can become a long-term partner with African nations.”
The Global Role for U.S. Gas
Aside from supporting the work of U.S. businesses in Africa, Winberg is clear that he sees Africa as a prime market for the surplus of gas that the U.S. shale revolution is delivering. “I do believe there is going to be increased oil and natural gas production in Africa, but there is an interim period when African countries may want to avail themselves of our LNG exports,” he explains.
At present, the United States has the capacity to export seven billion cubic feet per day, which will grow to ten billion cubic feet per day by 2020. “In operation or under construction, we will have 15.5 billion cubic feet per day today coming online over the next several years. The Department of Energy has authorised about 35 billion cubic feet a day,” Winberg adds. “There is a lot of headroom there for countries that want to use LNG imports in the interim period while they are developing their own natural gas production.”
According to Winberg, the U.S. shale surplus offers another benefit: stabilising the market and providing security of supply. “About two and a half months ago, the Straits of Hormuz saw some hostile activity,” he says. “If you watched the Brent Crude oil price, it barely moved in and around that hostility.”
“Then on September 14, the Iranians attacked Saudi Arabia – the attack initially took out half of their production. That happened on Saturday; and on Monday when the European markets closed Brent crude was up 9 dollars and within two weeks Brent closed below pre-attack levels. That speaks volumes about the robust nature of this oil and gas market. If that attack had occurred a decade ago, we would have seen a fly up in oil prices, and I think they would have stayed up.”
“The fact that we continue to increase the level of oil that we’re producing in the United States and will be a net exporter of energy next year, reduces the impact that those types of attacks can have. And if it’s not as impactful as those perpetrators want it to be, then there’s not a lot of value. And I think that’s the real message here.”
Fighting Climate Change outside the Paris Climate Accord
Much has been made about the United States stepping away from the Paris Climate Accord, but Winberg is clear that does not mean that the U.S. is not serious about reducing carbon emissions. “The answer to reducing greenhouse gas emissions, whether it’s methane or CO2, is through technology development,” he explains. “The International Energy Agency (IEA) understands that and talks a lot about the need for carbon capture technology.”
“If you do the math, you know that without technologies such as carbon capture, utilization and storage, none of the countries can meet any of the goals that they aspire to meet. It all comes down to technology. One thing that President Trump and the Administration are adamant about is having an “all of the above” strategy in the United States. I know there are countries that want to eliminate fossil fuel from their energy mix. We do not think that is a wise decision. We think it is wise to develop technology to reduce the environmental impact of those fossil fuels, whether coal, oil or natural gas.”
“Under just about every forecast, and IEA is probably the most influential, 80 per cent of our energy needs globally will be coming from fossil fuels for the next 30 to 40 years. So, eliminating fossil energy is not practical. What is practical, is developing technologies to reduce greenhouse gas emissions and create more efficient, as well as designing a less environmentally impactful use of energy.”
Working with Africa to Deliver Growth
As for foreign policy in Africa, Winberg is clear that the Trump Administration believes that it is up to African countries to resolve whatever internal issues they have. “It is not our role to tell countries what to do,” he concludes. “However, what we can do and what we offer is an opportunity to talk to us about policies that will attract capital and policies that will attract technological investments. We will continue doing that for countries that want to develop their natural resources.”
“That has been a focus of this Administration. I said earlier that the Trump administration absolutely believes in the “all of the above” energy strategy. We want to export our technology and our natural resources. We will do everything we can to work with countries that want to avail themselves of what we have to offer, including working with them on various policy issues that they need to resolve to attract capital and attract technology.”
Ghana’s electricity regulator, Energy Commission, has put in place the necessary regulatory measures and licensing framework needed to guide companies that want to engage in a commercial activity in the renewable energy space.
This, according to the Energy Commission’s Executive Secretary, Rev. Oscar Amonoo-Neizer, is in accordance to the Renewable Energy Act, 2011 (Act 832).
The Energy Commission boss made these observations in a speech delivered on his behalf during a workshop on IEEE 1547TM and the IEEE 1547 Conformity Assessment Programme at the Electricity Company of Ghana’s (ECG) Training School in Tema.
He announced that the Commission is currently updating the Electricity Distribution Code and National Electricity Grid Code to include Renewable Energy.
Ing Amonoo-Neizer was of the view that the inclusion of Renewable Energy in these codes would improve the implementation and usage of renewable energy in the country.
“The Energy Commission is very proud to support this workshop and to see the growth of renewable energy in Ghana. We are committed to engaging all stakeholders to develop and implement such workshops.”
Ing. Amonoo-Neizer noted that the IEEE 1547 and IEEE Conformity Assessment Programme (ICAP) certification programme would be crucial tools in Ghana’s ongoing adoption of distributed energy resources (DERs).
“It’s extremely challenging for the world’s policy makers to simultaneously keep on top of today’s dramatically changing technical landscape, anticipate tomorrow’s innovations and wisely evolve policies and regulations,” he observed.
He, therefore, described open consensus standards such as the IEEE 1547 as an indispensable connection fabric between the world’s technology and policy developers.
He explained that the ICAP certification process provides a singularly dependable and proven process for assuring IEEE 1547 commissioning compliance implementation and interconnection of DERs of any type or size.
He thanked the IEEE team for organising the workshop and further encouraged participants to take full advantage and learn effectively.
Italian oil and gas firm, ENI, has rejected assertions by Ghanaian employees that they are being treated unfairly and paid far below their colleague expatriates.
According to ENI, operators of the largest integrated gas field in the West African country, Ghana, in all the 67 countries it operates throughout the world, it undertakes activities according to the highest international standards and best practices in accordance with local laws, within the parameters set out by competent authorities, agencies and local regulatory frameworks.
The oil and gas firm expressed shock over the development which it described as very unfortunate.
“Wherever we work, ENI promotes international labour standards through regulatory documentation, trade union agreements at the national and international level, management and development processes and training and communication initiatives,” a statement the company issued and copied to energynewsafrica.com clarified.
The statement noted that in 2008, ENI drew up a Code of Ethics which makes “explicit reference to workers’ rights and the freedom of trade unions, as well as the fight against all forms of discrimination, forced and child labour.”
The statement was in response to a petition the Eni workers, through the General Transport Petroleum and Chemical Workers Union(GTPCWU) of Trades Union Congress, submitted to Ghana’s upstream regulator petroleum commission for actions to be taken against the company.
“It is extremely sad and disheartening to note that the Ghanaian workers of Eni are woefully underpaid compared to their expatriate colleagues on the same job in the same company, as well as competitors in the industry such as Tullow and Aker.
“This is in clear violation of Eni’s own global policy on compensation and benefits that states that: ‘Our compensation package is complemented by a benefits programme in line with our competitors and consistent with local regulations. It aims at to enhance overall compensation with benefits which support our people’s current and long term physical and financial welfare’.”
Due to the relatively low salary of the Ghanaian employees of Eni Ghana, some of the experienced employees have resigned to other competitors in the industries, which has adversely affected the localisation policy which is being championed by the Petroleum Commission of the Ghana.
“We believe this does not augur well for the young petroleum industry in Ghana to train and develop competent and experience Ghanaian workforce to take over the management of the resources in the near future.”
Given the average monthly revenue (inflow) of US$123 million, which Eni Ghana and its partners have been achieving during the period January to September 2019, the total monthly labour cost estimate of our proposal for Eni to pay at least 75 percent of the oil and gas market constitute only 0.5545 percent of this revenue value.
“Thus, the total labour cost estimate of this proposal is less than 0.9%, if we are to include other contract workers. Moreover, Eni Ghana will bear only 44.444% of this cost while the rest is cut back to partners (Vitol and GNPC),” parts of the petition signed by the Deputy General Secretary of GTPCWU Francis Sallah stated.
But Eni has denied these claims.
The company also rejected claims of the workers that they are breaching the country’s local content laws.
“More than 75% of Eni Ghana’s workforce is Ghanaian, which is well above the target set by Ghana’s local content regulations (L.I. 2204 regulations 1(c), 18).
In full compliance with the Local Content regulations, Eni Ghana has personalised development plan for every single local resource, and localisation plans for all expatriate positions. The plan is shared on a quarterly basis with Petroleum Commission to monitor its progress. In addition, more than 1 Million USD is invested yearly on training alone for the professional growth of the Ghanaian resources. Performance appraisals are conducted at least once a year.”
Below is the full response from Eni
Global operating principles
Wherever it operates – and that is 67 countries throughout the world – Eni undertakes its activities according to the highest international standards and best practices, in accordance with local laws, within the parameters set out by competent authorities, agencies and local regulatory frameworks.
In all the contexts in which we work, Eni promotes international labour standards through regulatory documentation, trade union agreements at national and international level, management and development processes, training and communication initiatives. In 2008, Eni drew up a Code of Ethics, which makes explicit reference to workers’ rights and the freedom of trade unions, as well as the “fight against all forms of discrimination, forced and child labour”.
Our policies promote the creation of a work environment in which diversities of any nature are enhanced through a Diversity & Inclusion system in which equal opportunities are offered to all, promoting the creation of an inclusive work environment without distinction of race, color, gender, religion, nationality, political opinion, sexual orientation, social status, age or any other condition of the individual not related to the requirements necessary for the execution of the work.
Allegations of racism and slavery are extremely serious and have never been made to the company. If employees or Unions have evidence of such, they should share their evidences so as to allow the company to immediately investigate such claims and take the appropriate measures. Otherwise, if such claims are unsubstantiated, Eni reserves the right to prosecute false allegations that can damage the company’s reputation.
Local content
More than 75% of Eni Ghana’s workforce is Ghanaian, which is well above the target set by Ghana’s local content regulations (L.I. 2204 regulations 1(c), 18).
In full compliance with the Local Content regulations, Eni Ghana has personalized development plan for every single local resource, and localization plans for all expatriate positions. The plan is shared on a quarterly basis with Petroleum Commission to monitor its progress. In addition, more than 1 Million USD is invested yearly on training alone for the professional growth of the Ghanaian resources. Performance appraisals are conducted at least once a year.
Union negotiations
Negotiations between Eni Ghana and the Union representative on a salary structure ended with a satisfactory agreement for both parties. Confidentiality of the negotiation and its ouputs, which is in the best interest of both parties, prevents us from disclosing further information
A lawyer for US oil and gas giant, ExxonMobil, Theodore Wells, says New York’s fraud lawsuit against the oil giant was a “joke” and that the state had falsely accused engineers and scientists of cooking up a scheme to mislead investors about the financial risks of climate change.
“It’s a cruel joke, your honor, because the reputations of a lot of good people have been disparaged by the bringing of this complaint,” Worldoil.com quoted Theodore Wells as saying during his closing statement after a trial that spanned three weeks.
New York sued Irving, Texas-based ExxonMobil in 2018 after a three-year probe, claiming it found evidence that the company sought to trick investors into thinking the company was planning properly for a low-carbon future and inflating its stock by as much as $1.6 billion starting in 2014.
But Wells said the state failed to prove that ExxonMobil made a material misstatement when it revealed to activist investors in 2014 that it was using a “proxy cost” to account for the future impact of climate change on the business. New York failed to prove the claims led to a drop in the company’s stock, he said.
There was “no impact on the price of the company’s stock,” Wells said. “What that shows is that nothing happened and that nobody cared. And the reason nobody cared is because nothing happened.”
Justice Barry Ostrager, of the New York State court in Manhattan, will decide the case without a jury.
Among more than a dozen witnesses who testified were activist investors who accused ExxonMobil of misleading them, ExxonMobil employees who defended the company’s practices, and expert witnesses who dueled over whether the allegations had any impact on the company’s shares.
The case hinges on whether ExxonMobil’s proxy cost — meant to account for the expected decrease in demand for fossil fuels — was supposed to be the same as another internal metric Exxon used, a greenhouse gas (GHG) cost applied to specific project proposals based on existing local taxes. Exxon says the state is trying to show a false discrepancy by conflating two carbon metrics that serve different purposes.
The former Deputy Managing Director of Ghana’s electricity distribution and retail company, Electricity Company of Ghana, Mr. Kwame Agyemang Budu, has been officially sworn in as the Managing Director of ECG.
Energynewsafrica.com understands Mr. Kwame Agyeman-Budu was sworn in by Ghana’s Energy Minister John-Peter Amewu at a brief ceremony on Thursday at ECG’s head office in Accra, capital of Ghana.
The ceremony was witnessed by the company’s Board of Directors.
Mr. Agyeman-Budu was appointed following a letter signed by Mr Lawrence Apaalse, Chief Director of the Ministry of Energy, which announced government’s decision to terminate the appointment of managing director of ECG,Ing. Samuel Boakye-Appiah.
Mr. Agyeman-Budu has a rich industry experience spanning about 28 years.
Mr. Agyeman-Budu undertook his primary and secondary education in Kumasi. He pursued a professional teacher’s certificate at the Wesley College also in Kumasi.
He continued his education in the US where he attained both professional and academic qualifications. Among them Certificate in Facilities Management, Associate Degree in Applied Science Electrical Engineering Technology, Bachelors and ultimately a Masters in Energy Management from the New York Institute of Technology.
He has since managed several projects, including projects at Consolidated Edison Company (ConEdison) of New York, the largest utility company in the US which serves over 1 million natural gas consumers.
A prominent project he managed is a $15 million Tension Gateway Project (GEP) at LaGuardia Airport
Agyeman-Budu’s years of experience in the energy industry spans areas of Distributed Generation (Combined Heat & Power – CHP), Solar (Photovoltaic), Advanced Battery, Windmill, and Fuel Cell Technologies, Alternate Energy, Environmental Audits and Monitoring, Environmental Risk Assessment, Power Plant Systems, Smart Grid Systems, and Systems Engineering and Management.
Several African countries have used the Africa Oil Week (AOW) event in Cape Town this week to promote their oil and gas sectors to a global audience of investors, suppliers and other key stakeholders.
Senegal’s Oil and Energy Minister Mahamadou Makhtar Cisse used the platform to launch, for the first time in the history of petroleum exploration in his country, a licensing round of three blocks of sediment basin.
The licensing round would be promoted at international oil conferences in London, Houston, and Dakar during a first phase of the process, while energy companies would be able to evaluate the blocks’ potential between the end of January and end of July 2020, the minister said.
Senegal has seen predominantly natural gas discoveries offshore in recent years, most of which are shared with neighbouring Mauritania.
Angola’s newly formed national oil, gas and biofuels agency, ANGP, announced that the country has formed a consortium with five international oil companies, including Eni and Chevron, to develop liquefied natural gas (LNG) for its Soyo plant.
The consortium’s project, costing an initial $2 billion, is expected to start production by 2022.
Uganda’s Minister of Energy and Mineral Development, Irene Muloni, is leading a delegation of private and public sector players from Uganda’s oil and gas sector at AOW.
Over the course of the week, in a National Showcase, Uganda is highlighting the ongoing second licensing round for oil exploration, which covers five highly prospective blocks with relatively good seismic and other data, Minister Muloni said.
Ghana told AOW delegates that it plans, revising its laws on oil and gas licenses, sent to parliament last week, are an effort to spur production, and will revoke licenses from four companies that have not developed their assets.
Deputy Minister for Petroleum Mohammed Amin Adam said that the proposed changes would allow companies producing in blocks to explore elsewhere in the same area without having to get a new license.
Equatorial Guinea’s Oil Minister, Obiang Lima, said that his country would award seven to eight blocks from its current licensing round at the end of November.
A data room for companies interested in the Zafiro oilfield license would be opened as soon as possible Minister Lima said.
Chairman of Mozambique’s upstream regulator, INP, Carlos Zacarias announced that the country’s long-awaited sixth licensing round is due to be launched early next year.
INP, Zacarias said, is currently working out which acreage to offer industry and will then submit its proposal to government for approval.
Somalian Minister of Petroleum and Mineral Resources Abdirashid Mohamed Ahmed said his country was embarked on a path to transform Somalia’s petroleum industry and attract the attention of new investors, with significant progress having been made in recent years.
The passing of the petroleum law earlier this year – key features of which were a commitment to transparency and revenue-sharing, the Minister said.
The first example of this commitment, albeit small, was receipt of US$1.7million in rental payments from Exxon and Shell.
During the visit, Sheikh Mansour was briefed about ADNOC’s strategy to implement the “Oil and Gas 4.0” concept, to cope with future developments and increase the UAE’s profitability and economic returns.
He was also briefed about ADNOC’s new business models, which are based on its strategic partnerships.
Source:www.energynewsafrica.com
