Nigeria: Nigeria Electricity Regulatory Commission Reappoints 12-Member Dispute Resolution Panel
The Nigerian Electricity Regulatory Commission (NERC) has reappointed a twelve (12) member Dispute Resolution Panel for the Nigerian Electricity Supply Industry.
A statement issued by the Commission said the decision was in line with Section 42.1.3 of the Market Rules, which empowers the Commission to constitute the Panel and Section 42.3.8(c) of the Market Rule that permits the reappointment of members for a second term.
The functions of the panel, as spelt out in Section 42.3.7 of the Market Rules, include the arbitration and settlement of disputes between market participants in the Nigerian electricity market, which include the System Operator (SO), the Market Operator (MO), and other licensees engaged in the trading of electricity.
While reconstituting the dispute resolution panel, the Commission advised market participants to take advantage of the channel of alternative dispute resolution for the resolution of disputes in the electricity industry in line with the provisions of the Market Rules.
Members of the reconstituted panel are Olufunmilayo A. Roberts, Adeyemi Akisanya, Augustine Mamedu, Adeyemi A. Oyedele, Hussaini Mohammed, Okechukwu J. Chiazor, Ajagbe E. Oyetunde, Onagoruwa Bolanle, Ezekiel Osarieme, Batholomew C. Onyejekwe, Nnena Ejekam, and Sadiku Folorunsho.
Djibouti: Green Energy Production Gets Boost As AfDB Approves $3.22 Million Support
The Board of Directors of the African Development Bank (AfDB) has approved, additional funding of $3.22 million for the geothermal exploitation project in the Lake Assal region of Djibouti.
This financing is in addition to the earlier $6.83 million and previous $14.68 million approved by the Bank’s board of directors in June 2013 and May 2018 respectively, bringing its total contribution to $24.73 million.
The project for which this additional funding is intended aims to improve the quality of life of the Djiboutian population through the increase of green energy production capacity, the reduction of oil imports, and the reduction of greenhouse gas emissions.
Its objective is to explore the geothermal steam field of Lake Assal, located in the centre of the country, and to confirm the characteristics of the geothermal resource.
This additional financing from the Bank will allow the cleaning of well number 2 and make more tests for all the wells in order to collect reliable data, intended for a feasibility study, with an acceptable risk profile for a commercial exploitation.
In a three-phase programme, exploration of the field in question will first be carried out to confirm the characteristics of the geothermal resource; next will be the development of the geothermal field and the construction of a power plant with a capacity of 20MW; and finally the extension of the capacity of this plant to 50MW.
This project is also part of a geothermal energy development programme and will help build the first such plant in Djibouti.
It will ultimately increase the green energy production capacity of this country in the Horn of Africa, increase access to electricity, thanks to a more reliable and more efficient source of energy.
It will also reduce Djibouti’s oil imports and greenhouse gas emissions. By improving its access to electrical energy, it will contribute to improving the quality of life of the Djiboutian population.
Namibia: Minister of Energy, Oil & Gas Sector Players To Discuss Future Of Energy Industry In Exclusive Webinar
The African Energy Chamber is expected to present an exclusive webinar with the Namibian Minister of Energy. Hon. Tom Alweendo on Friday, May 15, 2020 at SAST.
Hosted by African Oil & Power, the open to public webinar will explore the future of the Namibian energy industry in the context of the current global climate.
As 2020 was planned to be a strong year for exploratory drilling in the country, the conversation will look at the state of the country’s upstream industry and its development potential.
Hon. Tom Alweendo will be joined by Nj Ayuk, Executive Chairman of the African Energy Chamber, in the discussion moderated by Namibian Lawyer and Energy Specialist, Gawie Kanjemba, and Africa Oil & Power Field Editor, Thomas Hedley.
In light of Namibia’s push to develop a sustainable and clean energy industry, participants will also discuss the country’s key energy infrastructure and power projects with a particular focus on gas-to-power and renewable energy.
“In Namibia particularly, after 30 years of independence, we have grown the economy over ten folds and remain one of the countries with the highest GDP per capita in Southern Africa,” said Hon. Tom Alweendo.
“Exploring resources like oil & gas can translate into a tool for transforming the economy even further. The shareholders of Namibian resources are the Namibian people, it is thus important to work with organizations like the Africa Energy Chamber and Africa Oil & Power, to map out a future that speaks best for Africa,” he added.
“Our next Africa energy series of webinars takes us to a true African energy frontier and we are honored that Hon. Tom Alweendo is joining us in this conversation,” declared NJ Ayuk, Executive Chairman at the African Energy Chamber.
“Namibia has a tremendous potential for energy investments across the value-chain and should not be overlooked when it comes to building a sustainable and inclusive growth in Africa.”
As international oil companies farmed-down their interests in Namibia’s offshore, a series of leading independents came in and invested, raising hopes to see world class discoveries in the near future. These notably include Chariot Oil & Gas, Tullow Oil, Africa Energy Corp, AziNam, BW Energy, Chariot Oil & Gas, Eco Atlantic Oil & Gas, Global Petroleum, Impact Oil & Gas, Maurel & Prom and Tower Resources. The country is also home to the giant Kudu gas field, where 1.3 Tcf was gas was discovery in 1974. The block is currently operated by BW Energy, who remains committed to finding a viable commercial development option for the field. Kudu’s development is seen as key to resolving the energy crisis in Namibia and developing strong gas-to-power capacity.
COVID-19: African Energy Chamber Issues Urgent Advisory Guidelines For The Management And Safety Of Oil Workers
Amid the ongoing effects of lockdowns in oil and gas-producing countries such as Nigeria, Angola, Algeria, Egypt, Libya, Congo, Gabon, Ghana, Equatorial Guinea, South Sudan and Cameroon, the African Energy Chamber hereby issues pragmatic commonsense advisory guidelines for governments, oil companies and personnel.
This is aimed at mobilizing, demobilizing and putting back the continent energy sector to work safely across the continent.
In light of the prolonged Covid-19 pandemic, the oil & gas industry has been heavily strained, increasing the need to pay critical attention to workers’ safety and putting in place procedures to ensure their transitioning in and out of the workplace.
Currently, travel restrictions have forced oil operators to maintain their personnel for extended periods of time on remote sites, increasing the risks of Lost Time Injury.
“We must always prioritize the health, safety and well-being of brave oil workers who continue to defy insurmountable odds to keep energy production ongoing across the continent,” NJ Ayuk, Executive Chairman at the African Energy Chamber has stated.
“All upstream oil & gas operators are experiencing similar challenges due to reduced workforces and extended periods of lockdown and travel restrictions. Our guidelines put the safety of workers, host communities and oil operators at the core of the industry’s operations and sector recovery.”
“These non-exhaustive guidelines will assist operators and governments in ensuring the movement and safety of offshore and onshore oil workers so oil & gas operations can continue while preventing any additional spread of Covid-19,” concluded Ayuk.
In order to ensure that oil & gas health and safety standards and practices adapt to a new normal, the African Energy Chamber has worked with its partners to issue this new set of advisory guidelines. These guidelines notably take into account local regulations in host countries, and are heedful of the need to protect local communities from exposition to any potential Covid-19 transmission.
Such advisory guidelines notably include a series of agreements and protocols governing health monitoring and travel authorizations given to oil workers before, during and after their mobilization on site.
They take into account the best international healthcare practices in order to ensure both a safe continuation and resumption of onshore and offshore activities, while preserving the health of oil workers, host countries and host communities.
The guidelines can be downloaded on (www.EnergyChamber.org)
Source: www.energynewsafrica.com
UAE To Cut Oil Production Further By 100,000 BPD In June
The United Arab Emirates plans to cut its oil production further in June, UAE Minister of Energy and Industry Suhailbin Mohammed Faraj Faris Al Mazrouei has revealed.
The production cuts, according to Al Mazrouei, will increase by another 100,000 bpd next month, after already reducing its oi production “in line with the OPEC+ agreement” in May.
This comes after the OPEC member increased its production to more than 4 million bpd in April, when Saudi Arabia was also busy adding crude oil into the global supply glut at a time when the world was shutting down in response to the coronavirus, crippling the demand for crude.
This comes at a time Saudi Arabia, too, has said it would cut beyond its promised cuts next month.
Kosmos Energy Sinks Deeper, Loses $183million In First Quarter Of 2020Saudi Arabia has pledged as part of the OPEC agreement to cut its production to 8.5 million bpd, but said this week that it would cut to 7.492 million bpd in June, after the Saudi energy ministry ordered Aramco to cut bigger. Oil prices had rallied earlier on Monday on this news that even more oil production would be taken out of the mix next month. But by 2:30pm ET, WTI had slipped 3.31% on the day, with the Brent benchmark slipping nearly 5% back below $30 per barrel. Kuwait also announced that it would cut its oil production even more than the OPEC+ agreement called for, by an additional 80,000 bpd in June. But the move to cut additional barrels by Kuwait, Saudi Arabia, and the UAE was seen not as a positive move, but as an out-of-options move as Middle East producers find themselves without buyers. Today’s announcement of additional cuts could, therefore, spark fear instead of confidence as the market views it as a reflection of the true state of the market. Source:www.energynewsafrica.com
Ghana: Accra: Areas Experiencing Power Outage Will Be Restored By 5PM-GRIDCo
Ghana’s power transmission company, GRIDCo, has assured residents of Accra, who are currently experiencing power outage, that power will be restored at about 5pm today (17:00GMT).
According to the company, the outage has been caused by snapping of one of its major transmission lines in the Accra East area at about 6:53am Monday, May 11, 2020.
A statement issued by GRIDCo said: “The situation requires emergency attention and engineers are currently working around the clock to resolve the problem as soon as possible.”
“The maintenance team has assured that power will be restored to the affected areas before 5pm today” the statement said.
GRIDCo apologised for any inconvenience caused and adding that it remains committed to its mandate of delivering reliable power supply.
Press Statement – Power Outage In Parts of Accra East – May11, 2020.pdf
Source:www.energynewsafrica.com
Kosmos Energy Sinks Deeper, Loses $183million In First Quarter Of 2020
U.S. oil and gas company, Kosmos Energy has sank deeper into the red in the first quarter of 2020 due to impairments and low oil prices.
According to its report on Monday, Kosmos generated a net loss of $183 million in the first quarter of 2020 compared to the loss of $52.9 million in the first quarter of last year.
Kosmos has booked asset impairments in the first quarter totalling $151 million. These impairments are largely related to the Kodiak and Tornado fields in the Gulf of Mexico and are due to the change in the oil prices since Kosmos acquired the assets in late 2018.
The impairments represent around 10% of the total consideration paid for Deep Gulf Energy at the time.
Kosmos booked revenues of $178 million in the first quarter of 2020 compared to revenues of $296.8 million in the same period of 2019.
The company’s capital expenditure for the period was $84 million.
In addition to the timing mismatch between production and the lifting of cargos, the first quarter was impacted by non-cash asset impairments and restructuring charges of $169 million.
These charges were partly reduced by a mark-to-market gain of $136 million, offset by a $12 million cash settlement related to the company’s oil derivative contracts. The company also incurred non-cash deferred tax expense related to a valuation allowance against deferred tax assets and the increased market value of the hedges, totalling $72 million.
Kosmos exited the first quarter of 2020 with approximately $677 million of liquidity and $1.97 billion of net debt.
Shut-ins in Gulf of Mexico to affect 2Q
Kosmos’ net production in 1Q 2020 was 66,300 barrels of oil equivalent per day (boepd), at the upper end of guidance.
This compared to the production of 79,799 boepd in the same period of 2019.
Sales in 1Q 2020 were 43,700 boepd, resulting in a material net underlift position of approximately 1.7 million barrels of oil equivalent (boe).
Production in the U.S. Gulf of Mexico was unaffected by COVID-19 and averaged approximately 28,300 boepd net (80% oil) during the first quarter, at the top end of guidance.
As a result of current market conditions, the operator of the Delta House host platform in the U.S. Gulf of Mexico, Llog Exploration, has chosen to shut-in the facility during the month of May 2020 and accelerate planned maintenance.
The shut-in of Delta House will impact the second-quarter production by approximately 5,500 boepd (net) from fields processed through this facility.
In addition, Kosmos will temporarily shut-in approximately 1,500 boepd (net) at other facilities during 2Q, resulting in approximately 7,000 boepd of net Kosmos production shut-in during the second quarter.
Kosmos currently expects the shut-ins to last through the end of May, however, timing will depend on future market conditions.
Kosmos’ full-year net production guidance in the U.S. Gulf of Mexico is expected at the lower end of the of 24,000-28,000 boepd range assuming the shut-ins last through May.
In Ghana, full-year net production guidance is 27,000-29,000 bopd and it is unchanged.
In Equatorial Guinea, Kosmos’ full-year net production guidance is 11,000-13,000 bopd and cargo guidance of 4.5 cargos is unchanged.
Cost-reductions
In response to current market volatility, Kosmos has identified capital reductions in the base business of around 40% from discretionary expenditure largely from exploration activities in the Gulf of Mexico, its basin-opening exploration portfolio, and other non-critical work that does not impact safety and asset integrity.
The company is now targeting base business capital expenditure of $200-$225 million in 2020 while keeping 2020 production within the range of previous guidance and with the minimal expected impact on 2021 production.
Kosmos has taken steps with the operators of producing assets to target a reduction in operating expenses of approximately $2-3 per barrel in 2020.
In addition, Kosmos is reducing cash general and administrative (G&A) costs in 2020 by approximately 40%, through a reduction in headcount, no planned employee cash bonuses and other identified reductions.
These capital, operating, and G&A cost reductions lower the company’s costs for 2020 by approximately $250 million, or 30% in total.
In March, the board of directors of the company made the decision to suspend the dividend, which will result in cash savings in 2020 of approximately $57 million.
Ghana: Natural Resource Governance Institute Scores Gov’t 70% For Handling Of Maiden Licensing Bid Round
The Government of Ghana’s handling of the maiden licensing bid round for six oil blocks it offered to investors offshore has been described as satisfactory, a report by the Natural Resource Governance Institute (NRGI) has said.
The report assessed the government’s handling of the licensing bid round in four thematic areas namely: Procedural requirements on competitive bidding, Direct negotiations, Compliance with calendar of events under bidding round and Public engagements.
The procedural requirements on competitive bidding scored 77 percent compliance with calendar of events under bidding round was rated 80 percent.
On the other hand, direct negotiation and public engagements scored 55 percent and 50 percent respectively.
The entire process cumulatively scored 70 percent, which is interpreted as satisfactory on the adopted grading scheme.
President Nana Addo Dankwa Akufo-Addo, in October 2018, launched the country’s first oil and gas exploration licensing round.
The Energy Ministry subsequently earmarked six oil blocks for exploration.
Three of the blocks-2, 3 and 4-were to go through competitive bidding process while two blocks-5 and 6-were supposed to be for direct negotiations.
One of the blocks was reserved for Ghana National Petroleum Corporation (GNPC).
The report makes the following recommendations:
Government must start issuing reconnaissance licences to gather quality data to aid future bidding rounds. The cost for such an activity will be recovered from data fees during competitive tendering. Liberia used this approach to acquire data which enabled them to carry out competitive tendering; Government must publish disaggregated information on bidders and their respective blocks they are prequalified for; Disclosures on beneficial ownership must be made publicly available during the prequalification stage. This allows for citizens to monitor the bidding process and to identify politically exposed persons in the contract process.
Again, government must ensure that direct negotiations are done only where peculiarities that point to a specific company to optimise the resources are established; Government must make deliberate efforts to engage the public beyond the requirement of the law. It is recommended that such engagements must have feedback systems to encourage citizens to share information that might be relevant for the licensing round and by extension, the national interest.
Source: www.energynewsafrica.com
The entire process cumulatively scored 70 percent, which is interpreted as satisfactory on the adopted grading scheme.
President Nana Addo Dankwa Akufo-Addo, in October 2018, launched the country’s first oil and gas exploration licensing round.
The Energy Ministry subsequently earmarked six oil blocks for exploration.
Three of the blocks-2, 3 and 4-were to go through competitive bidding process while two blocks-5 and 6-were supposed to be for direct negotiations.
One of the blocks was reserved for Ghana National Petroleum Corporation (GNPC).
The report makes the following recommendations:
Government must start issuing reconnaissance licences to gather quality data to aid future bidding rounds. The cost for such an activity will be recovered from data fees during competitive tendering. Liberia used this approach to acquire data which enabled them to carry out competitive tendering; Government must publish disaggregated information on bidders and their respective blocks they are prequalified for; Disclosures on beneficial ownership must be made publicly available during the prequalification stage. This allows for citizens to monitor the bidding process and to identify politically exposed persons in the contract process.
Again, government must ensure that direct negotiations are done only where peculiarities that point to a specific company to optimise the resources are established; Government must make deliberate efforts to engage the public beyond the requirement of the law. It is recommended that such engagements must have feedback systems to encourage citizens to share information that might be relevant for the licensing round and by extension, the national interest.
Source: www.energynewsafrica.com Nigeria: EKEDC Deploys Mobile Power Transformer To Lekki To Boost Supply
Nigeria’s power distribution company, Eko Electricity Distribution Company (EKEDC) has deployed one of its newly acquired mobile power transformers to Lekki as part of efforts to improve power supply in the area.
The deployment of the 15MVA mobile power transformer would ensure the prompt restoration of power, particularly in the event of a prolonged outage to customers within its network.
A statement issued by the General Manager of EKEDC Corporate Communications, Godwin Idemudia, said: “Recall that in December 2019, EKEDC announced that it has taken delivery of its newly acquired 15MVA, 33/11KV Mobile Power Transformers as part of efforts to improve power supply within its distribution network.”
“The mobile power transformer will serve as a relief response that will be available to immediately replace faulty and overloaded power transformers.
“Our customers can be assured that power supply within our distribution network will no longer be disrupted as a result of power transformer failure,” Idemudia said.
According to him, the 15MVA mobile power transformer would relieve the existing power transformers currently in use within its Lekki coverage network and reduce the load on those transformers to improve supply in the area.
Idemudia added that EKEDC would continue to undertake critical investment to strengthen its distribution infrastructure and expand its capacity to consistently meet its growing supply demand.
He appealed to customers to support the company’s effort by visiting any of the designated collection offices or make use of its online payment channels for the prompt settlement of their bills.
Source: www.energynewsafrica.com
Kenya, Uganda Hit By Nationwide Power Blackout
Kenya and Uganda have been hit by a power blackout after what distributor Kenya Power said was a system disturbance in the transmission grid.
Teams from Kenya Power and Uganda’s power Distributor Umeme announced on Twitter that efforts to restore power were already underway.
The neighbouring countries’ grids are interconnected.
Kenya Power said power went off at 5:49 a.m. (0249 GMT).
“Our engineers are working to identify and address the hitch, towards restoring normal electricity supply,” it said in a statement.
Already the firm has restored power to certain parts of the country.
Kenya Power indicated that it had identified a technical fault at a section of the main high voltage transmission power line that evacuates power from the Olkaria geothermal power plants to Nairobi.
“An electricity conductor came off the support insulators and clashed on the towers,” the firm said in a statement.
Uganda also suffered a nationwide blackout, Uganda Electricity Transmission Co. Ltd said on its Twitter account.
“We have lost transmission across the nation … please bear with us as we investigate the cause and work on restoration,” it said.
In January 2018, both countries suffered major blackouts due to what they said were system disturbances.
Angola: Investment Report For Oil and Gas Projects Launched
Africa Oil & Power (AOP) has launched the Africa Energy Series Special Report: Angola 2020 as a resource for investors entering or expanding their presence in the country’s energy sector.
The report provides a concise look at Angola’s investment opportunities still on track for development in the face of project delays caused by COVID-19.
“While COVID-19 continues to rattle our industry and stall energy developments across the continent, Angola boldly moves forward with a number of its large-scale, capital intensive projects, as explained in the Africa Energy Series Special Report: Angola 2020,” said AOP Acting CEO, James Chester.
“While the current investment climate remains challenging for the oil and gas industry, sufficient and sustained FDI is required across the energy supply chain to not only survive the crisis in 2020, but also overcome it in 2021.”
The report primarily focuses on upstream developments in Angola, including the 2020 oil and gas licensing round which, as of May 6, is still scheduled to take place; recent block extensions granted to major operators, including ExxonMobil, Chevron, and Total; the increase in the appraisal of estimated recoverable resources of ENI’s Agogo discovery; the installation of the Lifua-A platform to support oil and gas exploration in Block 0; and the establishment of the New Gas Consortium that represents Angola’s first upstream natural gas partnership.
“Special reports like this one serve as an important investment promotion and information dissemination tool, which we celebrate from the African Energy Chamber. AOP’s presence in Angola, with the assistance of the African Energy Chamber, helps to promote the local oil and gas and energy sector via different means,” Sergio Pugliese, President for Angola, African Energy Chamber noted.
Within Angola’s developing downstream industry, the report provides updates on the planned construction of natural gas and hydropower plants across the country; the refurbishment of the Luanda refinery to quadruple its current production; and the tender for the construction of new refineries in Cabinda, Lobito, and Soyo.
The publication follows the recent announcement of a change in date to the Angola Oil & Gas 2020 Conference & Exhibition, which will now take place in Talatona from October 14-15. Under the theme “Angola: African Investment Capital 2020,” the conference returns for its second year to promote and attract FDI to the country’s bankable projects and sign up new entrants to Angola’s oil and gas sector.
To download the Africa Energy Series Special Report: Angola 2020 report, please click here. (https://bit.ly/3ftJKTW)
Source:www.energynewsafrica.com
Nigeria: Renewable Energy Must Form A Major Part Of The Post-COVID-19 Recovery Plan (Article)
The unparalleled health crisis triggered by the COVID-19 pandemic has other far-reaching impacts. Oil prices plummeted 30% to their lowest in almost two decades. The aviation industry is on near-total shutdown, worldwide supply chains have been decimated. There has been a 30% drop in Foreign Direct Investment across Africa. Nigeria’s downward budget revision of the benchmark oil price for 2020 to US$30/barrel and oil production to 1.7mbpd is an immediate effect.
A global recession looms large. The social consequences will be huge, creating the need for well-thought-out strategies going forward.
In the immediate aftermath, the Central Bank of Nigeria established an N50 billion Targeted Credit Facility as a stimulus package to support households and micro, small and medium enterprises affected by the COVID-19 pandemic.
The apex bank introduced an additional N100 billion intervention fund in healthcare loans to pharmaceutical companies and healthcare practitioners for expanding capacity.
Medium-term plans to support a post-COVID-19 economy include The Ministry of Finance, Budget & Planning’s establishment of an N500 billion COVID-19 Crisis Intervention Fund to upgrade healthcare facilities and fund Special Public Works Programme that will generate employment.
The Federal Government is working to lessen the economic damage. Beyond the healthcare emergency, there is an opportunity for Nigeria to include sustainable energy into future economic plans. The nexus between Sustainable Development Goal #3, health and well-being and SDG#7, access to clean and reliable energy presents an outline for building a sustainable economy. Post-COVID-19, Nigeria’s commitment to the Paris Agreement, to reduce global greenhouse emissions, will not disappear. Boosting large scale investment to develop renewable energy must, therefore, be a priority in any stimulus plans.
Accelerating clean energy solutions will move Nigeria closer to achieving Vision 30:30:30 (electricity generation of 30GW by 2030 with renewable energy forming 30% of the energy mix), will add the much-needed jobs, thereby boosting the economy. Very importantly, it will contribute significantly to closing the energy access gap among 90 million Nigerians, approximately 55% of the population currently underserved or unserved. Now is not the time to lose so much of what has been gained in the last decade by adopting clean energy solutions. Clean energy lifestyles have seen a boost in Nigeria; the temporary reduction in fossil fuel prices as a result of the pandemic should not mean a loss of focus in our bid to ensure sustainable development.
The Nigeria Electrification Project, Energising Economies Initiative and Rural Electrification Fund, all initiatives of the Rural Electrification Agency (REA) in collaboration with the private sector have impacted tens of thousands of communities – electrifying business clusters such as Sabon Gari market in Kano, Sura market in Lagos and Ariaria market in Abia has allowed for business growth; under REA’s Energising Education Programme, Africa’s largest off-grid solar hybrid, a 7.1MW project powers Kano State’s Bayero University while another 8MW Solar hybrid project gives reliable electricity to Alex Ekwueme Federal University in Ebonyi State. These significant gains must be built on.
The potential of decentralised renewable energy to boost healthcare infrastructure is already apparent in the swift deployments across the country under All-On’s N180m COVID-19 Solar Relief Fund. This includes a 22.5kWp solar system installed at the Lagos Emergency Response Centre and a 9.6kW solar and 30kWh battery storage solution at Eleme Isolation Facility in Rivers State. Investing in health systems will influence the other sectors and possibly help avoid other health emergencies.
As Nigeria plans a post-COVID-19 future, a sustainable energy future must form an integral part of stimulus plans – diversification of the economy, promotion of local content and decreasing Nigeria’s energy poverty are only some of the benefits that this can bring. There is a need to be deliberate about future policies that will support the continued growth of Nigeria’s renewable energy sector.
Source: TheCable
Ghana: Gov’t Orders Eni, Springfield E&P To Combine Oil Fields
The Government of Ghana has directed Italian oil and gas firm, Eni, and Springfield E&P, a wholly owned Ghanaian firm, to begin talks to combine their adjacent oil and gas fields.
The directive follows a technical analysis which concluded that Afina-1x Cenomanian reservoir operated by Springfield E&P and the Sankofa Cenomanian reservoir, which is operated by Eni, are “one and the same.”
The government, through the Ministry of Energy, has, therefore, instructed the companies to begin within 30 days the process leading to the unitisation or joint operation of the two fields in order to ensure efficient production.
The two have 120 days to provide the Ministry a draft agreement.
“Shall both parties fail to comply with the government’s directive to agree on a Unitisation Agreement, the Minister for Energy is empowered to stipulate the terms and conditions of such an agreement per Regulation 50(6) of L.I. 2359,” a letter from the Energy Minister to the two companies stated.
SEP is a majority interest holder (84 percent) and operator of the WCTP2 Licence, with the Ghana National Petroleum Corporation and its exploration company, EXPLORCO, holding the remaining interest.
SEP drilled the Afina-1 well in October 2019, making two gas and light sweet oil discoveries at a water depth of 1,030 meters, and, consequently, more than doubling its proven oil reserves to 1.5 billion barrels and adding 0.7Tcf of gas.
On the other side, Sankofa is a part of the Eni-operated OCTP Block, where Eni holds a 44.44 percent interest, Vitol 35.56 percent, and GNPC 20 percent.
The OCTP Block is reported to have reserves of about 40 billion cubic metres of unassociated gas and 500 million barrels of oil, and has been producing since 2017 from the John Agyekum Kufuor FPSO.
While both operators have until August 2020 to complete their negotiations, the African Energy Chamber in a statement copied to energynewsafrica.com, said it is hopeful that it would result in the very first Unitisation Agreement between an International Oil Company and a Ghanaian operator in the country, ushering a new era for Ghana’s upstream sector.
The conclusion of such an agreement would ensure efficient reservoir exploitation, avoid unnecessary competitive drilling and maximise economic recovery of the hydrocarbons reserves from both licences.
This would not be the first such agreement in Ghana.
In July 2009, a Unitisation and Unit Operating Agreement (UUOA) was signed for the development of the Jubilee Field, appointing Tullow Oil as its operator.
The field entered into production a year later and has been successfully producing since then, becoming the crown jewel of Ghana’s oil & gas sector.
“Oil and gas works best with an enabling environment. The Government of Ghana and the Ministry of Energy are demonstrating a very pro-active attitude towards the development of the country’s oil & gas sector. Their directive to push for negotiations on a Unitisation Agreement on Afina and Sankofa to be completed within 120 days is proof of political will that works to benefit the energy sector and the country,” stated NJ Ayuk, Executive Chairman at the African Energy Chamber.
“Fast-tracking the development of these fields is very positive given current market dynamics and ensures that a credible Ghanaian operator will start producing at a time when other players are shying away from investing in Africa’s upstream,” he added.
“We are very bullish that Springfield E&P can move ahead, make the deal work for Ghana’s oil sector and become a remarkable example of what African E&P companies can achieve for our industry and our continent,” concluded Ayuk.
Source:www.energynewsafrica.com
Ghana: Gas Explosion Kills Man, 51, Two Children At Ashaiman (Video)
A gas explosion at Lebanon Zone Two, a suburb of Ashaiman in the Greater Accra Region of the Republic of Ghana, has left 51-year-old Michael Akpeleteh and his two children dead.
The three deceased persons got burnt when a gas cylinder exploded on Thursday.
Eyewitnesses’ accounts indicated that the wife of the deceased, Michael Akpeleteh, set fire on a gas stove to prepare rice porridge and left it in the care of the children for the market.
According to the eyewitnesses, few minutes after the woman had left, the gas cylinder exploded, when the husband and his four children were all in the room.
They continued that when the cylinder exploded, the father and his children could not see their way out, so they were trapped in the explosion, consequently, suffering massive burns and were dashed to the Tema General Hospital.Energynewsafrica.com gathered that Michael Akpeleteh and his 12 -year-old daughter died on the way while the other child died on admission.
Meanwhile, two other children of the late Michael Akpeleteh who sustained serious injuries are on admission and responding to treatment at the Tema General Hospital.
Medical Director at the Tema General Hospital, Dr Richard Anthony told the press that Michael Akpeleteh and his 12-year-old daughter were brought in dead while the third died few minutes on admission at the hospital.
The remains of the deceased, according to Dr Richard Anthony, have been deposited at the hospital’s morgue.
Source: www.energynewsafrica.com