Africa Oil Week: South Africa Minerals And Energy Minister Makes A Case For Gas
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has urged investors to invest in and help develop South Africa’s gas industry.
Addressing delegates on the opening day of Africa Oil Week in Cape Town today, Mantashe referred to South Africa’s Integrated Resource Plan recently approved by Cabinet and flagged its provision for gas-to-power projects from 2024.
“We intend to establish the first LNG hub in the Coega Industrial Development zone in the Eastern Cape Province,” Mantashe said.
The framework for supporting the gas to power programme would be announced by his department in the near term and linked to this would be an amendment to the Gas Act of 2001, to be tabled in Cabinet soon.
On the upstream, work is under way on a Petroleum Resources Development Bill, which will also be before Cabinet soon.
“Gas to power technologies will provide the flexibility required to complement intermittent renewable energy and meet demand during peaking hours,” Mantashe said.
“While in the short term the opportunity is to pursue gas import options, local and regional gas resources will allow for scaling up within manageable risk levels.
“Indigenous gas like coal-bed methane and, ultimately, recoverable shale and coastal gas are options we are considering.”
Mantashe made specific mention of major gas discoveries in Mozambique and Tanzania, noting “we remain ready to contribute to the development of these recent finds”.
Referring to the hydrocarbon discovery by Total and partners off South Africa south eastern coast earlier this year, he said: “We are confident that this find will spur further interest in the upstream potential of South Africa.”
Africa remains the most energy-deficient continent globally with more than 500 million Africans lacking access to modern forms of energy and affliction by indoor pollution and environmental degradation, Mantashe said.
“Agenda 2063 of the African union enjoins us to develop Africa’s energy infrastructure, where all our countries are connected.
“Our oil and gas must be harnessed to deliver energy services to all households and businesses.
“Our gas must power plants and other petrochemical facilities in our countries as it reaches for export markets. This will ensure that we do not always import beneficiated hydrocarbons.”
Source: www.energynewsafrica.com
GNPC Sponsorship Saga: IES Worried EOCO May Compromise On Its Investigative Mandate
The Institute for Energy Security, an energy think tank in the Republic of Ghana, has raised concern about the sponsorship package which the West African country’s national oil company, GNPC, approved for anti-graft body Economic and Organised Crime body, EOCO.
IES is worried that such acts may influence the investigative body and, thus, prevent them from investigating the wrongdoings of the GNPC.
“The Economic and Organised Crime Office (EOCO) mandated to monitor and investigate economic and organised crime is expected to hold institutions like the GNPC accountable. It must not, therefore, allow itself to be compromised in any form or shape. It is important to note that CSR and conflict of interest are not bed fellows.
“GNPC’s corporate pursuit of social goals must be pursued with ethical considerations. The Board must, therefore, ensure that the corporation takes up initiatives that protect its reputation, and position the ‘Brand GNPC’ to become the operator Ghanaians so much desire,” a statement signed by the Executive Director of IES, Paa Kwasi Anamua Sakyi said.
“The GNPC Board must differentiate good (sustainable) from bad (short-term) self interest in order to stress the genuineness of their approvals given to cultural and investigative issues, ” the statement added.
The call comes in the wake of an internal memo which revealed how the corporation has approved over GHS 2.7m sponsorship package for some institutions including the 20th anniversary celebration of the Okyenhene and Rebecca Akufo-Addo Foundation, a foundation owned by Ghana’s First Lady.
The memo noted that the GNPC’s Brand, Communication and CSR Committee approved GHc120, 000 for the Rebecca Akufo-Addo Foundation, GHc550, 000 for the Economic and Organised Crime Office, US$30,000 for the Ghana Boxing Association, GHc50, 000 for the Ghana Journalists Association, GHc400, 000 for the Samba Festival Preparation and GHc1, 500,000 towards the 20th Anniversary of the Okyenhene for the environment and greening.
Below is the full statement
GNPC’s CORPORATE SOCIAL RESPONSIBILITY (CSR) MUST BE PURSUED WITH ETHICAL CONSIDERATIONS
- In the current approval from the Board of Ghana National Petroleum Corporation (GNPC) to the Chief Executive Officer (CEO) of the entity, you see a clear drift from the strategic path the company has set for itself and pursued over the years as an anchor of its Corporate Social Responsibility (CSR).
- The understanding is that the Corporation has adopted a more definitive approach to CSR by executing fewer, yet bigger and bolder initiatives in the area of health, education, and sport development; aimed at establishing GNPC as an admired brand.
- The Institute for Energy Security (IES) is curious in the decision of the Board, and wishes to understand the factors that are influencing the inclusion of cultural and investigative related issues in the company’s CSR activities. The Board must help clarify and justify the changes to the goal posts, knowing very well that some elements in its approvals are at odds with their own CSR policies.
- It must be noted that political interference have not done any good to especially state owned enterprises (SoE’s) in Ghana’s energy sector, and to Ghanaians in general. If the government has any commitment to any State or Stool, it must not use the GNPC to prosecute that agenda. The GNPC must be seen to be independent when it comes to issues like CSRs, than to be used as a funding source for government’s initiatives and mandates.
- The Economic and Organized Crime Office (EOCO) mandated to monitor and investigate economic and organized crime, is expected to hold institutions like the GNPC accountable. It must not therefore allow itself to be compromised in any form or shape. It is important to note that CSR and conflict of interest are not bed fellows.
- GNPC’s corporate pursuit of social goals must be pursued with ethical considerations. The Board must therefore ensure that the corporation takes up initiatives that protect its reputation, and position the “Brand GNPC” to become the Operator Ghanaians so much desire.
- The GNPC Board must differentiate good (sustainable) from bad (short-term) self interest in order to stress the genuineness of their approvals given to cultural and investigative issues.
South Africa: Energy Minister Worried Over Lack Of Electricity Access To Africans
South Africa’s Minister for Mineral Resources and Energy, Gwede Mantashe has bemoaned Africa’s current status as the most energy deficient continent in the world.
The Minister also expressed sorrow at how over 500 million Africans lack access to modern forms of energy and are afflicted with indoor pollution and environmental degradation.
Gwede Mantashe made the sorrowful disclosures when he addressed participants at the opening ceremony of the 2019 Africa Oil Week, currently ongoing in the South African city of Cape Town.
He said that the African Union [AU’s] Agenda 2063 enjoins member states to develop the continents energy infrastructure where all members are connected.
He, therefore, called for the urgent harnessing of Africa’s oil and gas sectors to deliver modern energy services to all households and businesses.
Africa’s gas, he emphasised must be power plants and other petrochemical facilities in member states as it reaches for export markets.
This, Gwede Mantashe added would ensure Africa does not always import beneficiated hydrocarbons.
South Africa remains ready to contribute to the development of its recent findings in the oil and gas sectors through the importation of gas.
In early 2019, we announced hydrocarbon finds by Total and its partners off the Mossel Bay Coast and that we are confident the findings will spur further interests in the upstream potential of South Africa.
The Minister pointed out that they have taken notes of global industry shifts and that they were encouraged by the visions set by many African nations to enter into the global gas market and promote the development of respective domestic and regional gas markets.
According to the Minister, natural gas can improve the efficiencies of many industries currently using sub-optimal fuel sources in their production processes which would result in a turnaround in the industrial capacity and demand in the region.
He maintained that both the energy and minerals resources sectors are catalysts to economic growth and that lowering the cost of energy is critical to the growth of the extractive and manufacturing sectors respectively.
‘’We remain resolute in our conviction about the importance of all energy carriers in our energy mix and that we intend to exploit our natural resources endowment to our benefit,” the South African Mineral Resources Minister assured.
Source:www.energynewsafrica.com
Ghana: GNPC Justifies GHS 2.7m Sponsorship Package For Okyenhene’s Anniversary, Rebecca Akufo-Addo Foundation, Others
The national oil company of the Republic of Ghana, Ghana National Petroleum Corporation (GNPC), has justified its decision to approved over GHS 2.7m sponsorship package for entities.
The General Manager-in-charge of Sustainability at GNPC, Dr. Kwame Baah Nuako, explained that such expenditures are not new and are in line with GNPC’s vision.
“I can assure you [that], this is not the first time. This is not the first batch of sponsorship requests that have been received this year or have been approved,” Dr. Baah Nuako.
He said the budgeted donations and sponsorships were mostly in response to requests made by various interest groups.
The GNPC has come under public criticisms following the corporation’s decision to sponsor some public functions and activities.
An internal memo sighted by energynewsafrica.com showed that various amounts were to be given to the First Lady’s Foundation, Rebecca Foundation; The Ghana Journalists Association, and the celebration of the Okyenhene’s 20th Anniversary.
The memo, dated 29th October 2019 from the Board Secretary to the Chief Executive indicated that the donations and sponsorship had been approved by the GNPC board upon a recommendation by the Brand, Communication and CSR Committee of GNPC.
Some of the items budgeted for by the GNPC include GH¢400,000 towards the preparations for the Damba Festival and GH¢500,000 towards the environment and greening project as part of the celebration of the 20th Anniversary of the Okyenhene.
The First Lady’s Rebecca Foundation also had GH¢120,000 budgeted for it, while the Economic and Organized Crime Organization (EOCO) is expected to receive GH¢550,000.
But Dr. Kwame Baah Nuarko said the sponsorships are worth it, and the GNPC goes through strict processes before requests are approved.
“There is a very clear process at GNPC in determining what should be approved or not…The figures are huge because the activities involved are huge,” he said.
He explained that the Rebecca Foundation is to receive the funds which will be given to two women’s groups in the Mpohor District of the Western Region for the setting up of an oil palm processing factories, which falls in line with GNPC’s vision of economically empowering people.
Ghana: GNPC Must Be Investigated For Dissipating Our Oil Money-COPEC
The Chamber of Petroleum Consumers, a consumer advocacy group in the Republic of Ghana, is calling on the President of the West African nation, His Excellency Nana Akufo-Addo, to, as a matter of urgency, initiate investigations into the processes leading to what it described as wanton dissipation of the tax payers’ monies by the country’s national oil company, Ghana National Petroleum Corporation (GNPC).
The call comes in the wake of an internal memo which revealed how the corporation has approved over GHS 2.7m sponsorship package for some institutions including the 20th anniversary celebration of the Okyenhene and Rebecca Akufo-Addo Foundation, a foundation owned by Ghana’s First Lady.
The memo noted that the GNPC’s Brand, Communication and CSR Committee approved GHc120, 000 for the Rebecca Akufo-Addo Foundation, GHc550, 000 for the Economic and Organised Crime Office, US$30,000 for the Ghana Boxing Association, GHc50, 000 for the Ghana Journalists Association, GHc400, 000 for the Samba Festival Preparation and GHc1, 500,000 towards the 20th Anniversary of the Okyenhene for the environment and greening.
However, these donations have been met with criticisms from the Ghanaian public.
“This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over-emphasised and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs,” COPEC said in a statement signed by Duncan Amoah, Executive Secretary of COPEC and copied to energynewsafrica.com.
“The priorities of the GNPC should be, going forward, clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravene the posture of the state and Central Government within the economic context prevailing in Ghana,” the statement added.
Below is full statement:
Chamber of Petroleum Consumers, Ghana
Accra
GOVERNMENT MUST HALT AND INVESTIGATE THE BOARD AND MANAGEMENT OF GNPC ON UTILIZATION OF GENERATED OIL REVENUE.
The poor Ghanaian tax payer is once again confronted with another clear case of wanton dissipation of the scarce the nations resources by highly placed persons within the Ghana National Petroleum Corporation (GNPC) which sharply contrasts Government’s earlier reason for increasing fuel taxes as it insisted we needed revenue yet some in same breathe squandering the little available without any solid justification.
Chamber of Petroleum Consumers Ghana (COPEC-GH) has taken notice of an internal Memorandum dated 29th October 2019 from the Board Secretary under the Signature of one Matilda Ohene to the Chief Executive of the Ghana National Petroleum (GNPC) on the subject titled “Board Approval for payment of various sponsorship /Support Requests”.
The said memo indicates the granting of approvals to some supposed requests received with some stated amounts as indicated below:
2019 Damba Festival Preparation- Dagbon State- GHS400, 000.00
20th Anniversary of Okyenhene – GHS500,000.00 over three years totaling (GHS1,500,000.00) for the environment and greening.
II: GHS300,000.00 for organization of 20th Anniversary celebrations of Okyenhene
Ghana Journalists Association – GHS50,000.00
Ghana Boxing Association – US$30,000.00
Rebecca Foundation – GHS120,000.00
EOCO – GHS550,000.00
Our initial reaction was that of disbelief but the said memo has been confirmed by the manager for sustainability of the GNPC with a justification that these are quite normal application of the scarce resources been held in trust for Ghanaians by the corporation.
To this we call on the Government to immediately halt, and investigate the processes leading to wanton dissipation of these monies as contained in the memo, and to further take immediate action and sanctions against the Management and the Board of Directors of GNPC and to further take steps to consolidate all resources being held in trust by the corporation to forestall any further wanton dissipation of same as has been the case over the years with GNPC.
This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over emphasized and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs.
The priorities of GNPC should be going forward clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravenes the posture of the State and Central Government within the economic context prevailing in Ghana.
For the avoidance of doubt we also seek clarity on the following:
Does the Act and laws governing the operations of GNPC permits GNPC to on its own now finance and compromise other state investigate bodies such as EOCO who are expected to hold persons at the top of such corporations to account in the event of abuse of resources?
These state investigative Agencies such as EOCO who currently are expected to be investigating the board chairman of the very same GNPC and all other potential corrupt practices in such public corporations also enjoys government budgetary allocation and funding and as such could attract private support but another huge state funding by GNPC leaves a lot to be desired and confusion in the minds of right thinking society especially at the time EOCO is expected to investigating some highly placed officials of the said corporation.
Further, does such funding provision for Chieftaincy affairs in the country not constitute a pick and choose agenda which can lead to needless tensions and suspicions knowing very well how delicate the institution of chieftaincy is to ethnic and social matters as already, the chiefs and people of the Western Region of Ghana, where a larger chunk of our oil resources are extracted from are on record to have demanded a percentage share of the oil find but have till date not been given any, neither their roads fixed nor infrastructure improved by the oil money yet GNPC in an apparent show of some perceived biases is sponsoring other traditional areas in Northern and Eastern Regions of the Country by way of festivals and to also go green?
Will GNPC be in a position to grant all the traditional authorities same or similar funding upon request? if no, what justification will they provide for declining in the event all other traditional authorities now decide to seek their share of the oil cake?
Dispensing such amounts to individuals and private organizations will sure have a certain effect on the economy and central government funding as these monies could have been easily channeled to other very important needs such social amenities provision in deprived communities to ease the pressures on the central government.
The absence of funding to undertake these development projects often force the central government to now resort to imposing heavier taxes which has often lead to increases in fuel prices at the pumps in the petroleum industry.
We believe that the public funds in the care of GNPC should be prudently invested and managed in building a robust upstream petroleum sector such that GNPC can in the very near future hold and maintain some of our oil wells without any foreign oil company taking a larger chunk of the shares of our own resources. And to complement in defraying incessant debts in the energy sector and ultimately relieve ordinary Ghanaians off these huge tax burdens as prevailing today.
We lastly note with deep concerns, that, this rather headless financial decision by the Board of GNPC to among other things, pay funds to EOCO which already enjoys government budgetary allocation could potentially compromise the investigative responsibilities of the state institution and further open the floodgates for all other traditional authorities within the country to also seek their share of the oil money and must be halted immediately forthwith.
Signed.
Duncan Amoah
Executive Secretary
Source: www.energynewsafrica.com
The memo noted that the GNPC’s Brand, Communication and CSR Committee approved GHc120, 000 for the Rebecca Akufo-Addo Foundation, GHc550, 000 for the Economic and Organised Crime Office, US$30,000 for the Ghana Boxing Association, GHc50, 000 for the Ghana Journalists Association, GHc400, 000 for the Samba Festival Preparation and GHc1, 500,000 towards the 20th Anniversary of the Okyenhene for the environment and greening.
However, these donations have been met with criticisms from the Ghanaian public.
“This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over-emphasised and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs,” COPEC said in a statement signed by Duncan Amoah, Executive Secretary of COPEC and copied to energynewsafrica.com.
“The priorities of the GNPC should be, going forward, clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravene the posture of the state and Central Government within the economic context prevailing in Ghana,” the statement added.
Below is full statement:
Chamber of Petroleum Consumers, Ghana
Accra
GOVERNMENT MUST HALT AND INVESTIGATE THE BOARD AND MANAGEMENT OF GNPC ON UTILIZATION OF GENERATED OIL REVENUE.
The poor Ghanaian tax payer is once again confronted with another clear case of wanton dissipation of the scarce the nations resources by highly placed persons within the Ghana National Petroleum Corporation (GNPC) which sharply contrasts Government’s earlier reason for increasing fuel taxes as it insisted we needed revenue yet some in same breathe squandering the little available without any solid justification.
Chamber of Petroleum Consumers Ghana (COPEC-GH) has taken notice of an internal Memorandum dated 29th October 2019 from the Board Secretary under the Signature of one Matilda Ohene to the Chief Executive of the Ghana National Petroleum (GNPC) on the subject titled “Board Approval for payment of various sponsorship /Support Requests”.
The said memo indicates the granting of approvals to some supposed requests received with some stated amounts as indicated below:
2019 Damba Festival Preparation- Dagbon State- GHS400, 000.00
20th Anniversary of Okyenhene – GHS500,000.00 over three years totaling (GHS1,500,000.00) for the environment and greening.
II: GHS300,000.00 for organization of 20th Anniversary celebrations of Okyenhene
Ghana Journalists Association – GHS50,000.00
Ghana Boxing Association – US$30,000.00
Rebecca Foundation – GHS120,000.00
EOCO – GHS550,000.00
Our initial reaction was that of disbelief but the said memo has been confirmed by the manager for sustainability of the GNPC with a justification that these are quite normal application of the scarce resources been held in trust for Ghanaians by the corporation.
To this we call on the Government to immediately halt, and investigate the processes leading to wanton dissipation of these monies as contained in the memo, and to further take immediate action and sanctions against the Management and the Board of Directors of GNPC and to further take steps to consolidate all resources being held in trust by the corporation to forestall any further wanton dissipation of same as has been the case over the years with GNPC.
This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over emphasized and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs.
The priorities of GNPC should be going forward clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravenes the posture of the State and Central Government within the economic context prevailing in Ghana.
For the avoidance of doubt we also seek clarity on the following:
Does the Act and laws governing the operations of GNPC permits GNPC to on its own now finance and compromise other state investigate bodies such as EOCO who are expected to hold persons at the top of such corporations to account in the event of abuse of resources?
These state investigative Agencies such as EOCO who currently are expected to be investigating the board chairman of the very same GNPC and all other potential corrupt practices in such public corporations also enjoys government budgetary allocation and funding and as such could attract private support but another huge state funding by GNPC leaves a lot to be desired and confusion in the minds of right thinking society especially at the time EOCO is expected to investigating some highly placed officials of the said corporation.
Further, does such funding provision for Chieftaincy affairs in the country not constitute a pick and choose agenda which can lead to needless tensions and suspicions knowing very well how delicate the institution of chieftaincy is to ethnic and social matters as already, the chiefs and people of the Western Region of Ghana, where a larger chunk of our oil resources are extracted from are on record to have demanded a percentage share of the oil find but have till date not been given any, neither their roads fixed nor infrastructure improved by the oil money yet GNPC in an apparent show of some perceived biases is sponsoring other traditional areas in Northern and Eastern Regions of the Country by way of festivals and to also go green?
Will GNPC be in a position to grant all the traditional authorities same or similar funding upon request? if no, what justification will they provide for declining in the event all other traditional authorities now decide to seek their share of the oil cake?
Dispensing such amounts to individuals and private organizations will sure have a certain effect on the economy and central government funding as these monies could have been easily channeled to other very important needs such social amenities provision in deprived communities to ease the pressures on the central government.
The absence of funding to undertake these development projects often force the central government to now resort to imposing heavier taxes which has often lead to increases in fuel prices at the pumps in the petroleum industry.
We believe that the public funds in the care of GNPC should be prudently invested and managed in building a robust upstream petroleum sector such that GNPC can in the very near future hold and maintain some of our oil wells without any foreign oil company taking a larger chunk of the shares of our own resources. And to complement in defraying incessant debts in the energy sector and ultimately relieve ordinary Ghanaians off these huge tax burdens as prevailing today.
We lastly note with deep concerns, that, this rather headless financial decision by the Board of GNPC to among other things, pay funds to EOCO which already enjoys government budgetary allocation could potentially compromise the investigative responsibilities of the state institution and further open the floodgates for all other traditional authorities within the country to also seek their share of the oil money and must be halted immediately forthwith.
Signed.
Duncan Amoah
Executive Secretary
Source: www.energynewsafrica.com Ghana: Albert Quainoo Retires From GRIDCo After 16 Years Of Working In Energy Sector
The Public Relations Officer for Ghana’s power transmission company, Ghana Grid Company (GRIDCo), Albert Kwasi Quainoo, has retired after serving more than 15 years in the West African nation’s energy sector.
Mr Quainoo, who is a public relations practitioner, worked with the West African Gas Pipeline Co. between 2003 and 2008 as Communication Representative and moved to the Ghana Grid Company in 2008 until his retirement this month.
He holds Executive Masters in Leadership and Governance, Diploma in Mass Communication and Diploma in Journalism.
Ghana: ENI Workers Drag Management To Petroleum Commission Over Unfair Labour Practices
Ghanaians working with the Italian oil and gas giant, ENI, are lamenting over what could be described as modern day slavery treatment meted out on them by their management.
The workers, numbering over 300, could not understand why management of Eni, operators of Ghana’s Sankofa Gye Nyame Oil and gas fields, are behaving that way in their own land.
The workers, through their umbrella body, General Transport, Petroleum & Chemical Workers’ Union of Trades Union Congress Ghana (GTPCWU), have, thus, petitioned Ghana’s upstream regulator Petroleum Commission about the unfair labour practices by Eni Ghana Exploration and Production Limited.
In the petition, the Union complained bitterly that about how Eni’s Ghanaian employees have been denied of job descriptions and salary/job role structure for the past 10 years.
“We have engaged management of Eni Ghana at several scheduled salary negotiation meetings from 4th May, 2018, till date to agree and establish a fair level of salaries for the employees amicably and in good faith.”
The employer has unfortunately demonstrated bad faith and no commitment to this cause. The employer is introducing a modern day form of slavery by discriminating against the Ghanaian employees in terms of unfair remuneration,” a letter written by the Acting Deputy General Secretary of GTPCWU, Francis Sallah said.
For instance, it was shocking to note that the least cost of monthly rent of expatriates in Eni Ghana are more than the monthly gross salaries of Ghanaian 1st line managers.
The annual school fees of their colleagues expatriate’s child in Ghana are more than the annual gross salaries of senior engineers. “Our research team report done last year on Eni Ghana compensations and benefits reveals that about 300 Ghanaian employees (permanent & contractors) annual total labour costs is not up to 5% of the total labour costs of the expatriates colleagues who are just a little over 100. This is unacceptable and affront to the laws of Ghana.
“The Union, therefore, has no option than to call on the Petroleum Commission, the regulator, to be part of the next Standing Negotiating Committee. 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 benefit’s 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 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 Ghana, according to Mr Sallah.
“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.”
The Union understands the strategic importance of the Sankofa and Gye Nyame Integrated Oil and Gas project to the partners and the Republic of Ghana, and does not want to take unfavourable industrial actions that will affect the success of the project.
Therefore, the GTPCWU implores the Petroleum Commission to use its regulatory mandates provided under Section 3(a) of the Petroleum Commission Act, 2011 (Act 821) and Local Content and Local Participation Regulation, 2013 (Legislative Instrument 2204) to enforce Article 17 (2) of the 1992 Constitution of Ghana and Section 68 of the Labour Act, 2003 (Act 651) with the Ministry of Energy as the supervising ministry to ensure Ghanaian nationals and employees working in Eni receive fair and equal pay for equal work without distinction of any kind.
A meeting held on Monday 15 October, 2018, ended in a dead lock as both parties could not reach agreement because the employer unfortunately demonstrated bad faith and no commitment to this cause.
Management of ENI have indicated to energynewsafrica.com that they would be issuing a response to the statement of the GTPCWU.
Kosmos Hits Dry Well At Moneypenny In Gulf Of Mexico
Kosmos Energy has failed to find oil at its Moneypenny prospect in the U.S. Gulf of Mexico.
The company on Monday said the Moneypenny prospect, drilled in Mississippi Canyon Block 214 in late October 2019, had been unsuccessful.
“The well, which was targeting net resources of approximately 9 million barrels of oil equivalent, was designed as an inexpensive exploration tail of the Odd Job development well and cost around $3.5 million,” Kosmos said in its 3Q report.
Kosmos, which was recently four new deepwater blocks in the Gulf of Mexico, said that its U.S. Gulf of Mexico production averaged approximately 25,800 boepd net (82% oil) during the third quarter.
The production figures exceeded the high end of the company’s guidance range despite experiencing downtime from Hurricane Barry equivalent to approximately 1,500 boepd for the quarter.
“The strong third-quarter production was driven primarily by Odd Job, capitalizing upon spare capacity aboard Delta House [platform] , as well as initial production from Gladden Deep, the first successful well in the 2019 ILX program in the basin,” the company said.
ILX stands for infrastructure-led exploration which is aimed at areas where Kosmos has existing production and where there is sufficient midstream capacity to enable the development of new discoveries via subsea tieback faster.
During the third quarter, Kosmos Energy generated a net income of $16 million, compared to a $126 million loss in the third quarter of 2018.
Total net production in the third quarter of 2019 averaged approximately 68,800 barrels of oil equivalent per day.
Ghana: Tema Lube Oil Company Hands Over Dental Unit To Tema Manhean Polyclinic
Tema Lube Oil Company (TLOC), a lubricant manufacturing company in the Republic of Ghana, West Africa, has handed over a fully-furnished dental unit, which cost GH¢200,000, to the authorities of the Tema Manhean Polyclinic.
The gesture formed part of TLOC’s Corporate Social Responsibility.
The Manhean Policlinic, which was built in 1978 and serves a population of 110,000 in the Tema East sub-metropolis and its environs and with an average of annual OPD attendance of 16,300 between 2016 and 2018, is unable to provide dental services due to lack of structure and equipment.
As a result, all dental cases were referred to health care facilities elsewhere.
Delivering a brief address, on behalf of TLOC, Alhaji Abdul Rahman Alhassan Gomda, who is a Board member of TLOC noted that the Board of Directors of TLOC decided to go to the Tema Manhean Polyclinic because of the aforementioned challenges.
He said health is one of the thematic areas of the company’s CSR policy, hence, its decision to support the hospital.
Alhaji Gomda explained the work which the company did.
“We undertook some civil works and modification of two rooms, a waiting area and walkway of the polyclinic to get a fully-furnished and air conditioned doctor’s consulting room, treatment room, nurse’s office and an OPD. In the treatment room, a dental chair fitted with the requisite consumables and items have been provided. All of these have been authenticated by the Regional Clinical Engineering Unit of the Ministry of Health as good and fit for the purpose.”
He noted the company over the years has donated various items to communities, organizations and institutions in the country, especially those within its immediate environs, as part of its corporate social responsibility which are mainly in the area health, education and security.
“We have made several CSR in the past including an ambulance to the Tema Polyclinic with repair and insurance borne by the company for three years, Ventilator for the Tema General Hospital, surgical equipment for the ENT Department of Korle-Bu Teaching Hospital, another ambulance for Tema General Hospital, books, furniture, computers and water dispensing machines for the Tema Library, a fully furnished Police Post near Tema Timber Market for the Tema Regional police Command, among others,” he stated,
He said the company would be able to do more if there is greater patronage of its lubricants namely the engine oil, gear oils, and hydraulic oils for vehicles, machinery and equipment.
“The quality of our products meets international standards and the prices are very competitive. So we encourage you to patronize the lubricants which are produced by us and sold by our customers mostly at the various fuel filling station,” he said.
The Specialist in-charge of Tema Manhean Dr. J. H. K Donkor noted that the journey to the establishment of the dental unit began in 12 November 2018 following management’s appeal through the media for support to the health facility.
He expressed the gratitude of the management of the facility to TLOC for ensuring that their dream of getting a dental unit became a reality.
Sources: www.energynewsafrica.com
As a result, all dental cases were referred to health care facilities elsewhere.
Delivering a brief address, on behalf of TLOC, Alhaji Abdul Rahman Alhassan Gomda, who is a Board member of TLOC noted that the Board of Directors of TLOC decided to go to the Tema Manhean Polyclinic because of the aforementioned challenges.
He said health is one of the thematic areas of the company’s CSR policy, hence, its decision to support the hospital.
Alhaji Gomda explained the work which the company did.
“We undertook some civil works and modification of two rooms, a waiting area and walkway of the polyclinic to get a fully-furnished and air conditioned doctor’s consulting room, treatment room, nurse’s office and an OPD. In the treatment room, a dental chair fitted with the requisite consumables and items have been provided. All of these have been authenticated by the Regional Clinical Engineering Unit of the Ministry of Health as good and fit for the purpose.”
He noted the company over the years has donated various items to communities, organizations and institutions in the country, especially those within its immediate environs, as part of its corporate social responsibility which are mainly in the area health, education and security.
“We have made several CSR in the past including an ambulance to the Tema Polyclinic with repair and insurance borne by the company for three years, Ventilator for the Tema General Hospital, surgical equipment for the ENT Department of Korle-Bu Teaching Hospital, another ambulance for Tema General Hospital, books, furniture, computers and water dispensing machines for the Tema Library, a fully furnished Police Post near Tema Timber Market for the Tema Regional police Command, among others,” he stated,
He said the company would be able to do more if there is greater patronage of its lubricants namely the engine oil, gear oils, and hydraulic oils for vehicles, machinery and equipment.
“The quality of our products meets international standards and the prices are very competitive. So we encourage you to patronize the lubricants which are produced by us and sold by our customers mostly at the various fuel filling station,” he said.
The Specialist in-charge of Tema Manhean Dr. J. H. K Donkor noted that the journey to the establishment of the dental unit began in 12 November 2018 following management’s appeal through the media for support to the health facility.
He expressed the gratitude of the management of the facility to TLOC for ensuring that their dream of getting a dental unit became a reality.
Sources: www.energynewsafrica.com
Nigeria: Corrupt Oil Minister’s Confiscated Jewelry To Be Sold For $40 Million
Nigeria expects to retain international auction houses to have US$40 million worth of jewelry, which was seized from a former oil minister accused of corruption, sold.
The Economic and Financial Crime Commission (EFCC) of Nigeria has secured an asset forfeiture order from a top federal court in the country to sell the jewelry seized from Nigeria’s oil minister in the period 2011-2015, Diezani Alison-Madueke, The East African reports.
Earlier this year, a Nigerian court ordered the seizure of $40 million luxury items, mainly jewelry and a customized gold iPhone belonging to Alison-Madueke.
In addition to the customized iPhone, the items seized included—but was not limited to—419 bangles, 315 rings, and 189 wristwatches, according to Sahara Reporters.
Auction houses will also be asked to sell luxury homes in Nigeria, the U.S. and the UK, according to The East African.
Alison-Madueke served as petroleum minister under then Nigerian president Goodluck Jonathan, until he was defeated in the elections by current president Muhammadu Buhari in 2015.
Alison-Madueke was also the first female president of OPEC.
She was arrested in 2015 in London as part of a two-year-long investigation by the UK National Crime Agency (NCA) into global corruption, bribery, and money laundering. Alison-Madueke was released on bail after being questioned. She has been on bail ever since, according to AFP, and is believed to be in hiding in London, because Nigeria wants her extradition to face trial on fraud and corruption charges in her home country.
Police and investigators suspect that Alison-Madueke was involved in siphoning off billions of U.S. dollars from Nigerian oil deals and state accounts when she was overseeing Nigeria’s oil industry, for personal benefits, including for buying luxury homes in London and in Nigeria’s capital Abuja.
“The ex-minister will eventually be repatriated to face the charges,” EFCC’s acting chairman Ibrahim Magu said on Thursday.
US: Assistant Secretary Fannon Begins Seven –Day Visit To Sub-Saharan Africa
The Assistant Secretary of State for the Bureau of Energy Resources (ENR) in the United States of America (USA) Francis R. Fannon has begun a seven day visit to Sub-Saharan Africa including South Africa, Namibia, and Botswana.
The purpose of his trip is to reaffirm sustained partnerships in energy security and energy resources.
Mr. Fannon will engage with government, business, and civil society to discuss equitable regulatory environments in hydrocarbon production and sustainable energy minerals development.
This trip further integrates the whole-of-government approach to support African energy security and to increase U.S.-Africa trade and investment, along with Prosper Africa and Power Africa.
Assistant Secretary Fannon is visiting the region for the first time as the Department of State’s highest-ranking energy diplomat.
This trip serves as a groundbreaking opportunity to advance new potential partnerships forged at the United Nations General Assembly (UNGA) in New York in September, where the United States launched the Energy Resources Governance Initiative (ERGI).
ERGI is an international initiative to develop best practices for sustainable mineral development underpinning clean energy technology.
Mr. Fannon is expected to be in Cape Town, South Africa, where he will deliver a keynote address at the Africa Oil Week conference opened on Monday, November 4, 2019.
From November 6-7, Assistant Secretary Fannon will be in Windhoek, Namibia, to support government-to-government relationships on energy and mines. He will conclude his Sub-Saharan Africa trip in Gaborone, Botswana, November 7-9, where he will reaffirm Botswana’s founding partnership on ERGI.
Petrobras Extends West Tellus Drillship Contract
Brazilian oil company Petrobras has extended a contract with Seadrill for the use of a drillship.
Seadrill said Monday that the contract was for the West Tellus drillship. Seadrill’s West Tellus is a 6th generation DP3 drillship rated for 3,600m water depth. It was built in 2013 by Samsung Shipyard in South Korea.
According to the offshore drilling contractor, the contract value is expected to be valued at approximately $170 million, inclusive of managed pressure drilling and ancillary services. This amount sets the dayrate at around $230,000, which is lower compared to the rig’s previous dayrate of $317,000 (as disclosed in Seadrill’s fleet status report)
The contract is expected to starts in 4Q 2019, in direct continuation of its current contract with Petrobras.
Brazil: Delta Tankers Denies Culpability Of Greek Ship In Oil Slick Saga
The manager of an oil tanker being probed by Brazilian authorities in connection with an oil spill off the country’s coast has found “no proof” of the vessel conducting activities that may have led to leaks on a journey between Venezuela and Malaysia.
In a statement on Saturday, Delta Tankers Ltd, who manages the Greek-flagged Bouboulina ship, said a full search of the material from the cameras and sensors that all their vessels carry revealed no evidence of the tanker “having stopped, conducted any kind of ship-to-ship operation, leaked, slowed down or veered off course, on its passage from Venezuela to Melaka, Malaysia.”
Delta Tankers reiterated the vessel sailed from Venezuela in laden condition on July 19, heading directly, with no stops at other ports, for Melaka, Malaysia, where the tanker discharged its entire cargo without any shortage.
Brazilian authorities on Friday claimed that a Greek-flagged ship carrying Venezuelan crude was the source of the crude oil tarring Brazil’s coastline over the past two months.
The Brazilians said the tanker appears to have spilled the crude about 700 km (420 miles) off Brazil’s coast around July 28-29, after loading the oil in Venezuela.
The prosecutors conducting the probe said they found strong evidence that the company, the captain and the vessel’s crew failed to communicate to authorities about the oil spill and or release of the crude oil in the Atlantic Ocean.
The contradicting accounts, along with the execution of police search warrants in Rio de Janeiro, brought a dramatic twist into the causes of the mysterious oil spill that has stained tropical beaches along 2,500 km of Brazil’s coast.
Brazil’s solicitor general said the country would seek damages in the case, which has hurt tourism and fishing communities in Brazil’s poorer northeast region.
On Saturday, Delta said cameras and sensors that all its vessels carry as part of their safety and environmental policies, monitor activity on board and alongside vessels, as well as course alternations, stoppages, and speed data.
The company said the material obtained from an analysis of its security equipment will be shared with Brazilian authorities when they contact the company regarding the investigation, adding that no such contact has been made.
Ghana: Energy Expert Urges Government To Take Steps To Increase Ghana’s Stake In Oil Blocks
A former Chief Executive Officer of Ghana’s national oil company, Ghana National Petroleum Corporation (GNPC) Mr. Alex Mould, has called for a broad stakeholder consensus to give authority to the national oil company, to be a catalyst for deepening local content in the upstream and midstream oil and gas sectors.
Catalysing local content development has been one of the key pillars of GNPC’s strategy.
But as it is now, GNPC is only a non-operating partner in all the oil and gas offshore in Ghana, Mr. Mould said.
According to industry experts, participation in the West African nation’s oil and gas requires large and long-term capital and technical knowledge. None of these is easily available to Ghanaian entrepreneurs.
Besides its rich technical expertise, GNPC has the balance sheet to raise the needed capital for long term exploration and development.
“As the NOC, Government and the public should support GNPC to take increasing stake in oil blocks. This must be done strategically. GNPC must not take higher stake just for the sake of it,” Myjoyonline.com reported Mr. Mould as saying in a speech at the Oil and Gas Conference held at the University of East London in the United Kingdom.
The energy and finance expert added that “The Corporation has a unique reservoir of knowledge on all of Ghana’s basins; more than any other entity. What the Corporation needs is clear support to enable it grow and develop in the manner some of the most successful ones did it, like Petronas of Malaysia.”
Currently, GNPC is the anchor, but a non-operating partner in all the oil and gas fields in Ghana. Not being the field operator limits GNPC’s ability to drive the local participation agenda.
Mr. Mould indicated “more important is how GNPC uses its local dominance in the industry. GNPC’s strategy must be to pave the way for increased local private participation. This could be achieved through listing of subsidiaries on the Ghana stock exchange so that ordinary Ghanaians can buy the shares”.
In the Voltaian basin where GNPC is the sole operator, the Corporation must build an eco-system of local companies to support its activities from these early stages, and grow with them. This will require a number of things: developing a pool of potential local partners, being fair and transparent in the selection of local contractors for any specific contracts, and nurturing them for the long haul.
Speaking on the theme: “Ghana’s Oil and Gas Resources For Socio-Economic Development” Mr Mould noted that, GNPC has been playing an enabling role in the energy sector as well as the wider economy.
“Like any state enterprise, it has a dual mandate: to pursue commercial as well as developmental objectives. During my time as CEO of GNPC, we provided the financial guarantees that enabled the deployment of the Karpowership barge from Turkey to provide electricity. The rationale for GNPC’s support in this transaction was two-fold: the power barge was necessary to mitigate an urgent power generation deficit in the country. But more importantly, the barge was meant to convert from using Heavy Fuel Oil (HFO) to natural gas. This was meant to avert incurring take or pay liabilities on the Sankofa gas.
“In this transaction also, we did something quite smart: we took up the role to supply the HFO to the barge, at a margin. We also negotiated to use mainly existing placements with banks as the guarantee. GNPC was, therefore, earning interest income on the guarantee.
“GNPC similarly intervened in other areas, including pre-financing the construction of access roads to enable the evacuation of Liquefied Petroleum Gas (LPG). Not doing this would have created a bottleneck in gas processing and gas offtake.”
Also, GNPC can play a significant role in attracting and adapting the right technology to further indigenise the development of the oil and gas sector in Ghana. The sector is technology-driven. Through its partnerships, GNPC must be conscious to partner with companies that are willing to share their technology, including proprietary ones. Then GNPC must invest in its people and processes in order to be able to adapt those technologies to suit the Ghanaian environment.
In addition to that, GNPC must invest in research and technology to solve the peculiar problems of the oil and gas sector, within the Ghanaian context. A good example is Petrobras of Brazil, which invested heavily in understanding its oil-rich offshore reserves trapped below a 2,000m-thick layer of salt, which itself is located below 2,000m-thick post-salt sediments. Now, Petrobras has become a world leader in pre-salt and deepwater exploration and development.