Vaalco Energy Given Delisting Warning By NYSE
U.S-based oil and gas company, Vaalco Energy has received a continued listing warning from the New York Stock Exchange (NYSE), giving Vaalco until the end of the year to regain compliance.
According to Vaalco, the company was notified by the NYSE that the price of the company’s common stock had fallen below the NYSE’s continued listing standards.
The NYSE requires that the average closing price of a listed company’s common stock should not be less than $1 per share for a period of over 30 consecutive trading days.
Under the NYSE rules, Vaalco can regain compliance if on the last trading day in any calendar month the common stock has a closing price of at least $1 per share and an average closing price of at least $1 per share over the 30 consecutive trading-day period ending on the last trading day of such month.
As required by the NYSE, the company plans to notify the NYSE of its intent to cure the deficiency and restore its compliance with the NYSE continued listing standards.
The company said it was committed to working with the NYSE to regain compliance and maintain the listing of its common stock.
The company has until 1 January 2021 to regain compliance with the NYSE’s continued listing standards under recently adopted rules by the NYSE that permit listed companies additional time to regain compliance due to the current economic environment.
Another U.S. oil and gas company has also recently received the NYSE listing warning.
In addition, the NYSE listing of several offshore drilling contractors is also at risk, including Noble Corporation, Seadrill, Pacific Drilling, and Valaris.
Source:www.energynewsafrica.com
ADNOC, ADPower Launch Joint Tender For Middle East Sub-Sea Power Transmission Network
The Abu Dhabi National Oil Company, ADNOC, and Abu Dhabi Power Corporation, ADPower, have announced the issuance of a joint tender for a first-of-its-kind project in the Middle East & North Africa (MENA) region.
The joint tender sets out to develop and operate the region’s first high-voltage, direct current, HVDC, sub-sea transmission system, that will connect ADNOC’s offshore production facilities to ADPower’s onshore electricity grid using state-of-the-art technology, ADNOC said in a statement.
This innovative project, initiated by ADNOC in line with its continued objective to drive efficiencies and bolster resilience, brings together two vital UAE entities.
Together, ADNOC and ADPower will deliver valuable long-term synergies in national infrastructure and jointly attract international partners to Abu Dhabi. In addition, this milestone project demonstrates the two entities’ commitment to continuously drive responsible and sustained investment and value creation for Abu Dhabi and the UAE, and support the ongoing development of the national economy in this complex and challenging period.
The project is expected to reduce the carbon footprint of ADNOC’s offshore facilities by up to 30 percent through ADPower’s efficient onshore power production. It also offers power supply cost optimisation potential for ADNOC’s offshore facilities and will drive operational efficiency and system reliability by replacing the existing offshore localised gas turbine generators with diverse, more efficient and environmentally sustainable sources of energy, including renewable and nuclear power.
The project also offers potential for ADNOC to more effectively utilise its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing ADNOC to generate additional revenue for ADNOC and Abu Dhabi.
Commenting on the tender issuance, Yaser Saeed Al Mazrouei, ADNOC Upstream Executive Director, said, “We are very pleased to partner with ADPower on this innovative project that is a logical result of ADNOC’s transformation journey, directly supporting our value creation and sustainability strategy as well as our objective to remain one of the world’s lowest-cost oil producers and lowest-carbon emitters in our industry.
“This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources. It will lower ADNOC and the UAE’s carbon footprint, whilst at the same time enabling ADNOC to utilise the natural gas currently used to power our offshore facilities for higher-value purposes. Equally, the project will deliver operational expenditure reductions in the long run as well as lasting strategic benefits as we continue to drive sustainable value and responsible investment opportunities that stimulate economic growth for Abu Dhabi and the UAE in the current market environment.”
Omar Alhashmi, Executive Director Asset Management at ADPower, said, “As we continue to accelerate the transformation of Abu Dhabi’s water and electricity sector, ADPower is pleased to partner with ADNOC on this important, innovative, large-scale effort. Working together, we are reinforcing Abu Dhabi’s global position as we implement this first-of-a-kind mega project that will not only create synergy between two critical industries, but drive the Emirate’s economic growth through long-term value creation.”
Requests for proposal have been sent to international companies that have the requisite experience to partner with ADNOC and ADPower on this important infrastructure project for Abu Dhabi. The transmission system will comprise two independent sub-sea HVDC transmission links and converter stations that will connect to ADPower’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company, TRANSCO – and provide a total installed capacity of 3,200 megawatts. Commercial operation is expected in 2025.
This significant capital project will be funded through a special purpose vehicle jointly owned by ADNOC (30 percent stake), ADPower (30 percent stake) and the selected developers and investors (40 percent stake). The project is to be executed on a build, own, operate and transfer, BOOT, basis. The successful bidders, alongside ADNOC and ADPower, will develop and operate the transmission system, with the full project being returned to ADNOC at the end of the transmission agreement.
Drilling Through A Broken Oil Market, Repercussions For Our Local Market (Article)
By: Raymond Nuworkpo
International Brent Crude plummeted momentarily on Tuesday, 21st April, the lowest since 21yrs ago but recovers a day after to hover around $20 a barrel. As the novel Coronavirus lockdown grind down many facets of our lives i.e. a grounded airline industry, a drowning hospitality sector, a quandary health industry, a crumpled supply chain industry, etc, the energy industry is not an exemption as the lockdown spurt through the world’s largest economies, leaving the market swamped by cratering demand and unmanageable oversupply.
Crude oil price plunged by 54.18% on average terms, starting the year on a high of $66.74 to close the first quarter of 2020 by $30.58 a barrel. According to the IEA, consumption is expected to crush by 29 million barrels per day. The ballooning supply glut is further collapsing oil futures and its market structure as the world grapple for an evaporating storage capacity.
Sunday, 12th of April, 2020 saw a virtual gathering of the world’s biggest oil producers, in an unprecedented and enthusiastic bid to salvage the global oil market by agreeing a historic production adjustments. Historic because of the volume of the cut and also the duration, as the production cuts are expected to last for two years.
However, the ambitious deal intended to rescue the broken oil market that was claimed to be championed by U.S President Donald Trump has been brushed off by the unprecedented and thunderous plummeting of the U.S Shale’s may futures falling below zero on Monday, 20th April, due to low liquidity and limited available storage capacity. U.S shale is traded in America Benchmark – West Texas Intermediate (WTI) while we in Ghana concern ourselves with International Benchmark – Brent Crude.
According to IEA, partial or total lockdowns are in force in 187 countries and territories, and although they are different in scope, activity in the transportation sector has fallen dramatically almost everywhere. IEA expect that global oil demand in 2020 will fall by 9.3 million per day (mb/d) versus, erasing a decade of growth. It is worthy to note that an estimated 60% of global oil demand is used in the transport sector and with about 3 billion people in lockdown; the demand for the black gold is terribly low.
The price war recently witnessed between Saudi Arabia and Russia, has also exacerbated the current crisis of ballooning and unmanageable oversupply. Russia resistance to deeper oil production cuts proposal by OPEC+ led Saudi Arabia during OPEC 178TH extraordinary meeting has led flooding of the market with crude oil with a collapsing demand and an overwhelmed storage capacity.
As different conspiracy theorists advance various reasons for the price war, i.e. an indirect attempt to collapse U.S Shale Industry, to drive prices low to kill a thriving Renewable industry, retaliation by Russia because of Trump’s sanctions on Nordstream, Rosneft Trading, for Saudis to establish themselves as a market leader, etc, theorists fell short to project a broken energy market that may never recover it demand prospects ever again.
While U.S Shale companies file for bankruptcy and other oil majors such as Royal Dutch Shell Plc, Italy’s Eni SpA, Norway’s Equinor ASA and French major Total SA are taking prompt steps to augment their financial strength and resilience by reducing spending, investment, freezing recruitment and terminating their share buyback strategies.
African countries are facing triple blow of loss of revenue, loss of investment and loss of market share due to collapsing oil prices as result of cratering demand, supply glut and dwindling storage capacity. The plummeting oil prices is not only making it extremely difficult for oil producing African countries to raise the needed petroleum receipts to help combat the novel Coronavirus but driving away investment by big oil majors in oil prospecting and development as well as ceding of market shares to other foreign countries with cheaper crude prices due to relatively low production cost.
Ghana is not immune to the devastating impact of the destruction of crude oil consumption as we have seen our projected petroleum receipts for 2020 shredded into pieces. With our benchmark pegged above $62 a barrel at the beginning of the year, prices of International Benchmark – Brent Crude is currently languishing around $20 per barrel, a whopping 70% reduction in our benchmark.
As government mourns drastic reduction in its petroleum revenue, we have to wipe our tears as the institution mandated to hold our strategic reserve is unable to acquire and store crude products for the future benefits of Ghanaians.
The Bulk Oil Storage and Transportation Company Limited – BOST, due to poor management, improper planning, lack of efficiency, illogical sequencing of policies, etc in recent times are unable to fully take advantage of current happenings on the global oil market unlike other countries like China, America etc that are buying cheap products to fill their strategic reserves.
Restrictions in movement has also taken devastating toll on Oil Marketing Companies (OMCs) as their sale has taken thunderous hit of 70% from an average sale volume of 5000 before lockdown to an average sale volume of 1500. Some of the Oil Market Companies are virtually wallowing in debts as they have to borrow to lift products as well as pay their mandatory tax to Ghana Revenue Authority on any lift.
On the local market, there has been a 15% average reduction for the consumers in the first quarter of 2020. While this is modest relief to the, trotro drivers, commuters, market women, farmers etc, it is worthy to note that a stable market is more desirable to a volatile market. Stable oil market ensures thriving companies on supply chain of the local oil market, providing essential services to consumers, providing employments, contributing to government’s revenue basket.
As the world continue to battle Covid-19 and witness historic turbulence in the crude oil market, it is very important for oil producing countries (OPEC & NON – OPEC Members) to consider a more deeper cut sooner than later while world strategic reserves are made available to absorb some of the excess barrels on the market. Locally, government must begin to have a conversation around providing relief packages for OMCs in terms of extending the duration of payment of tax by OMCs after they lift crude products.
We are indeed in extraordinary times, kindly stay at home to save lives and save your community. If it becomes necessary to step out, please wear your nose masks, observe all the social distancing and health protocols. I leave you with one of my favourite verses in the bible – “Have I not commanded you? Be strong & courageous. Do not be afraid; do not be discouraged, for the Lord your God will be with you wherever you go.” Joshua 1:9.
The writer is a Research & Policy Analyst with Institute for Energy Security
Ghana: Minister Urges Electricity Users To Cooperate With ECG, NEDCo
Ghana’s Minister for Energy, John-Peter Amewu has urged consumers of electricity in the West African nation to cooperate with the power distribution companies- Electricity Company of Ghana and Northern Electricity Distribution Company-as they are working to replace some obsolete equipment in all their operational areas.
The replacement of the obsolete equipment has become necessary because they cause power interruptions.
The exercise is likely to result in pockets of outages in some areas.
ECG provides electricity to the southern parts of the West African nation while NEDCo serves the northern part of the country.
A statement signed by the Managing Director of ECG, Kwame Agyeman-Budu, said: “In undertaking these system improvement works, some will require local outages to create a safe working environment.
“The company will, therefore, ensure that affected customers are informed accordingly. We entreat our customers and the general public to report all faults to our customer service center on 0302-611611 or via the Company’s official social media handles (@ecgghofficial),” the statement concluded.
Speaking to the media in Tema after commissioning a 330 kV/161 kV interconnection auto transformer funded by GRIDCo and Sunon Asogli Power (Ghana) Limited, Mr Amewu said the exercise is in the interest of the country and urged all consumers to cooperate.
According to him, the completion of the exercise will end the interruptions in power supply across the country.
Source: www.energynewsafrica.com
Ghana: TOR Workers Give President Marking Scheme For New MD
Some concerned workers of Ghana’s only refinery, Tema Oil Refinery (TOR), have given President Nana Akufo-Addo some guidelines to consider for the appointment of a new Managing Director of the company.
The workers want the President to consider someone who is an entrepreneur/innovator, business oriented, have strong financial background, have international and local links, ability to listen and respectful, moderately young and knowledgeable in the oil and gas sector and someone who believe in ‘Ghana Beyond Aid’ agenda.
In their view, a person with these aptitudes would help to position the national assets.
The concerned workers’ call follows the resignation of Mr Asante K. Berko, who is being dragged to the U.S District Court Eastern District of New York for allegedly paying bribes to Ghanaian officials to secure power project for a client when he was an executive staff of Goldman Sachs.
Sources within the refinery indicates that Mr Ato Morrison, General Manager in-charge of Technical Services has been asked to act until a substantive MD is appointed.
Source: www.energynewsafrica.com
COVID-19 Increases Risk For UK’s Energy Sector While India Remains Stable
GlobalData has released two new reports exploring the impact of COVID-19 on the energy sector in the UK and in India.
In India, the research company expects COVID-19 to have a minimum impact on the country’s renewable energy industry.
The disruption on logistics and supply chain of the Coronavirus is expected to remain low. Recently, India’s Ministry of New and Renewable Energy announced that clean energy projects have not been affected by the falling electricity demand following a nationwide lockdown.
“In case of solar PV, India has the option of turning to domestic manufacturers for PV modules in a scenario where the supply from foreign manufacturers becomes a hurdle. This would boost the morale of the domestic manufacturers and minimize the damage caused to the sector.
“Although countries like Australia expect to have a significant drop in the number of fresh monthly installation, India does not expect any such major impacts to come its way after the lockdown period comes to an end,” concludes Das.
India’s solar sector supporting COVID-19 response
According to GlobalData, India’s silicon PV manufacturer Central Electronics plans to put together its technical expertise to ramp-up the production of ICU ventilators in response to the COVID-19 pandemic.
Somik Das, Senior Power Analyst at GlobalData, comments: “Ventilator shortage has been an issue that the government has been closely monitoring, and several steps are being taken to ensure hospitals are well equipped and face no shortage of ventilators that are essential in managing the critical COVID-19 patients.”
The data shows there are only 8,432 ventilators in the public sector in India. The scarcity is mostly present in the major pandemic hit areas. For instance, Mumbai has 800 to 1,000 ventilators, while states such as Tamil Nadu and Madhya Pradesh have 1,500 and 1,800, respectively.
Hence, it is clear that other manufacturing entities, from other sectors, need to join hands and repurpose their pipeline schedules to help the nation with the supply of this medical equipment.
Das concludes: “Central Electronics joins a growing list of solar companies, like Tesla Solar, that is now venturing into the development of ventilators to help fight back against the COVID-19 pandemic.”
UK energy market uncertain
In the UK, however, the research firm highlights how changes in energy demand patterns are encouraging uncertainty in the UK’s energy sector as residential demand increases whilst commercial and industrial sectors reduce slightly.
The commercial and industrial sectors are only expected to reduce their demand heavily in the event that employees continue to work remotely for another two months, according to National Grid Electricity System Operator.
The increased consumption in the residential sector would not be able to offset the reduction in the consumption in industrial and commercial sectors. This would eventually lead to a drop in electricity prices.
Somik Das, Senior Power Analyst at GlobalData, comments: “With schools, hospitals and offices in lockdown, the UK’s dependable power grid should have minimal challenges to cater to the residential sector where the demand is expected to spike.
“Renewable energy developers pondering over the COVID-19 economic uncertainty will resort to short-term fixed power purchase agreements (PPAs) and such PPAs will ensure price certainty and protection.
“As long as the UK avoids reductions in basic fuel supply, and staff at power stations do not collectively fall ill, there is little to worry about. However, if maintenance regimes are not met at individual plants, there is a risk some may have to be shut down. As the nation lives through the pandemic, it is stringent on not letting the focus shift from boosting renewables.”
Source:www.energynewsafrica.com
Christine Roche On Completing The Acquisition Of 3D Seismic On Angola’s Kwanza Shelf (Interview)
| Following a recent announcement from PGS that they had completed the acquisition of 3D seismic on Angola’s Kwanza shelf, we spoke with Christine Roche, New Ventures Manager (and regular AOW speaker!). Christine has worked with PGS for 6 years building wide-ranging experience in New Ventures and Basin Studies. She has significant exposure to large 2D and 3D MultiClient projects used for frontier exploration and in mature producing basins with a special focus on Congo, Angola and Gabon. She works on identifying and developing new opportunities and projects within the New Ventures team. She uses combination of her geoscience background and business development and client relationship experience to build the PGS data library. |
ExxonMobil Begins Sanitizer Production In Louisiana To Support Combat Against COVID-19
U.S. oil supermajor ExxonMobil says it had reconfigured its chemical plant at Baton Rouge, Louisiana, into a facility to make medical-grade sanitizer which will be donated to COVID-19 response efforts in Louisiana, New Jersey, New Mexico, New York, Pennsylvania, and Texas.
Exxon has modified the manufacturing equipment at its chemical plant in the Baton Rouge area to produce, blend, package, and distribute sanitizer.
The company will be distributing the initial production of 160,000 gallons of medical grade sanitizer – enough to fill nearly 5 million 4-ounce bottles – to medical providers and first responders.
Exxon has boosted its monthly production of the key ingredient in sanitizer- isopropyl alcohol—by around 3,000 tons at its chemical manufacturing facility in Baton Rouge. To produce, package and distribute hand sanitizer, the company has bought additional ingredients and modified equipment in Baton Rouge and at a lubricants plant in nearby Port Allen, Louisiana.
Earlier this month, Exxon said that it had boosted production of critical raw materials for masks, gowns, and hand sanitizer used by medical professionals and first responders.
While it increases production of sanitizer, Exxon is axing capital expenditure for this year by $10 billion in response to the oil demand and oil price collapse.
The most significant reductions will take place in the Permian Basin. Exxon’s capital investments for 2020 are now expected to be 30 percent lower, at around $23 billion, down from the previously announced capex of some $33 billion.
As the world now needs more sanitizer than oil, international oil majors are taking part in the fight against the pandemic with donations and with increased production of chemical substances and raw materials for critical components of personal protective equipment (PPE).
Royal Dutch Shell, Total, BP, Exxon, Chevron, and Eni are helping with donations, research, and production of PPE.
Source: www.energynewsafrica.com
Ghana: Energy Minister Commissions $5.3million 330kV/161 kV Auto Transformer Project At Kpone
Ghana’s Minister for Energy, John-Peter Amewu has commissioned a $ 5.3 million 330kV/161kV interconnection auto transformer at Sunon Asogli Power (Ghana) Limited at Kpone, near Tema, in the Greater Accra Region.
The project was funded by Ghana Grid Company (GRIDCo) and Sunon Asogli Power (Ghana) Limited.
GRIDCo contributed $3.3 million while Sunon Asogli Power invested close to US$2 million to cater for the remaining cost of the project.
The project involves installation of a 200MVA auto transformer to facilitate evacuation of about 120MVA additional generation capacity from the Sunon Asogli power plant into the grid.
The new equipment will provide flexibility in system operation by enabling power transfer between the 161kV and 330kV networks, thereby, ensuring stable and reliable transmission of power.
The project will further make about 1500GWh of electricity available per year to the Ghanaian national grid.
Delivering a speech to commission the project, Energy Minister John-Peter Amewu noted that the project has been borne out of a necessity.
According to him, the West African nation has gotten to a stage where temporary power outages cannot be tolerated.
This, he said, places huge responsibility on managers of the sector to ensure that the lights are kept on at all times.
He said the project is one of the measures that has been put in place to ensure reliable and continuous power supply.
The Chief Executive Officer of Ghana Grid Company, Ing. Jonathan Amoako-Baah said:“Our commitment to maintaining a stable electricity grid has received a further boost with the completion of this project. We applaud the collaborative effort of Sunon Asogli in making this a reality. This is, once again, a testament to how a collective resolve by both our Senior Management, staff and key stakeholders can elevate our operations and transform Ghana’s power sector.”
On his part, Chairman of Sunon Asogli Power, Yang Qun said: “We are excited to be part of this project, which will ultimately support measures by the Ghana government to ensure sustainable and reliable power transmission in the country and across to neighbouring countries.”
Source: www.energynewsafrica.com
The new equipment will provide flexibility in system operation by enabling power transfer between the 161kV and 330kV networks, thereby, ensuring stable and reliable transmission of power.
The project will further make about 1500GWh of electricity available per year to the Ghanaian national grid.
Delivering a speech to commission the project, Energy Minister John-Peter Amewu noted that the project has been borne out of a necessity.
According to him, the West African nation has gotten to a stage where temporary power outages cannot be tolerated.
This, he said, places huge responsibility on managers of the sector to ensure that the lights are kept on at all times.
He said the project is one of the measures that has been put in place to ensure reliable and continuous power supply.
The Chief Executive Officer of Ghana Grid Company, Ing. Jonathan Amoako-Baah said:“Our commitment to maintaining a stable electricity grid has received a further boost with the completion of this project. We applaud the collaborative effort of Sunon Asogli in making this a reality. This is, once again, a testament to how a collective resolve by both our Senior Management, staff and key stakeholders can elevate our operations and transform Ghana’s power sector.”
On his part, Chairman of Sunon Asogli Power, Yang Qun said: “We are excited to be part of this project, which will ultimately support measures by the Ghana government to ensure sustainable and reliable power transmission in the country and across to neighbouring countries.”
Source: www.energynewsafrica.com South Africa: Sasol Slashes Management Salaries In Bid To Protect Balance Sheet
South Africa-based oil and gas firm, Sasol has announced a range of salary cuts across its management level as the company navigates the impact of Covid-19, which has seen its share price tumble to record lows.
The company will cut the salaries of group executive committee and senior leadership members by 20%, and of middle and junior managers by between 10% and 15%.
“Salary sacrifices are planned for 8 months, however the duration of the temporary measures will be reassessed against the progress we make towards our savings targets,” the company said in an update to shareholders on Thursday. No salary increases will be received in 2020.
“These measures are necessary to help protect the company’s balance sheet and liquidity until at least the end of financial year 2021.”
The pay cuts include the group’s CEO, who will donate a 33% of his pay to Solidarity Fund for three months. This will be followed by a further 20% pay cut for the following five months.
The petrochemicals giant has been heavily impacted by the global economic meltdown caused by Covid 19, which has slowed demand for oil and caused its share price to plunge.
The company now expects a loss of up to $100 million from its Lake Charles Chemical Project for the 2020 financial year due to weak oil prices.
The project, located in Louisiana in the US, has been a major source of financial challenges for the company, including rising development costs which have reached $13 billion, almost double initial budgeted projections.
“While we are making good progress on our target, the low oil price and impacts of COVID-19, and in particular the national lockdown in South Africa, has led to a steep decline in fuels demand,” Sasol President and Chief Executive Officer Fleetwood Grobler said.
“Given our assessment of the market and current developments, we are implementing further measures to increase cash conservation during this period,” he added.
Source:www.energynewsafrica.com
Ghana: Director Of Sunon Asogli Power Donates GHC 50,000 To Support Fight Against CSM
Founder and Director of Sunon Asogli Power Ghana Limited, an independent power producer in the Republic of Ghana, Togbe Afede XIV has donated a cash amount of GHC 50,000 to the Upper West Regional Hospital to support the fight against Cerebrospinal meningitis (CSM).
Kuoro Richard Babini Kanton IV, President of the Upper West Regional House of Chiefs in a brief remarks on behalf of Togbe Afede XIV indicated that, recent television footage and news coverage of CSM which has been wreaking havoc in the Upper West Region, has sent shivers down his spine.
He stated that, as the nation is busily battling with the COVID-19 pandemic with all the energy and resources, same must be done to fight CSM.
According to Kuoro Richard Babini IV, GHC 30,000.00 will serve as seed money for the establishment of a fund to support local research towards the development of a vaccine for the treatment of CSM.
He added that GHC 20,000 will go into the procurement of emergency medical supplies to support the delivery of quality and timely services to patients receiving treatment for suspected CSM cases.
The Regional Director of Health Services Dr Afreh Osei Kuffuor who received the cash donation on behalf of the Regional Minister in a short ceremony at the Upper West Regional Hospital, thanked the President of the National House of Chiefs for the support in the fight against CSM .
He noted that several calls has been sent out for philanthropies to come to the aid of the region to combat the menace.
Dr Afreh said he was happy the President of the National House of Chiefs came to the rescue of the Regional Hospital and assured that the money would be used for the intended purpose.
Source:www.energynewsafrica.com
He added that GHC 20,000 will go into the procurement of emergency medical supplies to support the delivery of quality and timely services to patients receiving treatment for suspected CSM cases.
The Regional Director of Health Services Dr Afreh Osei Kuffuor who received the cash donation on behalf of the Regional Minister in a short ceremony at the Upper West Regional Hospital, thanked the President of the National House of Chiefs for the support in the fight against CSM .
He noted that several calls has been sent out for philanthropies to come to the aid of the region to combat the menace.
Dr Afreh said he was happy the President of the National House of Chiefs came to the rescue of the Regional Hospital and assured that the money would be used for the intended purpose.
Source:www.energynewsafrica.com
Kosmos Energy Gets Delisting Warning From NYSE
U.S.-based oil and gas company Kosmos Energy has been given a continued listing standard notice from the New York Stock Exchange (NYSE).
Kosmos said on Thursday that it had received a formal notice from the NYSE on 20 April 2020 because the average closing price of the company’s common stock was below $1 per share over a 30-consecutive trading day period, which is the minimum average share price required to maintain the listing on the NYSE.
The company has notified the NYSE of its intention to return to compliance with the NYSE listing requirements within the six-month cure period.
Under the NYSE rules, Kosmos can regain compliance at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period, its common stock has a closing share price of at least $1 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.
According to the company, it is considering options to regain compliance one of which may include a reverse stock split, if necessary. During the cure period, Kosmos’ shares of common stock will continue to trade on the NYSE.
Kosmos added that the NYSE notification had no effect on its ongoing business operations or its Securities and Exchange Commission reporting requirements, nor did it trigger any violation of its debt obligations.
Apart from the listing notice, Kosmos has made several noteworthy announcements in the past few weeks.
Namely, it stated in mid-March that it had decided to reduce its capital and operational expenditures as well as administrative costs, and suspend the dividend in response to the current market price volatility.
Then, earlier this month, the company said that the coronavirus impact on time-critical work streams resulted in the delay of the Greater Tortue Ahmeyim LNG project.
Kosmos said at the time that Phase 1 of the project would be delayed by an expected twelve months with first gas from the project now expected in the first half of 2023.
Kosmos is not the first company to get a listing notice from NYSE since the end of 2019.
Before Kosmos, notices were given to companies such as McDermott, Noble Corporation, Seadrill, Pacific Drilling and Valaries.
Source:www.energynewsafrica.com
Uganda: Tullow Sells Oil Stake To Total For $575m
Africa focused oil and gas firm, Tullow Oil plc, says Total has agreed to buy its entire stake in their joint onshore oil fields in Uganda for $575 million as part of its target to raise $1 billion this year to tackle its $2.8 billion debt pile.
Tullow, whose shares have shed around 90% since last April and whose market capitalisation was around $285 million on Wednesday, will receive $500 million in cash and $75 million once a final investment decision is reached on the project, it said on Thursday.
An agreement on a tax issue with the Ugandan authorities, which had delayed the sale of a smaller stake in the project to Total for months, has been reached in principle, Tullow said.
The deal depends on the two companies signing a final tax agreement with the Ugandan authorities and a green light from Tullow’s shareholders. It expects the deal to close in the second half of the year.
“We are pleased to announce that a new agreement has been reached with Tullow … for less than $2 a barrel in line with our strategy of acquiring long-term resources at low cost, and that we have an agreement with the Uganda government on the fiscal framework,” Total Chief Patrick Pouyanne said in a statement.
The third partner in the 230,000 barrel per day project, China’s CNOOC, has pre-emption rights for half of the stake to be sold to Total.
Money from the sale will be used “to reduce Tullow’s net debt, strengthening the balance sheet and moving Tullow towards a more conservative capital structure,” the company said.
“Tullow has consulted with shareholders holding approximately 27.5% in aggregate of Tullow’s issued share capital and is pleased to report that they have indicated their support for the Transaction,” it added.
Commenting on the deal, Executive Chairman of the African Energy Chamber NJ Ayuk, said: “This deal shows a lot of foresight to make an acquisition of this nature for such an amazing but reasonable price. The resolution of disputes that paved an opening for this deal should be commended. President Museveni, Tullow Oil and Total understood that being proactive and making concessions is good for Uganda, jobs, contracts for locals and regional growth”.
“The proposed Uganda/Tanzania pipeline (East Africa Crude Oil Pipeline) in itself will not only lead to additional jobs being created, it will also render the entire country viable as a major oil frontier. It is a big win for the local and regional oil and gas industry and propels the East Africa region in playing a role in helping the energy sector rebound,” Elizabeth Rogo, President of the Africa Energy Chamber for East Africa stated.
Source:www.energynewsafrica.com
Ghana: Ex-TOR MD Bribery Allegation: We’ll Cooperate With U.S Authorities –Aksa Energy
AKSA Enerji, a Turkish independent power producer, says it is ready to cooperate with the Securities & Exchange Commission (SEC) and other relevant authorities in the United States of America (USA) in their quest to establish the truth or otherwise of the bribery allegation against Mr Asante K. Berko, a former executive of Goldman Sachs.
Although the company said it is not directly involved in the ongoing proceedings at the U.S District Court Eastern District of New York, it said it is ready to cooperate to bring a speedy resolution of the case.
“The requested information and documentation has been shared with the relevant authorities in 2017. Our Company is ready to cooperate with the relevant U.S authorities and share all documents and information as before to help the investigation and bring the case to a speedy conclusion,” Cengiz Dalkilic, Corporate Partner at Aksa Enerji said in an email response to energynewsafrica.com.
Aksa Energji, in 2015, began processes to build a power plant in the Republic of Ghana during the erstwhile John Mahama-led National Democratic Congress administration.
However, Mr Asante K. Berko, a former executive staff of Goldman Sachs and immediate past Managing Director of Tema Oil Refinery (TOR), who facilitated financial deal for Aksa Enerji, is being accused of paying bribes to Ghanaian officials including Members of Parliament, to secure a power project for Aksa Enerji.
Aksa currently operates 370MW power plant in Kpone, a suburb of Tema, in the Greater Accra Region.
The action of Mr Asante Berko is said to be in sharp contrast with US Foreign Corrupt Practices Act of 1977.
“From approximately 2015 through at least 2016 (the “relevant period”), while employed at the Subsidiary [Goldman Sachs Group Inc], Berko schemed to bribe various government officials in the Republic of Ghana (“Ghana”) so that a client of the subsidiary, a Turkish Energy Company (the “Energy Company”), would win a contract (the “Power Purchase Agreement”) to build and operate an electrical power plant in Ghana and sell the power to the Ghanaian government (the “Power Plant Project” or “Project”),” a portion of a 37-page court document said.
Mr Berko reportedly arranged for the energy company to funnel between $3 million to $4.5 million to a Ghana-based intermediary company “to bribe various government officials responsible for approving the Power Plant Project.”
The energy company is said to have transferred, at least, $2.5 million of the planned $3 million to $4.5 million to the intermediary company.
Source: www.energynewsafrica.com