IRENA Report Identifies Opportunities For Energy Transformation 2050
Advancing the renewables-based energy transformation is an opportunity to meet international climate goals while boosting economic growth, creating millions of jobs and improving human welfare by 2050. These are the findings of the first Global Renewables Outlook released by the International Renewable Energy Agency (IRENA) this week.
IRENA’s Director-General Francesco La Camera said: “Governments are facing a difficult task of bringing the health emergency under control while introducing major stimulus and recovery measures. The crisis has exposed deeply embedded vulnerabilities of the current system. IRENA’s Outlook shows the ways to build more sustainable, equitable and resilient economies by aligning short-term recovery efforts with the medium-and long-term objectives of the Paris Agreement and the UN Sustainable Development Agenda.”
“By accelerating renewables and making the energy transition an integral part of the wider recovery, governments can achieve multiple economic and social objectives in the pursuit of a resilient future that leaves nobody behind.”
According to IRENA’s Outlook report, while a pathway to deeper decarbonisation requires total energy investment up to $130 trillion, the socio-economic gains of such an investment would be massive.
Transforming the energy system could boost cumulative global GDP gains above business-as-usual by $98 trillion between now and 2050. It would nearly quadruple renewable energy jobs to 42 million, expand employment in energy efficiency to 21 million and add 15 million in system flexibility.
The Global Renewables Outlook examines building blocks of an energy system along with investment strategies and policy frameworks needed to manage the transition. It explores ways to cut global CO2 emissions by at least 70% by 2050.
Furthermore, a new perspective on deeper decarbonisation shows a path towards net-zero and zero emissions. Building on five technology pillars, particularly green hydrogen and extended end-use electrification could help replace fossil-fuels and slash emissions in heavy industry and hard-to-decarbonise sectors.
Low-carbon investment would significantly pay off, the Outlook shows, with savings eight times more than costs when accounting for reduced health and environmental externalities. A climate-safe path would require cumulative energy investments of $110 trillion by 2050 but achieving full carbon neutrality would add another $20 trillion.
The Outlook also looked at energy and socio-economic transition paths in 10 regions worldwide. Despite varied paths, all regions are expected to see higher shares of renewable energy use, with Southeast Asia, Latin America, the European Union and Sub-Saharan Africa poised to reach 70-80% shares in their total energy mixes by 2050. Similarly, electrification of end uses like heat and transport would rise everywhere, exceeding 50% in East Asia, North America and much of Europe. All regions would also significantly increase their welfare and witness net job gains in the energy sector despite losses in fossil fuels. However, economy-wide, regional job gains are distributed unevenly. While regional GDP growth would show considerable variation, most regions could expect gains.
Raising regional and country-level ambitions will be crucial to meet interlinked energy and climate objectives and harvest socio-economic welfare. Stronger coordination on international, regional and domestic levels will be equally important, the Outlook concludes, with financial support being directed where needed including to the most vulnerable countries and communities. As partner of the Climate Investment Platform, launched to drive clean energy uptake and mobilise clean investment, IRENA will advance collaborative action targeted to help countries create enabling conditions and unlock renewable investment.
Source:www.energynewsafrica.com
Nigeria: N37.8m Realised From Auction Of Seized Petroleum Products
Nigeria’s Customs Service in the Ogun Area 1 command has generated a total revenue of N37.8 million from direct auction of seized petroleum products in the first quarter of 2020.
Controller of the Command, Comptroller Michael Agbara who disclosed this while presenting the command score card at Idiroko, Ogun State last weekend said the figure showed tremendous increase by far margins in the numbers and Duty Paid Value of seizures in the first quarter of the year 2020 when compared to the first quarter of 2019.
According to him, the command recorded 607 seizures in first quarter of 2020 as against 226 recorded in the same period of 2019.
“It will interest you to know that within the period of 1st January to 31st March, we have generated a total of revenue of N37,878, 000 from direct auction of seized 293,015litres of Premium Motor Spirit (PMS), 625 litres of diesel and 19 jerricans of kerosene (25kg each).
“All the aforementioned seizures of petroleum products were meant for illegal exportation in defiance to extant policies of the federal government. It is important to note that all items imported into Nigeria for home use are not permitted to be exported,” he said.
Source:www.energynewsafrica.com
Women In Energy: Closing The Inequality Gap (Article)
The issue of inequality at the workplace have been discussed extensively by many authors. But one sector in which women’s participation is below that of the broader economy, is the energy sector. Despite making up 48 percent of the global labour force, women only account for 22 percent of the labour force in the oil and gas sector and 32 percent in renewables (IRENA, 2019). These gender gaps in employment vary across the different energy sub-sectors, including power.
The inequality facing women in the energy sector are no different from what their peers must deal with in other sectors of the global economy. Deliberate and undeliberate actions such as discriminatory laws, sex-based protective legislation, traditional gender norms and harmful cultural practices et cetera interfere with a woman’s right to work. In most parts of the world women often found themselves in under-valued and low-paid jobs. They lack access to education, training, and recruitment opportunities; have limited bargaining and decision-making power; and still shoulder responsibility for most unpaid family care work.
Many discriminatory laws still exist, that prohibits women’s entry and inclusion into the energy industry. It is estimated that more than 2.7 billion women around the world face legal restrictions in industries from so-called protective legislation, which purports to protect women from dangerous work, but in reality, discriminates based on harmful stereotypes.
In some countries, there are still laws that require women to obey their husbands, restrict a woman’s ability to travel outside her home or country, or distinguish between a woman’s legal capacity to secure a job or pursue a trade and that of a man. Some countries also forbids employers from hiring women to perform hard, dangerous and/or unhealthy trades such as mining, welding, drilling, butchering, and diving professions.
These barriers continue to exist in spite of the immeasurable benefits of women’s participation, including increased returns on investments and stronger development outcomes. The Morgan Stanley (2017) report on “An Investor’s Guide to Gender Diversity” projects that more gender diversity, particularly in corporate settings, can translate to increased productivity, greater innovation, better decision-making, and higher employee retention and satisfaction. A study by Woetzel, J. et al (2015) shows that if women played the same role in labor markets as men, they could contribute between US$12 trillion and US$28 trillion to global annual gross domestic product (GDP). Simply put, the advancement of women’s equality in labor markets including the energy sector, could contribute to the global economy at a value equivalent to the combined size of the Chinese and US economies today.
The Statistics
In terms of women’s participation across the various sectors of the global economy on the corporate ladder, especially at the senior levels, the result have been very discouraging.
Deloitte’s 6th edition of “Women in the Boardroom” revealed that women are still largely under-represented on corporate boards globally, and progress to change this trend continues to be slow.
Highlights of the report include:
- Women hold 16.9 percent of board seats worldwide, a 1.9 percent increase from previous edition.
- Women hold only 5.3 percent of board chair positions and 4.4 percent of CEO roles globally.
- Women hold 12.7 percent of CFO roles globally – nearly three times that of CEO positions.
Ghana: ECG Assures Customers Of Stable And Reliable Power Supply
Ghana’s power distribution company, Electricity Company of Ghana (ECG) Ltd has assured electricity consumers and the general public that it is putting in place measures to ensure reliable and stable power supply.
The company, which provides electricity to the southern parts of the West African nation, mentioned that the measures put in place include intensification of preventive maintenance activities, correction of identified defects in the power distribution network and replacement of obsolete equipment and prompt response to customer complaints.
In a statement signed by the Managing Director, Kwame Agyeman-Budu, the ECG Limited 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.
Source:www.energynewsafrica.com
Source:www.energynewsafrica.com COVID-19: Counting The Cost On The Energy Sector Revenues In Ghana (Article)
By: Samson Addo
The Global Perspective
The world is still counting the massive cost that COVID-19 has unleashed on its soil. The level of anxiety and uncertainty prevailing globally has characterized the pandemic as a key milestone in human history. In 2019 both the World Bank and the International Monetary Fund (IMF) gave a positive forecast for a marginal expansion in the world economy. IMF predicted that the global growth forecast will increase from 2.9% in 2019 to 3.3% in 2020. Little did they know that a health monster was lurking in the corner to pull a shrink in the prediction. In its January 2020 Global Economic Prospect, the World Bank forecasted that the world will see a growth rate of 2.5% in 2020. OECD in the same fashion lowered its estimation of the 2020 global GDP growth to 2.4%, indicating a prediction of contraction in general output. In its African Economic Outlook for 2020, African Development Bank puts Africa’s 2020 growth rate at 3.4%. In the light of the COVID-19 I guess this outlook will be revised downwards to reflect the emerging risks.
Impact on Energy
Whilst we analyse and count the cost of COVID-19, we must not lose sight of the adverse impact on the key driver of world economy: ENERGY. Within a quarter the price of oil fell from $62.00 per barrel at the end of December 2019 to $25.00 per barrel in March 2020. The steep fall was driven largely by a twin-effect namely the glut in oil production due to the disagreements between Russia and Saudi Arabia, the supposed class prefect of OPEC+ and a reduction in global demand due the COVID-19 pandemic which is threatening the economic foundations of major world Economies like China and USA. The fall in the price of oil has resulted in the weakening of revenues and output mainly in economies that depend heavily on oil and gas Exports for the growth of their economies.
With the fall in the oil prices, African countries including Nigeria, Ghana, Libya, Angola, Algeria, and Equatorial Guinea, will obviously have to prop themselves up to face an onslaught of difficult fiscal conditions that can linger into the medium term.
Preliminary Effects
Ghana is no exception to the wave of COVID-19’s economic de-stabilization. Ghana is one of the newest oil producing countries in Africa. Even though relatively small the volumes of oil being produced mainly in the Tano-Cape Three Point Basin in the Western Region of Ghana is making a significant impact on the development agenda of the nation. For example between 2011 and 2018 Ghana bagged a little above $7.5billion, according to Public Interest and Accountability Committee (PIAC) a body established by law to monitor petroleum revenues in Ghana. This revenue is significant in relation to Ghana’s level of GDP.
With the emergence of COVID -19 the revenue generated from the petroleum sector for 2020 is expected to assume a tailspin. This is mainly due to fall in the world price of oil. Ghana’s 2020 projected petroleum revenue is pegged at $million. Underlying this projection is the assumption that the dollar price of oil will be $58.66/b. The reality as presented to us by the weakening global demand courtesy COVID-19 and the price war between Russia and Saudi Arabia, is that as at 5th April 2020 the West Texas Intermediate (WTI) and Brent crude sold at $28.34/b and 34.11/b respectively. The obvious effect is that if the price remains below $58.66/b, which analysts expect, Ghana will suffer a shortfall in petroleum revenue and this will have a negative ripple effect on the Government’s ability to execute the needed agricultural, infrastructural, educational and health projects it intends to carry out this year. The attendant negative effect on the GDP for 2020 including significant job losses cannot be escaped unless bold and out-of-the-box policies are urgently executed.
Measures Proposed
It is heartwarming that the Government of Ghana, through the Ministry of Finance decided to embark on a number of measures to reduce the impact on the nation. On 30th March 2020 the minister of Finance made some proposals before Parliament of Ghana to address the effect of COVID-19 on Ghana’s economy and some of the measures outlined bothers, of course, on energy. Specifically the minister indicated that the total fiscal impact is projected to be $9.5million which is 2.5% of the revised budget. The minister requested approval to use $219m from the Ghana Stabilization Fund (GSF) towards Ccovid-19 projects, reduce the statutory cap on GSF of $300million to $100million to allow the Government to access extra Ghs1,250million more funds from the petroleum revenue to support Corona Virus Alleviation Programme (CAP), reduce portion of the Net Carried and Participation interest due to GNPC from 30% to 15% and a daring suggestion to amend the Petroleum Revenue Management Act (PRMA) to enable Government to withdraw money from the protected $591million Ghana Heritage Fund.
Position of the law and Recommendations
Ghana’s petroleum sector is highly regulated. We have laws that regulate the upstream, midstream and downstream subsectors. One key law that is relevant and which has already undergone amendment is the Petroleum Revenue Management Act (Act 815). The law stipulates that Ghana shall have Petroleum Holding Fund which hosts all petroleum revenues. From this fund disbursements can be to GNPC, Annual Budget Funding Amount, Ghana Petroleum Funds and Exceptional Purpose Transfers. Ghana Petroleum Funds are made up of Ghana Heritage Fund and Ghana Stabilization Fund. According to the PRMA (ACT 815) Section 9(2) ‘The object of the Ghana Stabilization Fund is to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls’. Section 10 of the Act 815 states that “the object the Ghana Heritage Fund is to (a) provide an endowment to support development for future generations when petroleum reserves have been depleted; and (b) receive excess petroleum revenue”.
Considering the analysis above, it is clear that that since petroleum revenues are projected to reduce the use of the proceeds this year should be highly maximized. Oil and Gas are finite resources and hence the use of the proceeds must have adequate sustainability measures in place. I think the use of funds from petroleum funds especially the Ghana Stabilization Fund to support CAP is in order considering the fact that COVID-19 needs to be contained quickly to curtail further economic destruction. It is suggested that part of the fund should be used to assist educational institutions in Ghana (both private and public) that are providing Energy Programmes through the traditional means, to deliver seamless technologically driven studies to students so that the future manpower needs of Energy Experts are not compromised. In this case the use of the funds will address current needs and also future aspirations of the nation. As regards the proposal to amend the PRMA to enable funds to be withdrawn from the Heritage funds, it is suggested that the position of the law on the Ghana Heritage Funds should be maintained as it is. We have a future after COVID-19. We will reach a peak in our oil and gas production cycle and that is where the true value of the GHF will be felt. The history of exploitation of natural resources in Ghana is dented with disheartening scenes of degradation without far reaching benefits and this is what the law wants to prevent in future. The spirit of the writers of Act 815 should be maintained and guarded and I think there is no need to amend this part of the law now.
I think that Government should use part of the funds to support local companies that engage in mainly manufacturing activities for both domestic consumption and export. This is so because these companies employ a teaming number of Ghanaians and at the same time serve as a source of foreign currency. Cushioning them during this time is crucial to the resilience of our economy. Government must also support the Agricultural sector by ensuring that farming areas are properly targeted and farmers are adequately educated on ways of preventing COVID-19. Efforts should be made by Government to establish health facilities in food basket zones in Ghana. Adequate funds should be directed towards safeguarding the Agricultural value chain to prevent food inflation which can create further hardship in the economy. Finally it is recommended that all funds that are being pulled to support CAP to ensure the effect of COVID-19 is alleviated are efficiently spent and accounted for. PIAC must not lose sight of this even in this emergency situation.
The writer is MSc Energy Economics Student at GIMPA.
Email: [email protected]
OPEC Still Has An Important Role To Play In Global Oil Market (Article)
By: Sebastian Wagner
Scan Western news about OPEC from the last few years, and a common observation tends to appear: OPEC had a huge influence on the global oil market back in the day. Now, in the shale oil era, not so much.
I would argue that OPEC can safely state that reports of its death—or dwindling relevance—are greatly exaggerated. In fact, OPEC has been at the center of one of the biggest stories of 2020 aside from COVID-19: a historic deal that resolved the oil price war between Saudi Arabia and Russia.
From 2016 to late March, the two oil powerhouses had been part of a loose alliance of OPEC members and non-member producers known as OPEC+. Its purpose was to stabilize the global oil market through voluntary production cuts. The alliance was a success until early this year, when COVID-19 effectively shut down China’s economy and dramatically reduced its crude oil imports. To restore market balance, OPEC member Saudi Arabia asked OPEC+ member Russia to increase its production cuts. When Russia refused, Saudi Arabia stopped complying with its own production cuts and, instead, started flooding the market with oil. Russia followed suit, and plans to renew the OPEC+ agreement on April 1 were abandoned. Crude oil prices went into freefall, and U.S. shale oil producers started struggling to survive. It didn’t help when COVID-19 began forcing lockdowns around the globe, resulting in plummeting demand for crude and even lower oil prices.
The world was watching closely when Saudi and Russian leaders attended an emergency OPEC/OPEC+ meeting on April 9. After three days of negotiations, OPEC and OPEC+ members agreed to massive production cuts starting with nearly 10 million barrels per day May 1. The cuts, which will gradually decrease, will continue through April 2022. While low demand remains a concern, by stabilizing the oil market, OPEC+ will still provide economic relief and save jobs around the world. Shortly after the product-cut agreement was finalized, exhausted Saudi Energy Minister Prince Abdulaziz bin Salman shared his exhilaration with Bloomberg News. “We have demonstrated that OPEC+ is up, running, and alive.”
Indeed. Both OPEC and OPEC+ are very much alive and as relevant as ever.
A New Era?
Despite the condescending descriptions of OPEC I’ve read in American media coverage, I am seeing signs that U.S. leaders are starting to look at OPEC with newfound respect. Even one of the organization’s most outspoken American critics, President Donald Trump, had generous words for OPEC the evening before its April 9 meeting. “Obviously for many years I used to think OPEC was very unfair,” Trump said during a press briefing. “I hated OPEC. You want to know the truth? I hated it. Because it was a fix. But somewhere along the line that broke down and went the opposite way.”
Then there’s Ryan Sitton of the Texas Railroad Commission, which regulates the exploration, production, and transportation of oil and natural gas in Texas. He responded to the Saudi-Russia oil price war by reaching out to OPEC and proposing statewide oil production cuts. After a one-hour photo call with OPEC Secretary General Mohammad Barkindo, Sitton was invited to attend OPEC’s June meeting in Vienna.
While I applaud Sitton’s initiative, I couldn’t help noticing what a departure it was from America’s usual “OPEC playbook.” U.S. energy policy has been driven by a strong desire to “free” the country’s oil and gas industry from OPEC’s influence. As recently as 2018, the U.S. House of Representatives attempted to pass the No Oil Producing and Exporting Cartels Act (NOPEC) (https://bit.ly/3bpS3h5). Had this harmful bill been approved, the U.S. Attorney General would have been empowered to bring antitrust lawsuits against OPEC and its member countries. The legislation likely would have jeopardized foreign investments in the U.S. oil and gas industry and cost America valuable commercial partnerships.
How dramatically things have changed. Two years after NOPEC was proposed, we had a representative from the powerful Texas Railroad commission offering to work with OPEC to help balance the market.
While it’s unclear whether Texas will cut production, Sitton’s decision to open communication with OPEC is a positive, and I hope other U.S. industry leaders will consider the same. Instead of viewing OPEC as the enemy, dismissing it, or avoiding it, why not learn to understand this important organization and lay the foundation for a productive relationship?
Gaining Perspective
I suggest starting with Amazon’s bestselling book, Billions at Play: The Future of African Energy and Doing Deals, which includes a chapter titled “A Place at the Table: Africa and OPEC.” Yes, the chapter covers the value OPEC membership offers African nations, but its insights are relevant to everyone with ties to the oil and gas industry.
The background on OPEC’s 2016 Declaration of Cooperation is particularly timely. It was that agreement among OPEC producers and 11 non-members that resulted in OPEC+. For the first time in OPEC’s history, member countries agreed to work with non-member countries to stabilize the global oil market after increased U.S. shale oil production triggered low prices. Together, participating countries committed to voluntary production adjustments of 1.8 million barrels per day. Until the extraordinary chain of events set off by COVID-19, the OPEC+ alliance remained firmly in place.
The book also delves into the reasons OPEC membership has so much to offer African oil-producers: strength in numbers and a commitment to unity. “The organization says that every new member adds to the group’s stability and strengthens members’ commitment to one another,” the book explains. “Different perspectives create a rich culture where colleagues can learn from one another, anticipate and respond to the complexity of today’s oil markets, and ultimately, influence prices.”
It’s not always a seamless process, but OPEC continues to achieve those objectives. And as we go forward, this kind of unified approach will remain critical. Most likely, the global oil and gas industry will be forced to deal with the economic impacts of COVID-19 and low oil demand for an unknown period of time. Instead of working at cross purposes, oil-producing countries will need to continue cooperating to find solutions, embrace opportunities, and keep the industry alive.
Sebastian Wagner is the Chair of the German African Business Forum and the CEO of DMWA Resources, a pan-African energy marketing & investment firm. Worked for Trafigura & affiliated companies in oil trading, responsible for managing trading operations and pursuing pre-financing opportunities in around Africa
Ghana: Reverse LPG Prices Immediately-LPG Marketers Association To Retailers
The Executives of the LPG Marketing Companies Association in the Republic of Ghana have directed the LPG retailers to reverse the current prices of the commodity to reflect the previous prices.
The directive follows the government’s decision to withdraw the GHS 13.5 pesewas LPG Cylinder Recovery Levy introduced by the National Petroleum Authority (NPA) on April 1, 2020.
Prior to the introduction of the new levy, a 14.5 kg of LPG sold at between GHS 65-70. However, when the new levy was introduced, the same quantity went up by GHS5 to sell at GHS75.
The introduction of the LPG Cylinder Recovery Levy, which was intended to support the LPG marketers/ OMCs to procure and maintain the cylinders during the implementation of the cylinder recirculation model policy, was met with stiff opposition from some industry players especially, Chamber of Petroleum Consumers, Ghana and LPG Marketing Companies Association.
They argued that the new levy would worsen the plight of consumers who are already finding it difficult to afford the commodity due to numerous taxes introduced on the product.
Commenting on the withdrawal of the new levy, Vice preysident of the LPG Marketing Companies Association, Gabriel Kumi indicated that the association received an official communication from the regulator, NPA, about the withdrawal of the new levy.
He said his outfit subsequently informed its members about the latest decision.
Asked whether consumers were going to see change in price immediately, he said it would take a day or two because of administrative purposes.
“We are appealing to all our members that we’re not in good times yet. This is the time Ghanaians should enjoy freebies. This is the time the President is giving us free electricity, water, food, etc. so let us also contribute our part. This is not something legal for us. This is something the Ghanaian consumers should enjoy,” he stated.
Mr Kumi said the Association is yet to meet with the NPA to discuss how they can refund monies they collected in the last few days to consumers.
Source: www.energynewsafrica.com
Ghana: GII Demands Probe Into Allegations Against Ex-TOR MD
The Ghana Integrity Initiative (GII), a local Chapter of Transparency International has asked President of the Republic of Ghana, H.E. Nana Akufo-Addo to probe into allegations of bribery against the immediate past Managing Director of Tema Oil Refinery (TPOR), Asante K. Berko.
A statement issued by GII said despite government’s attention being focused on defeating the Covid-19 pandemic, public officials must still be held accountable.
“…If conscious effort is not made, there is the high tendency and risk of government’s attention being shifted from addressing anti-corruption issues resulting in these allegations being swept under the carpet,” GII wrote.
The demand follows a civil law suit against Mr Asante Berko by the Securities and Exchange Commission of United States of America.
The SEC accused Berko of bribing government officials and MPs in Ghana to gain approval for a power plant project in 2015.
The US SEC claims in its lawsuit filed Monday, April 13 that, Asante Berko, a former executive at Goldman Sachs, facilitated up to $4.5million to help a Turkish company to win a contract for a power plant.
The said contract was approved in 2015, during Ghana’s chronic power crisis.
However, Mr. Berko denied the allegations against him stating that they were false.
“I state categorically that I have not paid any bribes to government officials, Members of Parliament nor any officials of Parliament.
“I have had no contact with Members of Parliament nor officials of Parliament, regarding the approval of this transaction,” he wrote in a statement.
Mr. Berko says he “was indeed an employee of Goldman Sachs up until December 2016…and was part of the Goldman Sachs team that was to arrange the financing for this power transaction on behalf of the Turkish IPP.”
But GII wants the claims investigated as they say the allegations have consequences for “Ghana’s international image.”
Below is GII’s full statement
GII – OPEN LETTER TO THE PRESIDENT – 20-04-2020
Tullow Oil Gets New CEO
Tullow Oil plc has appointed Rahul Dhir as its new Chief Executive Officer and an Executive Director of the Group.
His appoint takes effect from 1 July 2020, Tullow said in a statement posted on its website.
The appointment of Rahul Dhir follows the resignation of Paul McDade in December last year.
Dorothy Thompson, who is currently the Executive Chair of Tullow, will return to her position as Non-Executive Chair after a limited period of handover.
Rahul brings extensive leadership experience in oil and gas to Tullow.
He is currently CEO of Delonex Energy, an Africa-focused oil and gas company that he founded in 2013.
Under his leadership, Delonex has delivered low-cost drilling and seismic operations along with leading social and environmental performance in sub-Saharan Africa.
In Chad, the company has achieved material exploration success and discovered substantial oil resources.
Delonex has also delivered exploration campaigns in Ethiopia and Kenya where Delonex operates Block 12A with Tullow as a non-operating partner.
Prior to establishing Delonex, Rahul served as Managing Director and CEO of Cairn India from its IPO in 2006 until 2012.
During Rahul’s tenure, Cairn India delivered operated production of over 200,000 barrels of oil per day with operating costs of less than $5 per barrel of oil.
Cairn India also successfully delivered over $5 billion of development projects including the world’s longest heated pipeline at a finding and development cost of less than $5 per barrel of oil.
Rahul started his career as a Petroleum Engineer, before moving into investment banking where he led teams at Morgan Stanley and Merrill Lynch, advising major oil & gas companies on merger and acquisition and capital market related issues.
Rahul is a UK citizen and was educated at the Indian Institute of Technology (BTech), the University of Texas (MSc) and the Wharton School (MBA).
Executive Chair of Tullow Oil Plc, Dorothy Thompson said, “I am delighted to welcome Rahul to Tullow and am very pleased that he has accepted the position of CEO.
“His oil & gas, financial and African experience combined with his record of strong leadership made him the stand-out candidate for the Board. I look forward to Rahul joining Tullow in July and working with him closely in the coming years.”
Chief Executive Officer-designate of Tullow Oil plc Rahul Dhir, said, “I am very excited at the opportunity to lead Tullow and re-establish it as an iconic company in our industry. The company has high-quality assets and great people.
“It also has a unique position in Africa, built on a proven track record of responsible operations, strong relationships and a commitment to sustainability. I am looking forward to working with the team and the Board to re-build an exceptional business.”
Source:www.energynewsafrica.com
Arab Petroleum Investments Corporation General Assembly Approves US$8.5 Billion Callable Capital
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has ratified a landmark increase in callable capital to USD8.5 billion at its Annual General Meeting (AGM), as well as a significant increase in authorized and subscribed capital.
The increase, the largest in the Corporation’s history, is based on the recommendation by APICORP’s Board of Directors.
The increase in the capital reinforces long-term commitment towards APICORP’s sustainable growth plans for the benefit of its member countries.
The callable capital increase further bolsters APICORP’s financial sustainability and resiliency and its overall financial position.
The Corporation’s authorized capital was also increased to US$20 billion and subscribed capital to US$10 billion, as well as transfer US$500 million from the Corporation’s general reserves and retained earnings into its issued and fully paid capital.
Commenting on the increase in capital, Dr. Ahmed Ali Attiga, Chief Executive Officer of APICORP, said: “As we enter the next stage of APICORP’s growth story and build upon its longstanding reputation as a trusted financial partner to the Arab energy industry, the capital increase will enable APICORP to fulfil its policy mandate by continuing to deliver sustainable impact-driven development projects and supporting investment activities. I appreciate the shareholders’ strong confidence in APICORP and their willingness to support it in its journey to support the growth trajectory in the regional energy and petroleum industries sector.”
On his part, Dr. Sherif Elsayed Ayoub, Chief Financial Officer of APICORP, said: “The capital increase serves as one of the cornerstones of APICORP’s growth plans as per our board-approved risk appetite and five-year corporate strategy. These include increasing our lending and investment capacity to better meet the ever-growing needs of our public and private-sector partners in the energy sector. This remarkable show of support from our member countries shall also cement APICORP’s profile as a financially strong, well-capitalized, highly-liquid and consistently profitable MDB.”
APICORP recently disclosed its financial results for the year ended 2019, posting strong results including a 17% Y-O-Y increase in net recurring income to USD112 million, up from USD96 million at year end 2018. APICORP’s strong profitability in 2019 was driven by Corporate Banking and Treasury and Capital Markets, whose gross income increased 32% and 24% Y-O-Y to reach USD201 million and USD80 million, respectively.
Source: www.energynewsafrica.com
Halliburton Posts $1Billion Loss In Q1 2020
US -based oilfield services provider, Halliburton has recorded a $1 billion loss in the first quarter of 2020.
The huge loss is due to a combination of low oil demand and resulting oversupply being further exacerbated by the coronavirus pandemic.
A statement issued by Halliburton on Monday noted that adjusted net income for the first quarter of 2020, excluding impairments and other charges and a loss on the early extinguishment of debt, was $270 million.
This compares to adjusted net income for the first quarter of 2019, excluding impairments and other charges, of $201 million.
The company recognized $1.1 billion of pre-tax impairments and other charges to further adjust its cost structure to current market conditions. These charges consisted primarily of noncash asset impairments, mostly associated with pressure pumping equipment, as well as severance and other costs.
In addition, based on the current market environment and its expected impact to Halliburton’s business outlook, the company recognized a non-cash tax expense of approximately $310 million as a result of an adjustment to its deferred tax assets.
Halliburton’s total revenues in the first quarter of 2020 were $5 billion, a 12 per cent decrease from revenues of $5.7 billion in the first quarter of 2019.
Reported operating loss was $571 million in the first quarter of 2020 compared to reported operating income of $365 million in the first quarter of 2019.
Excluding impairments and other charges, adjusted operating income was $502 million in the first quarter of 2020, an 18% increase from adjusted operating income of $426 million in the first quarter of 2019.
Jeff Miller, Halliburton Chairman, President and CEO, said: “Our industry is facing the dual shock of a massive drop in global oil demand coupled with a resulting oversupply. Consequently, we expect activity in North America land to sharply decline during the second quarter and remain depressed through year-end, impacting all basins.
“Internationally, we believe the activity changes will not be uniform across all markets. OPEC+ production decisions and the duration of pandemic-related demand and activity disruptions will ultimately determine the extent of international spending declines this year”.
Miller also said the company is taking action to reduce overhead and other costs by $1 billion and lower capex to $800 million.
“We will take further actions as necessary to adjust to evolving market conditions“, Miller added.
Halliburton’s financial results for 1Q 2020 reflect some of the reduced activity experienced towards the latter part of the quarter in various locations around the world.
For the remainder of 2020, the company expects a further decline in revenue and profitability, particularly in North America.
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US Oil Price Below Zero For First Time In History
US oil prices crashed into negative territory for the first time in history as the evaporation of demand caused by the coronavirus pandemic left the world awash with oil and not enough storage capacity — meaning producers are paying buyers to take it off their hands.
West Texas Intermediate, the US benchmark, traded as low as -$40.32 a barrel in a day of chaos in oil markets.
The settlement price on Monday was -$37.63, compared to $18.27 on Friday. Traders capitulated in the face of limited access to storage capacity across the US, including the country’s main delivery point of Cushing, Oklahoma.
The collapse will be a blow to Donald Trump, who has gone to great lengths to protect the oil sector, including backing moves by OPEC and Russia to cut production and pledging support for the industry.
After the price drop, Mr Trump reiterated plans for the US to open the federally-controlled strategic petroleum reserve to store excess oil that cannot find a home in commercial storage facilities.
Congress refused to fund federal purchases of crude oil when the White House first proposed the idea several weeks ago, but the Department of Energy has also considered the possibility of leasing capacity to producers.
“We’re filling up our national petroleum reserves, the strategic reserves, and we’re looking to put as much as 75m barrels into the reserves themselves that would top it out,” Mr Trump said at his daily news conference.
“We’re going to either ask for permission to buy it, or we’ll store it, one way or the other, it will be full.”
The shale sector has transformed the US into the world’s largest oil producer in the past decade, giving the president a foreign policy tool he has brandished as “US energy dominance”, but which now faces a rapid decline.
Negative prices are the latest indication of the depth of the crisis hitting the oil sector after lockdowns imposed in many of the world’s major economies have sent crude demand tumbling by as much as a third, leaving the industry facing what Jefferies analyst Jason Gammel called “the bleakest oil macro outlook” he had ever seen.
Not all oil contracts are trading in negative territory. Brent, the international benchmark, lost 8.9 per cent on Monday to fall to $25.57 a barrel, but is less immediately afflicted by storage issues.
Brent is a seaborne crude allowing traders to easily ship it to areas of higher demand.
Amrita Sen at Energy Aspects said: “With Brent you can put it on ships and move it around the world immediately. Storage tanks at Cushing, however, will be full in May.”
WTI contracts for delivery in June lost 14.7 per cent but held above $20 a barrel, though traders warned it could face further losses. Both benchmarks traded above $65 a barrel as recently as January.
Stephen Schork, editor of oil-market newsletter The Schork Report, said he expected access to storage capacity in the US to be exhausted within two weeks — and cautioned that the collapse of the country’s oil consumption was accelerating.
“It just gets uglier from here,” Mr Schork said, adding that sharply rising unemployment numbers meant fewer and fewer Americans would be driving, hurting petrol demand even during its peak summer months.
“This summer is dead on arrival. The biggest demand months are not going to happen,” he said. Prices for physical grades in many North American regions have fallen into the low single digits reflecting a dearth of buyers able to take delivery of oil, even as prices for later contracts have held up marginally better due to some investors betting on an eventual rebound.
Source: ft.com/energynewsafrica.com
COVID-19: REDAVIA Offers Free Solar Power To SMEs In Kenya, Ghana
Energy solutions company REDAVIA has created a new concessionary solar power programme, dubbed COVID-19 Resilience Lease, to support Ghanaian and Kenyan businesses to mitigate the impact of the coronavirus pandemic.
COVID-19 has disrupted African businesses significantly. In this challenging time, REDAVIA enables sound businesses to reduce their operating costs with a free solar plant leasing service.
The energy company has introduced the COVID-19 Resilience Lease, which provides solar power plants to business customers for six months, completely for free.
After these six months, customers can choose to roll-over this Lease into a regular solar plant lease or request REDAVIA to re-deploy the plant.
This offer is available to selected long-term sustainable Ghanaian and Kenyan companies on a first-come, first-served basis, while supplies last.
Mankoadze Fisheries in Tema, Ghana, was first to sign a lease. Godfried Kwame Anafi, Director of Mankoadze Fisheries, is eager to see the restart of his company’s cold store and resumption of service to the corporate and independent fishing customers as soon as possible.
The Royal Senchi Hotel & Resort has also joined this unique programme. The hotel has been especially hard hit by the pandemic and saw its occupancy rates drop precipitously.
Big losses in revenue made lowering utility costs a top priority for hotel management. Gerard Schraven, General Manager, said: “REDAVIA’s solar plant will enable us to keep our energy cost as low as possible when the hotel re-opens after this global health crisis.”
Erwin Spolders, CEO & founder of REDAVIA, said: “REDAVIA understands the economic implications of this pandemic, and we pledge to be a true friend to our business partners in this time of need.”
Source: www.energynewsafrica.com
Dubai: DEWA Unveils COVID-19 Plans To Keep Lights On And Employees Safe
Dubai Electricity and Water Authority (DEWA) has revealed its precautionary measures as per the Dubai Government’s COVID-19 measures.
According to a release from the utility, the continued delivery of electricity and water services is assured, and staff have undergone training programmes to use technological tools and channels to work remotely.
The utility says it has a comprehensive plan to ensure the continuity of field work at its power generation and water desalination plants, as well as continued maintenance of operations, lab tests, and other vital work.
The plan also includes precautionary measures such as early detection and diagnosis of employee health using advanced equipment, implementing home quarantine for employees returning from abroad, and social distancing in all facilities.
The utility says it has also introduced a shift rotation system to minimise employee exposure to the virus. Staff working in shifts use different locations from their previous colleagues in the previous shift, and sterilises its facilities regularly.
DEWA has launched several awareness campaigns in different languages to ensure awareness messages reach all its employees.
Source:www.energynewsafrica.com