APICORP 2019 Financial Results Demonstrate Strong Growth Momentum With Net Income Of USD 112 Million
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has disclosed its financial results for the year ended 2019.
Building on record performance in 2018, APICORP posted strong results including a 17% Y-O-Y increase in net recurring income to USD112 million up from USD96 million (excluding non-recurring items) at year end 2018.
APICORP’s strong profitability in 2019 was driven by Corporate Banking and Treasury, whose gross income increased 32% and 24% Y-O-Y to reach USD201 million and USD80 million, respectively.
The Corporation’s balance sheet growth remained strong and resilient in 2019, with a 5.7% increase from USD6.95 billion to USD7.35 billion from the previous year. Notably, leverage (debt-to-equity ratio) remained in check reaching 2.13 in December 2019 compared to 2.07 in the same period last year, and capital adequacy improved slightly from 29.34% in 2018 to 29.6% in 2019.
In October 2019, APICORP’s overall credit rating was upgraded by Moody’s to ‘Aa2’ with a stable outlook from ‘Aa3’. The achievement was due in large part to the steady improvement in APICORP’s liquidity and funding profile, high quality assets, strong asset performance, and moderate leverage, amongst other factors. This makes APICORP the only financial institution in the MENA region with a ‘Aa2’ rating.
Commenting on APICORP’s results, Dr. Aabed bin Abdulla Al-Saadoun, Chairman of the Board of Directors said: “As the world enters an unprecedented period of economic uncertainty, I am reassured by the fact that we have closed out the past year on a strong note. Our business lines exhibited exceptional resilience on the back of challenging market conditions presented by both geopolitical, financial and industry developments in 2019. The increase in net recurring income by 17% and Moody’s credit rating upgrade are both significant milestones that stand as a testament to APICORP’s solid fundamentals. This gives us the confidence to continue to support to the Arab world’s energy sector during a time when sustainable, impact-driven projects have never been more needed.”
Dr. Ahmed Ali Attiga, Chief Executive Officer of APICORP, said: “We are extremely proud of another successful year for APICORP as we continue to navigate a rapidly evolving energy landscape. Our balance sheet growth to USD7.35 billion in 2019 paves the way for APICORP to continue an upwards trajectory, notwithstanding the limitations that the current coronavirus crisis poses upon all sectors of the global economy. However, I believe that the work that we have put into diversifying our portfolio in terms of sectors and geography as well as our broad investor base, coupled with our strong financial position, will serve us well in the coming years and allow us to address the current challenges.”
“When the world eventually begins to recover from the dual impact of the coronavirus pandemic and oil price fluctuations, we will most likely see changes in the region,” added Dr. Attiga. “As a trusted financial partner to the regional energy sector, we are well positioned to support sustainable investments, and entities, that can accelerate both economic recovery and the low-carbon transition. Going forward, we believe that there will be a greater role for multilaterals like APICORP, serving in a countercyclical capacity to reinvigorate the economies of the region. For this, we remain committed to playing a strong developmental role, particularly through leveraging on our partnerships in the industry.”
A New 5-Year Corporate Strategy
In 2019, APICORP finalized its 2020-2024 corporate strategy to align with the evolving energy landscape. The strategy is underpinned by a more integrated and agile model, with sustainability embedded in all aspects of operations. The corporate strategy for the next five years places APICORP at the center of comprehensive offering to a diverse set of clients enabled by partnerships and innovation to better serve the MENA region’s petroleum industries and energy sector.
Corporate Banking
APICORP’s Corporate Banking assets increased by 5% Y-o-Y to reach USD3.69 billion, all while diversifying the portfolio exposure, geographically and sectorally, as well as maintaining a high quality loanbook. Moreover, Corporate Banking booked USD1.4 billion in commitments, thereby sustaining the profitability prospects of APICORP not only in 2019, but also future years. In terms of income, Corporate Banking had a record year, reaching USD121 million in income net of Libor and impairments compared with USD90 million in 2018. Fee income continued to show promise, even in a competitive landscape, where it increased 23% Y-o-Y. Notably, the Gross NPL Ratio remained very low at 0.38% due to strong relationships with APICORP’s partners and support from Member Countries.
APICORP continued to evolve its offerings with more focus on private sector-led projects, primarily in the utility sector and trade finance, to complement its strength in government-sponsored projects.
In line with its commitment to apply ESG principles to all project financing, APICORP continued its increased focus on environmentally-friendly projects where its presence in the renewables sector was reinforced by its support to several bidders on renewable PPPs in the region as well as a rooftop PV project and a commitment to a Saudi private sector company expanding into a wind farm overseas with private sector partners.
Investments
APICORP continued its prudent strategy of investing alongside like-minded investment partners in quality businesses with strong management teams and solid growth potential, with a focus on making investments in Member Countries and the broader MENA region, as well as diversifying into opportunities outside the region that offer exceptional profitability prospects and value-addition to the energy sector. The foundation of APICORP’s investment approach is adopting a long-term perspective in the extraction of value from its investee companies.
In 2019, APICORP made its first direct equity investment in Kuwait in a leading oil and gas services and facilities management company with a global footprint. It also invested in a specialized wellbore services platform in the UK that serves the oilfield services market. At year end, the total equity portfolio under management stood in excess of USD1 billion across 19 direct and 3 indirect investments. For 2020, APICORP is committed to playing a strong developmental role by way of partnering with key players in the regional and global energy sector, especially in light of the uncertainties created by the coronavirus pandemic.
Treasury & Capital Markets
APICORP’s Treasury and Capital Markets continued to strengthen the Corporation’s liquidity profile by working to ensure the maintenance of high liquidity ratios, coupled with the rebalancing of the treasury portfolio towards high-grade fixed income securities. This, in addition to the improved geographical and sectoral diversification in the treasury portfolio as well as to a healthy maturity mismatch position, were fundamental in guaranteeing the soundness and resilience of APICORP’s financial standing.
On the liability side, despite market volatility, APICORP reiterated its commitment towards sustainable growth by way of a concerted effort to prioritize the diversification of APICORP’s funding base. This resulted in successfully expanding the investor profile to include players outside the GCC. In particular, APICORP’s debt capital market issuances saw an increase of investors from Asia and the US. This was manifested by way of eight transactions over the course of the year, including two Formosa Bonds worth USD300 million and USD325 million issued in March and November, respectively, along with several bilateral transactions with European and Asian financial institutions.
While these are unprecedented times due to the impact of the novel coronavirus on all sectors and future petroleum and energy projects, APICORP remains committed to supporting the development and sustainability of its member countries and the wider MENA region amidst the ever-evolving energy landscape.
Ghana: TOR MD Refutes Bribery Allegation, Hints Of Contesting SEC Charges In US
The Managing Director of Tema Oil Refinery in the Republic of Ghana, Asante K. Berko has refuted bribery allegations levelled against him by the US Securities and Exchange Commission.
According to him, it is never true that he bribed former officials of the erstwhile administration for his client to get a power project contract while he worked for US based Goldman Sachs.
“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.
“The SEC’s proceedings have come as a complete surprise to me as the SEC in May 2017, interviewed me extensively. This was my only interaction with the SEC. I gave the SEC full and frank disclosure of my involvement in this transaction, as well as all payments I have received and the dates on which the payments were received. I have since not received any communication from the SEC until this week when my lawyer in the US was served with the civil proceedings and at which same time the news of the proceedings against me broke,” Mr Asante Berko said in a press release to respond to the allegation against him.
According to him, he intends to contest the proceedings to clear his good name stressing that he had already asked his lawyers to file his response to the allegations.
Mr Asante Berko is being charged by U.S. Securities and Exchange Commission for “orchestrating a bribery scheme” and arranging at least $2.5 million in bribes to be paid to Ghana government officials and also bribing Members of Parliament.
The payment was allegedly made to gain approval for a client’s power plant project from “2015 through at least 2016,” according to court documents from New York.
The government officials, along with the companies, are not named in the court documents.
The Securities and Exchange Commission said the former banker arranged the bribes for a Turkish energy company to funnel the money to a Ghana-based intermediary.
The local company then allegedly made the payments to government officials.
“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”).”
Mr. Berko is reported to have 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.
Click on the link below for the full statement
Statement Asante Berko 140420
Source: www.energynewsafrica.com
Global Wind Turbine Supply Chain To Hit $600bn
The global wind turbine supply chain is expected to generate up to $600 billion per annum between 2020 and 2028, according to a new study released by Wood Mackenzie.
Despite the COVID-19 pandemic which is pressing near-term hurdles for the wind energy industry, the market is expected to record 8% growth during the forecast period compared to 2019.
The study states that US PTC phase out post-2020 will spur demand for nearly 5000 wind towers in 2020, compelling turbine OEMs to increase tower imports into the US despite anti-dumping duties.
The more than 44GW of combined peak wind demand in the US and China in 2020 is expected to strain the wind turbine supply.
Wood Mackenzie says higher average turbine prices and a 20% growth in offshore demand reflect a 37% uptick in supply chain potential, representing a cumulative value of $222 billion by 2028. Strategic capital components, such as blades and towers, present a $25 billion cumulative opportunity by themselves.
Shashi Barla, a principal analyst with Wood Mackenzie, said: “A rush in installation activity has caused a shortage of blades and bearings. The coronavirus has jeopardised approximately 10-15% of production volumes in China, Spain and Italy. However, Chinese companies resumed production in early March, resulting in a downgrade of only 3GW for 2020 installations.
“Just over $6 billion worth of turbines and component supply production is already jeopardised in Q1 2020. The coronavirus impact could worsen this if facilities continue to face delays in resuming production.
“Turbine OEMs and suppliers can mitigate the impact by increasing manufacturing during the latter part of the year and relocating supply to other markets, such as India and Mexico.”
Barla added that the US Department of Commerce “slapped preliminary anti-dumping rates on these four countries in 2020, ranging from 5.04% to 65.96%, to create a level playing field for domestic tower suppliers”.
“A surge in demand will force turbine OEMs to continue imports into the US, incurring additional import duty costs between $60-90 million in 2020. Turbine OEMs will be forced to absorb the additional costs and renegotiate contracts with asset owners.”
Source:www.energynewsafrica.com
Gabon: Vaalco Releases Vantage Rig After Completing Gabon Operations
US-based oil and gas company, Vaalco Energy has completed well workover operations on the South East Etame 2H well, located offshore Gabon, and released the Vantage-owned jack-up drilling rig.
Vaalco said in an operational update on Monday that the workover on the well restored production to 2,400 BOPD, in line with the production level before when the electronic submersible pump (ESP) failed in early March 2020.
The company added that it released Vantage’s Topaz Driller jack-up on 9 April 2020, and does not currently expect to perform any additional workovers to better preserve cash flow in the current uncertain environment.
With the completion of the 2019/2020 drilling campaign and the successful South East Etame 2H workover, total company production is approximately 20,000 gross BOPD – 5,400 BOPD NRI to Vaalco.
During the first quarter of 2020, Vaalco brought two new wells online – the South East Etame 4P and South East Etame 4H, experienced normal operational downtime associated with simultaneous production, drilling, and completion operations.
The company also brought production back online as a result of performing two workovers. Production for the first quarter of 2020 was 18,298 gross BOPD or 4,944 BOPD NRI to Vaalco which was near the high end of first-quarter guidance of 5,000 BOPD NRI.
Vaalco also stated that it had two liftings during the first quarter of 2020, one in January and one in February, but the next lifting for 85,000 barrels of oil that was scheduled for March was delayed to 1 April due to poor weather conditions.
As a result, the sales volumes for the quarter were down when compared to the fourth quarter of 2019, despite the higher production in the first quarter of 2020.
Cary Bounds, CEO of Vaalco, said: “We continue to execute operationally and have restored 2,400 gross BOPD of production with the successful workover of the South East Etame 2H well. We have now released the Vantage drilling rig after completing the successful 2019/2020 drilling campaign and executing two workovers that restored production from wells that were shut in due to ESP failures.
“We are proud of the highly successful and transformational drilling program that has added meaningful production and significantly reduced our operating costs per barrel. For the first quarter of 2020, production was 4,944 BOPD NRI, which is […] our highest production since Q4 2015.
“This gives us the confidence to reaffirm our full-year 2020 production guidance of 4,400 to 5,000 BOPD NRI. In addition, our strong production has helped to lower our operational breakeven cost of approximately $31.00 per barrel and, coupled with our current hedge portfolio, positions us well to navigate through the uncertain macro environment we face today.
“Thus far, Vaalco’s operations have not been disrupted by the global COVID-19 pandemic, and we have managed through the logistical challenges that we have faced since the outbreak”.
Source:www.energynewsafrica.com
OPEC+ Slashes Production, Saves Oil Industry From Collapse
In a watershed moment for the oil and gas industry, OPEC and its allies in the OPEC+ group finalized a deal on Easter Sunday that, in conjunction with efforts from the G20 and International Energy Agency, could see up to 20 million barrels of oil per day removed from a severely oversupplied oil market. The deal is set to boost the oil price and provide some much-needed stability for an industry in crisis.
Initially announced Thursday, the agreement was delayed as Mexico refused their share of production cuts. The original OPEC+ deal would have seen a cut of 10 million barrels of crude per day from an October 2018 baseline, for an initial two-month period. With OPEC+ letting Mexico off the hook, the official OPEC+ cut now stands at 9.7 million barrels, as Mexico agrees to cut 100,000 barrels per day instead of 400,000 barrels per day.
In reality, however, the OPEC+ deal will cut more than the quoted 9.7 million barrels, since current production levels are much higher than the October 2018 baselines used to calculate the production cuts. The deal sees Russia and Saudi Arabia absorbing the brunt of the cuts, each agreeing to cut their production down to 8.5 million barrels per day. Saudi Arabia’s production stood at 12.3 million barrels per day, and Russia was producing 11.29 million barrels of oil per day in March. Both countries, however, used 11 million barrels per day as their baseline in the deal.
“These production adjustments are historic. They are largest in volume and the longest in duration, as they are planned to last for two years. We are witnessing today the triumph of international cooperation and multilateralism which are the core of OPEC values,” Secretary General of OPEC H.E. Mohammed Barkindo. Barkindo also noted that the OPEC+ deal paves the way for further collaboration with the G20.
In a meeting on Friday, the G20 nations also agreed to take action to stabilize the market. The United States, for example, is set to use the Strategic Petroleum Reserve to store vast quantities of oil. Additionally, the US will see production cuts of at least 2 million barrels as the market responds to a lack of demand. The US has also reportedly offered to take on an additional cut of 300,000 barrels per day on Mexico’s behalf, although the details of how such a deal would play out have not been released.
The OPEC+ group is expected to request the G20 to cut over 3 million barrels per day of production. The G20 energy ministers agreed Friday to create a task force to monitor the situation and formulate strategies. The Texas Railroad Commission, the agency that regulates the state’s oil and gas industry, is also scheduled to meet on Tuesday to discuss regulating formal cuts, though the US has largely maintained that the free market will determine oil production cuts.
US President Donald Trump tweeted his support for the OPEC+ deal on Sunday.
“This will save hundreds of thousands of energy jobs in the United States. I would like to thank and congratulate President Putin of Russia and King Salman of Saudi Arabia,” he said.
Finally, in a reported, but not confirmed, side deal, Saudi Arabia, Kuwait and the United Arab Emirates could agree to reduce production by an additional 2 million barrels of oil per day.
OPEC has “Breathed Life” into Africa
The historic production cuts provide a much-needed financial boost to Africa’s oil and gas producers, including Nigeria, Angola, South Sudan, Sudan, Gabon, Congo-Brazzaville and Equatorial Guinea, as the sudden drop in oil and gas prices coincided with the COVID-19 health crisis and the economic repercussions of closing businesses and restricting movement to deal with the pandemic.
In a statement, Nigeria’s Minister of State for Petroleum Resources, Hon. Chief Timipre Marlin Sylva, said he expects the oil price to rebound by $15 per barrel in a short-term outlook.
“This also promises an appropriate balancing of Nigeria’s 2020 budget that has been rebased at $30 per barrel,” he said.
NJ Ayuk, Chairman of the African Energy Chamber, lauded the efforts of the OPEC+ deal, as a stable oil market will provide economic relief and save jobs throughout the continent.
“OPEC has hit a home run,” Ayuk said. “OPEC has breathed life and given hope to African nations, oil workers, investors and the African business community. We need to focus on exploration soon again. Now we have the ball; we need to run with it and start the process of bouncing back. We need to defend the African oil industry like a junkyard dog in the face of a hurricane.”
South Sudan, a member of the OPEC+ alliance, also welcomed the deal.
“South Sudan is East Africa’s only producing country. Our production was over 350,000 barrels per day before the civil war. At the present moment, we are producing about 185,000 barrels per day with a target on attracting more investment into the oilfields to get our nation to 300,000 barrels per day. The current price war and coronavirus has affected our economy,” the country’s Minister of Petroleum Hon. Puot Kang Chol said.
“We welcome all efforts to stabilize the oil market and South Sudan will continue to play its role. Our government will continue doing its utmost best in making the oil production and fighting the Coronavirus a priority and we will continue collaborating with all our partners,” he added.
OPEC+ Cuts Respond to Slashes in Demand
Each nation, aside from Saudi Arabia and Russia, which are both cutting substantially more, is expected to cut 23 percent of production from May to June. Iran, Libya and Venezuela are exempted from the production cuts, and Mexico is only cutting 100,000 barrels per day.
After this initial two-month period, overall production cuts will lower to 8 million barrels per day from July to December and then lower to 6 million barrels per day from January 2021 to April 2022. The OPEC+ group will meet in July to discuss further action, if needed.
With about 40 percent of the world’s population ordered to stay home to stem the spread of COVID-19, demand for oil and gas has decreased by about 30 percent, from over 100 million barrels per day to under 85 million barrels per day, according to the Energy Information Agency.
The International Energy Agency, which called for the G20 meeting of energy ministers on Friday, argued the market conditions were too much for OPEC+ alone to handle.
“The extreme volatility we are seeing in oil markets is detrimental to the global economy at a time when we can least afford it,” said Dr. Fatih Birol, Executive Director of the IEA.
“Today’s oil crisis is a systematic shock that threatens global economic and financial stability. It requires a global answer. That is why the G20 can be an indispensable forum for decisive leadership when it is urgently required,” he added.
Brent crude was averaging $55.70 per barrel in February, but, with an oil price war and the impacts of COVID-19, both Brent and WTI have reached their lowest level in years, with Brent hitting $22.76 per barrel in March, its lowest price since November 2002.
As demand for oil and the price of oil has declined, storage capacity is also reaching its limits. In just a few weeks, analysts predict oil production may be shut in due to a lack of global storage capacity.
Source: www. energynewsafrica.com
OPEC’s Historic Deal Is A Victory For African Oil Companies, Investors –African Energy Chamber
The African Energy Chamber has congratulated OPEC and OPEC+ Member countries on reaching a much-needed historic deal to cut production and maintain market stability.
After repeatedly calling and lobbying African producers to join OPEC in restoring market stability, the Chamber is particularly pleased to see the wide support for OPEC amongst all of African producing countries.
On Easter Sunday, OPEC and OPEC+ member countries finally decided to cut oil production by 9.7 million barrels a day starting on May 1st, 2020 and until June 30th, 2020. From July 1st, 2020, production cuts will be readjusted to 8 million barrels a day until the end of the year. Finally, OPEC and OPEC+ member countries have agreed on a production cut of 6 million barrels a day from January 1st, 2021 until the end of April 2022. The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and the Russian Federation, both with the same baseline level of 11 million bopd.
“The spirit of cooperation has triumphed and under the leadership of Africa’s own son, H.E. Mohammed Sanusi Barkindo, OPEC reaches yet another truly historic deal for our continent and for global energy markets,” NJ Ayuk, Executive Chairman at the African Energy Chamber said.
“This clearly shows that in times of critical need we can set aside our differences and unite behind historic deals that will make the difference at home for our companies and our employees. The Chamber will continue to put all its resources behind supporting this coordinated industry effort beyond 2022. Compliance is key, so let’s get to work,” added Mr Ayuk.
The decision is truly historic and builds upon the Declaration of Cooperation of 2016 and takes production cuts levels even higher. Over the years, it is the joint efforts of OPEC member countries along with their allies within OPEC+ that have resulted in building an industry coalition able to put the interests of the market first. African producers are playing a key part in this effort, bot via OPEC member countries Nigeria, Angola, Algeria, Libya, Gabon, Equatorial Guinea and Congo, but also thanks to the support of additional producers such as Egypt, South Sudan, Chad or Niger.
Source: www. energynewsafrica.com
Ghana: TOR MD’s Bribery Scandal: US-Ghanaian Lawyer Takes On Gov’t
A US-based Ghanaian lawyer, popularly known as Kwaku Azar, has questioned the kind of due diligence the Akufo-Addo administration conducted before appointing Asante K. Berko as the Managing Director of the Tema Oil Refinery.
In a Facebook post, the Ghanaian lawyer said: “Unlike the poor guy who got remanded for stealing cocoyams, you will not see Asante Berko, current TOR MD, remanded for his role in facilitating $4.5M bribe payments to government officials, including a misery $66,000 to our MPs while he, Berko, pocketed a cool $2M for his role in the illegal scheme.
“What due diligence was made before his appointment?
“128/1820 is a bona fide scam and sham! Da Yie!” he concluded.
Mr Berko has allegedly been charged by the Securities and Exchange Commission (SEC) of the United States of America for arranging, at least, $2.5 million in bribes paid to former government officials in Ghana, West Africa, to gain approval for a power plant project.
The bribes were allegedly arranged by Mr Berko when he was an Executive Director with the US bank, Goldman Sachs.
The US Security and Exchanges Commission, in a statement, said it had “charged a former executive of a financial services company with orchestrating a bribery scheme to help a client to win a government contract to build and operate an electrical power plant in Ghana in violation of the Foreign Corrupt Practices Act (FCPA).”
The SEC’s complaint alleges that Mr Berko, a former executive of a foreign-based subsidiary of a U.S. bank holding company, arranged for his firm’s client, a Turkish energy company, to funnel, at least, $2.5 million to a Ghana-based intermediary to pay illicit bribes to Ghanaian government officials in order to gain their approval of an electrical power plant project.
The complaint further alleges that Berko helped the intermediary pay more than $200,000 in bribes to various other government officials, and Berko personally paid $66,000 to members of the Ghanaian parliament and other government officials.
According to the complaint, Berko took deliberate measures to prevent his employer, Goldman Sachs, from detecting his bribery scheme, including misleading his employer’s compliance personnel about the true role and purpose of the intermediary company.
Mr Berko was appointed as the Managing Director of TOR in January 2020, after the resignation of Isaac Osei.
Source:www. energynewsafrica.com
Ghana: Sunon Asogli Power Invests $1Million In 330kV/161kV Auto Transformer To Ensure Stable Supply Of Electricity
Ghana’s largest independent power producer, Sunon Asogli Power Ghana Limited has invested US$1 million to install a 330kV/161kV interconnecting auto-transformer to ensure stable power transmission and efficient electricity supply in the West African nation.
The amount covers civil works, transportation, installation and commissioning.
The West African country has been facing power congestion on its 330kV Aboadze-Volta transmission line, thus, contributing to shortfall in power supply.
The line mainly transmits electricity from three power plants namely; Amandi plant (192MW), Karpowership (450MW), and Sunon Asogli power plant 360MW (330kV capacity).
However, due to limited capacity of the transformers on the line, the current maximum transmission capacity of the Aboadze-Volta transmission line is only 340MW, which means many generators connected to the line cannot be dispatched.
Despite the government of Ghana owing Independent Power Producers (IPPs) close to GHS1.3 billion including Sunon Asogli Power Ghana Limited, the company decided to acquire and install a 330kV/161kV auto-transformer between Sunon Asogli Power 330kV substation and the existing 161kV Kpone collector substation.
This project will add extra 200MVA transmission capacity for the 330kV Aboadze-Volta transmission line which would not only alleviate congestion to ensure stable power transmission and supply, but also add more than 1500GWh of electricity per year to Ghana’s national grid theoretically, that would be transmitted from the 330kV network to the 161kV network.
In addition, the 330kV/161kV auto transformer would forestall the limitation and halting of power transmission to neighbouring countries when the Volta substation trips and reduces the possibility of tripping the 330kV substation, when power transmission lines to neighbouring countries trip.
With this project executed, the operation of the electricity system becomes more reliable, safer and economical.
Source:www.energynewsafrica.com
Ghana: MD Of Tema Oil Refinery Charged For Alleged Bribery
The Managing Director of Ghana’s Tema Oil Refinery, Asante K. Berko has allegedly been charged by the Securities and Exchange Commission (SEC) of the United States of America for arranging at least $2.5 million in bribes to be paid to government officials to gain approval for a power plant project.
The bribes were allegedly arranged by Mr Berko when he was an Executive Director with the US bank, Goldman Sachs. He was appointed Managing Director of the Tema Oil Refinery in January 2020, replacing Isaac Osei, who resigned.
The US Security and Exchanges Commission, in a statement, said it had “charged a former executive of a financial services company with orchestrating a bribery scheme to help a client to win a government contract to build and operate an electrical power plant in Ghana in violation of the Foreign Corrupt Practices Act (FCPA).”
The SEC’s complaint alleges that Mr Berko, a former executive of a foreign-based subsidiary of a U.S. bank holding company, arranged for his firm’s client, a Turkish energy company, to funnel, at least, $2.5 million to a Ghana-based intermediary to pay illicit bribes to Ghanaian government officials in order to gain their approval of an electrical power plant project.
The complaint further alleges that Berko helped the intermediary pay more than $200,000 in bribes to various other government officials, and Berko personally paid $66,000 to members of the Ghanaian parliament and other government officials.
According to the complaint, Berko took deliberate measures to prevent his employer, Goldman Sachs, from detecting his bribery scheme, including misleading his employer’s compliance personnel about the true role and purpose of the intermediary company.
Chief of the SEC Enforcement Division’s FCPA Unit, Charles Cain said, “As alleged in our complaint, Berko orchestrated a scheme to bribe high-level Ghanaian officials in pursuit of firm business and his own enrichment. Berko’s misconduct was egregious and individual accountability remains a key component to our FCPA enforcement efforts.”
He continued, “The firm’s compliance personnel took appropriate steps to prevent the firm from participating in the transaction and it is not being charged.”
The SEC’s complaint, filed in the U.S. District Court for the Eastern District of New York, charges Berko with violating the anti-bribery provisions of the FCPA and federal securities laws.
The SEC is seeking monetary penalties against Berko among other remedies.
The SEC’s case is being handled by Asita Obeyesekere and Paul G. Block of the FCPA Unit and Kathleen Shields, Mark Albers, and Marty Healey of the Boston Regional Office.
Attempts to speak to Mr Asante K. Berko has proved futile as he could not be reached via telephone.
Click on the link below for the court document
comp-pr2020-88
Ghana: Sunon Asogli Power Ghana Ltd Supports KKMA, KTC To Fight Covid-19
Ghana’s largest independent power producer, Sunon Asogli Power Ghana (GH) Ltd. has donated 400 gallons of disinfectant(bactericide) to the Kpone Katamanso Municipal Assembly and the Kpone Traditional Council.
The donation which formed part of the company’s corporate social responsibility is to enable them to prevent the spread of the novel Coronavirus in the Kpone municipality.
Presenting the items on behalf of management and staff of the Sunon Asogli Power Ghana Ltd, Mr. Mfum Kwakye (Local Administration /HR Manager) posited that as partners in development in the municipality, it beholds on them to support the assembly in the fight against the Covid-19 pandemic.
He urged Ghanaians to observe all the protocols outlined by World Health Organisation and Ghana Health Service to fight the disease.
Receiving the items, Hon. Solomon Appiah the MCE of the KPONE Katamanso municipal Assembly, thank the management and staff of Sunon Asogli Power for their continuous support to the Kpone Community.
Mr Appiah recounted the assembly’s support in showing solidarity to Wuhan China some few weeks ago.
He was optimistic that with the right attitude this (Covid-19) too shall pass.
On his part, the Paramount Chief of Kpone thanked the Sunon Asogli Power Ghana Ltd for items and thanked the assembly to use it to the benefit of the whole community.
He advised Ghanaians to take the precautionary measures seriously and stay safe.
Source:www.energynewsafrica.com
Nigeria: Federal Gov’t Cuts Oil Benchmark To $30 Per Barrel
Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed, has said the Federal Government has proposed the reduction of the country’s oil benchmark from $57 to $30 per barrel following the dramatic fall in crude oil price on the international market.
Ahmed, who disclosed this at the end of a meeting between the federal government and the leadership of the National Assembly in Abuja, said the meeting was meant to review the 2020 budget and Medium Term Expenditure Framework, (MTEF) due to the impact of the Coronavirus pandemic on the global economy.
The minister proposed a review of the 2020 budget using a $30 per barrel price benchmark as against $57 proposed by President Muhammadu Buhari in December last year.
She said the move was part of the measures to prepare for the worst-case scenario and insulate the Nigerian economy against any form of unexpected crisis.
Zainab Ahmed also told the leadership of the National Assembly that budgeted revenues for the Nigeria Customs Service have been reduced from N1.5 trillion to N943billion “due to anticipated reduction in trade volumes.”
“The privatisation proceeds will be cut by 50 percent, based on the adverse economic outlook on sales of the Independent Power Projects and other assets,” the minister said as carried by Vanguard.
“The Federal Government is working on Fiscal Stimulus Measures to provide fiscal relief for taxpayers and key economic sectors. “We will incentivise employers to retain and recruit staff during the economic downturn.”
Source:www.energynewsafrica.com
Liberia: Minister Hints Of Major Gasoline Crisis
Liberia’s Minister of Commerce, Professor Wilson Tarpeh has announced the current supply of gasoline on the Liberian market is at an all-time low-and is expected to run out within the coming weeks.
Addressing the Plenary of the House of Representatives, Prof. Tarpeh blamed the situation on the inability of major importers to finance the importation of gasoline owing to the problem of reconciliation and dredging at the Freeport of Monrovia.
He, however, assured the House Plenary that the situation is expected to be addressed within a month following the arrival of 19,000 metric tons, about 6,650,000 gallons of gasoline within four weeks.
“In the current situation, the level of petroleum product in the market is very low, precariously low and there are two primary reasons for this: the inability of importers to finance import as the result of the situation that we have with the reconciliation and the dredging of the port,” Prof. Tarpeh reportedly said, in his testimony before the House of Representatives.
“As we speak, our current level can go within seven to nine days, and the order that we are expected to receive has been put up for another ten days. But we are confident that the importers said we expecting 19,000 metric tons which is 6,650,000 gallons of gasoline within the next four weeks.”
The Commerce Minister’s revelation comes in the wake of recent acute gasoline shortage that led to the sacking of the Deputy Managing Director for Operations of the Liberia Petroleum Corporation (LPRC), Bobby Garseyu Brown, and the suspension of all petroleum importers’ licenses by President George Manneh Oppong Weah.
The President’s action was based on the findings of the Special Task Force commissioned to identify the cause of the recent petroleum shortage in Liberia as well as variances between importers stocks balances and the acute stock balances of the LPRC.
“All petroleum importers licenses are hereby suspended and are to be individually subjected to a performance-based review covering the period January 2017 to January 2020. Re-activation of the license will be done on a case-by-case basis and those that do not meet performance and capacity requirements satisfactory to the Liberia Petroleum Refining Company will be subject to revocation,” a statement from the Executive Mansion said in the wake of the President’s action.
However, in less than a month, the situation is about to resurface, and it is happening at the time the Government is focusing on combating the deadly coronavirus virus that is raging across the world and disrupting international trade.
Source:www.energynewsafrica.com
MiDA Briefs Residents Of Larteh Akuapem On Low Voltage Bifurcation (LVB) Project
The Millennium Development Authority (MiDA), the implementing agency for the Ghana Power Compact II and its partners have engaged with a cross-section of residents and community leaders at Larteh Akuapem in the Akuapem North Municipality about the ongoing Low Voltage Bifurcation (LVB) Project in the area at a Town Hall Meeting.
The engagement which saw officials of the Electricity Company of Ghana (ECG) and Power Factor (GH) Ltd, the Works Contractor for the LVB Project, also in attendance was to raise awareness and deepen community knowledge of the objectives behind the project.
Organized by Colan Consult, one of the four Community Engagement and Resettlement Action Plan (RAP) Consultants for MiDA, the meeting discussed the project’s benefits, expected impacts on their assets and livelihoods, measures put in place by the project to manage the impacts and threw light on any other issues that may concern Project Affected Persons (PAPs).
Community Leaders and ECG’s customers had pertinent questions answered during the meeting.
Representatives of a Grievance Redress Committee (GRC) set up by the project to manage grievances that may emanate from the project, were out-doored to the gathering.
The LV Bifurcation Project being implemented by MiDA in seven districts of ECG’s Southern Distribution Area, will directly benefit an estimated 560,000 Customers, living in 53 towns and communities.
The beneficiary ECG districts are Kaneshie, Dansoman, Achimota, Mampong Akuapem, Roman Ridge, Kwabenya and Legon.
Frequent power outages, resulting from the inability of existing transformers to carry loads from increasing electricity demand in these areas, distribution losses and poor-quality lighting, are some of the challenges being addressed through the project.
The Chief Executive Officer of MiDA, Martin Eson-Benjamin, explained that the Project was being carried out in collaboration with the major beneficiary, ECG.
“We are installing 24 higher capacity transformers in Larteh and Akropong to improve the quality of electricity in these two towns and ensure Customer satisfaction.” he said.
He also explained that the project was being implemented in needy communities selected by ECG, adding that “the use of Compact funds will enable ECG to invest its own resources for planned service upgrades in other communities.
He called for cooperation and forbearance from the communities, as the implementation of the projects will be accompanied occasionally, by planned outages.
Mr. Eson-Benjamin added that the interventions under the Millennium Challenge Corporation (MCC) funded Compact Program are necessary and the beneficiary communities are implored to accept the challenges that the occasional outages, to be carefully supervised by ECG, may bring. However, every effort will be made to advise and inform the affected communities well ahead of any planned outages.
Ing. Mark Wilson, the Mampong Akuapem District Manager of ECG, expressed ECG’s appreciation for MiDA’s intervention in the fast-growing Larteh Township and reiterated the need for the community’s support and collaboration during the implementation of the much-needed LVB Project.
Ing. Wilson was particularly thankful to the Chiefs, the Elders and customers in Larteh for the excellent support and cooperation they have given to the utility company during the many years of power supply to the Larteh Township.
The LV Bifurcation Project is one of the four Sub-Project Activities that make up the ECG Financial and Operational Turnaround (EFOT) Project and is being funded by the US Government’s the Millennium Challenge Corporation (MCC), through the US$308 million Ghana Power Compact Program.
The LV Bifurcation Project Activities in all the selected ECG Districts are expected to be completed by August 2020.
Source: www.energynewsafrica.com
Ghana: Tullow Terminates Maersk Drillship Contract
UK oil and gas firm, Tullow Oil has terminated the drilling contract with Maersk Drilling for the Maersk Venturer drillship in Ghana.
Maersk Drilling said it had received a notification from Tullow Ghana “of early termination for convenience of the drilling contract.”
The Maersk Venturer drillship has worked for Tullow offshore Ghana since February 2018, with an expected end of the contract in February 2022.
The rig is now expected to end the contract in June 2020.
“As a consequence of the termination, Maersk Drilling’s revenue contract backlog is reduced by USD 175m covering the period from the end of the contract to February 2022,” Maersk Drilling said.
“Subject to commercial prospects, Maersk Drilling will take measures to reduce Maersk Venturer’s operating costs following the end of the contract,” the company said.
Confirming the latest development to energynewsafrica.com, Head of Communications at Tullow Oil Plc George Cazenove, said “I can confirm we have terminated this contract. This is due to prevailing market conditions within the industry.”
The Danish offshore drilling company a couple of days ago issued an update on the impact of COVID-19 and lower oil prices on its business, warning that the situation “is assessed to have implications for the commercial and operational assumptions underlying the financial forecasts for the remaining part of 2020.”
“The lower oil price environment is likely to impact offshore activity with delays or cancellations of existing tenders and postponement of sanctioning of new projects adversely impacting the prospects for new contracts,” Maersk Drilling said on March 20.
The company thus revised down its financial guidance for 2020 for EBITDA before special items to USD 325-375m (original guidance of USD 400-450m). The guidance for capital expenditures remained unchanged at USD 150-200m.
“The severity and duration of the COVID-19 situation and the lower oil price environment are currently difficult to predict, but given the strong balance sheet, high liquidity reserve, and long debt maturity profile, Maersk Drilling has the financial strength and flexibility to withstand and navigate in this challenging business environment, also in case of a prolonged period of uncertainty,” the company assured.
At the end of 2019, Maersk Drilling’s net debt amounted to USD 1.1 billion corresponding to a leverage ratio of 2.6x, and the liquidity reserves amounted to USD 710 million, including an undrawn revolving credit facility of USD 400 million.
The loan facilities have final maturities in 2023 and 2025. Maersk Drilling complies with all financial covenants with a significant headroom and has no newbuilding capital commitments, the company said last Friday.
Source:www.energynewsafrica.com