Kosmos To Slash Capex, Suspend Dividend, Announces Lay Off
U.S.-based oil and gas company Kosmos Energy has 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.
In an update on Tuesday, Kosmos said it is taking several actions to maintain balance sheet strength and preserve flexibility thereby joining a number other oil and gas operators who have decided to reduce their spending in 2020 as a result of sharp decline in oil price and the outbreak of the coronavirus.
At the 4Q19 results, Kosmos guided to a 2020 capital budget for its base production business of $325-$375 million.
The company has identified over $100 million of discretionary expenditure largely related to exploration activities in the Gulf of Mexico and its basin-opening exploration portfolio.
“We are now targeting to reduce our 2020 capital budget for the base business by around 30% to under $250 million whilst keeping 2020 production flat, in line with previous guidance and with minimal expected impact on 2021 production,” the company said.
The company also has significant flexibility in its 2021 capital program should current market conditions persist.
In Mauritania & Senegal, Kosmos said it is working with the operator to defer 2020 Tortue Phase 1 capital spending with the goal of extending the carry of our capital obligations through the end of this year.
“In addition, our priority remains to sell down our interests to support a self-funded growing gas business,” the company added.
Tortue Phases 2 and 3 are expected to take final investment decision (FID) in mid-2022 and mid-2023 respectively with minimal capital required ahead of FID with the objective to project finance both thereafter.
Kosmos said it plans to implement cost reductions with over $60 million of savings expected in Opex and G&A in 2020.
“Whilst a significant portion of our Opex is fixed, we are targeting a reduction of $1/boe without impacting asset integrity or near-term production.
“Through a reduction in company headcount, no planned cash bonuses for employees in 2020 and other cost reductions we plan to significantly reduce cash G&A in 2020,” Kosmos said.
According to Kosmos, its priority is to ensure the strength of the balance sheet in the current market price volatility. The board has therefore decided to suspend the dividend after the announced 4Q19 payment until market conditions improve. This will provide savings of approximately $75 million annually.
As a result of these actions and taking into account the company’s hedging position, Kosmos believes it can be free cash flow neutral beginning in 2Q and fund all of its obligations at a $35/bbl Brent price.
Source:www.energynewsafrica.com
ExxonMobil To Slash Spending Over Coronavirus Pandemic And Falling Oil Prices
US oil and gas giant, ExxonMobil, is looking to significantly reduce spending as a result of market conditions caused by the COVID-19 pandemic and commodity price decreases, energynewsafrica.com can report.
The coronavirus pandemic has slowed demand for oil, plunging the price of the commodity below US$30 per barrel.
In a statement signed by Darren Woods, Chairman and Chief Executive Officer of ExxonMobil Corporation, it said: “Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term.
“We will outline plans when they are finalised,” he added.
Woods said that ExxonMobil has faced numerous market downturns throughout its long history and has experienced operating in a sustained low-price environment.
“We remain focused on being a safe, low-cost operator and creating long-term value for shareholders,” said Woods.
The company is closely monitoring the COVID-19 pandemic and has adjusted work arrangements to ensure a healthy work environment and support communities where it operates.
Woods stressed the company would maintain its ongoing commitment to safety and environmental performance.
“We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong,” said Woods.
Sources:www.energynewsafrica.com
Ghana: Current Power Situation Doesn’t Demand Load Shedding Timetable -GRIDCo CEO
The Chief Executive Officer of Ghana’s power transmission company, GRIDCo, has dismissed assertions for a load shedding time table following recent widespread power cuts.
According to Ing. Jonathan Amoako-Baah, the current situation doesn’t require load shedding as some have suggested.
Some parts of the West African especially Accra, capital of Ghana has witnessed a number of blackout .
Despite, an earlier statement from GRIDCo blaming last Monday’s power outage on scheduled test performance by WAGPCo at its regulating and metering station in Tema some still doubt it.
Speaking on an Accra -based Citi FM on Wednesday, the Chief Executive Officer of GRIDCo, Jonathan Amoako Baah, noted that that the recent power challenge was different from the power crisis of 2015 which necessitated a load-shedding timetable for the nation.
“Unlike what we call the dumsor era, while projecting into the future, you will know that consistently you have a shortfall of between 150 and 200 megawatts, going on into the future then you can issue a schedule and say this is the challenge so you will go off and customer B will go on,” he explained on the Citi Breakfast Show.
The current “shortfall is not persistent or consistent,” Mr Amoako Baah added.
The lack of fuel for plants in the western and eastern enclaves had been identified as the cause of the shortfalls, according to GRIDCo.
For example, there has been no gas from Nigeria to supply the eastern enclave’s gas-powered power plants.
For the power cuts last Saturday, GRIDCo attributed the blackout to a system disturbance on its 330KV line.
Most recently, GRIDCO said the power outages were due to a performance test on a new regulating and metering gas station in Tema.
Mr Amoako Baah indicated that “what is essential is getting fuel to ensure power is then generated for everyone to use.”
He said the situation over the weekend was a “coincidence of events where any plant that you want to fall on was just not available.”
But Mr Amoako Baah stressed that there needed to be consistency in the sector to curb the erratic power supply.
“You resolve dumsor not just by buying fuel today. If you buy fuel today and tomorrow you don’t buy fuel, the light will go off. So there has to be that effort to consistently ensure that fuel is available for the generating plants.”
He added that power will be stable “if there is an effort to ensure the fuel is always available.”
Source:www.energynewsafrica.com
U.S. Senators Urge Saudi Arabia To End Oil War
U.S. Republican Senators are urging the world’s top oil exporter Saudi Arabia to review plans to significantly boost oil supply to the market and lower oil prices while the world is grappling with the coronavirus pandemic.
In a letter to Saudi Arabia’s Crown Prince Mohammad bin Salman, the 13 Republican Senators led by Dan Sullivan of Alaska and Kevin Cramer of North Dakota said that the extremely volatile and unsettled global oil market with plunging oil prices is “an unwelcome development.”
“The United States has been a strong and reliable partner to the Kingdom for decades. In light of this close strategic relationship, it was greatly concerning to see guidance from the Kingdom’s energy ministry to lower crude prices and boost output capacity. This has contributed to a disruption in global oil prices on top of already hard-hit financial markets,” said the Senators, mostly representing oil producing U.S. states such as Alaska, Texas, Oklahoma, North Dakota, and Louisiana.
The Saudi –Russian oil price war in the wake of the OPEC+ deal collapse is largely viewed as a war for market share and an effort to push U.S. shale producers out of the picture as very few of them make any money at $30 oil.
“Senior Saudi government leaders have repeatedly told American officials, including us, that the Kingdom of Saudi Arabia is a force for stability in global markets. Recent Saudi actions have called this role into question. We urge the Kingdom to assert constructive leadership in stabilizing the world economy by calming economic anxiety in the oil and gas sector at a time when countries around the world are addressing the pandemic,” the U.S. Senators wrote in their letter to the Saudi Crown Prince.
Earlier this month, U.S. shale tycoon Harold Hamm was said to be preparing to file an official complaint against Saudi Arabia with the U.S. Department of Commerce, after the Kingdom promised to unleash a flurry of crude oil into the markets, sending oil prices into a tailspin.
Source:www.energynewsafrica.com
Ghana: Dr. Joyce Aryee Inspires Vivo Energy Women
A Board Member of Ghana’s power generation company, Volta River Authority (VRA), Rev. Dr. Joyce Aryee has urged women to work collectively to change misperceptions.
Dr. Aryee, a Management Consultant and Executive Director of the Salt and Light Ministries, said women can be perceived to be comfortable in lower ranks of the corporate world.
This, she said, limits women’s progression to leadership roles, hiding their rich creativity and innovative abilities ‒ especially when many women have accepted this perception themselves.
She was speaking at Vivo Energy Ghana’s International Women’s Day event to celebrate and empower its female workforce to aspire to greater heights.
Speaking on the theme for the year, #EachforEqual, Dr. Aryee urged women to embrace collective individualism – developing themselves for the benefit of the whole.
“Women are intelligent, focused, resilient and compassionate, qualities they can leverage to make a significant difference. In consciously empowering women, men must also be empowered in order to align with the current trends in recognition of equal rights and opportunities for all”, she said.
The Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara who spoke on ‘Women in Leadership’, recognised that there is no gender bias in leadership. Leadership effectiveness is based on the individual and not on sex. However, women may instinctively care more about their team’s well-being and have a stronger desire to connect with them on a personal level, thereby making women more transformational leaders than transactional leaders. He therefore urged them to take advantage of their natural abilities to aim at top leadership roles.
A senior family physician of the Korle-Bu Polyclinic, Dr. Priscilla Vandyck-Sey, advised women to be more conscious of the pressures associated with the corporate world and undertake regular medical check-ups to ensure they are fit to deliver on their collective individualism agenda.
International Women’s Day is celebrated annually on 8th March to showcase commitment to women’s equality, launch new initiatives and action, celebrate women’s achievements, raise awareness, highlight gender parity gains and more.
The day is celebrated and supported globally by industry, governments, educational institutions, community groups, professional associations, women’s networks, charities, non-profit bodies and the media.
Source:www.energynewsafrica.com
She was speaking at Vivo Energy Ghana’s International Women’s Day event to celebrate and empower its female workforce to aspire to greater heights.
Speaking on the theme for the year, #EachforEqual, Dr. Aryee urged women to embrace collective individualism – developing themselves for the benefit of the whole.
“Women are intelligent, focused, resilient and compassionate, qualities they can leverage to make a significant difference. In consciously empowering women, men must also be empowered in order to align with the current trends in recognition of equal rights and opportunities for all”, she said.
The Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara who spoke on ‘Women in Leadership’, recognised that there is no gender bias in leadership. Leadership effectiveness is based on the individual and not on sex. However, women may instinctively care more about their team’s well-being and have a stronger desire to connect with them on a personal level, thereby making women more transformational leaders than transactional leaders. He therefore urged them to take advantage of their natural abilities to aim at top leadership roles.
A senior family physician of the Korle-Bu Polyclinic, Dr. Priscilla Vandyck-Sey, advised women to be more conscious of the pressures associated with the corporate world and undertake regular medical check-ups to ensure they are fit to deliver on their collective individualism agenda.
International Women’s Day is celebrated annually on 8th March to showcase commitment to women’s equality, launch new initiatives and action, celebrate women’s achievements, raise awareness, highlight gender parity gains and more.
The day is celebrated and supported globally by industry, governments, educational institutions, community groups, professional associations, women’s networks, charities, non-profit bodies and the media.
Source:www.energynewsafrica.com Ghana: Mines & Energy Committee Member Slams Gov’t Over Recent Power Outages
A Ranking Member on Mines and Energy Committee of Parliament in the Republic of Ghana, Adam Mutawakilu, has bemoaned what he described as the surge in power outages in recent times.
According to him, the development reveal the deep-seated challenges in the energy sector that ought to be tackled.
Addressing the journalists, Adams Mutawakilu who is the Damango MP called for the release of a load shedding timetable.
“No gatherings mean that those who mostly go out for prayers at churches and mosques will now stay home. We expected that you as a concerned President will ensure that we will not experience dumsor but dumsor is at its peak for no apparent reason. Because we have enough installed capacity. He [the President] complains of excess capacity. This is the time we need excess capacity to come to play. Excess capacity is for situations like this where people stay more at home. If demand is increasing, you should be able to meet it. But the dumsor that we are facing is more of a disaster.”
He further accused the National Petroleum Authority of colluding with the Oil Marketing Companies (OMCs) to deprive Ghanaians of a proper reduction in fuel prices at the pumps.
“In the first window of the international market price in January, it was US$606 per metric tonne and by the second window in March, it dropped to US$337 per metric tonne. Relating to the local market, it only reduced by 4.7%. This is a clear cheat and we will not sit down for NPA to collude with the OMCs to cheat Ghanaians. And they must come clear and ensure that they reduce it to a minimum of 20% for Ghanaians to benefit from it. We deserve it,” he said.
Source:www.energynewsafrica.com
Ghana: Power Outages: PURC Hints Of Sanctioning Power Utilities If…
The Public Utilities Regulatory Commission (PURC) has noted with grave concern the recent power outages and voltage fluctuations being experienced by consumers of electricity in various parts of the Republic of Ghana.
The utilities regulator said it is monitoring and investigating the situation to identify the cause and ensure quality service provision.
Several parts of the country have been experiencing power cuts since last Saturday.
In a statement the power transmission company, GRIDCo, attributed the development to a scheduled test performance by the West African Gas Pipeline Company (WAGPCO) on its regulating and metering station which limited the flow of gas to power plants in Tema enclave.
However, in a statement signed by the Executive Secretary of the PURC, Mami Dufie Ofori (Mrs.), the Commission assured consumers that the appropriate regulatory action will be taken against any utility in the power value chain found noncompliant with regulatory standards and benchmarks.
The Commission urged affected consumers to submit their complaints including complaints of damaged electrical appliances to the utility service provider in the first instance and if not resolved forward them to any of the PURC offices in their respective areas for investigation and redress.
Source: www.energynewsafrica.com
Ghana: Limited Flow Of Gas Caused Monday’s Power Outage-GRIDCo
Ghana’s power transmission company, GRIDCo, has attributed Monday’s power outage in parts of Accra to a scheduled performance test which was carried out by West Africa Gas Pipeline (WAGPCo) undertook at its new regulating and metering gas station in Tema.
According to GRIDCo, the exercise led to limited gas supply to power plants in the Tema enclave.
“Additionally, some plants in the Aboadze enclave also experienced gas flow challenges; making them unable to generate power,” a statement issued by the company said.
Subsequently, the gas challenges were resolved, and power was restored to all affected bulk supply points on Tuesday, March 17, 2020.
Several parts of Accra, capital of Ghana, experienced power outage with a section of Ghanaians taken to social media to vent their anger on the government.
Some claimed the country had returned to the era of load shedding and wondered why government was not being truthful and honest to them.
GRIDCo said it acknowledges its coordinating role in the power delivery value chain and will continue to project transparency and dedication at all times.
“We continue to work closely with our stakeholders in the sector including the Volta River Authority (VRA), the IPPs, Electricity Company of Ghana and Northern Distribution Company (NEDCo) to ensure we reflect an atmosphere of coordination and collaboration in order to project a good image for the sector in the eyes of customers and the general public,” it said.
Source: www.energynewsafrica.com
Ghana: CBOD Demands Suspension Of All Petroleum Downstream Sector Engagements Over Covid-19
The Chamber of Bulk Oil Distributors (CBOD) in the Republic of Ghana, is demanding the suspension of all petroleum downstream industry engagements.
The demand follows the outbreak of coronavirus in the West African which prompted the President Nana Akufo-Addo announcing some measures including banning of all public gathering shutting down of schools over a period of one month.
So far Ghana has recorded about six cases of the contagious diseases.
In a statement signed by the Chief Executive Officer of CBOD, Senyo Hosi, it said the chamber has written to the National Petroleum Authority requesting suspension of all industry engagements over the 4 week period recommended by the President in his national address on Sunday.
CBOD noted in the statement that it will operate remotely beginning today, march 17, 2020 to march 30, 2020.
“CBOD staff will be available on call, email and teleconferencing to address any issue members may have,” the statement said.
Source:www.energynewsafrica.com
Source: www.energynewsafrica.com
Ghana: Adhere To All Measures By GHS, WHO To Avoid Spread Of Covid-19- CBOD To BDCS
The Chamber of Bulk Oil Distributors (CBOD) in the Republic of Ghana, is urging its members to abide by the preventive measures advised by the Ghana Health Services and World Health Organization and equip their offices with sanitizers to enable staff and customers to ensure proper hygiene to prevent the spread of Coronavirus (COVID-19).
The chamber also called on its members to ensure availability of water and detergents at all times to facilitate unrestrained handwashing and cleaning.
It further advised its members to provide paper towels (in dispensers) and not reusable hand towels in all their offices.
This advice follows the outbreak of the contagious Coronavirus in the West African nation.
So far Ghana has recorded six cases of COVID-19 prompting President Nana Akufo-Addo to issue a directive banning public gathering and shutting down of both public and private schools for four weeks.
In a statement signed by the Chief Executive Officer of CBOD, Mr Senyo Hosi and copied to energynewsafrica.com, the Chamber further advised its members to put in place remote working protocols to encourage staff to work from home where possible.
“They should endeavor to employ technology to facilitate meetings and gathering remotely.
“All depots are requested to advise protocols for the management of the covid-19 pandemic at their various facilities. These protocols should be advised to all users of their facilities including OMCS, GRA, BDCS, Tankers, NPA officers, etc.
“Depots are further advised to ensure that users of their facilities fully equip themselves with all necessary personal protective equipment and comply with the set down protocols in their facilities. Any user of the facility who refuses to comply with both the standard HSSE and anti Covid -19 should be forces to leave the facilities,” CBOD said.
CBOD urged all members to be calm and prioritise their personal health and the wellbeing of their families at this time.
“While we pursue our safety we (BDCS and CBOD) shall in no way neglect our responsibility to Ghana, our motherland,” it assured.
Source: www.energynewsafrica.com
Liberia: Gas Shortage Resurfaces In Liberia Amid Outbreak Of COVID-19
Liberia has been once again hit by shortages of gasoline as the West Africa nation confirms its first case of the deadly Coronavirus.
This shortage is coming at the time when the global pandemic of COVID-19, is also wreaking havoc on the economies of major producers and suppliers of petroleum products on the world markets.
According to FrontPageAfrica, vehicle operators and others have formed long, disordered queues fighting to get few gallons of the vital product, which powers their vehicles and home generators.
Four weeks ago the country was hit with gasoline shortages prompting President George Manneh Oppong Weah to set up a Special Task Force to probe into the issue.
The previous shortage seriously hampered normal activities, including that of businesses. One area that the visibility of the shortage can be seen is at the Rehab Total station, just a stone’s throw from President George Weah’s official residence.
One authoritative source in the petroleum industry told FrontPageAfrica, due to the COVID-19 pandemic, this is going to stop ships that bring the product from coming to Liberia over the next few weeks
The first shortage only affected gasoline but the source stated that the present one will also touch diesel; adding: “This is going to last for probably three months.”
Source: www.energynewsafrica.com
The previous shortage seriously hampered normal activities, including that of businesses. One area that the visibility of the shortage can be seen is at the Rehab Total station, just a stone’s throw from President George Weah’s official residence.
One authoritative source in the petroleum industry told FrontPageAfrica, due to the COVID-19 pandemic, this is going to stop ships that bring the product from coming to Liberia over the next few weeks
The first shortage only affected gasoline but the source stated that the present one will also touch diesel; adding: “This is going to last for probably three months.”
Source: www.energynewsafrica.com
Ghana: Power Outage In Accra, Others Due To Technical Faults From GRIDCo-ECG
Ghana’s power distribution company, Electricity Company of Ghana (ECG) is blaming the power outage being experienced in parts of the national capital- Accra and other operational areas on a technical challenge from the power transmission company, GRIDCo.
In an alert, ECG explained “that the outage being experienced in parts of Accra and other ECG operational areas is due to a technical challenge from GRIDCo”.
While apologizing for the inconvenience caused to its customers, ECG assured that the power supply will be restored to the affected areas once the anomalies are resolved.
“Customers should please note that power supply will be restored to all affected areas immediately GRIDCo rectifies the situation. The inconvenience caused by this technical challenge from GRIDCo is deeply regretted.”
Energynewsafrica.com’s monitoring on social media platforms indicate that areas such as Dome, Dansoman, Adabraka, Lapaz, North Kaneshie are currently without lights.
Ghana: GOIL Reduces Fuel Prices By 27 pesewas At Pump
Indigenous and largest oil marketing company in the Republic of Ghana, GOIL COMPANY LIMITED, has reduced fuel prices by 27 pesewas per litre with effect from Monday 16th March, 2020.
The company’s Super XP RON 95 will now sell at 5.11Cedis while Diesel XP will sell at 5.13 Cedis.
There has been calls by section of Ghanaians including Chamber of Petroleum Consumers (COPEC) for the oil marketing companies to reduce the prices of fuel at the pump following the fall in crude oil prices on the international market.
At about 3pm Monday, WTI crude was trading at about US$29.93 while Brent was selling at US$ 32.33 per barrel.
In a statement signed by Robert Kyere, Public Relations Managers for GOIL, it said the revision in prices is as a result of reduction in international prices of finished products and the relative stability of the Cedi against major currencies especially the US Dollar.
GOIL recently introduced a higher grade Super XP (RON 95) onto the market for all customers at no extra cost and at the last window, took the extraordinary step to reduce the price of the higher grade and quality RON 95.
Source: www.energynewsafrica.com
Ghana: GRIDCo Demolishes Unauthorised Structures Under Its Pylons, Renders Over 1000 People Homeless (Video + Photos)
Ghana’s power transmission company, GRIDCo, has demolished several unauthorised structures sited under its pylons from American house through to Dzorwulu, a suburb of Accra, capital of Ghana.
Some of the structures include drinking spots, wooden houses, chop bars, fitting shops, ghettos, block buildings. The demolishing exercise resulted in over a thousand people being rendered homeless.
The exercise followed warning notice by the power transmission company asking all those who have put up structures under their pylons to evacuate due to the dangers associated with living under the pylons.
When energynewsafrica.com team got to the scene on Saturday, scores of the victims were seen gathering their losses. Some of the victims told energynewsafrica.com that the area was invaded by security personnel without their notice around 3am Friday.
A women alleged that the security personnel gave her some beating even though she had a child at her back.
According to a man who gave his name as Capii, the number of people who have been rendered homeless by the demolition exercise is over 1000 including school children.
They accused the Akufo-Addo administration of treating them badly saying elsewhere they would have been given them some money to enable them go and rent apartments.
According to some of them, they do not have anywhere to go and therefore warned that they do not expect the Hon. Lydia Seyram Alhassan, who is the Member of Parliament for Ayawaso West Wuogon to come there to campaign ahead of 2020 General Election.
Click on the video to watch
Source: www.energynewsafrica.com
When energynewsafrica.com team got to the scene on Saturday, scores of the victims were seen gathering their losses. Some of the victims told energynewsafrica.com that the area was invaded by security personnel without their notice around 3am Friday.
A women alleged that the security personnel gave her some beating even though she had a child at her back.According to a man who gave his name as Capii, the number of people who have been rendered homeless by the demolition exercise is over 1000 including school children.
They accused the Akufo-Addo administration of treating them badly saying elsewhere they would have been given them some money to enable them go and rent apartments.
According to some of them, they do not have anywhere to go and therefore warned that they do not expect the Hon. Lydia Seyram Alhassan, who is the Member of Parliament for Ayawaso West Wuogon to come there to campaign ahead of 2020 General Election.
Click on the video to watch
Source: www.energynewsafrica.com