Authorities in Mauritius have arrested the Indian captain of the Japanese ship that ran aground near Mauritius and spilled 1,000 tons of oil on the Indian Ocean island’s protected coastline.
Sunil Kumar Nandeshwar captain of the MV Wakashio and who is from India, was charged with “endangering safe navigation” and is in custody pending a bail hearing next week, Police inspector Sivo Coothen has said
The ship’s first officer was also charged and is being held, he said.
“We are carrying out a full investigation and interviewing all the crew members,” Coothen said.
The Wakasio ran aground a coral reef on July 25 and after being pounded by heavy waves for several days the vessel cracked and started leaking oil on August 6.
The damaged ship spilled more than 1,000 tonnes of its cargo of 4,000 tons of fuel into the turquoise waters of the Mahebourg Lagoon, one of the island’s most pristine coastal areas.
Most of the remaining 3,000 tonnes of fuel was pumped off the ship before it split into two but environmental groups warned that the damage to the surrounding coral reefs could be irreversible.
The Wakashio was meant to stay at least 10 miles (16 kilometers) from shore but it ran aground just a mile from the island.
Owner Nagashiki Shipping is investigating why the ship went off course and it has sent experts to help clean up the damage. The Mauritius government is seeking compensation from the company.
The Mauritius government is under pressure to explain why immediate action wasn’t taken to empty the ship of its fuel before it began to leak. Prime Minister Pravind Jugnauth earlier blamed bad weather for the slow response.
Environmentalists in Mauritius are objecting to plans to pull the bow of the ship – the smaller part of the Wakashio – out to sea and allow it to sink. The larger part of the ship will be dragged off the coral reef where it ran aground and towed away, possibly to India for salvage.
“Authorities say they will tow the bow eight nautical miles out to sea and sink it in the waters that are 2,000 feet deep,” Sunil Dowarkasing, an environmental consultant and former member of parliament in Mauritius said.
“But that area is where whales give birth and nurse their young,” Dowarkasing said. “The sunken bow could badly affect that critical area. So the environmental impact of that plan should be fully considered.”
The Mauritius government has closed off the coastal area of the eastern part of the island, where thousands of civilian volunteers worked for days to try to minimize damage to the Mahebourg lagoon and protected marine wetlands polluted by the spilled fuel.
Only officials and hired workers are permitted to work in the coastal area and the waters surrounding the grounded ship.
Experts from France, Japan and the United Nations are also involved in the clean-up work. UN spokesman Stephane Dujarric said the U.N. Development Program has allocated $200,000 to address the immediate impact of the spill.
Source:www.energynewsafrica.com
Despite the efforts of several administrations, inadequate and unstable power supply remains one of the major problems in Nigeria.
In this interview with Udeme Akpan, Managing Director, Lumos Nigeria, Peju Adebajo, who spoke on a wide range of issues, makes a case for the massive deployment of renewable, especially solar to jump-start the nation’s post Coronavirus pandemic economy.
In your opinion, how has the coronavirus pandemic ravaged Nigeria’s economy?
There were a couple of global situations happening at the same time, one of which was the health pandemic, the Coronavirus, and on the other hand, the Oil shock, which led to a loss in revenue for Nigeria — resulting in an adjustment to the national budget. Many of our trading partners globally are also suffering from the effects of this sudden health shock and economies worldwide are facing the prospect of recession and a decline in GDP.
Nigeria is no exception. Sectors like Aviation, Manufacturing and Hospitality have been badly affected and even places of worship like Churches and Mosques. Some, like Food and Healthcare, are thriving. The restriction on movement and social distancing has disproportionately affected many small or micro enterprises whilst some organisations are laying off staff, not paying or not improving salaries.
What can the stakeholders; especially the Federal Government and investors, do to kick-start the economy after the pandemic?
The Federal Government has done a lot and I do commend these efforts, because despite a dip in revenues, the government has continued to deploy several interventions towards managing the current economic situation. For example, the CBN fund with reduced interest rates for businesses, the NIRSAL facility for smaller businesses, a healthcare fund, and payments to people on the social register. Importantly, the Economic Sustainability Plan (ESP) including the plan to introduce five million Solar Home Systems for twenty-five million people. This is very commendable and an excellent opportunity for the renewable energy industry.
What role do you think adequate and stable power supply will play in this direction?
We all know that energy is crucial to the effectiveness of most of our operations. Energy and transportation account for between 40 to 70% of business operating expenses. Many established organisations have alternative sources of power to the grid (usually generators) and during lockdown, had to run generators for long hours, with attendant cost implications, making the need for reliable power more pressing. Due to social distancing, the need for technology becomes very essential and technology depends on having stable power. Power is also crucial to small businesses such as Welders, Hairdressers, Barbers, tailors and the likes. Pre-COVID MSMEs accounted for about 90% of the workforce and 80% of the economy. So, the ability to supply these MSMEs who are off grid, or do not have steady power, is our number one priority at Lumos. Having stable power in itself is a crucial need to be addressed.
In other words, you are saying that your company and others in the sector have been very busy even with the lockdown and you’re ready to do more moving forward, in terms of providing renewable energy supplies to Nigerians?
We are ready to do more. We appreciate the government for tackling the power sector problem head-on. We need to fix the grid, and it will take a lot of money and may be a couple of years down the line. The government recognizes that with the cost of renewable energy coming down, it has become the most efficient and effective to deploy. Renewable energy can be deployed in areas that are too far and simply uneconomic for the grid. So, both in areas where there is an unreliable grid or where there is no grid, renewable energy, and in particular solar energy, given the amount of sun we have in Nigeria, makes the most economic sense. Every crisis brings opportunities; the pandemic was an opportunity for the solar industry. And we are ready. Lumos is already the market leader in the industry with over 100,000 active installations across every state in the country. We have over 700 installers and over 60 strategically located mini warehouses across the country. So, we are probably the only renewable energy company that has a nationwide footprint with a large active installed base. We are ready to support and do even more to ensure that the government achieves the goal of getting power to everyone.
Could you tell us a little more about the unique products and services you provide?
Our system is very simple, it consists of a panel, which you put on the roof or wherever you can catch the sun and an indoor unit which has a battery, which converts and stores the power from the sun. All you need to do is attach your appliances to the indoor unit and immediately you have light. Coming into the market 5 years ago, we initially had just one product called ‘Lumos Classic’. We recently rolled out two more products, ‘Lumos Eco’ and ‘Lumos Prime’. The ECO has an output of 70W DC and 60W AC, while the Prime has an output of 100W DC and 85W AC. These products can power energy efficient appliances such as Fan, TV, Radio, Light Bulbs, laptop computer for your basic comfort. To purchase a system, pay at any Lumos store or on Jumia.com and the system will be delivered to your home. Within 24 hours, an installer will install the system, so in just 24 hours, you can have access to reliable power. it is very simple. It is also extremely easy to use. Another unique thing about Lumos is that we offer a very convenient and pocket-friendly payment plan. Our customers do not have to go through the stress of putting a huge amount of money down, as with Lumos you can pay over 48 months – that is four years.
For the benefits of readers, can you tell them more about the environmental benefits of using solar?
There is increasing advocacy for more climate friendly means of generating power. Of all the different energy sources, solar energy has the least negative impact on the environment. We see a solar revolution in the very near future just as we have had the banking revolution, and the telecoms revolution. Just as we moved from an outdated banking system to the new generation banks, and fixed line telephony to mobile phones, so we will move from the centralised grid to decentralized and distributed power systems. READ ALSO: Uzodinma has not invited Araraume, Nwosu and I — Okorocha Rather than going through the cycles that other countries have gone through where you had fossil fuels before transitioning to renewable energy, Nigeria can leapfrog and move more to solar energy which is cost effective, clean and green. It is an opportunity for the government to accelerate and realise this outcome. We are thankful for the Economic Sustainability Plan recently launched by the Presidency, to provide five million solar home systems to households and businesses. This step is a recognition that this government understands that the easiest, quickest way to ensure the energy gets to all the nooks and crannies of Nigeria is by deploying solar.
Are there indications that with the increased use of solar, that Nigeria’s economy, especially in the rural areas would be stimulated, especially for the small-scale investors, the restaurant owners, the barbers, and artisans in the outskirts?
This is very likely. The economics of deploying solar for small scale businesses is a proven, smart, affordable way to power your business. For instance with Lumos, with just 5500 Naira a month you can very quickly get solar power into your facility, and immediately save up 70% on the cost of running your generator, eliminating buying petrol/diesel, maintenance/repairs, transportation to the petrol station and stress we go through. So, getting solar to all the nooks and crannies in Nigeria, which can be done very quickly and affordably, provides our people with a better quality of life. Secondly, from an economic and productivity point of view, businesses become more profitable as less money is spent on running generators. It makes sense from so many points of view and investing in renewable energy should be an urgent priority for the government. Lumos as a market leader is ready to support the government to ensure that solar energy is more widely available in Nigeria.
What partnerships are you looking at to deliver affordable and steady power to more customers?
Our initial rollout was with MTN, and so you will find Lumos available in most MTN stores across the country. Recently on healthcare, we partnered with All-on, an independent agency of Shell, to deliver solar home systems to health care facilities across Nigeria to fight the outbreak of COVID-19. These are examples of very successful partnerships. With the All-on partnership, we delivered solar home systems to healthcare facilities at the Eti-Osa Isolation Center in Lagos, to primary healthcare centers in Oyo State. We also worked with the Society for Family Health and other Non-governmental Organisations to deploy these systems across Nigeria. We will continue to do more; we are partnering with more payment providers because we need them to ensure our customers’ payments are convenient across Nigeria, for both the banked and unbanked. We will continue to work on these partnerships and others for the benefit of our customers and Nigerians in general. Lumos is a profitable venture for trade partners, so, we are always looking for additional distributors and installers, to penetrate the market further and push products closer to neighborhoods, especially in areas which are underserved by the grid. I am sure you know how tough it is to do business in Africa, especially Nigeria.
Are there problems or issues that you like the government to address to make it more seamless to do solar business in Nigeria?
Right now, the key components of our products are imported, for example, the different categories of solar panels and indoor units attract different levels of duty and VAT. The government must urgently look at the tariff regime of these critical solar products, to enable importation and then stimulating local manufacturing assembly of panels in the near future. Secondly, we need to address the issue of poverty in the country. In the very rural communities, some people find 5500 Naira monthly, unaffordable. We would like the government to put in place incentives leveraging the conditional cash transfer scheme to enable these households afford solar. The third is education. It is a relatively new industry in Nigeria. The government can do some awareness programs to educate citizens that you do not have to disturb neighbors with the noise of a generator and that there are alternatives. I think the government has been doing well, especially with the five million solar homes initiatives, but of course, we are always asking for more to ensure that solar ultimately remains affordable and available. Lastly, the industry needs access to intervention funds at single-digit interest rates to make continued investment a reality.
Any advice you may wish to put across to the various stakeholders, your customers, the government, and other people in the economy?
The government is already doing well, and we want them to sustain the momentum. For our existing customers, we want to assure them that we know and understand what Nigerians are going through, and we will continue to make our products affordable and ensure excellent customer service. We also assure them that Lumos will be with them on their journey to a better lifestyle and helping them manage their costs. Solar is here to stay and Lumos will be an integral part of working with the government, the industry and all our trade partners, to ensure Power for everyone.
Source: Vanguard
President of the Republic of Ghana, H.E. Nana Akufo Dankwa Akufo- Addo will, on Wednesday, August 19, 2020, cut the sod for the construction of the operational headquarters of the country’s national oil company, GNPC, in Takoradi in the Western Region.
President Akufo-Addo, when he was the flag-bearer of the then opposition New Patriotic Party (NPP), promised to relocate the headquarters of GNPC to the Western Region, the oil region of the country.
Currently, GNPC has its headquarters located in Tema, Ghana’s industrial hub.
During his ‘Thank You’ tour of the Western Region in 2017, President Akufo-Addo promised the chiefs and people of the region that all his campaign promises would be fulfilled.
“We are going to relocate the headquarters of GNPC to this region. Pledges of ‘one district; one factory’ is going to happen live, modernisation of the Takoradi Harbour is going to be done.
Construction of an Accident and Emergency Centre in Takoradi is on the plan,” he assured the people.
President Akufo-Addo is starting a five-day tour of the Western and Central Regions from Tuesday, August 18, 2020.
Source: www.energynewsafrica.com
Sasol, an international integrated chemical and energy company, has reported a R91.3 billion (an equivalent of US$5.2 million) loss for the first half of 2020 due to low oil prices.
A statement issued by the company on Monday, said the combined effects of unprecedented low oil prices, destruction of demand for products and impairments of R111.6 billion resulted in a loss of R91.3 bn for the year compared to earnings of R6.1 billion in the prior year.
However, the company said within a volatile and uncertain macroeconomic environment, its foundation businesses still delivered resilient results with a strong volume, cash fixed cost and working capital performance.
“The 18 percent decrease in the rand per barrel price of Brent crude oil, coupled with much softer global chemical and refining margins, negatively impacted our realised gross margins especially during the second half of the year,” Sasol said.
Debt increased to R189.7 billion compared to R130.9 billion a year earlier, with approximately R174.6 billion (US$10.1 billion).
According to Sasol, its balance sheet was highly geared, requiring a reduction in US dollar-denominated debt in order to achieve a targeted net debt to earnings before interest, taxation, depreciation and amortisation (Ebitda) of less than two times and gearing of 30 percent, which it believe would be sustainable with oil at approximately US$45 per barrel.
“Through our comprehensive response plan, we have taken immediate steps to reset our capital structure by targeting to generate, at least, US$6 billion by the end of 2021,” said Sasol.
In March, Sasol announced a set of measures to cushion the impact of the oil price plunge including plans to enter into partnerships for its base chemicals business in the United States, raising US$2 billion through asset sales, generating US$2 billion from self-help measures and a possible US$2 billion rights issue.
The company said it would continue to suspend the dividend given its current financial leverage and the risk of a prolonged period of economic uncertainty.
“This will allow us to continue to protect our liquidity in the short-term and focus on reducing leverage in order to create a firm platform to execute our strategy and drive long-term shareholder returns. “In addition, in accordance with the covenant amendment agreement with lenders, we will not be in a position to declare a dividend for as long as net debt to Ebitda is above three times,” said Sasol.
The group said its energy business’ gross margin percentage had decreased from 43 percent in the prior year to 38 percent due to the significant impacts of supply and demand shocks that led to lower crude oil prices and product differentials.
“We expect that oil prices will remain low for the next 12 to 18 months as the impact of Covid-19 becomes better understood. Oil markets also continued to remain exposed to shifts in geopolitical risks as well as supply and demand movements,” said Sasol.
The group’s Lake Charles Chemical Project (LCCP) in the US delivered improved earnings before interest, taxation, depreciation and amortisation (Ebitda) performance in the second half of the year of approximately R100 million (US$8 million), compared to a loss before interest, taxation, depreciation and amortisation of R1.1 billion recorded in the first half of the year.
Sasol said that its earnings were further impacted by R3.9 billion in additional depreciation charges and approximately R6bn in finance charges for the year as the LCCP units reached beneficial operation.
Source: www.energynewsafrica.com
South Africa’s power utility company, Eskom, is urging the public to reduce electricity usage as the power generation system is severely constrained in the country.
A statement issued by the company on Monday said the return of one generation unit has been delayed, while another two units have tripped.
It, however, said one of the tripped units has returned.
“While Eskom teams are working hard to return as many of these generation units to service as possible, any further deterioration in the generation performance may necessitate the implementation of load shedding at short notice.
“As the aged generation infrastructure is unreliable and volatile, this constrained power system is expected to persist for the rest of the week,” Eskom said.
The return of a unit each at Majuba and Medupi power stations has been delayed.
Eskom noted that a unit each at the Tutuka and Hendrina power stations also tripped earlier on Monday, adding that further there were breakdowns at the Tutuka, Majuba, Komati, Kendal and Hendrina power stations.
The company said these unplanned breakdowns contributed to the more than 11,000MW of capacity, adding to the 4,658MW currently out on planned maintenance.
“We urge the people of South Africa to help reduce electricity usage in order to assist Eskom to keep the lights on,” Eskom said.
Source:www.energynewsafrica.com
South Africa’s power utility company, Eskom has advised coal miner, Exxaro, of its withdrawal of the force majeure notification with immediate effect.
This follows Eskom’s issue to Exxaro Coal in April 2020 of a force majeure on the agreements for the supply of coal from Exxaro Coal to the Medupi and Matimba power stations – applicable for the period starting at 16 April 2020 until one month after national lockdown has been completely lifted.
Upon receipt of the force majeure notice, and after consultation with its legal advisers, Exxaro said that the event does not constitute force majeure as stipulated in the coal supply agreements, as the power stations are still capable of supplying power.
Our power system is under severe pressure. Please switch off all unnecessary lights, your geyser, pool pump and non-essential appliances. pic.twitter.com/DLCZt8lvEq
Coal miner also said that it would vigorously defend its position in this matter and take the necessary action.
“As Eskom has been taking coal in accordance with the terms of the supply agreements, the impact of the force majeure event has been largely neutralised,” Exxaro said in a statement.
Exxaro reaffirms its view that this event did not constitute a force majeure, as the power stations have been capable of supplying power and Exxaro continues to reserve its rights in this regard.
Eskom, on Sunday announced that the power system will be severely constrained this coming week due to the unavailability of eight generation units, due to breakdowns or delays in the maintenance programme.
While some of the units will be returned to service, the system is expected to remain severely constrained for the rest of the week.
The return to service of a generation unit at the Duvha and Medupi power stations has been delayed, Eskom stated, adding that generation units at Tutuka, Majuba, Komati, Kendal, and two units at Hendrina have been shut down.
The power utility further noted that the aged generation infrastructure is unreliable and volatile.
While Eskom teams are working hard to return as many of these generation units to service as possible, any further deterioration in the generation performance may tip the country into load shedding, Eskom concluded.
Source:www.energynewsafrica.com
Ghana’s Minister for Energy, John-Peter Amewu has revealed that his Ministry has revised Renewable Energy Power Purchasing Agreement (PPA) signed under the previous administration from a total capacity of 2, 265MW to 515MW.
According to him, the 515WM, if executed, could be accommodated within the country’s national electricity grid.
Mr Amemu made this revelation in a speech delivered on his behalf by Wisdom Ahiataku-Togobo, Director of Renewable and Alternative Energies, at the commissioning of a 1000kWp Rooftop Solar Project at Special Ice Company Ltd factory at Ayi Mensah in Accra.
According to him, the Ministry has also been able to re-negotiate and reduce the charges from an average of US$12KWh, adding that further engagement with scheduled IPPs is ongoing to achieve below US$10 cent, which is the Ministry’s ultimate goal.
The West African nation’s Energy Minister stressed that his outfit had developed a renewable energy master plan which clearly provides the capacity and investment required on yearly basis from 2017 to 2030.
According to him, they have also put a moratorium on new PPAs until the 515 MW signed PPAs have been executed.
Additionally, Mr Amewu said his Ministry has provided for competitive bidding of renewable energy projects with focus on Utility Scale Solar power plants.
“Besides the investment by IPPs in the Renewable Energy Sector, the Ministry of Energy has facilitated investment in the construction of the first phase of 17MW Solar Park by VRA in Lawra and Keleo in the Upper West Region, with work currently at 40 percent completed,” he said, adding that discussions are ongoing between the Ghana Government,VRA and KfW of Germany for additional financing for another 17MW which will bring the total capacity to 34MW.
Furthermore, he noted that construction of the first phase of 50MW solar PV plant to be hybridised with the 400MW Bui Power Dam Authority (BDA) has commenced.
He hinted that the first 10MW is expected to be connected to the national grid by end of this quarter. The remaining 40MW is expected to be completed in December 2020.
Mr Amewu observed that the government intends to have public institutions such Ministries, Departments and Agencies integrating solar in their buildings to reduce their high electricity bills, saying, “That is why the Energy Ministry added another 60KWp of solar PV to its existing 50KW in 2019.”
To make these sectors more energy sustaiable, he said his outfit has awarded contract for the construction of 912KWp solar plant to supply about 60 percent of all total demand at the Jubilee House and its about 70 percent completed and expected to be commissioned by December 2020.
“The government has also signed a bilateral agreement with Germany on Reform Partnership in the area of Rebewable Energy and Efficiency to the tune of Euro 100 million. This partnership will contribute to increase in the generation mix through embedded generation and production uses,” he said.
He said the Ministry has expanded the heavily subsidised solar lanterns distribution programme, adding that the first 30,000 units of a contracted consignment of 80,000 units has already been delivered by the Ministry.
Source:www.energynewsafrica.com
Oil refiners are permanently closing processing plants in Asia and North America and facilities in Europe could be next as uncertain prospects for a recovery in fuel demand after the coronavirus pandemic triggered losses.
The pandemic initially cut fuel demand 30 per cent and refiners temporarily idled plants.
But consumption has not returned to pre-pandemic levels and lower travel may be here to stay, leading to tough decisions for permanent shutdowns. Here are some of the plants involved:
Royal Dutch Shell will permanently shut its 110,000-barrel-per-day Tabangao facility in Philippines’ Batangas province, one of only two oil refineries in the country.
Shell blamed a pandemic-led slump in margins for turning the plant into an import terminal.
There have been no permanent plant closures in Europe due to the virus. However, Gunvor Group said in June it was considering mothballing its 110,000 bpd refinery in Antwerp as COVID-19 hurt the plant’s economic viability.
Marathon Petroleum, the largest U.S. refiner by volume, plans to permanently halt processing at refineries in Martinez, California, and Gallup, New Mexico. The larger plant in California will become an oil-storage facility and may convert to produce renewable diesel, a fuel made from industry waste and used cooking oil.
Other plants in Japan, Australia and New Zealand could be likely candidates for closure ahead, said Mia Geng, at consultancy FGE.
Energy consultancy Wood Mackenzie separately estimated 1.4 million barrels per day, about 9 per cent, of refining capacity in Europe is at risk of shut-downs by 2022-2023. It put plants in Netherlands, France, and Scotland on a list of potential closures.
Special Ice Water Company Limited, one of the leading bottling water companies in the Republic of Ghana, has commissioned a 1000-kilowatt (1 Megawatt) rooftop solar power project at its factory at Ayi Mensa based in Accra.
The project is intended to help the company cut down the cost of electricity used in production.
The company is said to consume about 1.3megawatts of electricity supplied from the country’s national grid.
Officials say with the installation of the 1000kw, the company would see its electricity consumption reduced by significant 50 percent.
The project was executed by SunPower Innovations Ghana Ltd., an indigenous company.
Speaking at the commissioning ceremony, Managing Director of Special Ice Natural Mineral Water, Kwodwo Danso-Dodoo explained: “As a matter of strategy, we decided to way the options in terms of having alternatives for electricity; something that was cheaper than electricity, so we decided on solar and searched around and found SunPower Innovations. We asked them to give us a deal for one megawatt energy supply. It was something that we had not seen before and they, themselves, had not seen it before but we encouraged them to do it and here we’re today, commissioning this project.”
He urged the sector Ministry to ensure that the excess power they produce would be metered and credited to them to serve as incentive to other companies.
In a speech delivered by Mr. Wisdom Ahiataku-Togobo, the Director of Renewable and Alternative Energies at the Ministry of Energy, on behalf of the Minister for Energy John-Peter Amewu, the Sector Minister was happy that more entities are realising the strategic role of solar energy as a viable energy solution which is clean, a low carbon-emission option and at the same time relatively cheaper.
He said: “We are even more excited with the productive use to which this solar system has been utilised, that is, the running of a modern water processing facility to provide clean water for citizens.”
Mr Amewu applauded Special Ice Company for the huge investment, as it showed how environmentally responsible it is.
“I must commend Special Ice for their boldness and innovation in implementing this laudable investment. We believe that this investment will impact positively on efficiency in its business operations of the factory and also increase the overall profitability of the business,” he said.
He stated that the initiative by Special Ice Natural Water is a demonstration to the whole business community that, business is not only about profit; it should also be about environmental sustainability.
“The decreasing cost of solar systems is gradually increasing the profitability of businesses and, at the same time, making them environmentally responsible,” he added.
The CEO of Sunpower Innovations, Ernest Amissah, was hopeful that the steps taken by Special Ice Company would encourage others to emulate.
The Inspector in-charge of Renewable Energy at the Energy Commission, Prosper Amuquandoh, who described the project as a laudable one, urged companies that are into rooftop solar installation to endeavour to do quality work.
Source:www.energynewsafrica.com
Bharat Petroleum Corp, India’s largest fuel retailer, has cut its 2021 capital expenditure (capex) target by 36% to about 80 billion rupees ($1.1 billion) from 125 billion rupees because of the impact of the COVID-19 pandemic.
Oil companies across the globe have cut their spending plans as the pandemic has driven down oil prices and fuel demand.
“We have taken a look at all the projects … on smaller projects we have taken a very harsh look because we have to focus on what is important and what is going to give us profit,” N. Vijayagopal, Bharat Petroleum’s head of finance said as carried by energyworld.com.
“We are shifting the expenditure from year 2020-21 to 2022-23,” he added.
He said old projects below 1.5 billion rupees could be delayed to next year to maintain the current focus on petrochemicals and refinery expansion.
BPCL is operating its refineries at about 70-75% capacity in the face of slower demand and subdues margins on oil products, which make export sales less attractive.
The company reported a gross refining margin of $0.39 per barrel in the three months to June 30, when Indian fuel demand growth plunged.
However, Vijayagopal said the company is hopeful of improved margins in the next two quarters and is planning to open about 1,000 fuel stations in the current fiscal year, on a par with last year.
Vijaygopal also said that the planned privatisation of BPCL was on schedule and is expected to be completed by March 2021.
India has extended the deadline for initial bids for the federal government’s stake in the company to Sept. 30.
Source:www.energynewsafrica.com
Members of the General Transport, Petroleum and Chemical Workers Union (GTPCWU) in the Republic of Ghana have re-elected Bernard Owusu as the National Chairman of the Union for the second term at their 11th Quadrennial Delegates’ Conference in Winneba in the Central Region.
Newly elected executives of GTPCWU
He will be steering the affairs of the Union for the next four years.
Bernard Owusu went unopposed and was acclaimed by the delegates.
Delivering his acceptance speech, Mr Owusu thanked the Union for the trust and confidence reposed in him to steer the affairs of the Union.
He pledged his commitment to serve the Union as he had done in his first term.
“I’m looking forward to a new paradigm that will change the status quo,” he indicated.
The rest of the newly elected executives of GTPCWU are: Brother Samuel Boateng (1st National Vice Chairman), Lydia Asante (2nd National Vice Chairperson), Alhaji Fuseini Iddrisu (General Secretary), Francis Sallah (Deputy General Secretary), Benedict Boakye-Agyemang (1st National Trustee ) and Sister Belinda Kyei-Nimako (2nd National Trustee).
Bernard Owusu (standing with his hand up) addressing the delegates
PGS, the world’s geo-services company, has rejected an offer from TGS-NOPEC Geophysical Company to acquire its multi-client data library.
TGS proposed to acquire PGS’s multi-client data library but the board of PGS is of the view that the value of the company’s multi-client data library is significantly greater to PGS than that represented by the TGS proposal, and that the timing of the proposal is opportunistic given the current market backdrop and macro-economic environment.
Under the TGS offer, PGS would, upon consummation of the sale, receive a cash consideration of USD600 million.
Furthermore, TGS proposed that the parties enter into a post-closing collaboration agreement for future PGS multi-client projects, which also would include certain preferential rights for PGS to offer its 3D fleet for future TGS data acquisition.
Having consulted with its financial and legal advisors, PGS has concluded that the proposal is not in the best interest of the company and its stakeholders.
“PGS remains committed to its integrated service strategy and the benefits to the Company and its stakeholders from the combination of MultiClient and Contract operations.
“PGS remains focused on its ongoing discussions with its lenders, as previously announced,” PGS said in a statement
Upon rejection of the offer, CEO of TGS, Kristian Johansen, said: “We believe a consolidation and further partnership between our two companies carry strong industry logic and we have seen broad support for this, following our announcement last week. We are disappointed by the unwillingness from the PGS board and management to enter into discussions to explore joint opportunities and collaboration as indicated in our offer. TGS remains committed to our strategy of industry leadership and further consolidation to deliver best in class services to our customers, while creating value for our owners and other stakeholders.”
Source:www.energynewsafrica.com
The Coronavirus pandemic which forced many countries to implement travel restrictions lowering demand for oil, thereby, crashing global oil prices has impacted negatively on investments and production on oil and gas sector in Africa, latest report reveals.
The Covid-19 has forced most international oil and gas companies operating in Africa to cut down spending and cancel or defer projects.
According to a report compiled by Africa Oil Week, in collaboration with Wood Mackenzie titled: ‘After The Crash–What’s Changed In The African Upstream’, it showed that spending in the upstream sector in 2020 has declined by US$14 billion, with assets value also declining to one-third or US$200 billion.
The report noted that spending reductions in Africa is expected to be greater than global portfolio averages.
The report indicated that expected Final Investment Decisions (FIDs) in 2020 have also fallen from 10 to one.
“African production will decline for the first time since 2016, down 1.3 million b/d in 2020 as demand falls and OPEC cuts take effect. Delayed, deferred and cancelled investments will slow the rebound. Weakened gas demand will cause short-term losses in North Africa, while East Africa faces mid-term losses as LNG projects are delayed. NOCs, led by OPEC+ members, have the deepest production cuts,” it said.
After the Crash – Africa – AOW X Wood Mackenzie
Source: www.energynewsafrica.com
The International Energy Agency, IEA, has warned that demand for oil will plummet by 8.1 million barrels per day (bpd) in 2020 due to reduced air travel occasioned by the Coronavirus (COVID-19) pandemic.
This is expected to further depress oil prices and force oil producers to effect another round of cut in output.
In its latest report, IEA reduced estimates for almost every quarter through to the end of 2021, with the second half of this year taking the steepest downgrades.
Air travel remained two-thirds lower than last year in July, normally a peak month because of holiday flying, it said in its monthly report.
“The outlook for jet fuel demand has worsened in recent weeks as the coronavirus has spread more widely,” the Paris-based agency stated.
It also explained that global crude supplies increased last month as Saudi Arabia phased out some of the steepest production cuts it’s been making to offset the demand loss, and as improving prices helped the United States and Canada revive some operations.
“Jet fuel demand remains the major source of weakness. In April the number of aviation kilometres travelled was nearly 80 percent down on last year and in July the deficit was still 67 percent. The aviation and road transport sectors, both essential components of oil consumption, are continuing to struggle,” IEA said in the report.
Despite the downgrades, world markets should tighten during the rest of the year as consumption recovers from the depths of the pandemic, while Saudi Arabia and other OPEC nations keep output in check, IEA said.
International crude prices climbed to a five-month high above $45 a barrel in London this week.
The agency cut global demand estimates for the last two quarters of this year by 500,000 barrels a day, projecting that consumption will average 95.25 million barrels a day in the period.
The second-half forecast for jet fuel and kerosene was cut by 380,000 barrels a day, putting demand on track to fall 3.1 million barrels a day this year to 4.8 million a day.
IEA also boosted projections for supplies outside the Organization of Petroleum Exporting Countries, OPEC, in the second half by about 500,000 barrels a day, as the U.S. and Canada restore halted production.
As a result, the market won’t tighten during the rest of the year as sharply as anticipated, but it will still tighten.
Demand has been above supply since June, and as OPEC and its partners press on with output curbs, world inventories ought to deplete at a rate of about 4 million barrels a day in the last four months of the year. That should pare some of the gigantic stockpile surplus that built up in the first half, the report added.
Source:www.energynewsafrica.com
In a speech delivered by Mr. Wisdom Ahiataku-Togobo, the Director of Renewable and Alternative Energies at the Ministry of Energy, on behalf of the Minister for Energy John-Peter Amewu, the Sector Minister was happy that more entities are realising the strategic role of solar energy as a viable energy solution which is clean, a low carbon-emission option and at the same time relatively cheaper.
He said: “We are even more excited with the productive use to which this solar system has been utilised, that is, the running of a modern water processing facility to provide clean water for citizens.”
Mr Amewu applauded Special Ice Company for the huge investment, as it showed how environmentally responsible it is.
“I must commend Special Ice for their boldness and innovation in implementing this laudable investment. We believe that this investment will impact positively on efficiency in its business operations of the factory and also increase the overall profitability of the business,” he said.
He stated that the initiative by Special Ice Natural Water is a demonstration to the whole business community that, business is not only about profit; it should also be about environmental sustainability.
“The decreasing cost of solar systems is gradually increasing the profitability of businesses and, at the same time, making them environmentally responsible,” he added.
The CEO of Sunpower Innovations, Ernest Amissah, was hopeful that the steps taken by Special Ice Company would encourage others to emulate.
The Inspector in-charge of Renewable Energy at the Energy Commission, Prosper Amuquandoh, who described the project as a laudable one, urged companies that are into rooftop solar installation to endeavour to do quality work.
Source:www.energynewsafrica.com
