Ghana’s Ministry of Energy is accusing a former Chief Executive Officer of the country’s national oil company, GNPC, Mr Alex Mould, of attempting to misinform Ghanaians in his write-ups on Aker Energy and AGM petroleum agreements.
According to the Ministry, the amendments to the Petroleum Agreements of Aker Energy and AGM were to provide regulatory certainty and incentives to support the realisation of Aker’s Pecan Project and increase investment in the AGM block respectively.
“These incentives have already yielded positive results for the country as AGM recently announced crude oil discoveries following an accelerated drilling campaign,” the Ministry explained.
In his latest epistle titled: ‘Government has bestowed on all Ghanaians massive historical damage to our oil and gas sector’, the former CEO of the GNPC berated the Akufo-Addo-administration for providing what he described as sweeping tax exemptions for the Norwegian oil and gas firm.
“Sadly, these amendments also provide sweeping tax exemption for Aker and AGM, its sub-contractors and sub sub-contractors. No withholding taxes in the case of AGM itself, and a reduced withholding tax rate of 5 percent instead of the 15 percent withholding tax for any work or services or supply or use of goods, both to domestic and international transactions.
“It is reckless to exempt withholding tax for international transactions; this is akin to surrendering taxing rights to a foreign state because the foreign state will apply tax on its worldwide income and will result in permanent revenue loss for Ghana. Additionally, exempting withholding tax on domestic transactions may lead to tax evasion as the trail is lost; eventually resulting in large scale tax loss due to avoidance,” Mr Mould said.
He further argued that the non-resident companies having established a Permanent Establishment (PE) status for tax purposes would be liable for full corporate tax.
“Sadly, the amendments make it possible for non-residence Permanent Establishment (PE) to be exempted from the payment of tax at the domestic rate. This will cause a substantial tax loss as the tax exemption is for 7 years.
However, in a statement signed by the Head of Communications at the Ministry, Nana Kofi Oppong-Damoah accused Mr Mould for churning out inaccurate information.
“It is important to state that in the amendments of the AGM Petroleum Agreement, we negotiated a higher net gain for Ghana. We reduced our commercial paid interest and the subsequent exposure of GNPC but raised the free carried interest of the state. This resulted in a Benefit-Cost ratio of 19 in favour of Ghana against 11 in the original Agreement.
“The Ministry wishes to advise Mr Mould and others who conduct themselves in similar ways to contact the appropriate institutions where they lack information on any issue in the oil and gas sector. As former CEO of GNPC. He cannot rely on uninformed commentators for information on critical subjects like petroleum for the purpose of conducting analysis for public consumption. Our doors are always open,” the Ministry said.
Clink on the link below for the Ministry’s full statementPRESS RELEASE
Millennium Development Authority (MiDA), the implementing agency for the Power Compact II in the Republic of Ghana, is to construct two power sub-stations at Kanda and Legon, both in the Republic of Ghana.
The cost of the two sub-stations is estimated at $11.3 million and will be funded by MCC as part of the US$308 million Compact II funds provided by the People and Government of the USA and US $23.2 million Counterpart funds by the Government of Ghana.
These form part of projects being implemented under the Ghana Power Compact Agreement Programme.
The project would assist in reducing technical losses at the Electricity Company of Ghana (ECG).
A kick-off meeting was held on 20th and 21st February, 2020, to signify the readiness of all the parties including the Project Contractor, Eiffage Ghana Ltd. towards the commencement of project.
Delivering his opening remarks, Eson-Benjamin said the Primary sub-stations “will fill an infrastructure gap which has been anticipated as the solution to the perennial power supply challenges experienced by the beneficiary health facilities.”
He added that these primary sub-station interventions could be perceived “as a health-driven infrastructure initiative and the sub-stations are, therefore, critical assets in the promotion of quality healthcare for Ghanaians.”
The 33/11kV Legon Primary Substation would improve electricity in Ghana and its surrounding communities, especially the newly constructed University of Ghana Teaching Hospital and Noguchi Memorial Institute for medical research.
The Kanda Primary sub-stations would improve power supply to the 37 Military Hospital and the Greater Accra Regional Hospital.
When completed, the health facilities and the neighbouring communities would experience significant improvements in power supplied to institutions and homes.
Along side the project, MiDA would construct a 16-unit three-bed apartment block at Kanda for the Ghana Armed Forces.
This would provide accommodation for persons to be affected by the construction of the sub-station.
The Deputy RCD of the MiDA, Ms Feleke said Ghanaians, as well as the US Government, who are providing the funds, hold huge expectations of the project.
SMEC PTY, the project engineers, and other project consultants were present.
Before the project implementation plan was drawn, series of meeting were held among all the stakeholders.
Source:www.energynewsafrica.com
OIL and Gas workers in the Republic of Ghana, West Africa, have issued two weeks’ ultimatum to the country’s Labour Commission to ensure speedy resolution of some compensation cases brought before it within the ultimatum timeline.
According to the General Transport, Petroleum and Chemical Workers Union (GTPCWU), which is the umbrella body of the oil and gas workers, failure of the Commission will compel them to activate all the industrial action process at their disposal.
The Union accused the Commission of dragging its feet on their demands for compensation for two former workers of ETG Ghana Limited, Francis Narh and Patrick Akpable, who were sacked unlawfully about three years ago.
In a resolution reached after the Union’s Regional Conference in Takoradi, they said the National Labour Commission has, for the last three years, failed to rule on the Union’s request for compensation for two of their members dismissed by ETG Ghana Limited.
Speaking to energynewsafrica.com in a telephone interview, Chairman of GTPCWU, Bernard Owusu said after the expiration of the two weeks’ ultimatum, the Union members would picket at ETG Ghana Limited and other businesses of the owner of the company including the Takoradi Mall.
Bernard-Owusu,Chairman of General Transport, Petroleum and Chemical Workers Union, Republic of Ghana
He continued that after the few days of picketing, the Union would follow it with a declaration of a full-blown strike action saying, “All our members will withdraw their services in solidarity of the two dismissed colleagues.
Though it is refreshing that Ghana has, so far, realised about US$6 billion in revenue from the Petroleum Industry since 2011, the industry is, however, bedeviled with concerns of unfair remuneration and dismissals among the few Ghanaians employed.
Besides, the yet to be resolved compensation for the two helicopter crash survivors, the latest is the sacking of two workers of ETG Ghana, a subsidiary of Amarja, a Petroleum Industry Support service provider.”
He told energynewsafrica.com that the country’s upstream regulator, Petroleum Commission, is aware of the issues but has not done anything about it.
“For the Petroleum Commission, they are aware of all of these things. We don’t have confidence in them because of things that have happened in the past. You remember a few years ago, a helicopter had an accident and as we speak now, nothing has happened to those workers. So if you have a Commission like that in place, do we go back and tell them that these workers have been sacked? In the oil sector, what we are hearing is that our people are in the pocket of the multinationals so when you’re even talking, they don’t even care about it.
“What they understand is this radical measures; hitting the streets, going on strike. That is what they basically understand and we have been quiet for some time now but they should be ready that come some days ahead of us, we would be embarking on certain actions about things that have happened to our workers that have not been addressed. As the resolution said, in two weeks if we do not hear anything from the authorities, the National Union, with the region, would embark on certain industrial actions which would not be nice or pleasant.“
Source: www.energynewsafrica.com
The Special Presidential Task Force constituted by President of the Republic of Liberia to investigate circumstances that led to the scarcity of petroleum products on the Liberian Market has finalized and submitted its report to the President.
According to FrontPageAfrica Newspaper, the Task Force, headed by the Minister of State without Portfolio, Trokon Kpui, submitted their report on Friday, February 21, 2020.
The Task Force was charged with the responsibility of probing what was determined to be a variance of 60 percent between importers’ inventory of products at the Liberia Petroleum Refining Company (LPRC) and actual stock at the storage facilities.
The President has highlighted the significance of the investigation and the need to take the appropriate actions after fully perusing their report. This, he said, is necessary in order to advert a repeat of the difficulty Liberians encountered in the last couple of weeks as they tried to obtain petroleum products.
The report, which will be made public, includes a detailed explanation of the LPRC petroleum storage and lifting schedules, while also describing what caused the shortage and which corrective measures should be taken to prevent a recurrence.
Source:www.energynewsafrica.com
The International Energy Agency (IEA) has hired Maximilian Bankole Jarrett as its first Africa Programme Manager to help expand the Agency’s reach and coordinate its work as it deepens its engagement across the continent.
Mr Jarrett brings 30 years of experience in the fields of international economic affairs, media production and strategic communications.
He most recently served as the Director-in-Charge of the Geneva-based Africa Progress Panel, which was chaired by the late Kofi Annan, the Nobel Peace Prize laureate and former UN Secretary General.
The IEA has long focused on Africa’s energy sector, including work on the continent’s energy access issues since 2002. This work has since expanded significantly and will continue to do so in the coming years.
Last year, Dr Kandeh Yumkella, a former United Nations Under-Secretary-General, became an advisor to the IEA on Africa and energy access issues.
In October, the IEA published Africa Energy Outlook 2019 its most comprehensive and in-depth work to date about the continent, with a particular emphasis on sub-Saharan Africa.
The special report, part of the IEA’s flagship World Energy Outlook, highlighted Africa’s increasing role in global energy affairs and included detailed energy profiles of 11 countries that represent three-quarters of the region’s gross domestic product and energy demand, including Nigeria, South Africa, Ethiopia, Kenya and Ghana.
The IEA is also strengthening its relationships with African energy decision-makers.
South Africa and Morocco are part of the IEA family as Association countries. In May 2019, the IEA and the African Union Commission co-hosted their first joint ministerial summit at which the two organisations signed a Memorandum of Understanding to guide future collaboration. A second ministerial forum will be held in 2020, with South Africa offering to host the event in line with its 2020 presidency of the African Union.
Prior to his role with the Africa Progress Panel, Mr Jarrett spent over a decade working with the United Nations in Africa. He had started his career in 1990 as a programme presenter and senior producer with the BBC World Service. He worked on Focus on Africa and Network Africa, the BBC’s daily current affairs programmes for its audience in Africa.
Source: www.energynewsafrica.com
South Africa’s power utility company, Eskom says it does not expect to have to implement rotational load shedding on Monday.
In a statement to update consumers, the utility said that additional generation units are expected to return to service later in the day.
“This will further increase generation capacity and help us avoid load shedding. Emergency reserves are at adequate levels,” it said.
Unplanned outages or breakdowns increased to 11 120MW on Monday morning, while planned maintenance was at 5 406MW.
“The generation system held up sufficiently during the weekend helping us to avoid the implementation of load shedding on Sunday. However, the generation plant[s] remain unreliable and unpredictable,” it said. The utility again warned that due to the unpredictability of the system, power cuts may be implemented at short notice.
Eskom has previously said there is an increased risk of load shedding over the next 18 months as it conducts maintenance on its fleet of ageing power plants
Source: www.energynewsafrica.com
Copenhagen Infrastructure Partners (CIP) has reached financial close and the start of the construction of the 589MW Changfang and Xidao wind project off the coast of Changhua County in Taiwan.
The Changfang and Xidao wind farm will feature 62 MHI Vestas 9.5MW wind turbines scheduled to be commissioned in the first quarter of 2024.
The wind farm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions, as well as six export credit agencies.
The total project financing raised from the banks and financial institutions amounts to approximately USD 3 billion, CIP said.
The project received the approval of its local content plan in December 2019 by the Taiwanese government and is the offshore wind project with the highest localization percentage in the Asia Pacific region, according to CIP.
The Changfang and Xidao project will localize the jacket foundation, pin piles, the onshore substation, transport and installation contracts, and more than 15 wind turbine components.
“Since we entered the Taiwan offshore wind market in 2017 we have worked intensively with Taiwanese companies and the government to build up the local supply chain and we are therefore proud to deliver the project with the highest extent of localization in Taiwan to date,” CEO of Changfang Xidao, Jesper Krarup Holst said.
CIP acquired the Changfang and Xidao wind farm in 2017 and the project obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with the state-owned Taiwan Power Company.
The Changfang and Xidao project is owned by CI II and CI III, CIP’s funds, and a minority stake is owned by two local life insurance companies, Taiwan Life Insurance, and TransGlobe Life Insurance. CIP will lead the project through its construction phase.
“This project, besides being a remarkable project in Taiwan where it marks the continuation of the offshore wind build out, is part of leading the way for the complete APAC region going into offshore wind,”Anders Eldrup, CIP APAC Chairman said.
MUFG acted as Financial Advisor and CTBC as the local Financial Advisor for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as the local legal advisor. FIH Partners acted as Financial Advisor to CIP.
To support the development, the Changfang and Xidao project has entered into contracts with the following companies: New Power Partners, PeakWind, Lautec, Wood Thilsted Partners, Bech Bruun, C2Wind, and JUM BO Consulting Group.
A former Chief Executive Officer of Ghana’s national oil company, GNPC, Alex Mould has fired salvo at the Akufo-Addo-administration for providing what he described as sweeping tax exemptions for Aker Energy and AGM, its sub-contractors as well as sub-sub-contractors.
This follows amendment of the country’s Petroleum (Exploration& Production) (General) (Amendment) Regulations 2019.
In his latest epistle, Mr Mould, who has been critical of the Akufo-Addo- administration over the Aker Energy and AGM deal, accused the government of bestowing on all Ghanaians massive historical damage to its oil and gas sector.
According to him, the damage done to the sector by the Akufo-Addo government is incomparable with that of the shambolic agreement with Power Distribution Service (PDS) which attracted a storm of criticism from many Ghanaians.
He questioned the motive of the government in rushing the Aker Energy petroleum amendments for approval when due processes had not been followed.
“Sadly, these amendments also provide sweeping tax exemption for Aker and AGM, its sub-contractors and sub sub-contractors. No withholding taxes in the case of AGM itself, and a reduced withholding tax rate of 5 percent instead of the 15 percent withholding tax for any work or services or supply or use of goods, both to domestic and international transactions.
“It is reckless to exempt withholding tax for international transactions; this is akin to surrendering taxing rights to a foreign state because the foreign state will apply tax on its worldwide income and will result in permanent revenue loss for Ghana. Additionally, exempting withholding tax on domestic transactions may lead to tax evasion as the trail is lost; eventually resulting in large scale tax loss due to avoidance,” he said.
He further argued that the non-resident companies, having established a Permanent Establishment (PE) status for tax purposes, would be liable for full corporate tax.
“Sadly, the amendments make it possible for non-residence Permanent Establishment (PE) to be exempted from the payment of tax at the domestic rate. This will cause a substantial tax loss as the tax exemption is for 7 years.
“Transactions between sub-contractor to sub-contractor is also not subjected to withholding tax in the case of AGM and a reduced withholding tax rate of 5 percent instead of the 15 percent withholding tax for any work or services or supply or use of goods, both to domestic and international transactions.
“The amendments to exempt transactions between sub-contractor to sub-contractor are unacceptable as it would have similar consequences as said above. Aker and AGM will be exempted from import duty, VAT and all sorts of other taxes. However, the indirect taxes are not a cost to the Aker and AGM as it avails input credit,” he stated.
Mrs. Kadijah-Amoah, Country Manager of Aker Energy GhanaBelow is Mr Mould’s full statement:
Government Has Bestowed On All Ghanaians Massive Historical Damage To Our Oil And Gas Sector – Alex Mould Writes
Over the last few days, I have watched with keen interest, Kevin Taylor’s expose on the Aker/Ghana government deal. Kevin on his Loud Silence Media programme dubbed: “With All Due Respect” revealed clandestine changes in the upstream petroleum sector.
For the benefit of readers, let me add my comments to what I call the most radical political attack on Ghana’s upstream petroleum sector since the commencement of the FOURTH REPUBLIC. This attack has far reaching consequences and serious implications for the future of Ghana’s upstream petroleum industry way beyond AKER; affecting not only our economy but future generations to come!
Government knew we would all be distracted over the Christmas festivities in December; So, guess what our Gov’t did??? Late one evening, precisely on Dec 23rd, whilst some were spending family time together, some of us grieving, and our youth “Detty Raving”, “Blooming”, “Afro Chelling”, “Afro Nating” etc, our government led by President Nana Akuffo Addo, rushed amendments through Parliament, to approve significant changes to the upstream petroleum sector without following the due process!
Let me refresh our memories a bit; you may all recall in October last year, I stood on a platform with the Minister of Energy, Hon Peter Amewu at an Oil and Gas Conference held at the University of East London in the United Kingdom. At this conference I raised the alarm about the entire integrated Plan of Development (PoD) resubmitted by Aker Energy in relation to the Pecan oil field which would rob the nation of billions of United State Dollars both immediately and over the next 30 years.
I hinted that government was preparing to pass amendments to the existing regulations and laws governing the upstream petroleum sector provided Aker Energy agreed to the NPP Government’s demands. It is alleged that Government among other demands, asked Aker Energy to ensure the usage of only designated/chosen local partners (mainly controlled by people associated with the leadership of the NPP), even if these local partners are not qualified or even if these foreign oil services companies have already chosen their local partners.
The Energy Minister assured Ghanaians at the conference that he would not approve the PoD if those were the conditions attached to it. He said and I quote “the PoD that you are talking about is lying on my table and I insist I am not going to give them that opportunity”.
The changes that were rushed through Parliament, even made reference to an earlier amendment which Parliament had approved conditionally; the condition being that the Minister had to come back to Parliament, within 6 months or so, with some agreed revised clauses Parliament had insisted on, which related to increasing the People of Ghana’s additional participating interest ( additional equity) from 3% to 10%, as well as ensuring that the original local content partners were not removed and their equity holding remained untouched .
Guess what happened?? The Minister in his submission of the recent amendment to parliament on Dec 22 did not even have the courtesy to address those preconditions that our legislative body (Parliament) had given for passing the previous amendment, but rather made mention in the new amendment laid on Dec 23, 2019 before Parliament that the previous conditional amendment that Parliament had given had been passed!
Consequences
The immediate impact of the amendments will;
Strangle state policymaking, state regulation, and state commercial participation in the upstream oil and gas (O&G) Sector.
Collapse local content development.
Impose certain critical obligations on the Minister which are regulatory in nature.
Compel the Minister to accept use of FPSO technology as the only option for producing the resources of the AGM Block – even before the appraisal of the field in which the technology must be deployed.
Compel the Minister to accept the contractor’s delineation of the area to be included within a “Development and Production Area” in the Aker Block.
Allow Aker within a year of its Final Investment Decision to unilaterally vary the approved development plan without reference to the Minister contrary to Section 27(12) of Act 919.
Give Contractors unfettered discretion over oilfield procurement without recourse to the petroleum commission or any other governmental authority – also weakening the role of GNPC in Joint Management Committees.
The direct beneficiary of these giveaways will be the Norwegian Multinational, AKER which owns and controls both the Aker Ghana and AGM operated Oil Blocks. The direct LOSER is Ghana
The cumulative medium to long term effect of all these giveaways will be a loss of national control over our precious petroleum resources which will lead among other things to:
billions of dollars lost to the nation; and
loss of job creation
Taxation and Other Imports
Sadly, these amendments also provide sweeping tax exemption for Aker and AGM, its sub-contractors and sub sub-contractors. No withholding taxes in the case of AGM itself, and a reduced withholding tax rate of 5% – instead of the 15% withholding tax – for any work or services or supply or use of goods, both to domestic and international transactions.
It is reckless to exempt Withholding tax for international transactions; this is akin to surrendering taxing rights to a foreign state because the foreign state will apply tax on its worldwide income and will result in permanent revenue loss for Ghana. Additionally, exempting Withholding tax on domestic transactions may lead to tax evasion as the trail is lost; eventually resulting in large scale tax loss due to avoidance.
The non-resident companies having established a Permanent Establishment (PE) status for tax purposes would be liable for full corporate tax. Sadly, the amendments make it possible for non-residence Permanent Establishment (PE) to be exempted from the payment of tax at the domestic rate. This will cause a substantial tax loss as the tax exemption is for 7 years.
Transactions between Sub-contractor to sub-contractor is also not subjected to Withholding tax in the case of AGM and a reduced withholding tax rate of 5% instead of the 15% withholding tax for any work or services or supply or use of goods, both to domestic and international transactions.
The amendments to exempt transactions between Sub-contractor to sub-contractor are unacceptable as it would have similar consequences as said above. Aker and AGM will be exempted from import duty, VAT and all sorts of other taxes. However, the indirect taxes are not a cost to the Aker and AGM as it avails input credit.
Conclusion
This government has bestowed on all Ghanaians massive historical damage to our oil and gas sector and our economy for future generations – damage that at least in financial terms far exceeds the damage of the PDS scandal.
May God help us all as we embark on a mission to reset and rescue Ghana from corruption and state capture in 2020!!!
END
Source: www.energynewsafrica.com
Bulk Oil Storage and Transportation (BOST) Company Limited, the strategic stock oil company in the Republic of Ghana, West Africa, has assisted the Buipe Fire Service Station in the Savannah Region with an amount of GHc 58,862 to repair its broken down tenders and control unit.
The Buipe Fire Service Station, which serves the road from Kintampo to Tamale, has been struggling to control fire outbreaks in that part of the West African nation because its only fire tender had broken down for some months.
Interestingly, the station is supposed to serve BOST’s depot that serves the Northern Region of the country, Savannah Cement Company, PBC and Volta Lake Transport Company in case of any fire outbreak.
A recent fire outbreak that occurred at the BRV tanker yard near BOST depot resulted in about five of the BRV trucks completely burnt into ashes.
Fire service personnel, who were called to the scene had to employ the use of fire extinguishers to fight the fire, a situation they described as worrying.
Following that horrifying fire incident, the Savannah Regional Fire Service Commander, Assistant Chief Fire Officer, Kwasi Baffour-Awuah told energynewsafrica.com that he wrote letters to all the stakeholders in the area to solicit for financial support to be able to repair the fire tender and also fix their control unit.
He said he later got information that the Managing Director of BOST, Mr Edwin Provencal was on a working visit to Buipe and, therefore, went to engage him over the issue.
According to him, after that engagement, the MD invited him to Accra where presented a cheque of GHc33, 670 to him.
He added that the BOST MD, subsequently presented another cheque of GHc25, 192 bringing the total to GHc58,862.
Mr Baffour-Awuah said due to the assistance from BOST, the broken fire tender and the control unit of the Buipe Fire Service Station has been repaired and recommissioned.
He was full of gratitude to the management of BOST and especially the MD for his timely intervention.
Kwasi Baffour Awuah, Savannah Regional Fire Service Commander
He said with the fire tender back to work, his outfit is now in the position to carry out its mandated duties.
“I want to take this opportunity to express my sincerest gratitude to BOST for assisting us and fixing our fire tender. The people of Buipe will heave a sigh of relief. Now, the area from Kintampo to Tamale is covered. I want to entreat everyone that, the harmattan is here and the weather is not favourable so everyone must be cautious with the use of fire especially naked fire,” he said.
He added that the Ghana National Fire Service (GNFS) has started its fire safety education and as such, they would be at every place-the church, mosque, market and radio stations, educating people about the hazards of fire.
The Managing Director of BOST, Mr Edwin Provencal, however, expressed satisfaction with the work done on the equipment and assured that BOST would continue to partner its stakeholders to help make Ghana a better place.
Source: www.energynewsafrica.com
The Executive Director for Institute of Energy Security (IES), an energy think-tank in the Republic of Ghana, has been enstooled as the chief of Ekumfi Abor, near Mankessim in the Central Region of Ghana.
Paa Kwasi Anamua Sakyi, also known as Joshua Anaman Sackey will also be the Ankobiahene of the Ekumfi Traditional Council.
He is currently the General Manager in charge of Shipping Logistics at Convenio Energy, an Oil Trading Firm with headquarters in Mauritius.
Paa Kwasi Anamua Sakyi(second from left).
Mr Anamua Sakyi, who is a former staff of Bulk Oil Storage and Transportation (BOST) Company Limited has over 23 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance and Mechanical Engineering.
He had worked in both the gold mining and oil sectors.
He is currently working as an oil trader, consultant, and policy analyst in the global energy sector.
He serves as a resource to many global energy research firms, including Argus Media and CNBC Africa.Source:www.energynewsafrica.com
The Chief Coordinating Officer of Petro Trade Group, one of the leading players in the petroleum industry in the Republic of Liberia, is calling for drastic action against those who have abused the much-talk-about provisional lifting method, and a total review of the exercise itself.
The call follows acute shortages of petroleum product (gasoline) which has struck the already economically ailing West African nation.
According to Abraham Kaydea, amidst all of the reasons, excuses and/or justifications being given for the excruciating shortage of gasoline, the major cause of the problem is the gross abuse of the provisional lifting exercise.
Provisional lifting is a practice under which the, Liberia Petroleum Refinery Company (LPRC) would allow one petroleum importer to take the product of another importer with the understanding that the borrower will replace the product in time enough upon the arrival of his own product, a strategy which was designed with good intent to keep the market open and running but has backfired due to either the inability or callous refusal of some seemingly reckless companies to replace petroleum products they took and sold under the provisional lifting program.
Mr. Kaydea maintained that dredging of the Freeport and few other technicalities account for only a small portion of the shortage but the abuse of the provisional lifting by these delinquent companies or individuals who have failed or refused to pay back product given to them is the major cause of the problem.
Kaydea is therefore calling for the suspension and revocation of licenses as well as the prosecution of those whose’ willful actions or inactions led to the gasoline shortage which seriously affected the business of others and pushed the nation to the brink of economic collapse and chaos.
The Petro Trade boss called on President Weah to attach serious importance to the matter and personally ensure that the LPRC and other relevant state authorities review and/or cancel the provisional lifting exercise and that those who have deliberately defaulted be prosecuted for causing huge financial losses to other importers and the government and putting the country on the edge of economic instability.
He disclosed that his (Petro Trade) filling stations were selling 3000 to 5000 gallons a day but the shortage caused them to sell 1000 to 1500 gallons a day.
The tactical reduction in daily sale, he said, was a strategy to remain on the market and serve the public while efforts were being exerted to remedy the situation.
“We do that to manage the product and keep serving our people amidst the crisis caused by the shortage”.
Mr. Kaydea further revealed that the abuse of the provisional lifting framework did not start with the current administration (Weah-Government), but began in the previous regime up to about 68%, and continues in the current regime.
The Petro Trade chief has, however, advised government against the idea of instituting a petroleum product reserve, saying, “the idea is not necessary for now”.
He gave no details about his advice to government but promised to do so appropriately through the relevant government entities and functionaries
Source:www.energynewsafrica.com
South Sudan’s Ministry of Petroleum has released its seventh Petroleum Report which provides an overview of world oil markets and fundamentals, price forecasts, oilfield reserves, and the ministry’s marketing performance.
The report forms part of continued efforts by the ministry to promote openness and accountability in this crucial sector.
“We are trying to increase transparency in the country’s oil and gas sector, specifically concerning the financial aspects. The Ministry of Petroleum has produced this journal which will provide all the information about our production, sales, and even the environment. We include all the opportunities in South Sudan regarding refineries, pipelines and other facilities. All this information is now available, and everyone will have access to it,’’ Hon. Eng. Awow Daniel Chuang, the Minister of Petroleum said.
The report outlines the ministry’s infrastructure plans, including refineries and storage depots and provides insight into how the country has advanced its sales of crude oil on the open market.
South Sudan recognizes that the sector needs to continue to develop with buyer and market diversification, and a better understanding of global economics and pricing analysis.
The ministry is aiming to establish on-line communications with global oil markets and the main world crude oil pricing center, Platts in London.
The release of the report follows closely the announcement of the country’s first environmental audit of all operating oilfields.
This will assist in rehabilitation efforts and prevent future problems. The ministry’s exploration and production department is at the same time engaged in promoting new blocks ready for international investors looking for lucrative opportunities.
The aim of this one, and future Marketing Reports is to provide comprehensive information which clearly explains the monetization of South Sudan’ crude oil.
The emphasis is on transparency and full compliance with the country’s legislative requirements for information disclosure.
The Petroleum Ministry has also improved its website, https://www.MOP-RSS.org/ which contains detailed information about the current oil-producing blocks, as well as the day to day operation of the department.
All the information that investors may need is now available, including all the financial information dating from 2011, the country’s independence.
Source:www.energynewsafrica.com
Norwegian oil and gas firm, Aker Energy has entered into a Letter of Intent (LOI) with Yinson Holdings Berhad, Malaysia-based oil services provider for the provision of a Floating Production, Storage and Offloading vessel (FPSO) for the Pecan development project at the Deepwater Tano/Cape Three Points, offshore Republic of Ghana.
Aker Energy announced this in a statement posted on the company’s website.
The LOI follows a competitive tender and demonstrates Aker Energy’s intention to award the forthcoming bare-boat charter and operations and maintenance contract for the FPSO for the planned development of the Pecan field in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana.
The contracts will have a firm duration of ten years followed by five yearly extension options exercisable by Aker Energy as operator on behalf of the license partners Lukoil, Fueltrade and Ghana National Petroleum Corporation (GNPC).
Once developed and installed, the FPSO will be located over and connect to the state-of-the-art subsea production system located at approximately 2,400 meters below sea level.
Together, this will form the fourth installation to produce oil and gas resources offshore Ghana.
The FPSO will be Yinson’s second vessel to operate in Ghanaian waters, with the first being FPSO John Agyekum Kufuor, operating for ENI since 2017.
Commenting on the award CEO of Aker Energy, Mr. Svein Jakob Liknes, said: “We are continuing with our preparations for the Pecan project and awarding an LOI for the future contracts for the FPSO vessel is certainly a key milestone.”
“As one of the world’s leading FPSO providers, we have a strong belief in Yinson’s ability to deliver on time, at the required quality, and to the highest safety standard,” he added.
“We look forward to partner with Yinson to make the Pecan project a reality – to the mutual benefit of the people of Ghana, Aker Energy and our partners. Once in operation, the project will bring significant revenues to the country as well as direct and indirect job opportunities for indigenous companies and individuals,” Mrs. Kadijah Amoah, Country Director of Aker Energy in Ghana also remarked.
Yinson Group Chief Executive Officer (CEO) Lim Chern Yuan said this was the group’s second large project award in the last six months.
“We are gearing up for even greater growth ahead. In line with this, we have been building our resources, capacity and expertise; putting us in a strong position to meet our commitments to the projects that we have undertaken,” he said.
Meanwhile, Yinson CEO for production, Eirik Barclay added that the Yinson team is greatly looking forward to working with Aker Energy on this exciting and challenging project in over 2,400 metres of water depth.
“We are confident in our ability to deliver the FPSO to the Pecan field on schedule,” said Barclay.
Yinson said the contracts are expected to contribute positively to its earnings.
Source: www.energynewsafrica.com
As Senegal’s first oil and gas projects are under-development and first production is expected within two years, the African Energy Chamber has paid a working visit to Dakar to promote investment into the country and support local content development and capacity building.
Led by Executive Chairman NJ Ayuk, the African Energy Chamber’s delegation advocated for local content as a pillar of the industry’s sustainability efforts and offered all its support to continue pushing and financing Senegal’s initiatives to build capacity and build a new generation of Senegalese oil & gas workers and managers.
“Oil companies have an unmatched ability, and a profound responsibility, to support H.E. Macky Sall’s bold vision in shaping an economy that works for all Senegalese and preserves their freedoms,” NJ Ayuk said.
The team met with H.E. Macky Sall, President of the Republic of Senegal; H.E. Mouhamadou Makhtar Cissé, Minister of Petroleum and Energies, Ousmane Ndiaye, Permanent Secretary of COS-Petrogaz; Aguibou Ba, Director General of the National Institute for Petroleum and Gaz (INPG) and the majority of the oil and gas operators and service companies.
“Moving closer and closer to becoming a large-scale producer of oil and gas, Senegal’s story is an inspiring one. And, as a hotspot for oil and gas development, it is only fitting that the nation cements market-driven local content frameworks that are rooted in capacity building and are driven by the determination to transform practices in its energy sector,” declared Nj Ayuk.
“That is why initiatives such as the INPG are important in ensuring that industry revenue benefits the state while also guaranteeing employment for citizens. The INPG is a true social contract bringing the private and public sector together to plan for a prosperous future for Senegal,” he added.
The Chamber’s working visit coincided with that of US Secretary of State Mike Pompeo, during which state-owned SENELEC and GE signed an agreement for the development of 300MW of gas-to-power capacity, the modernization of Senegal’s power plants and the creation of a maintenance centre in Senegal.
In line with the US’ interests to increase cooperation with Africa, the Chamber reiterated the industry’s call for continued improvements in the ease of doing business and better operating environments for foreign investors.
“President Trump dispatching Secretary of State Pompeo and US companies to Senegal is a brilliant move. US companies understand that investing in Senegal is good business and a sustainable corporate strategy. President Macky Sall’s government has built on positive trends to maximize foreign investments. This includes a commitment to transparency, improving safety and security, strengthening the macroeconomic environment, investing in quality education and skill development in science, technology and innovation, and avoiding the Dutch disease,” Ayuk added.
Last year, the African Energy Chamber and Centurion Law Group hosted a local content forum in Senegal, calling attention to local content development in the country.
The visit serves as a follow up and a showcase of the Chamber’s continued commitment to the growth and development of African economies through ensuring that Africa’s natural resources benefit Africa’s people first.
“Senegal’s emergence as a key player in the oil and gas industry has been remarkable and, as this growth continues to surge, it is important that local communities have a seat at the table. It is also important that we continue to create an enabling environment for investors and the oil sector. Cutting unnecessary red tape and fast-tracking project approvals will give the energy operators a boost,” said NJ Ayuk.
“This, however, is a goal that is achievable only through the collaboration of the private and public sector. Local content is value creation and it is pertinent that Senegal put in place policies and frameworks that will see its people benefit from the hydrocarbon industry,” he added.
Source:www.energynewsafrica.com
He said he later got information that the Managing Director of BOST, Mr Edwin Provencal was on a working visit to Buipe and, therefore, went to engage him over the issue.
According to him, after that engagement, the MD invited him to Accra where presented a cheque of GHc33, 670 to him.
He added that the BOST MD, subsequently presented another cheque of GHc25, 192 bringing the total to GHc58,862.
Mr Baffour-Awuah said due to the assistance from BOST, the broken fire tender and the control unit of the Buipe Fire Service Station has been repaired and recommissioned.
He was full of gratitude to the management of BOST and especially the MD for his timely intervention.
Source:www.energynewsafrica.com 
Yinson Group Chief Executive Officer (CEO) Lim Chern Yuan said this was the group’s second large project award in the last six months.
“We are gearing up for even greater growth ahead. In line with this, we have been building our resources, capacity and expertise; putting us in a strong position to meet our commitments to the projects that we have undertaken,” he said.
Meanwhile, Yinson CEO for production, Eirik Barclay added that the Yinson team is greatly looking forward to working with Aker Energy on this exciting and challenging project in over 2,400 metres of water depth.
“We are confident in our ability to deliver the FPSO to the Pecan field on schedule,” said Barclay.
Yinson said the contracts are expected to contribute positively to its earnings.
Source: www.energynewsafrica.com 