A leading African Energy Attorney and founder and CEO of Pan-African corporate law conglomerate, Centurion Law Group, NJ Ayuk says he does not believe in handouts as a long-term strategy for impoverished people or nations.
Rather, he thinks that the companies working on the continent have a responsibility to help their host nations build the infrastructure necessary to expand industrialization.
Ayuk who is also the Executive Chairman of the African Energy Chamber expressed these views in his new book titled: “Billions at Play: The Future of African Energy” which is expected to be launched in October 2019.
Commenting on the yet to be launched book, Mr Bruce Falkenstein, who is the Joint Operations Manager of License Management & Compliance for LUKOIL, shared the views of Ayuk, which is the focus of chapter 10 in Ayuk’s new book.
Falkenstein has a 40-year career working in all facets of the international oil and gas industry. With regard to Africa, he has extensive experience managing offshore blocks in Côte d’Ivoire, Equatorial Guinea, Ghana, Cameroon, and Sierra Leone for LUKOIL and Vanco Exploration, and had great success in the exploration and development of oil fields in Egypt for Amoco (BP) in the 1980s and 90s.
“There is no getting around it: Africa is exporting raw materials it could be refining and processing, if it only had the capabilities, but not everyone is willing to admit that with the level of candor Ayuk does,” Falkenstein said. “What’s more, he has correctly linked infrastructure deficits to the lack of industrialization and describes workable solutions based on examples from around the world,” he said in a press released copied to energynewsafrica.com by APO Group.
Ayuk sees the irony in oil and gas produced in Africa being sent away to be refined, then returned as finished products that Africans pay a premium for. Roads, railways, and reliable electricity are key to building a manufacturing base in Africa, but they take resources—some of which should be provided by the international energy companies making millions on the continent, he argues.
“It is simply not ethical for American, French, Italian, and other companies to come here and not help lift people out of poverty,” Falkenstein said. “True, they employ indigenous workers and provide training, but one of the biggest benefits would be in committing to help build sustainable infrastructure and physical assets that will remain a plus for the people long after the companies have pulled up stakes and left Africa, and I will add that sustainability of the work force, also a key component of a venture’s ‘built assets’, is critical to the future industrial output of the nations and currently many of the work force assets are left behind without local supporting employment agencies after the stakes are pulled up. Sustainability is only achieved through alignment of the projects with both the real needs of the impacted communities and the spectrum of government stakeholders.
As Ayuk alludes to in chapter 9, Calling All Leaders! More on Good Governance, part of good governance requires that good leadership needs to be able to recognize the upfront additional cost to achieve sustainability results in reduced project risks and improved long-term project stability and economics.”
In Billions at Play: The Future of African Energy, Ayuk does not overlook the issues Africa has caused for itself, including unscrupulous leaders who have siphoned off funds that were intended for the public good. At the same time, as Falkenstein noted, he points out how countries like Kenya have created an enabling environment for manufacturing that supports economic diversification and should reduce the country’s exposure to external shocks, including oil and gas price volatility.
“In NJ Ayuk’s world, there are few villains, just people and businesses who can and need to do more,” Falkenstein said. “That is what makes his book so compelling—it is, truly, fair and balanced. Learning from Ayuk will put you on the successful path in Africa. His first book, Big Barrels: African Oil and Gas and the Quest for Prosperity, should be within close reach for any serious oil and gas executive and negotiator. With that said, Ayuk’s newest book needs to be in even closer reach as each of you pursue your own quest for Billions.”
A six-member high-level delegation from Sunon Asogli Power (Ghana) Limited in the Republic of Ghana, West Africa, on Friday, September 20, 2019, paid a courtesy call on the Vice President of the Republic of Liberia, Chief Dr. Jewel Howard-Taylor, at her Capitol Building Office in Monrovia.
The Delegation had earlier met with His Excellency, President George M. Weah before their courtesy on the Vice President.
The Chinese Company has entered a Memorandum of Understanding with the Government of Liberia to conduct pre-feasibility studies for investment in the development and operation of electricity generation, transmission and distribution utilities in Liberia, a Press Release from the office of the Veep said.
The Delegation which was led by Togbe Afede XIV, Director of the Sunon Asogli Power Ghana Limited, a subsidiary of Shenzhen Energy Group Limited, also had Mr. Qun Yang(Chairman of Sunon-Asogli and Shenzhen Energy Africa Development Unit) Mr. Kojo Wang(Director of Africa Projects Development Unit), Elikplim K. Apetorgbor( Manager Energy Trading, Research & Business Development) as well as Mr. Yan Wei(Commercial Manager).
They were accompanied to the office of the Vice President by the Minister of Lands, Mines and Energy, Honorable Gesler E. Muray, and then the Chairman of the National Investment Commission, Honorable Molewuleh B. Gray.
The Delegation in a group photograph with the Vice President of Liberia
The Company, according to the MOU, will also set up a legally registered Liberia subsidiary once modalities for a power purchase agreement are reached with the Government of Liberia.
Vice President Howard-Taylor welcomed the delegation to her office and expressed appreciation to officials of the National Investment Commission, the Ministry of Lands, Mines, and Energy as well as her Office Chief of Staff, Honorable, George T. Nimely, for the coordinated effort to reach this far with the Agreement.
According to the Analyst Newspaper, the Vice President described Energy as crucial to the development and a major component of the President’s development agenda.
“Access to modern energy, especially in the lower-income developing countries, is an important factor for achieving key aspects of the Millennium Development Goals and supporting government’s Pro-poor Agenda for Prosperity & Development,” the Liberian Vice President told the Dele
Speaking earlier, the Director of Sunon Asogli Power Ghana Limited, Togbe Afede XIV, explained that the company does not only see a lot of potentials but also challenges, promising that following the feasibility studies, the company will present findings to the GOL and make application consistent with opportunities in the electricity generation, transmission or distribution.
According to him, the presence of the Chinese Company in Ghana has greatly impacted the energy sector, expertise he noted will be brought to Liberia to positively impact the energy sector.
For his part, Lands, Mines, and Energy Gesler Muray thanked the Vice President for the level of cooperation during the discussions while expressing optimism for a positive outcome from the MOU.
Minister Muray disclosed that the MOU for the pre-feasibility is enforceable for the period of six months and that the Government, through the Ministry of Lands, Mines and Energy and the National Investment Commission will recommend the appropriate next steps leading to power purchase between the GOL and the Shenzhen Energy following the review and validation of the findings presented.
The Oil and Gas Climate Initiative (OGCI) has announced further initiatives to accelerate the reduction of greenhouse gas emissions and support the goals of the Paris Agreement, ahead of OGCI’s annual event in New York City.
First, OGCI launched a new initiative to unlock large-scale investment in carbon capture, use and storage (CCUS), a crucial tool to achieve net zero emissions. OGCI’s CCUS KickStarter initiative is designed to help decarbonize multiple industrial hubs around the world, starting with hubs in the US, UK, Norway, the Netherlands, and China. The aim of the KickStarter is to create the necessary conditions to facilitate a commercially viable, safe and environmentally responsible CCUS industry, with an early aspiration to double the amount of carbon dioxide that is currently stored globally before 2030.
Second, OGCI showed progress towards its methane intensity target announced last year. Members are on track to meet the methane intensity target, having reduced collective methane intensity by 9% in 2018. In addition to the methane intensity target, OGCI is now working on a carbon intensity target to reduce by 2025 the collective average carbon intensity of member companies’ aggregated upstream oil and gas operations.
We are scaling up the speed, scale, and impact of our actions in support of the Paris Agreement OGCI members.
Third, all OGCI member companies have pledged to support policies that attribute an explicit or implicit value to carbon. Acknowledging the role that attributing a value to carbon plays as one of the most cost-efficient ways to achieve the low carbon transition as early as possible, OGCI supports the introduction of appropriate policies or carbon value mechanisms by governments.
OGCI Climate Investments, OGCI’s US$1 billion-plus fund, has nearly doubled the number of investments in promising clean technologies over the year. The fund now has a total of 15 investments in its portfolio. Climate Investments actively supports these companies in deployment and scale-up as well as continuing to search for additional opportunities in its focus areas.
In a joint statement, the heads of the OGCI member companies said: “We are scaling up the speed, scale, and impact of our actions in support of the Paris Agreement. Accelerating the energy transition requires sustainable, large-scale actions, different pathways and innovative technological solutions to keep global warming well below 2°C. We are committed to enhancing our efforts as a constructive partner with governments, civil society, business and other stakeholders working together to transition to a net zero economy.”
“The progress towards our methane intensity target makes us confident that the actions we are taking deliver results. We are on track to reach our methane intensity target of 0.25% by 2025. Encouraged by our experience of working together on reducing methane emissions, we are now working on a target to reduce by 2025 the collective average carbon intensity of our aggregated upstream oil and gas emissions.”
OGCI’s CCUS KickStarter initiative is designed to facilitate large-scale investment in a commercially viable, safe and environmentally responsible CCUS industry. To achieve this, OGCI will start by building on the work of many others to jointly put five emerging hubs into operation – in the US, UK, Norway, the Netherlands, and China. Its aspiration is to double the amount of carbon dioxide that is currently stored globally, while building a pipeline of potential future hubs to bring this new industry to scale.
In parallel, OGCI has launched a joint CCUS Acceleration Framework with the 11 countries supporting the Clean Energy Ministerial CCUS Initiative, which brings governments and industries together to create a global, commercial CCUS industry at the scale needed to meet the Paris Agreement.
Nature Based Solutions are crucial to achieving net zero emissions, in tandem with CCUS. OGCI has joined the Natural Climate Solutions Vision initiative, convened by the World Economic Forum and the World Business Council for Sustainable Development.
Methane emissions progress
OGCI members reduced their collective average methane intensity by 9% in 2018, and members are on track to meet the 2025 target of below 0.25%. As part of OGCI’s engagement to expand the impact of its actions, OGCI joined the Global Methane Alliance, together with the United Nations and Environmental Defense Fund, which aims to work with gas-producing countries to include methane emission reductions from oil & gas in their nationally determined contributions.
Carbon intensity target preparation
To complement its methane emissions intensity target, OGCI is working on a target to reduce collective average carbon intensity by 2025. The target will take into account carbon dioxide and methane emissions from members’ aggregated upstream oil and gas operations emissions from a baseline of 24kg CO2e/boe in 2017. Member companies have developed a baseline and are aligning methodology and assumptions to work towards the collective target. Reducing carbon intensity involves actions including improving energy efficiency, minimizing flaring, upgrading facilities and co-generating electricity and useful heat.
Statement on responding to the climate challenge and stakeholder engagement
OGCI member companies have pledged to support policies that attribute an explicit or implicit value to carbon.
Recognizing the urgency of responding to the climate challenge, all OGCI member companies support the consideration and introduction by governments of appropriate policies or carbon valuation mechanisms, such as through tax, trading systems, incentives or other market-based instruments appropriate to the profile of emissions, to the carbon mitigation opportunities and to the socio-economic situation of each jurisdiction.
OGCI Climate Investments
OGCI Climate Investments, the US$1 billion-plus fund set up by OGCI member companies to lower the carbon footprint of energy and industries, has made the following seven new investments in the last year:
Kelvin reduces methane emissions by using artificial intelligence to better control complex processes and systems.
SeekOps develops and fields advanced sensor technology for methane emissions detection, localization and quantification.
Boston Metal has developed an electrochemical process to manufacture low-emissions ferroalloys, and ultimately emissions-free steel.
75F aims to increase occupant productivity and reduce energy use in commercial buildings through its smart control solution.
Norsepower manufactures mechanical rotor sails that provide auxiliary propulsion power for large ships to reduce their fuel consumption
XL provides hybrid and plug-in-hybrid electrification solutions for commercial vehicles.
Wabash Valley Resources captures and stores carbon dioxide from ammonia production in what is expected to be the largest carbon storage project in the US.
Further information
About the Oil and Gas Climate Initiative:
The Oil and Gas Climate Initiative is a CEO-led initiative which aims to drive the industry response to climate change. Launched in 2014, our members engage together on action to accelerate the reduction of greenhouse gas emissions. We explicitly support the Paris Agreement and its aims, and we act with integrity to accelerate and participate in the energy transition. Our US$1 billion-plus fund, OGCI Climate Investments, supports the development, deployment and scale-up of technologies and business models that can significantly reduce greenhouse gas emissions. Our 13 members account for 32% of global operated oil and gas production.
OGCI is made up of 13 oil and gas companies: BP, Chevron, CNPC, Eni, Equinor, ExxonMobil, Occidental, Pemex, Petrobras, Repsol, Saudi Aramco, Shell and Total.
Azerbaijan’s national oil company SOCAR has evacuated 500 offshore workers in the Caspian Sea, citing severe weather conditions as the reason behind it.
“On September 21-22, due to the severe deterioration of weather conditions, SOCAR significantly enhanced its security measures,” the company said over the weekend.
More than 500 oil workers were evacuated by air and maritime transport, and work was stopped in the open.
According to Trend.az, an Azeri business news website, BP did continue normal operations at its Azeri-Chirag-Gunashli offshore project, despite the weather conditions.
Contract of the century
Azerbaijan last week, September 20, marked Oil Workers’ Day and the 25th anniversary of the signing of the “Contract of the Century,” which was the signing of the Azeri-Chirag-Gunashli (ACG) production sharing agreement, signed on 20 September 1994 between the Government of Azerbaijan and eleven international companies representing six countries.
President of SOCAR Rovnag Abdullayev said: “Today we celebrate the 25th anniversary of the PSA on the Azeri, Chirag and Deepwater Gunashli fields, known as the “Contract of the Century”. This contract has played a unique role in the history of independent Azerbaijan. Although shorter than a moment from historical perspective, these 25 years passed in the atmosphere of strenuous day-to-day work. Looking back at this track of success and the magnificence of the projects we’ve accomplished, we’re filled with a sense of pride.
“In the last 25 years, the annual oil production has grown fourfold in our country, recovering all branches of economy. Some essential technologies and innovative solutions were applied in the Azerbaijani sector of the Caspian Sea, in order to develop the deepwater fields. Around $265 billion were invested in total in the economy of Azerbaijan during these years, whilst the amount of investment in the oil and gas industry totaled $101 billion with around $36 billion invested by the ACG partners alone in the development of these fields.”
From the start of production in November 1997 till the end of 2Q 2019, ACG produced about 488 million tonnes (more than 3.6 billion barrels) of oil. Around 3.3 billion barrels of ACG oil have been exported to world markets via the Baku-Tbilisi-Ceyhan pipeline. Since 2006, 4,300 tankers loaded with ACG oil have been lifted from the Ceyhan terminal. More than 44 billion cubic meters of associated gas were delivered to Azerbaijan since the start of production till the end of 2Q 2019. Capital expenditure in the ACG project by the end of 2Q 2019 was $36 billion.
Gary Jones, BP’s Regional President for Azerbaijan, Georgia and Turkey, said: “The 25th anniversary marks an important milestone in the new history of Azerbaijan’s oil and gas industry. It is a historical date for SOCAR, BP and all other partners in the ACG contract.
“What has been achieved by this contract since 1994 is extraordinary. It is with this contract that the massive developments, turning Azerbaijan once again into one of the world’s major energy suppliers and transforming the country’s economy, started. One reason for this success is the extraordinary partnership built here within ACG. And for that we want to pay tribute to President Aliyev, his government and SOCAR. Together we have demonstrated what partnership can deliver.”
Four pirates armed with a gun and knives boarded a tanker in the early hours of Sunday, September 22, 2019, according to the International Maritime Bureau (IMB) Piracy Reporting Centre.
The perpetrators reportedly took the watchman on duty hostage, tied his hands and forced him to lead them to the bridge.
Once inside the bridge the robbers took the duty officer hostage and forced him to lead them to the Captain, Chief Engineer, third officer and bosun’s cabins, the IMB centre said.
After looting the cabins, the robbers locked the crew in a cabin and escaped. Crew personal belongings, cash and ship’s properties were stolen, the report shows.
The operator of the vessels, Latvia-based ship manager LSC Ltd, emphasized that there were no injuries to the crew members adding that the entire crew is in “good spirit and health”. The company noted that there were no reports of damages to the cargo and the vessel following the incident.
A former Minister for Energy under the Akufo-Addo-administration in the Republic of Ghana, Mr Boakye Agyarko has brought smiles on the faces of management, staff and students of school for the deaf in Jamasi in the Ashanti Region.
The former minister, last Thursday, handed over two refurbished washrooms, three poly tanks and an automated borehole to the school’s authorities.
Mr Boakye Agyarko was the Energy Minister for the West African nation between 2017 and 2018, but was relieved of his post without reasons from the appointing authority.
His removal from office shocked industry watchers bearing in mind how he and his three deputies had worked hard to stabilise the country’s power sector which was in crisis.
Despite not being in office, Mr Boakye Agyarko has not stopped giving back to society as he has been engaging in a number of social activities.
In his latest philanthropic activity to the Ashanti School for the deaf, Mr Boakye Agyarko explained that the deplorable facilities were brought to his attention by his family and, therefore, decided to help them.
“The deplorable condition of the facilities was brought to my attention by my family. Children are, indeed, a gift from God and more so with a hearing impairment, they are vulnerable and must be given special attention.
“It is my belief that when God is fortunate to one, it is an assignment of such responsibility to the less fortunate,” he explained in a post on his Facebook wall.
“Living in a community does not simply mean living side by side with each other. It means living our lives through one another and for one another. We must develop a sense of connectedness to each other and to our ideals. We must, therefore, as a people, define what connects us; what holds us together by the ideals we share, and the mutual obligations those principles entail.
“Each of us must contribute to the well-being of us all,” he added.
Mr Boakye Agyarko continued that “also, a visually impaired student of Jamasi R/C JHS, Hannah, put a request of a voice recorder to help her learn for which I made provision for its purchase.
“My heartfelt thanks to the Almighty God, ACP Nana Bediako Poku, Amenesehene, Nana Kofi Attakorah, Twifohene, Hon. Katherine Reckline, District Chief Executive, Francis Adu Boateng, District Coordinating Director, Dr William Amankorah, District Director of Education, Headmistress of the school and friends and sympathisers who came to support the event,” he concluded.
Saudi Aramco has revealed the significant damage caused by aerial strikes on its Khurais oil field and Abqaiq crude-processing plant last weekend, and insisted that the sites will be back to pre-attack output levels by the end of the month.
According to worldoil.com, Aramco took reporters for a first look inside the facilities, where equipment was scorched and ruptured by the assault on Saturday. In one area lay a pile of debris – a mess of oil melted to asphalt, twisted and charred metal grates, and pieces of fire hose – that stank of tar. While officials promised the plants would be repaired quickly, they also said they were still in the process of evaluating whether some equipment could be fixed or would have to be completely replaced.
The Khurais field and processing plant resumed 30% of production within 24 hours of the strike and will produce 1.2 million barrels a day by the end of September, Fahad Al Abdulkareem, general manager for Aramco’s southern area oil operations, said at a briefing on Friday. Workers are there 24 hours a day to speed the repairs, but the site showed significant damage.
The Khurais field has a maximum output capacity of 1.45 MMbpd and processes all of its oil on site, according to Al Abdulkareem. The assault affected four of its crude-stabilization units — 90-meter (300-foot) towers that reduce pressure and remove gas from the crude. One of the columns shown to reporters was a charred wreck, and at least one other was even more badly damaged, he said.
Aramco also showed reporters pipes that had been pierced by fragments from the missiles, causing them to spew oil, feeding the fires. Workers were busy replacing segments of piping and insulation at the facilities, and conducting tests on the damaged crude-stabilization columns.
The world’s biggest crude exporter has vowed a swift restoration of output at Khurais and Abqaiq after the attack by drones and missiles disabled 5% of global supply. There’s concern in the market about how long it will take the kingdom to fully restore lost production as it depletes inventories to meet supply commitments and operates without its usual buffer of spare capacity.
Saudi and U.S. officials have said that the drones and missiles used in the attack were made by Iran, though Tehran has denied involvement. The incident has ratcheted up instability in the world’s most important oil-producing region, where tensions were already high following several attacks on Saudi oil tankers and pipelines in recent months.
The tour of the Abqaiq plant, which processes crude oil from fields including Ghawar, the kingdom’s largest, also showed extensive damage. The smell of natural gas and other hydrocarbons hung over some areas of the facility. Huge sheets of twisted metal that had been struck by missiles lay next to damaged tanks.
The facility was struck 18 times, with five hits on crude-stabilization towers and 11 on spheroids, which separate natural gas from oil, said Khaled Al Buraik, Aramco’s vice president for southern-area oil production. At least three of the towers showed heavy damage, including large holes surrounded by scorching. Some of them may need to be replaced, he said.
Large holes were visible on the tops of rounded tanks called “spheroids,” which had been surrounded with scaffolding as lines of workers went up and down, evaluating whether they could be fixed, or would have to be replaced.
Abqaiq’s throughput before the attack was about 4.9 MMbpd, and on Tuesday Aramco CEO Amin Nasser said it was processing about 2 MMbpd. It should return to pre-attack levels by the end of September, he said.
Aramco has ramped up output at its offshore fields — making more of its heavier crude grades available to customers — and is also tapping oil in storage to meet export commitments. A return to the company’s full 12 MMbpd capacity is unlikely before the end of November, Prince Abdulaziz bin Salman, the energy minister, said Tuesday.
A Singapore-based subsidiary of Japanese trading giant Mitsubishi recently booked a $320 million loss after several unauthorized derivatives trades went sour, the company revealed in a press release Friday.
The bank blamed the losses on a ‘rogue trader’ who allegedly manipulated the subsidiary’s risk-management system, allowing him to place massive derivatives bets on the price of oil and disguise them as hedges similar to what JPMorgan did with the whole London Whale debacle.
Though the bank didn’t release the trader’s name, according to the press release, he was fired earlier this week. The bank has since reported his actions to the local police.
The trader had been taking unauthorized derivatives positions since January, but he suffered heavy losses over the summer as oil prices fell. He reportedly occupied a relatively senior position, and was in charge of all transactions involving China for the subsidiary.
The bank launched an investigation into the traders’ positions while he was out of office in the middle of August. It soon discovered the unauthorized positions, and decided to unwind them immediately (the bank probably could have minimized losses if it had waited until Monday to unwind those positions, when prices spiked nearly 20% intraday).
Because the trader had manipulated the subsidiary’s risk-management system, he was able to make it look like the derivative trades were associated with customer orders.
As the FT points out, Mitsubishi made a $5 billion net profit last year, so the trading loss is more of an embarrassment than a threat to the bank’s survival. But according to Bloomberg, the oil market has a long history of massive trading busts.
The incident is a reminder of the damage that a rogue trader can cause to a large financial institution, according to the TF. The Mitsubishi rogue trader will join a growing ‘rogues gallery’ that includes Société Générale’s Jérôme Kerviel, JPM’s “London Whale” (a.k.a. Bruno Iksil), and Barings’ Nick Leeson.
The attacks on Saudi soil with drones and ballistic missiles will stop, if Saudi Arabia will stop its airstrikes over Yemen, Houthis, the group which claimed responsibility for last Saturday’s attack has declared.
According to Bloomberg, Yemen Shiite Houthis rebel leader Mahdi al-Mashat issued the statement when who spoke on Al Masirah TV.
The Iran-backed Houthis have claimed ownership of the devastating attacks that crippled Saudi Arabia’s oil infrastructure over the weekend that took offline 5.7 million barrels per day—which is half of Saudi Arabia’s total oil production–sending oil prices sharply upward.
But the United States has largely disregarded their claim, placing the blame for the weekend attacks on Saudi’s oil facilities squarely on Iran. Both Saudi Arabia and the United States claim to have proof that Iran was the perpetrator.
If that is the case, the Houthis vow to stop the attacks is a clever capitalization on the tensions between Iran and Saudi Arabia, and Iran and the United States. The Houthis are also asking Saudi Arabia to reopen Sana’a airport, and to lift the blockade on the critical port Hodeidah.
The timing of the Houthis promise to halt the attacks if Saudi Arabia does follows the Saudi-led coalition’s military operation just north of Hodeida, according to Reuters, where they intercepted an unmanned Houthis bomb boat on Thursday, and carried out a strike on military targets.
“These sites are used to carry out attacks and terrorist operations that threaten shipping lines and international trade in the Bab al-Mandab Strait and the southern Red Sea,” a coalition spokesman said.
The Houthis claimed that yesterday’s attacks chided Saudi Arabia for yesterday’s attack, saying that it violated the ceasefire agreement that was signed last year in Sweden.
Hezbollah leadership also called on Saudi Arabia and the UAE to cease its Yemen attacks, “because your houses are made of glass,” Hassan Nasrallah warned on Friday, according to the Associated Press.
Guyana’s oil industry may be facing a tough road ahead, after US and European diplomats on Thursday accused the Guyana government of breaching the country’s constitution according to Reuters.
Guyana is just months away from first oil, and everyone has had high expectations of its oil riches. But now its President, David Granger, is being called on to set a date “immediately” for brand new elections, lest it find itself cut off from development funds.
New elections, according to Guyana’s independent electoral body, are now ready to be held in February, which coincides with the timeline for first oil. Granger had previously stated that it needed time to formalize its voter registry, but the international community is growing impatient with the South American country’s foot-dragging ways.
Political uncertainties aside, Guyana’s prospect for oil looks great. ExxonMobil has struck find after find—more than a dozen, in fact–that now total over 6 billion oil-equivalent barrels. Its latest find the Tripletail-1 well where it will serve as operator with Hess and CNOOC as partners.
The upcoming and much-delayed elections are critical to its fledgling oil industry, which will set the tone going forward as to just how Guyana will handling the revenue from the oil industry and how it will handle contracts with foreign players. The existing laws on the books regarding its petroleum are decades old, before Exxon had struck it bigtime on what many consider was a longshot.
And we’re talking about a lot of oil. Per citizen, Guyana could potentially produce more oil than any other country. So it’s that much more important that Guyana get it right this time around, after many had criticized the government for handing Exxon a sweetheart deal, including the IMF, who called on Guyana authorities to revise their tax laws for any oil contracts going forward, describing the royalty rates as “bellow well” what is observed internationally.
“The prevailing political uncertainty undermines Guyanese institutions, compromises economic opportunities and delays developments” diplomats from the US, Britain, and the EU said in a Thursday statement, cited by Reuters.
Exxon Mobil Corp. is again trying to sell its oil and gas operations in southeast Australia as part of a move to shed assets and boost shareholder returns.
The U.S. supermajor “will be testing market interest” for global assets, including what it operates in Australia, the company said in an emailed statement. No buyers have been identified and no agreements have been reached, it added.
“Exxon Mobil continually reviews its assets for their contribution toward meeting the company’s operating needs, financial objectives and their potential value to others,” the corporation said in a statement filed by worldoil.com.
It’s the second effort in about three years to sell Australian operations, which include the long-producing Gippsland Basin project offshore Victoria state. Exxon and its joint venture partner BHP Group abandoned a 20-month sale process for the assets in February 2018.
The world’s biggest oil company by market value is pursuing a $15 billion divestment plan, offloading older assets to fund higher-growth projects from Papua New Guinea to Texas and Brazil.
It confirmed earlier this month it’s in exclusive talks to sell Norwegian oil and gas operations, a deal reported to be worth as much as $4.5 billion. The company is also negotiating with Spain’s Repsol SA to sell deepwater assets in the Gulf of Mexico, where it said last year it was “testing market interest.”
Big Issue
Potential buyers “will have to get comfortable with the age of the assets, declining production and significant decommissioning liabilities,” said Angus Rodger, a research director at Wood Mackenzie Ltd. “The fact that a previous effort to offload the Gippsland oil assets failed due to uncertainty over abandonment costs highlights how big an issue it will be.”
The Australian newspaper reported in June that Exxon’s 50% stake in the assets, which include the Longford Gas Plant, could be worth about $3 billion.
BHP said in an email it recognizes the importance of the Gippsland Basin to the reliable supply of gas into the east coast domestic market and remains committed to maintaining that. The sale doesn’t include the Altona refinery, also in Victoria state, which Exxon has operated for 70 years.
“When Exxon adds up its total portfolio, the Gippsland Basin is not going to fit the bill,” said David Lennox, a resources analyst at Fat Prophets in Sydney, adding that the move is in line with the company’s plans to extract value from some of its non-core assets.
The Sustainable Energy Fund for Africa (SEFA), which is being managed by the African Development Bank (AfDB), has approved a $500,000 grant to support the development and launch of the Nigeria Energy Access Fund (NEAF).
This new private equity fund has been developed by Nigerian impact investment firm, All On.
NEAF will make strategic investments in sustainable energy in Nigeria, particularly in the country’s burgeoning off-grid and mini-grid sectors.
The SEFA grant will support specific workstreams to set NEAF in motion and enhance its engagement with private and public sector investors.
NEAF will be a first-of-its-kind facility to provide eligible projects and businesses with equity solutions that are currently unavailable in the market.
“Nigeria requires bespoke and innovative market-based solutions to provide its off-grid population, estimated at 100 million, access to sustainable sources of energy.
“The SEFA grant will be instrumental in the constitution of NEAF, and ultimately, the mobilisation of much-needed private sector investment for the sector,” Wale Shonibare, AfDB’s Acting Vice President for power, energy, climate change and green growth commented in a statement copied to energynewsafrica.com by APO Group.
Once operational, NEAF is expected to complement the Bank’s wide range of sustainable energy initiatives currently being implemented in Nigeria.
In November 2018, the board of directors of the bank approved a $200 million package to support the Nigeria Electrification Project (NEP), designed to help scale-up green mini-grid solutions with subsidies, among other measures.
In May 2018, SEFA approved a $1.5 million grant to support the first phase of the Nigerian government’s Jigawa 1GW Independent Power Producer Solar Procurement Programme.
SEFA’s support to NEAF is aligned with the New Deal on Energy for Africa and the Bank’s High 5 priorities, especially Light Up and Power Africa and Improve the Quality of Lives of Africans.
The project conforms with the Bank’s Energy Sector Strategy and will boost the Nigerian government’s power sector recovery plans.
The Chief Executive Officer of the Association of Oil Marketing Companies (AOMC) in the West Africa nation, Ghana, Mr Kwaku Agyemang-Duah, has asked Akufo-Addo administration to consider removing taxes on Liquefied Petroleum Gas (LPG) in a bid to increase consumption.
He said in many African countries that rely on LPG for domestic and commercial use, their governments have reduced the price of the product to make it more affordable.“Countries like Nigeria and even Burkina Faso have the cheapest LPG prices despite the fact that Burkina Faso’s LPG comes from Ghana,” he explained.
His call follows several appeal by the LPG Marketers Association to government to abolish some of the taxes on the domestic LPG, which government refused.
The Finance Minister Ken Ofori-Atta on Monday, July 29, 2019 announced an upward adjustment of LPG price by 8 pesewas when he presented the country’s mid-year budget statement in Parliament.
Thus, consumers who used 14.5kg are now paying almost GHS 1.20p extra.
Addressing stakeholders in Koforidua, the Eastern Regional capital on the Cylinder Recirculation Model (CRM) policy being implemented by the National Petroleum Authority (NPA), Mr Agyemang Duah said government’s vision of achieving an LPG penetration would not be successful if the prices of LPG remains high.He said taxes on LPG makes it more costly and unattractive for rural folks, thereby, depending on charcoal and firewood for domestic and commercial purposes.The OMCs also want the government to regulate the use of autogas, especially among commercial drivers.
CEO of the NPA, Alhassan Tampuli revealed that the LPG penetration in the country is about 25 per cent of the national population adding that the 75 per cent of the population uses charcoal and firewood which has implications on the environment.
He said government wants to achieve a 50 per cent penetration of LPG by the end of the year 2030.Mr Tampuli said the CRM policy aims to make LPG use safer and more accessible to Ghanaians.
He said, extensive consultation has been done and is still ongoing to ensure that the policy achieves its aims.
Some traditional leaders who participated in the engagement endorsed the Cylinder Recirculation Model. They believe it will create jobs.
The Association of Ghana Industries in the Republic of Ghana, West Africa, has refuted media reports suggesting that they have 51% shares in the Power Distribution Service (PDS) concession but has been diverted to Enterprise Group.
According to a statement copied to energynewsafrica.com and signed by Mr. Seth Twum-Akwaboah, AGI stated that they were part of the initial stakeholder engagements over the concession agreement but their discussions focused on Private Sector Participation (PSP) and the need to ensure local content in the concession agreement.
“We are therefore not aware of any diversion of shares due AGI to the Enterprise Group as reported,” the statement reads.
Read full statement belowAGI rubbishes claims of 51% shares in PDS
The Delegation which was led by Togbe Afede XIV, Director of the Sunon Asogli Power Ghana Limited, a subsidiary of Shenzhen Energy Group Limited, also had Mr. Qun Yang(Chairman of Sunon-Asogli and Shenzhen Energy Africa Development Unit) Mr. Kojo Wang(Director of Africa Projects Development Unit), Elikplim K. Apetorgbor( Manager Energy Trading, Research & Business Development) as well as Mr. Yan Wei(Commercial Manager).
They were accompanied to the office of the Vice President by the Minister of Lands, Mines and Energy, Honorable Gesler E. Muray, and then the Chairman of the National Investment Commission, Honorable Molewuleh B. Gray.
The bank launched an investigation into the traders’ positions while he was out of office in the middle of August. It soon discovered the unauthorized positions, and decided to unwind them immediately (the bank probably could have minimized losses if it had waited until Monday to unwind those positions, when prices spiked nearly 20% intraday).
Because the trader had manipulated the subsidiary’s risk-management system, he was able to make it look like the derivative trades were associated with customer orders.
As the FT points out, Mitsubishi made a $5 billion net profit last year, so the trading loss is more of an embarrassment than a threat to the bank’s survival. But according to Bloomberg, the oil market has a long history of massive trading busts.
The incident is a reminder of the damage that a rogue trader can cause to a large financial institution, according to the TF. The Mitsubishi rogue trader will join a growing ‘rogues gallery’ that includes Société Générale’s Jérôme Kerviel, JPM’s “London Whale” (a.k.a. Bruno Iksil), and Barings’ Nick Leeson.
Thus, consumers who used 14.5kg are now paying almost GHS 1.20p extra.
Addressing stakeholders in Koforidua, the Eastern Regional capital on the Cylinder Recirculation Model (CRM) policy being implemented by the National Petroleum Authority (NPA), Mr Agyemang Duah said government’s vision of achieving an LPG penetration would not be successful if the prices of LPG remains high.
He said taxes on LPG makes it more costly and unattractive for rural folks, thereby, depending on charcoal and firewood for domestic and commercial purposes.
The OMCs also want the government to regulate the use of autogas, especially among commercial drivers.
CEO of the NPA, Alhassan Tampuli revealed that the LPG penetration in the country is about 25 per cent of the national population adding that the 75 per cent of the population uses charcoal and firewood which has implications on the environment.
He said government wants to achieve a 50 per cent penetration of LPG by the end of the year 2030.
Mr Tampuli said the CRM policy aims to make LPG use safer and more accessible to Ghanaians.
He said, extensive consultation has been done and is still ongoing to ensure that the policy achieves its aims.
Some traditional leaders who participated in the engagement endorsed the Cylinder Recirculation Model. They believe it will create jobs.
