Ghana: Association Of Oil Marketing Companies Seeks Review Of Tax Policy

The Association of Oil Marketing Companies in the Republic of Ghana is seeking a review of the government’s tax policy, which requires OMCs to pay in full taxes on fuel products they have lifted but yet to be sold. According to the Association, the nature of the policy is more or less pre-financing government, which in their estimation, is not the best. Speaking to energynewsafrica.com in an exclusive interview, Industry Coordinator and Chief Executive Officer for the Association of Oil Marketing Companies, Mr Kwaku Agyemang-Duah described the current tax policy as inimical to the operations of the OMCs.
Mr. Kwaku Agyemang-Duah, CEO of Association of Oil Marketing Companies, Republic of Ghana
He mentioned that the policy, coupled with the impact outbreak of covid-19, has heavily affected a good number of OMCs. He revealed that about 35 OMCs are currently not lifting fuel because of financial challenges triggered by the taxes and cost of operations. “The main thing that we have in the industry still persists. That is, the issue of paying taxes on goods we have not sold. We pay taxes as we lift the product. So, assuming you lift 100,000 litres, you have to pay taxes whether you have sold it or not. So, assuming I sell 40,000 litres, its immaterial as I have to pay taxes on all. Moreover, the difficulty is how I get money to pay. It means you have to go to the bank and borrow to pay. Therefore, it is more or less like pre-financing the government.
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“So what we are doing is that we are discussing with GRA and Ministry of Finance to see how we deal with the tax issue. We are not saying reduce the taxes, but we believe that if, for instance, it is pay as you sell, it will help all of us. If the money is not there and because you have the law on your side, I must pay at all cost then that is very bad,” he said. Mr Agyemang-Duah, however, lauded the passage of the Insolvency Act, which he said would give businesses that are struggling or liquidated companies the opportunity to reorganise and bounce back. “The Insolvency Act will help people in the situation of bankruptcy to really avail themselves and come back again. It is a good opportunity for us, but be it as it may, I think it is not operational yet so you cannot avail yourself for that opportunity.” Source:www.energynewsafrica.com

India: Oil Corp’s 300,000 Bpd Refinery To Be Shut For 3 Weeks

Indian Oil Corp Ltd’s 300,000 barrels per day refinery located on east coast of the country will be shut down for three weeks to pave way for maintenance. A top official of the company disclosed this to Reuters on Sunday.
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“The Indian Oil refinery in Paradip will remain shut from July 25 to August 15 for maintenance,” said Sangram Keshari Mohapatra, the top bureaucrat in the district of Jagatsinghpur, where the refinery is located. As per the company’s request, a shutdown order has been issued,” he said, adding the refinery was last shutdown completely in 2018. Source:www.energynewsafrica.com

Ghana: NPA Launches CRM Pilot In Yendi (Photos)

Ghana’s petroleum downstream regulator, the National Petroleum Authority (NPA), has launched the pilot phase of the Cylinder Recirculation Model (CRM) in Yendi in the Northern Region of the West African nation. This will lead to the rollout of a nationwide ‘door-to-door’ distribution of gas distribution in the country. The pilot is the third after a similar exercise in the Eastern and Ashanti regions. Speaking at the ceremony held under strict Covid19 protocols, Alhassan Tampuli, Chief Executive of the Authority, said Ghanaians would be encouraged to fully participate in the rollout. He said the safety inspection division of the Authority would be at hand to assist with the required safety features of distribution outlets. On the choice of Yendi for the pilot, Mr Tampuli said the municipality was selected because it links major towns such as Salaga and Bimbilla, which are commercially viable towns in the northern part of the country. Chairman of the Pilot Implementation Committee, Kwaku Agyemang-Duah, who is also the Chief Executive of the Association of Oil Marketing Companies, was confident the team would continue to learn lessons from challenges picked from previous pilots programmes to ensure they are addressed. “We do pilot to help guide us identify problems and fix them as we go along,” he said. Chief Executive of Yendi Municipal Assembly, Alhaji Hammed Abubakari Yussif dispelled claims that the programme would disrupt the business activities of those in the sale of firewood. “This is a safer way of addressing the associated health issues in the firewood business,” he said.
Mr Kwaku Agyemang-Duah, Industry Coordinator and Chairman of the Pilot Implementation Committee

Nigeria: Senate Inspects TCN Transmission Line Project, 330/132/33kV Substation Sites

The Senate Committee on Power in the Republic of Nigeria,West Africa, has inspected the on-going 12.4KM Katampe-National Stadium 132kV double circuit transmission line project and the site of the new 330/132/33kV substation at new Apo as part of its oversight function in the power sector. The on-going Katampe-National Stadium 132kV DC line originates from the 330/132/33kV Katampe Transmission Substation.
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The new line comprises of 8.4KM underground armored cabling that terminates at Wuye district. From Wuye, the line would be strung overhead for 4kms on several towers to the 132/33kV Kukwaba Transmission Substation. The new 330/132/33kV Transmission Substation at new Apo, funded by the Agence Française de Développement (AFD) was designed to take additional bulk electricity to the FCT from Akwanga and also provide bulk supply redundancy in Abuja and environs, consistent with N-1 criteria. The Chairman of the Committee, Sen. Gabriel Suswam, who led the delegation from the National Assembly, expressed delight with the level of work being done and pledged to support TCN overcome bottlenecks that may pose a challenge to the timely completion of the projects. Source: www.energynewsafrica.com

Tunisia: Protestors Shut Pumping Station To Demand For Jobs

Hundreds of protesters demanding the government keep its promise to create jobs have shut down a key oil pumping station in southern Tunisia. According to report filed by VOA, which quoted Reuters, the demonstrators closed in on the Kamour station despite the presence of soldiers guarding the installation. The demonstrators were looking to pressure the Tunisian government into following through with a 2017 deal to create jobs in the oil industry and other infrastructure projects in the southern Tatouine region, where unemployment is said to be more than 30%. Those who live there say the central government has ignored them.
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Police clashed with anti-government protesters in Tatouine earlier this week after the government said the Tunisian economy had taken a beating from the coronavirus epidemic and sought debt relief from some lenders. Tunisia’s economic woes come on top of government turmoil after Prime Minister Elyes Fakhfakh resigned Wednesday. He stepped down over a possible conflict of interest involving government contracts with a waste treatment plant in which he allegedly held shares. The prime minister said he sold his stake in the company. An investigation is under way, but Fakhfakh said he would stay on as a caretaker prime minister until a successor was named. Source:www.energynewsafrica.com

Nigeria: NNPC Gives Conditions For Relocation Of Tank Farms, Petroleum Products Depots

The Nigerian National Petroleum Corporation (NNPC) has advised against a swift relocation of tank farms from their current locations along Ijegun, Kirikiri areas in Lagos and other parts of the country in order to avoid a dislocation in the supply and distribution chain of petroleum products across the country. The corporation made the submission at a hearing by the House of Representatives’ Ad-hoc Committee on Relocation of Tank Farms in Residential Areas of Ijegun, Kirikiri. A statement issued by the NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the Managing Director of the corporation, Mallam Mele Kyari, as saying that NNPC was not averse to the relocation of the petroleum products tank farms and depots sited in residential areas. However, it said the NNPC but rather expect some time to be allowed to achieve the full rehabilitation of the refineries and the completion of the Dangote Refinery to enable the nation exit fuel importation before their relocation. The GMD who was represented by the corporation’s Chief Financial Officer, Mr. Umar Ajiya, told the committee that the tank farms and depots were a major artery for receiving and distributing imported petroleum products to all parts of the country. He explained that their abrupt relocation would could trigger a crisis not only in the Downstream Sector but also in the nation’s economy in general.
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“We are not opposed to the yearnings of the communities or the relocation of the tank farms and depots, but we want it to be done in phases because of the huge financial commitments by the stakeholders. If they are relocated abruptly, even the banking sector would be affected because of the loans they granted for the establishment of the depots”, the GMD stated. Speaking earlier while inaugurating the Committee, the Speaker of the House of Representatives, Hon. Femi Gbajiabiamila, said the Ad-hoc Committee was set up to investigate the concerns expressed by the residents in order to have a fair assessment of the situation. Hon. Gbajiabiamila who was represented by the House Deputy Minority Leader, Hon. Tobi Okechukwu, acknowledged that tank farms and depots were a critical component of the Downstream Petroleum Sector and assured that the House would look at the issue holistically and make a decision in the public interest. He decried the inability of the NNPC to distribute petroleum products through the pipelines due to incessant vandalism which has made products distribution by tankers over long distances a hazard to the society. The Committee was set up to receive petitions by the residents of Ijegun, Kirikiri and others areas in Lagos State on the dangers posed by the operations of depots and tank farms to their respective communities. The Committee is chaired by Hon. Sergius Ogun. Source:www.energynewsafrica.com

Halliburton, Microsoft And Accenture Form Agreement To Advance Digital Capabilities

Halliburton, Microsoft and Accenture entered into a five-year strategic agreement to advance Halliburton’s digital capabilities in Microsoft Azure. Under the agreement, Halliburton will complete its move to cloud-based digital platforms and strengthen its customer offerings by: • Enhancing real-time platforms for expanded remote operations, • Improving analytics capability with the Halliburton Data Lake utilizing machine learning and artificial intelligence, and • Accelerating the deployment of new technology and applications, including SOC2 compliance, for Halliburton’s overall system reliability and security. “The strategic agreement with Microsoft and Accenture is an important step in our adoption of new technology and applications to enhance our digital capabilities, drive additional business agility and reduce capital expenditures,” said Jeff Miller, Halliburton chairman, president & CEO said in a press release posted on the company’s website. “We are excited about the benefits our customers and employees will realize through this agreement, and the opportunity to further leverage our open architecture approach to software delivery.” “Moving to the cloud allows companies to create market-shaping customer offerings and drive tangible business outcomes,” said Judson Althoff, executive vice president, Microsoft’s Worldwide Commercial Business. “Through this alliance with Halliburton and Accenture, we will apply the power of the cloud to unlock digital capabilities that deliver benefits for Halliburton and its customers.” The agreement also enables the migration of all Halliburton physical data centers to Azure, which delivers enterprise-grade cloud services at global scale and offers sustainability benefits. Accenture will work closely with Microsoft, in conjunction with their Avanade joint venture, to help transition Halliburton’s digital capabilities and business-critical applications to Azure. Accenture will leverage its comprehensive cloud migration framework, which brings industrialized capabilities together with exclusive tools, methods, and automation to accelerate Halliburton’s data center migration and provide for additional transformation opportunities.

Ghana: Fuel Prices To Go Up Marginally-IES

Consumers of gasoline and gasoil in the Republic of Ghana should be prepared to pay more for the commodity in the coming days. According to the Institute for Energy Security (IES), prices of fuel is likely to witness about 1.5 percent increment. Oil market leaders -GOIL, Shell (Vivo), and Total sell at GHc4.82 as at the closing of the 16th July. Crude oil prices have seen a rise over the last couple of days. At about 9:45 Friday, WTI was trading at US$40.59 while Brent was selling at US$43.15.
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S&P’s Platts benchmark for fuels shows average gasoline price gained 5.59 percent to close at US$390.73 per metric tonne, from a previous average of US$370.05 per metric tonne. Gasoil appreciated by 5.31 percent to close trading at US$361.80 per metric tonne, from a previous average of US$343.57 per metric tonne. Data collated by IES Economic Desk from the Foreign Exchange (Forex) market shows the cedi remained largely stable in relation to the U.S. dollar, appreciating by 0.17 percent against the major trading currency for oil. The cedi traded at an average price of Gh¢5.71 to the dollar over the period, a departure from the Gh¢5.72 recorded in the second pricing-window of June 2020. “Going by the 3.68 percent surge in price of Brent crude oil, in addition to the 5.59 percent and 5.31 percent rise in the prices of gasoline and gasoil respectively on the international market; the Institute for Energy Security (IES) foresees prices of fuel on the domestic market going up marginally even though the cedi appreciated against the US dollar by 0.17 percent. However, competition between Oil Marketing Companies (OMCs) to control and gain more market shares, and mounting pressure on the government to reduce prices of fuel may result in fuel prices remaining largely stable within the second pricing-window of July 2020,” a statement issued by IES said. Source:www.energynewsafrica.com

U.S. Threatens New Sanctions On Russian Gas Projects

The United States has warned companies helping Russia to complete the Nord Stream 2 and the TurkStream 2 natural gas pipelines that they should ‘get out now’ or face consequences, as the Trump Administration steps up efforts to stop the construction of the controversial Russia-led pipelines in Europe. The U.S. Department of State is updating its sanctions guidance under the Countering America’s Adversaries Through Sanctions Act, CAATSA, to include Nord Stream 2 and the second line of TurkStream 2, U.S. Secretary of State Mike Pompeo said at a press briefing last Wednesday. “This action puts investments or other activities that are related to these Russian energy export pipelines at risk of U.S. sanctions. It’s a clear warning to companies aiding and abetting Russia’s malign influence projects will not be tolerated. Get out now, or risk the consequences,” Secretary Pompeo said. The projects are the “Kremlin’s key tools to exploit and expand European dependence on Russian energy supplies, tools that undermine Ukraine by cutting off gas transiting that critical democracy, a tool that ultimately undermines transatlantic security,” he added. The U.S. view that the Nord Stream 2 project is further undermining Europe’s energy security by giving Russian gas giant Gazprom another pipeline to ship its natural gas to European markets. The U.S. has already imposed some sanctions on the project, which saw Western vessel and technology providers pull out of the project in December 2019. Following the announcement of the sanctions, Switzerland-based offshore pipelay and subsea construction company Allseas immediately suspended Nord Stream 2 pipelay activities. Earlier this month, a Russian vessel capable of completing the pipelaying for Nord Stream 2 left a German port and entered Danish waters where the last section of the controversial pipeline has yet to be completed. This occurred several days after the Danish Energy Agency allowed Nord Stream 2 AG to use pipelaying vessels with anchors for the construction of the Nord Stream 2 pipelines. With an anchored Russian vessel, Gazprom could complete the construction of the pipeline in Danish waters. Source:www.energynewsafrica.com

Ghana: Electricity Tariff Has Not Gone Up By 17.5%-ECG

Ghana’s power distribution company, Electricity Company of Ghana (ECG), has refuted media report suggesting that electricity tariff has gone up by 17.5 percent. Some online portals are reporting that government after absorbing cost of electricity for lifeline customers and 50 percent rebate for commercial users, for three months had turned around to slap consumers with 17.5 percent tariff. However, the state power distributor, in a disclaimer issued, said: “ECG wishes to inform its cherished customers and the general public that the PURC, which is mandated by law to set tariffs, has not informed ECG of any increase in tariff, neither has the ECG received notice from the Government of Ghana of new or increased taxes to be applied to the current electricity tariff structure.” The ECG, thus, urged customers and the general public to ignore the misinformation. Checks at the utilities regulator, PURC, indicated that there has not been any increase in electricity tariff as suggested by some online portals. Meanwhile, Head of Audit at the Large Taxpayers Office of the GRA, Dr Martin Yamborigya, has also dismissed the claim that new taxes had been imposed on electricity consumers, thereby, increasing the levy. He explained that per the Value Added Tax Act, 2013 (Act 870), electricity in general was supposed to be taxable, except the domestic use up to the lifeline tariff (between 0-50 kilowatts), which the government gave out for free to consumers for the three-month period. Dr Yamborigya added that there is already a VAT component on electricity bills since 2014 when Act 870 started with implementation, hence, consumers already pay taxes, and that is not new. He further clarified that power producers are supposed to charge VAT on what they produce before they sell to Electricity Company of Ghana (ECG). This is known as the input tax. ECG also charges output tax before selling to consumers, and is supposed to account for both the input and output tax, and deduct the input from the output and pay the difference to GRA. “However, what is happening now is that when the power producer is billing ECG, they don’t include the VAT, but ECG charges consumers VAT. “So ECG calculates only the VAT it charges consumers at the end of the month. So they are not able to pay all the amount which has led to huge debt of about GH₵350 million. In view of this development, we decided to spread it in order to lessen the burden on ECG,” Dr Yamborigya said. Source:www.energynewsafrica.com

Ghana: BOST Re-Opens Head Office For Business

Ghana’s strategic oil company, Bulk Oil Storage and Transportation Company Limited (BOST) has reopened its head office following a successful disinfection exercise. A statement issued by the Corporate Communications Department said, “BOST would like to announce for the information of the general public that it has re-opened its head office at Dzorwulu for business following a thorough disinfection of the facility after some staff tested positive for COVID-19.” About 46 workers of the company tested positive for the virus after a mass testing exercise. Initial report indicated that a spouse of the I.T Department tested positive for the virus, thus, forcing management to request all head office staff to test to know their status. The statement requested all companies and individuals with urgent business to continue to utilise BOST”s virtual business platforms for timely delivery of services. “Management would further like to assure the general public that our operations are not negatively impacted by the health risk and our staff, as well as visiting clients are fully protected by specific protocols set out by the Health and Safety Unit of the company. “We count on your usual cooperation to effectively deliver on our mandate to ensure petroleum product availability and security for our country,” the statement said. Source:www.energynewsafrica.com

Ghana: VRA Should Lead In Promoting Solar, Wind Energy Generation-Kalitsi

A former Chief Executive Officer (CEO) of Ghana’s leading power producer, Volta River Authority, Erastus Alexander Kalitsi is urging the leadership of the Authority to take the lead in promoting development of solar and wind energy in the country’s generation mix. Mr. Kalitsi also expects VRA to continue to play a significant role in the West African regional market by continuing to supply electricity to Togo and Benin through Compagnie Electrique du Benin (CEB), Burkina Faso, as well as through a vigorous interchange with Cote d’Ivoire. “As the structure of the power sector has changed with the participation of Independent Power Producers and introduction of key sector players like Energy Commission, GRIDCo, NEDCo and Bui Power Authority, and with the drastic increase in demand for electricity over the years, I expect VRA to continue improving the operational and financial efficiency of its generating facilities,” Mr Erastus Alexander Kalitsi said in an exclusive interview published in the Energy Ghana Magazine. “Now relieved of some of its former responsibilities by IPPs, Bui Power and GRIDCo, VRA should focus greater attention on its non-power responsibilities under the VRA Act. These will include matters related to Reservoir Lands, the rump of Resettlement issues, Lake Research Studies, Lake Health and commercial development of Fisheries and Water Transport,” he added.
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Mr Kalitsi played a key role in the construction of the Akosombo Dam. He was appointed Chief Executive of the VRA on January 1, 1991, and served in this role until July 1998 when he became Chairman of the VRA Board. The Authority, under his leadership, persuaded the government and society to support the injection of thermal facilities into the generation mix of the country, and successfully mobilised financing and built its first major thermal plant of 330MW at Aboadze in the Western Region. He also led efforts to attract the first-ever purely private power company, CMS Energy of Michigan-USA, to partner VRA and invest their own capital in expanding VRA’s thermal facilities to 550MW. This was 50 percent of the combined generating capacity of the Akosombo and Kpong dams. To achieve this level of success, the attributes required are hard work, probity, diligence and respect for individuals whom one needs to relate with. Currently, the VRA, under the leadership of Ing. Emmanuel Antwi-Darkwa, is constructing 17 MW Kaleo/Lawra Solar Project located in the Upper West after commissioning 2.5MW Solar Power Plant in Navrongo in 2013. It is also executing the 60MW Pwalugu Hydropower Multipurpose project. Source:www.energynewsafrica.com

Volta River Authority Tender For Printing And Supply Of 2021 Customised Corporate Diaries

The Volta River Authority (VRA) of the Republic of Ghana invites Sealed Tenders for the Printing and Supply of 2021 Customised Corporate Diaries. Tender for 2021 Corporate Diaries 1

US-Africa Energy Advisory Committee To Push Energy Dialogue And Investment

The African Energy Chamber has appointed a US-Africa Committee to serve on its Advisory Board and support the development of stronger energy cooperation and investment between the United States and Africa. Serving in their personal capacities, the members of the US-Africa Committee gather several decades of experience in government and the private sector from both sides of the Atlantic, and share a passion for Africa and its development. They include: • Reginal “Reg” Spiller, CEO, Azimuth Energy Investments LLC • Kola Karim, CEO, Shoreline Energy International • Rogers Beall, Executive Chairman and CEO, Africa Fortesa Corporation • Jude Kearney, President, Kearney Africa • Derek Campbell, CEO, Energy & Natural Resource Security, Inc. • Alicia Robinson-Morgan, Managing Director for Africa, Millenium Challenge Corporation • Akinwole Omoboriowo II, Chairman and CEO, Genesis Energy Group • Ann Norman, General Manager – Africa, Pioneer Energy • Dean Foreman, Chief Economist, American Petroleum Institute The African Energy Chamber truly believes that the potential for capital, expertise and technology transfers between the US and Africa is under-exploited. While Power Africa remains to date the most successful initiative to develop Africa’s energy sector by tapping into American capital and technology, more can be done in light of the continent’s continued energy poverty. From exploration to gas infrastructure, and from power technology to energy funding, the United States remain a global leader that has much to bring to Africa under the right partnerships and joint-ventures that can support local content development and jobs creation.
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“The largest but also most recent discoveries in Africa were made by bold and capable American companies who have proven time and again that betting on Africa bears fruits. At times when the continent seeks to develop much stronger gas value chains and attract investment into midstream and downstream infrastructure, we need to look back at the United States and develop stronger partnerships. As Africa embraces energy transition, a substantial part of the capital needed to develop cleaner energy solutions also lies with American companies and institutions,” declared Nj Ayuk, Executive Chairman at the African Energy Chamber. The US-Africa Committee is the first committee on the African Energy Chamber’s Advisory Board to be announced. The Chamber has put together leading industry experts, executives and public representatives to support several initiatives over the course of 2020 and 2021, such as local content development, natural gas and energy transitions, the promotion of an enabling environment and the expansion of exploration activities.