- To work with utilities, investors and off-grid firms to fast-track sustainable power solutions over the next decade
- To work with research firms to identify roadmaps in addressing the barriers to achieving universal electrification
Rockefeller Foundation To Lead A Commission To End Energy Poverty
The Global Commission to End Energy Poverty has been launched by the Rockefeller Foundation to provide access to electricity to about 840 million people with no access to affordable and reliable energy.
The Commission will be spearheaded by the Rockefeller Foundation, Africa Development Bank and the US Department of Energy.
Of the world’s 840 million energy-poor people (650 million in 2030 – World Bank), 90% live in sub-Saharan Africa.
The Commission comprises heads of development banks, utilities, off-grid companies, senior academics, industry leaders and investors.
The Global Commission to End Poverty will develop a roadmap to ensure access to electricity to the poor in a cost-effective manner.
The Commission’s plans are:
Saudi Oil Giant Expects Quick Recovery After Drone Attack
Saudi Aramco, a Saudi Arabian oil and gas giant, has said the company will return to full production capacity by the end of the month following a drone attack on the world’s largest oil processing facility last Saturday.
As previously reported, oil prices on Monday saw the biggest surge since 1991 following the attack on Saudi Aramco’s oil processing facilities Abqaiq and Khurais in Saudi Arabia.
The prices surged by as much as 19% in early trade on Monday before easing off to show a 10% gain after the U.S. President Trump said he would release the U.S. emergency supplies.
The attack resulted in the interruption of about 5.7 million barrels per day of crude oil production. Of these, 4.5 million barrels per day are from Abqaiq plants, where production is processed from several fields. The interruption of production also included about 2 billion cubic feet of associated gas, 1.3 billion cubic feet of dry gas, 500 million cubic feet of ethane and about half a million barrels of gas liquids.
On Tuesday, oil prices plunged by 6% after Saudi Arabia’s energy minister Prince Abdulaziz bin Salman told journalists at a press conference that the country had managed to restore oil supplies to customers to where they stood before the attacks by drawing from its huge inventories, according to Reuters.
The minister also said that the Kingdom’s production capacity would return to 11 million barrels per day by the end of September, and to 12 million barrels per day by the end of November.
Entire output restored by September-end
Saudi Aramco President & CEO Amin Nasser said on Tuesday that the company’s production capacity would be fully restored by the end of September.
Speaking to media in Jeddah during a news conference with Prince Abdulaziz Bin Salman, Minister of Energy, and Yasir Rumayyan, Chairman of Saudi Aramco, Nasser said: “These synchronized attacks were timed to create maximum damage to our facilities and operations. The rapid response and resilience demonstrated in the face of such adversity shows the company’s preparedness to deal with threats aimed at sabotaging Aramco’s supply of energy to the world.”
During the news conference, it was disclosed that production at Khurais resumed 24 hours after the attack. Meanwhile, Nasser stated that production at Abqaiq is currently 2 million barrels per day and its entire output is expected to be restored to prior rates by the end of September.
“We have a hard-earned reputation for nearly 100 percent reliability in terms of meeting our international customers’ requirements and we have defended that,” he told journalists from Saudi and international media as reported by offshoreenergytoday.com.
The company adjusted deliveries and shipments to customers by drawing on inventories and offering additional crude production from other fields.
“Not a single shipment to an international customer has been or will be missed or canceled as a result of these attacks. We have proven that we are operationally resilient and have confirmed our reputation as the world’s leading supplier,” Nasser said.
“The company has met its commitments to its International customers, even in challenging situations, including past Gulf conflicts.”
No delays to IPO
The subject of the company’s Initial Public Offering was also discussed during the news conference and Nasser had the following message: “We have said we are ready and will proceed with the IPO when our shareholder takes the decision.”
Saudi Aramco Chairman Rumayyan said in his statement during the press conference that the attacks “will not delay the initial public offering of Aramco and will not delay its preparations.”
“The planned IPO of the national oil giant will be ready in the next 12 months and the kingdom is committed to the listing,” he added.
Risk scenario becomes reality
Following what was described as the largest single disruption of oil production in history, IHS Markit, a London–based global information provider, developed three scenarios for the potential market impact of the Saudi oil attack.
In the first scenario, the Abqaiq plant flows prove to be entirely addressable within the next two weeks, with an initial restart early this week followed by a measured ramp-up thereafter. This would lead to a gross disruption in the 30-60 MMbbl range and should be manageable through any combination of Saudi stocks and global commercial inventories, with Saudi Arabia ostensibly surging post return to offset the net tightening caused by its temporary decline. This remains a low-likelihood scenario, with the extent of the attack suggesting at least some level of sustained damage affecting production levels.
The second scenario is, according to IHS Markit, the most likely. Saudi Arabia is able to manage a partial return from the peak disruption of 5.7 MMb/d but it is unable to address the full extent of the damage on key facilities for as long as four months. The gross disruption could increase into the 150-300 MMbbl range. This would exceed the ability of commercial inventories to meet the shortfall leading to higher prices. Global markets will likely look to extraordinary measures to mitigate the physical shortfall caused by the disruption, including a coordinated SPR stock release from the IEA, a potential call on China to ease market pressure through inventories, and call for increases in production from within the Vienna Alliance. On each of these fronts, the magnitude of the extended disruption becomes key given flow (for inventories) and capacity (for production) limitations.
The final scenario of 120+ days is the worst-case scenario, where output is out for months and the physical shortfall rises into the 350-500 MMbbl range. In this scenario, prices spike and extraordinary measures like SPR releases would be needed but would be insufficient and ultimately the market would require demand and eventually reactive supply such as the US (via higher prices) to correct for the structural imbalance in the market. Given the high priority of the facility to Aramco and the company’s prioritization of repairs regardless of cost, a stacked return means that it is unlikely that a full shutdown endures beyond 4 months unless damage is more extensive from the attacks than anticipated, or a large-scale conflict breaks out.
“What was a risk scenario has become a reality,” said Daniel Yergin, vice chairman, IHS Markit. “The amount of Saudi oil offline is equivalent to one third of what passes every day through the Strait of Hormuz. Two things will jangle the oil market in coming days—how long the recovery and what comes next.”
“Under any scenario, the heightened risk premium marks a stunning reversal for the market,” said Roger Diwan, vice president, IHS Markit.
“The combination of weak demand fed by macroeconomic fears and the potential for a U.S.-Iran détente unlocking significant volumes of oil currently under sanction had weighed on the market. Now an enduring increase in the market’s risk premium is justified.”
Ghana: Gov’t’s ‘Radical’ Take Or Pay Renegotiation Will Scare Away Investors – EIU Report
The Economist Intelligence Unit (EIU) has described attempts by the Akufo-Addo administration to renegotiate the power purchasing agreements signed under the previous administration as ‘radical’, arguing that the approach could scare aware potential investors.
The business advisory firm in its latest country report said a radical revision of power contracts i.e take or pay agreements, may not happen at all.
“All independent power projects typically include some level of “take or pay” commitment, while unilateral action by the state party risks damaging wider investor confidence in Ghana,” citinewsroom.com quoted EIU’s report saying.
It would be recalled that the Finance Minister of the West African nation, Ken Ofori-Atta in his mid-year budget review remarked that a number of existing power purchasing agreements signed by the NDC administration are severely putting a dent on government finances.
Ken Ofori-Atta said annually, the government has had to pay US$500 million for power in does not consume or sell to consumers.
“Mr. Ofori-Atta referred to the deals as “obnoxious take-or-pay contracts signed by the NDC government, which obligate us to pay for capacity we do not need”.
The finance minister pledged that from August 1st, all “take or pay” contracts would be renegotiated and converted into what he termed “take and pay” deals, presumably indicating a form of contract whereby the government would reimburse suppliers solely for the resource used.
Renegotiated agreements
Before Mr. Ofori-Atta’s announcement, the government had already concluded the renegotiation of the Ameri Energy deal in December.
The new deal saw the reduction of the price of a five-year build-own-operate-transfer contract expiring in 2021 to supply 250 MW of emergency power from US$510m to US$459m.
Also, in March 2018 the contract for the Karpower plant was extended from 10 to 20 years, and the tariff reduced.
But the EIU in its country report stated that the new Ameri and Karpower deals imply that government may not achieve much with its plans to renegotiate these deals.
“…However, the legacy of the “take or pay” contracts is expected to remain a burden on state finances throughout the 2019-23 forecast period,” the report added.
Ghana: 108 Engineers Inducted Into Professional Body
One hundred and eight engineers have been inducted into the Institution of Engineering Technology, a body of engineering professionals in the West African nation, Ghana.
The induction ceremony was officiated by His Lordship Justice George Koomson, a High Court judge.
The institution of engineering technology was established some thirty -three years ago by a group made up of various classes of engineering and technology professionals who were collectively bound by a commitment for more dividend in their professional and career development.
The institution has since then been preoccupied with the attainment of these, having metamorphosed from the then Ghana Institution of Technician Engineers into the Ghana Institution of Incorporated Engineers before assuming the name I E.T in 2008.
In an address, the President of I.E.T, Eng. Eric Atta-Sonno, who touted the progress of the institution said the inductees should see themselves as coming to join forces with others to ensure the continuous growth of the institution.
Eng. Atta -Sonno used the occasion to inform the inductees the inauguration of Board of the Engineering Council of Ghana.
He explained that the council is working hard to have the engineering regulations approved by the executive and passed into law as a legislative instrument.
“The LI would ensure that the Engineering Council Act 819 of 2011 is given the needed teeth to bite and ensure the practice of engineering and technology continue to do so with the highest possible standards in their professional practice of engineering and technology,” he said.
He charged the inductees to be of good conduct, assuring them that I.E.T would ensure that members adhere to the code of ethics of the professional.
Report: $16,4 Billion Worth Of Gas Lost To Flaring In 2018
The value of natural gas lost to flaring across the globe reached $16.4 billion in 2018, as flared natural gas volumes rose compared to 2017, according to a recent report by Brainnwave.
The data intelligence firm – which collects the flaring data using night-time satellite imagery from visible infrared radiometer data – reported that the volume of natural gas flared by 80 different nations around the world has increased by 20 per cent in a single year to hit a global peak.
Russia, Iraq, Iran and the USA were the four most wasteful nations in 2018, flaring over 70 billion cubic meters of natural gas – enough to heat 38 million homes for a year – more than all the homes in the UK and Ireland combined. It is also more gas flared than the next 30 most wasteful nations combined, Brainnwave said.
According to the report, the value of gas lost to flaring has increased by 11 per cent, or by $1.6 billion, to hit a global peak this year of $16.4 billion. This is due to the rising price of natural gas as well as the increased volume of gas flared.
The volume of gas flared has increased by 3.2 per cent from 2017, from 140.5 billion cubic meters in 2017 to 145 billion cubic meters in 2018.
Current levels of gas flaring cause more than 300 million tons of CO2 to be emitted into the atmosphere, Brainnwave said, citing data from the World Bank.
Describing how it got the numbers, Brainnwave said it had pinpointed gas flaring events throughout the world using night-time satellite imagery from visible infrared radiometer data. The data was then used to measure the volume of gas flared. This enabled the firm to use the mean Henry Hub spot price for natural gas in US Dollars to estimate its value.
“Gas flaring is a major environmental issue but it is also a commercial one. Oil producers often lack the infrastructure to export natural gas from their wells and face few alternatives but to flare it in order to reach oil.
“Some of our customers are now using our data intelligence platform to find opportunities to provide commercial solutions, including those that convert otherwise-flared gas into power without it even leaving the site. There are commercially viable solutions to gas flaring – but they rely on the technology being available and the financial incentives to make sense,” Steve Coates, CEO of Brainnwave, said.
The volume of gas flared last year was the highest since records became available in 2012.
However, the value of gas wasted hit a peak in 2014, coinciding with a peak Henry Hub spot price in the same year, the company said.
Brainnwave has reminded that governments, oil companies, and development institutions around the world have been encouraged to endorse the World Bank’s “Zero Routine Flaring by 2030” initiative.
ExxonMobil Strikes Oil Offshore Guyana At Tripletail Well
US oil and gas giant, ExxonMobil has made an oil discovery on the Stabroek Block offshore Guyana at the Tripletail-1 well in the Turbot area.
The discovery adds to the previously announced estimated recoverable resource of more than 6 billion oil-equivalent barrels on the Stabroek Block.
Tripletail-1 which was drilled in 6,572 feet (2,003 meters) of water, is located approximately 3 miles (5 kilometers) northeast of the longtail discovery.
According to ExxonMobil, after completion of operations at Tripletail, the Noble Tom Madden drillship will next drill the Uaru-1 well, located approximately 6 miles (10 kilometers) east of the Liza field.
“This discovery helps to further inform the development of the Turbot area,” Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil said in a statement posted on the company’s website.
“Together with our partners, ExxonMobil is deploying industry-leading capabilities to identify projects that can be developed efficiently and in a cost-effective way.”
Exploration and development activities are moving forward elsewhere on the Stabroek Block offshore Guyana.
“The Stena Carron drillship is currently drilling the Ranger-2 well and upon completion will conduct a well test at Yellowtail-1.The Noble Bob Douglas drillship is currently completing development drilling operations for the Liza Phase 1 project. ExxonMobil will add a fourth drillship, the Noble Don Taylor, in October 2019 as we continue to optimize our drilling plans based on well results and ongoing study of the basin,” the statement explained.
The Liza Phase 1 development remains on schedule to start up by early 2020 and will produce up to 120,000 barrels of oil per day utilizing the Liza Destiny floating production storage and offloading (FPSO), which arrived in Guyana on August 29, 2019.
ExxonMobil approved funding for the Liza Phase 2 development after it received government and regulatory approvals in May 2019. Expected to startup by mid-2022, the project plans to use the Liza Unity FPSO to produce up to 220,000 barrels of oil per day. “Pending government approvals, a third development, Payara startup could be as early as 2023 and production would reach an estimated 220,000 barrels of oil per day,” the statement concluded.
South Africa: Exxaro Acquires 50% Stake In Renewable IPP
South Africa-based Exxaro Resources has signed an agreement with Khopoli Investments, to acquire a 50% shareholding in independent power producer (IPP) Cennergi for R1,55 billion.
Engineering News has reported that this will give Exxaro 100% ownership of the IPP and is in line with Exxaro’s vision of expanding its scope within the energy sector.
Cennergi owns the 134MW Amakkhala Emoyeni Wind Farm and the 95MW Tsitsikamma community Wind Farm in the Eastern Cape.
“The collaboration between Exxaro and Tata Power over the past seven years to develop these projects to their current status has been commendable and outstanding success in South Africa’s implementation of its energy strategy.
“As a South African-based company, Exxaro is pleased with this opportunity to consolidate its interest in this renewable energy asset at a time in South Africa where we need energy security as we respond to increasing negative sentiment towards coal-based electricity generation, ”Exxaro CEO Mxolisi Mgojo said.
Russia’s Floating Nuclear Power Plant Prepares For Operation
The floating power unit Akademik Lomonosov has arrived at the port of its permanent location in Pevek, Chukotka, in Russia’s Far East, where it is being docked to start operations by the end of this year.
Once commissioned, it will become the world’s first operational nuclear power plant based on small modular reactors (SMRs) technology and a ‘working prototype’ for reliable source of low-carbon energy supply in remote areas.
“It’s maybe one small step for sustainable development in the Arctic, but it’s a giant leap for the decarbonisation of remote off-grid areas, and a watershed in the development of small modular nuclear power plants in the world,” Alexey Likhachev, CEO of Rosatom said in a report filled by esi-africa.com.
Director General of the World Nuclear Association, Agneta Rising, commented: “To meet the nuclear industry’s Harmony goal of supplying at least 25% of the world’s electricity by 2050 we will need to bring the benefits of nuclear energy to more people in a wider range of locations.
“The Akademik Lomonosov is the first of a new class of small, mobile and versatile nuclear power plant that will supply clean and reliable electricity, heat and water, helping meet the UN’s sustainable development goals.”
About Akademik Lomonosov
Akademik Lomonosov is a pilot project and a ‘working prototype’ for a future fleet of floating nuclear power plants and on-shore installations based on Russian-made small modular reactors.
The small power units will be available for deployment to hard-to-reach areas of the Russia’s north and Far-East, as well as for export.
The nuclear FPU Akademik Lomonosov is equipped with two KLT-40C reactor systems (each with a capacity of 35 MW) similar to those used on icebreakers.
It is designed by Rosatom to work as a part of the Floating Nuclear Thermal Power Plant (FNPP).
The vessel is 144 metres long and 30 metres wide and has a displacement of 21,000 tonnes.
Akademik Lomonosov – the first ship of this kind – was named for 18th century Russian scientist Mikhail Lomonosov.
Ghana: PDS Denies Importing China Made Cloth For ECG Workers
The Power Distribution Services (Ghana) Limited, a private entity in charge of power distribution in the Republic of Ghana, has refuted media reports suggesting that it has imported made in China cloths for staff of the Electricity Company of Ghana.
The Herald newspaper, on Monday, September 16, 2019, published a story captioned ‘PDS imports huge volumes of China-made cloths for ECG workers…despite government’s suspension’.
However, the PDS, in a response, denied the report, describing it as false.
“PDS wishes to state categorically that the news is false, that the cloths in question were designed and printed in Ghana by Premium African Textile Company( formerly GTP), and not as purported by the newspaper. Interested parties may contact GTP for verification,” PDS stated in a disclaimer issued to energynewsafrica.com.
The statement urged customers and the general public to ignore the false publication.
Ghana: Fuel Prices To Go Up Again – IES Predicts
The Institute for Energy Security Energy (IES), an energy think tank in the Republic of Ghana has predicted a further increase in petroleum prices in the West Africa country.
This prediction follows attacks on critical oil facilities in Saudi Arabia over the weekend.
According to the IES, the situation is likely to cause a shortage of oil on the world market, thereby leading to a hike in prices.
“You would understand that Saudi Arabia is the supplier of crude to the US…So if we get them locking out 5% of global supply, it also impacts on the production of refined oil in the US. The US will then be forced to go and now rely on their petroleum reserve. If they don’t go to the reserve, it means they won’t have enough to refine and it will cause an impact,” Executive Director for IES, Paa Kwasi Anamua Sakyi said in an interview with Accra -based Citi FM on Monday.
Mr. Anamua Sakyi stated that the incident in Saudi Arabia will not only affect fuel prices, but the prices of all other refined products.
He said, “Already prices shot up to almost $71 per barrel over the weekend. We’re now hovering around $67 per barrel and so for sure because Saudi Arabia is a key supplier to the global landscape, producing almost 10 million barrels per day, and one-tenth of the global oil production. So it will impact on prices of diesel, petrol and even other refined products.”
Over the weekend, the location of the biggest oil processing plant run by the Saudi state oil company, Aramco suffered a drone attack.
This attack, executed by Yemen’s Iran-aligned Houthi group, knocked out more than half of Saudi crude output.
This has led to a huge disruption in the production of oil across the globe.
Meanwhile, prices of crude in some oil markets in the world have already experienced a surge following the attack on the plant.
Mozambique: Fenix International To Launch Off-Grid Solar Partnership With Vodacom
Fenix International, a next-generation energy company and subsidiary of ENGIE opens its sixth market in Mozambique, where it expects to reach 200,000 households with clean energy and inclusive financial services within 3 years.
The company has already connected 500,000 customers to solar power in Uganda, Zambia, Côte d’Ivoire, Benin, and Nigeria.
Fenix has rapidly grown operations as a subsidiary of ENGIE, enabling the company to scale off-grid energy and financial services across new markets, with Mozambique the fourth new market opened within the past year.
Fenix has partnered with Vodacom and Vodafone M-Pesa SA to tackle the challenges of distribution, connectivity and mobile payments that have left rural Mozambicans underserved by affordable energy products in the past.
“Mozambique has set an ambitious target with their ProEnergia initiative to reach 100% of the population with electricity by 2030. The country represents an optimal market for off-grid solar products, with only 27% of households currently connected to electricity and a highly distributed population. Fenix’s operations here will focus on reaching those most in need of energy access, particularly districts in the North and people who are using expensive, polluting, and dangerous methods such as kerosene and candles to light their homes,” Luke Hodgkinson, Managing Director of Fenix Mozambique, said in a press release copied to energynewsafrica.com.
Luke adds, “We are delighted to partner with Vodacom and Vodafone M-Pesa SA. With their market-leading brand, distribution network and payment platform, and Fenix’s high-quality products and excellent last-mile customer service, together we can provide clean energy and financial inclusion to millions of rural Mozambicans. Once these foundations have been established, the possibilities to bring other life-changing products, from household appliances to crop insurance, are truly endless.”
Gulamo Nabi, from Vodafone M-Pesa SA adds, “We’ve been working to unlock the potential of M-Pesa for the millions of Mozambicans in rural areas, far from the national grid or traditional financial services.
“Vodafone M-Pesa SA is excited to work with Fenix to access these areas and provide the easy, fast and secure payment platform for customers to light up their homes with clean, affordable energy. This is totally aligned with our mission to create mobile solutions to change our customers lives,” the statement concluded.
Ghana: BOST Management Member Allegedly Schemed Against New MD
A management member of the state-owned Bulk Oil Storage and Transportation Company (BOST), in the Republic of Ghana, Mr Van-Gogh is allegedly desperately scheming to make the newly appointed Managing Director of the strategic national asset, Mr Edwin A. Provencal unsuccessful.
Mr. Van-Gogh, who is the General Manager in-charge of field operations, according to energynewsafrica.com‘s investigation has allegedly been inciting staff of BOST against Mr. Edwin A. Provencal, barely ten days in office, after being appointed to replace the immediate past MD George Mensah Okley who resigned from the post.
Documents available to energynewsafrica.com indicate that prior to the appointment of Mr Edwin Provencal, Mr Van-Gogh authored a three-paged statement which described him as the best person to replace Mr. George Okley and pushed it to the unionised staff of BOST to publish it in the media to catch the eyes of President Akufo-Addo.
According to our sources which described Van-Gogh as one of those who allegedly caused the down fall of the immediate past MD, the union rejected his idea.
Energynewsafrica.com sources allegedly indicated that when Van-Gogh) realised that the union were not in favour of his agenda to occupy the MD post and the subsequent appointment of Mr Edwin Provencal, he plotted another means by way of issuing threats and insults to some of the union executives.
His alleged unacceptable behaviour and lack of respect for workers compelled the union to petition the board to investigate his conduct.
“The General Manager Field Operations, Mr Van-Gogh Bagnaba, in recent times, has demonstrated some unacceptable behaviour which is in total violation to the collective agreement and the labour Act 651,” the union said in its petition.
“Prior to the appointed of Mr Edwin Provencal as Managing Director of BOST, Mr Van-Gogh Bagnaba called upon the union, through social media, to support his nomination to become the Managing Director as per the attached document marked as exhibit A.”
The petition continued that “we maintained our professional conduct as we have done in all transitions that the company has experienced and did not show our support for him as per his request, neither did we meddle in the work of the appointing authorities.”
The petition cited instances where Mr Van-Gogh threatened some staff of transfers, interdiction and dismissals if they failed to pass vote of no confidence in the executives of the union.
The petition called on the management to institute punitive measures against any employee or group that misconducted themselves or violated the rules of engagement.
The board is expected to meet the union and Mr Van-Gogh this week on the allegations.
Energynewsafrica.com will keep our readers updated on the conclusion of the board’s decision.
Below is the statement authored by Mr Van-Gogh Bagnaba
Source: energynewsafrica.com
Below is the statement authored by Mr Van-Gogh Bagnaba
Source: energynewsafrica.com
Tullow Makes Second Oil Discovery Offshore Guyana
Oil and gas company Tullow Oil has made a second oil discovery offshore Guyana. The Joe-1 exploration well has opened a new Upper Tertiary oil play in the Guyana basin.
Tullow started drilling at the Joes prospects in the Orinduik block offshore Guyana, the company’s second well in the block after the Jethro-1 well, in late August.
The Joe-1 exploration well was drilled by the Stena Forth drillship to a Total Depth of 2,175 meters in water depth of 780 meters, Tullow said in a release posted on its website Monday.
According to the company, evaluation of logging and sampling data has confirmed that Joe-1 has encountered 14 meters of net oil pay in high-quality oil bearing sandstone reservoirs of Upper Tertiary age. Joe is the first oil discovery to be made in the Upper Tertiary and de-risks the petroleum system in the west of the Orinduik block, where a significant number of Tertiary and Cretaceous age prospects have been identified.
Tullow and its partners will now evaluate data from the Joe-1 discovery alongside data from the Jethro-1 discovery announced in August 2019 and await the outcome of the Carapa well to determine the optimal follow-on exploration and appraisal program.
Also in Guyana, the Repsol-operated Carapa-1 well on the Kanuku license (Tullow 37.5%) is scheduled to start drilling in late September with the Rowan EXL II jack-up rig and will test the Cretaceous oil play with a result due in the fourth quarter of 2019.
Joe-1 was drilled on the Orinduik license, offshore Guyana by Tullow’s wholly owned subsidiary Tullow Guyana B.V.
Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. Total E&P Guyana B.V. holds 25% with the remaining 15% being held by Eco (Atlantic) Guyana Inc.
On completion of operations, the Stena Forth drillship will depart Guyana and return to Ghana.
Commenting the new discovery, Angus McCoss who is Exploration Director: “I am very pleased that we have made back-to-back discoveries in Guyana and successfully opened a new, shallower play in the Upper Tertiary age of the Guyana basin with our second well. The Joe-1 discovery and its surrounding prospects represent another area of significant potential in the Orinduik Block and we are greatly looking forward to the next phase of the program as we continue to unlock the multi-billion barrel potential of this acreage.”
“The Joe-1 discovery has now opened up an additional play on the Orinduik Block that further defines the full potential for Eco and our partners in Guyana. Our initial interpretation, prior to drilling, defined over a dozen potential resource targets throughout the entire hydrocarbon section. We set a strategy to first focus on these shallower Tertiary plays as they have a huge positive effect on overall economics and allow a speedy path to production. Fast, low risk drilling to thick, clean, high porosity oil-bearing sands has decreased the drilling costs and greatly de-risks the development.
“This new discovery in the Upper Tertiary has opened a new play, the first Upper Tertiary discovery in Guyana, throughout our block, just as the Jethro-1 discovery did in the Lower Tertiary section. It has greatly increased our chance of success on our upcoming drilling targets and significantly de-risks other resource not previously considered in our interpretation,” Colin Kinley, COO and Co-Founder of Eco Atlantic, also commented.
Oh his part, Gil Holzman, CEO and Co-Founder of Eco Atlantic, also said: “The Joe-1 discovery, only a month after the Jethro-1 discovery, is very material for us as it has proven that our theory of shallow low-cost plays exists in Guyana, as we are up-dip from the huge Exxon fields at Liza and Turbot areas, with good quality sands and oil that is clearly present on our block.”
Ghana: Electricity Tariff Still Among Highest In West Africa – Employers Association
The cost of power in the Republic of Ghana still remains among the highest in the sub-region and serves to increase the cost of production for industries in the country, the Ghana Employers Association has said.
According to the Business and Financial Times(B&FT), President of the Ghana Employers Association (GEA), who was addressing members at this year’s annual general meeting of the association in Accra, said the cost of power remains a hindering factor to the competitiveness of local business and must be driven down significantly.
He said such a move will no doubt retain existing investors and attract new local and foreign ones into productive sectors of the economy, thereby creating the much-needed jobs.
“Cost of electricity in the country remains comparatively high within West Africa; the reduction in electricity tariffs last year, particularly for industry, was a welcome development but we still have some work to do in the area of lowering tariffs even further for industrial and commercial users.”
Mr. Acheampong argued that in the drive toward an aggressively industrialised economy, government needs to, as a matter of policy, discriminate some more in favour of ‘process power’ as against ‘utility power’, given the value-addition impact of the former on the economy.
The Association of Ghana Institute (AGI), in its 2nd Quarter Business Barometer Report, cited cost of power as the key driver in many local manufacturing industries’ collapse.
Mr. Acheampong further urged government to urgently accelerate the pace of developing other cost-effective forms of renewable energy, in order to enhance the country’s pedigree as the best business destination for West Africa.
“These forms of energy are not only cheap in the medium- to long-term, but are also environmentally friendly,” he noted.
The GEA president commended stakeholders of the business landscape for the sustained industrial peace at both national and enterprise levels, which he argued will facilitate increased investments into the economy.
Mr. Acheampong indicated: “As we strive to position the economy to attract both local and foreign investments to undertake transformational projects that will create jobs and sustainable development to the people, industrial harmony among social partners is a requisite for higher productivity, sustainability of enterprises and business growth”.
He further opined that sustained macroeconomic stability for inclusive growth and development is absolutely necessary in the country’s quest for rapid transformation.
For him, having all stakeholders working in mutual trust and confidence with government, and having wider discussions on broader macro-economic and social policy decision-making, will help build a stable and predictable economy that enables businesses to plan effectively. He said it is therefore necessary for continual dialogues, negotiations and consultations among employers, labour and government so as to maintain peace on the industrial front.