The Government of Ghana has rejected the appointment of Tullow Ghana’s new Managing Director, Wissam Al Monthiry.
Wissam Al Monthiry was appointed in the middle of May to replace Kweku Andoh Awotwi who is due for retirement on June 30.
However, speaking on an Accra-based Asaase Radio, Ghana’s Energy Minister, John-Peter Amewu revealed that the government, through his Ministry, had sent a strong worded letter to the company objecting to the appointment of a non-Ghanaian.
“As a country, we’re not going to accept that appointment. Unfortunately that person is sitting in London,” the Minister said.
According to the Minister, Tullow’s action defeats the government’s localisation agenda, stating that the government frowns on that action.
He said the government would ensure that the appointment of Wissam Al Monthiry is reversed.
“We will make sure that a Ghanaian is appointed, “he iterated.
Source:www.energynewsafrica.com
In the second week of December last year, one issue that emerged at the energy sector front, particularly the downstream sector in Ghana and was discussed in the media was the increment of Bulk Oil Storage and Transportation (BOST) Company Limited’s Margin.
The government, through the downstream regulator, National Petroleum Authority (NPA), announced a one hundred percent increment of BOST Margin from three pesewas per litre or some cumulative 10,200,000.00 to six pesewas per litre or some cumulative 20,400,000.00 from consumers based on current conservation estimation of 340m litres of fuel consumed monthly. The Unified Petroleum Fund was increased by 4.7 percent or GHc1 (one pesewa) from 21 pesewas per litre to 22 pesewas per litre or some 3,420,000.00 cumulatively.
However, the increment in BOST Margin did not sit well with some interest groups especially a consumer advocacy group-Chamber of Petroleum Consumers, Ghana (COPEC).
The position of COPEC Ghana, which was championed in the media by Duncan Amoah, was that the increment was going to cause more hardships on petroleum consumers hence the need to withdraw the increment.
In an interview with Accra-based Citi FM, Mr Duncan Amoah wondered why BOST should even be given a margin when private depots that operate in the country do not get any margin from commercial drivers (trotro) as well as taxi drivers. He simply wanted the BOST margin to be scrapped. After few days of pressure on NPA and for that matter the Akufo-Addo administration, the regulator announced to the consuming public that the increment had been reversed. By that news, the Duncan Amoah-led COPEC was excited about the government’s decision.
My understanding was that BOST would have raked in GHS10 million on a monthly basis if the government had stayed the increment. The company would have generated, at least, GHc50 million by the end of May if the increment had remained.
I’m sure BOST would have utilised this amount wisely and even gone ahead to borrow to start rehabilitation of some of its pipelines and storage tanks that are in deplorable state because of lack of funds.In an interview with Business & Financial Times (B&FT), prior to the increment of the Margin, Managing Director of BOST, Edwin Obodai Provencal noted that the BOST Margin of GHc0.3 pesewas was implemented in 2011 but it was not adjusted even though parliament had ratified that it should be increased to GHS0.6 pesewas in 2017.
Michael Creg Afful, the Author
Meanwhile, the company needs more revenues to bring in more products, build infrastructure and trade among others.
Mr. Provencal expressed, among other things, that he is dedicated to transforming BOST into a dividend paying organisation, but he was of the view that to be able to do that, it requires heavy investment in infrastructure and to generate the needed revenue that requires that the BOST Margin be increased.
“Our vision is to be the best in storage and transport in terms of revenue market share, which means that we should have the best storage and transportation infrastructure to transport the products throughout the country,” he said.
In his estimation, it was going to require an investment of about US$ 150 million to be able to turn the fortunes of BOST.Then at a media engagement on 27 December, 2020, it was revealed that BOST had 51 storage tanks, but said 30% representing 15 tanks are out of service.
This sad state of BOST recently, caught the attention of the Executive Director of Institute for Energy Security (IES) Nana Amoasi III, also known as Paa Kwasi Anamua Sakyi, wrote a piece about the State of BOST’s pipelines.
In his article titled, ‘BOST Abandons Pipeline Infrastructure At The Expense Of The State’ the author cited a report by the U.S. Association of Oil Pipelines (AOPL), which showed that 16.2 billion barrels (nearly 680 billion gallons) of petroleum products delivered through pipelines in 2014 in the United States, reached their destination safely by an amazing 99.999 percent.
Sadly, same could not be said when it comes to using Bulk Road Vehicles. According to the article, a study by the Manhattan Institute compared the safety of road, rail and pipeline hydrocarbon transportation and found that transporting oil by roadway had the highest rate of incidents with 19.95 per billion ton miles per year. This was followed by rail with 2.08 per billion ton miles. Oil pipelines were found to be the safest with 0.58 serious incidents per billion ton miles.
Aside its safety records, pipelines have the advantages of being able to handle large volumes, having good continuity with 24-hour uninterrupted transportation, being unaffected by weather conditions in the transportation process, and having a low unit freight transportation cost (Wang et al, 2019). This means the use of Bulk Road Vehicles (BRVs) for the transportation of fuel, which is done currently is not the best option. But how can BOST make use of pipelines when its pipelines have been down for years?
The current infrastructural state of BOST, needs a serious attention. If BOST were in a healthy state, it could have taken advantage of the recent dramatic fall in the crude oil prices to as low as U.S $17 per barrel in April, 22. 2020 and stored some products. Despite the strong opposition to the BOST Margin increment, Managing Director of the company, Edwin Obodai Provencal did not give up on his quest to ensure that the Margin was increased to give the company a new life. Fortunately for him, Cabinet gave a second thought to his request and approved the increment effective June 1.
The MD and his team are now happy but the Minority in Ghana’s Parliament especially Ranking Member of Mines and Energy Committee, is unhappy about the action of the government. To Adams Mutawakilu, the increment of BOST Margin is wrongfully timed. He couldn’t fathom why the government would be asking Ghanaians to pay more for fuel at the time COVID-19 is having psychological, mental and economic impact on Ghanaians.
Inasmuch as this argument is sound, the question that begs answer is when will it be appropriate to increase the BOST Margin?
We have been told that it was way back in 2011 when Parliament okayed the increment of the BOST Margin. Unfortunately, that was not done for almost nine years, even though there had been increases in goods and services over the past nine years.
At this point, what we need is not a reversal of the government decision, but rather demand value for. We should see the Edwin Provençal-led management of BOST giving us value by utilising monies which would be generated from the Margin judiciously and wisely. We want to see the dysfunctional pipelines repaired. We want to see restoration of fuel transportation through pipelines not by BRVs. We want to see rehabilitation of the storage tanks that have been down for years.
There are some Ghanaians who perceive BOST as a cash cow for political parties especially in election year. If this is true, we want to see an end to that. We want a BOST that is able to keep strategic stock for between three to six months. We want to see a dividend paying BOST as the MD has promised to deliver. Once BOST becomes efficient and serves Ghanaians whose taxes are used to pay the workers, I’m sure we will not have a reason to protest any future increase in BOST Margin.
I want to conclude this article with a quote from Luke 12:48 which says, “But the one who does not know and does things deserving punishment will be beaten with few blows. From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.” We therefore expect BOST to give us much.
Written By Michael Creg Afful.
Email: [email protected]
The African Energy Chamber (AEC), a chamber of networks, transactions, and partnerships at the forefront of Africa’s growing energy industries, has urged member countries of the African Petroleum Producers Organization (APPO) to take action and support the oil sector at its meeting this week.
A statement issued by the Chamber Monday pleaded with the APPO members to consider implementing its Commonsense Energy Agenda and Guidelines for the Movement and Safety of Oil Workers.
The first includes key measures for a short and medium-term recovery of the sector while the latter includes immediate actions and initiatives that could ensure that the year is not entirely lost for oil and gas operations in Africa.
According to the African Energy Chamber, swift action and safe movement of oil workers can ensure that oil and gas operations continue safely with minimized impact on exploration and production.
Also, the Chamber called on the APPO to take the necessary actions and measures to safeguard the interest of the industry, its investments, and its jobs.
As stated within the Chamber’s Commonsense Energy Agenda, an adjustment of work programs is a major step that producing countries should be taking immediately. This will give explorers and producers the space to breathe and plan for a strong recovery in 2021.
Nj Ayuk, executive chairman of the African Energy Chamber, said: “Unless African countries engage with operators and investors and let them readjust their work programs, the only solution left for companies will be to declare force majeure or suspend any activity on their block.
“Work programs adjustments is a major demand of the industry at the moment and key responsibilities need to be waived so exploratory and development drilling can only be deferred and not suspended or cancelled”.
This is the second time in the last few months that the Chamber urged some sort of association of oil-producing countries to reach a deal benefiting the oil industry.
Source:www.energynewsafrica.com
Africa Oil & Power (AOP) in collaboration with the African Energy Chamber, will organize the first Gabon Oil & Power 2021 conference on March 15-16 in Libreville.
The event will be the prime energy investment platform for one of Africa’s most established oil and gas markets and will provide the venue to showcase oil, gas and power investment opportunities in the post-COVID-19 recovery period.
While Gabon is capitalizing on the success of its new and improved Petroleum Code –which has attracted the interest of a myriad of international exploration and production companies and has seen several new production sharing agreements signed in its 2020 bid round – Gabon Oil & Power 2021 is the ideal platform for policymakers, investors and deal makers to network and discuss the future of the industry.
The growing interest in renewable power generation solutions and Gabon’s continued stewardship of the environment will be showcased during high-level panel discussions, while economic diversification, empowerment of women through the global Equalby30 initiative, and local content policies will also be highlighted at the event.
“Gabon’s recent changes to its oil and gas legal framework, combined with its proven history of oil success and offering of new opportunities in offshore acreage makes it one of the most appealing oil markets on the continent right now. Gabon Oil & Power 2021 will be the vehicle through which those investment opportunities will be better showcased to all relevant stakeholders in the industry,” João Gaspar Marques, Director at Africa Oil & Power said.
Gabon Oil & Power 2021 is one of a series of country-specific and industry-wide conferences organized by AOP throughout the continent, including events in Angola, South Africa, Equatorial Guinea, South Sudan, Senegal, Mozambique and Nigeria. AOP will work with all actors in the Gabonese oil, gas and power sectors, from government officials to private sector players, to define opportunities and help new and existing investors find success in the market.
Source:www.energynewsafrica.com
The prices of diesel and petrol on the local market are expected to witness a marginally increase at the pumps from Tuesday 16th June, 2020.
This, is according to the energy Think Tank, Institute for Energy Security (IES).
Prices of petrol and diesel went up during the 1st window pricing about two weeks ago, but IES is of the view that the prices of the commodity could go up further giving the current market conditions.
According to the IES, the expected increment has become possible due to the increase in the price of Brent crude by 16.19%, plus the 15.35% and 15.79% increment in the prices of petrol and diesel respectively, as well as slight depreciation of the cedi to the dollar.
“Brent crude moved above the US$35 per barrel during the last pricing window on June 1st, 2020 and is going for about US$43 on the international market. The cedi also depreciated by about 0.18% to the dollar in the last review period, trading at an average price of US$5.72 to the US dollar,” IES said in a statement signed by Research & Policy Analyst Raymond Nuworkpor.
2ND PRICING WINDOW JUNE
The Angolan Government has said it remains ever more committed to the diversification of the country’s economy away from oil revenue dependence.
According to H.E Joao Baptista Borges, Angola’s Minister of Energy and Water, the government is prepared to invest around USD 500 million over the next two years in solar energy projects in the country as part of a strategy to increase clean energy generation, and bring electricity to the entire country.
The Minister disclosed this in Addis Ababa during the recent 3rd African Business Forum, promoted by the United Nations Economic Commission for Africa (UNECA),
Additionally, Angola expects to implement a USD 400 million two-phase project in the clean energy segment, funded by the World Bank and the French Development Agency (AFD).
The project aims at improving the distribution of electricity in four key provinces. The Project also expects to reform the structure of public companies in the sector with the aim of increasing access to affordable Energy for Angola’s underserved populations.
On May 29, the government started a public consultation to determine the environmental impact of the project.
The Angolan state oil company, Sonangol, and Italian major Eni signed in June 2019 an agreement that created Solenova Ltd.
The purpose of this jointly-controlled company is to assess and develop renewable energy opportunities in Angola. ENI and the Angolan Government also agreed to jointly develop the 50MW Caraculo Solar Plant in Angola´s south western province of Namibe.
In the coming months, according to the Minister of Energy and Water, another 300MW of solar energy will be installed in the country, equivalent to a third of the capacity of the Cambambe hydroelectric plant (one of the main power structures in Angola), which, according to Minister João Baptista Borges, shows the government’s commitment to renewable energy, especially whenever generation costs are competitive.
“We see many projects in the pipeline in Angola, in addition to those that are already ongoing. This is a testament that the government is serious about boosting industrialisation with the help of affordable energy. I believe these investments will pay off in the coming years and for generations to come,”Verner Ayukegba, Senior Vice President of the African Energy Chamber said.
According to him, Angola even has the potential of becoming a future exporter of energy into the region.
The existence of all major International Oil Companies (IOCs) is an added advantage to Angola as these companies seek to increase their non-carbon footprint by investing in clean energy projects. While Eni seems to be leading the way in Angola with its solar initiatives, others are set to follow.
French oil company Total for instance has initiated negotiations with the Angolan government, and an agreement is anticipated on other clean energy generation projects soon.
The minister also revealed that the country is already working with Africa50, a pan-African infrastructure investment platform created to promote infrastructure investments across Africa.
Business Opportunities in the power sector are expected to increase given that 50% of the Angolan population still does not have reliable access to electricity.
According to Minister João Baptista Borges, the Angolan Electricity Sector Development Plan and the Energy Security Plan point to the construction of a capacity of about 600 MW of solar energy in the country by 2022, with the installation of about 30,000 individual photovoltaic energy production systems, in line with the country´s National Development Plan 2018-2022. In order to achieve this goal, the minister notably stressed that the government will open up the sector to competition from the private sector, both national and international.
Source:www.energynewsafrica.com
Women in Nuclear South Africa (WiNSA) have welcomed the move by the Department of Mineral Resources and Energy (DMRE) to issue the Request for Information (RFI) for the South African nuclear new build programme.
A statement released by DMRE on Monday noted that the RFI, a stand-alone information-gathering exercise does not commit to any competitive tender.
This follows the approval of the Integrated Resource Plan (IRP) in October 2019.The IRP provides a blueprint for South Africa’s envisaged energy mix.
Decision 8 of the IRP 2019 suggests that government should immediately commence with small-scale nuclear build programme to the extent of 2,500MW by 2030, at a pace, scale and cost affordable to the country “because it is a no-regret option in the long term”.
The plan also provides for the extension of the design life of the existing Koeberg Nuclear Power Station beyond 2024, when it reaches the end of its 40-year life, which will be subject to regulatory approvals
Commenting on the release of RFI, Nomathemba Radebe, WINSA President said: “Gender equality is one of South Africa’s Sustainable Development Goals. WiNSA sees the expansion of the nuclear industry as a great opportunity for women in nuclear research, industry entrepreneurs, and collaboration between the private sector, academia as well as the public sector. South Africa needs to invest in infrastructure for security of energy supply and for economic growth.”
According to WiNSA, nuclear energy is still the most viable option in order to stimulate the economy, despite public sentiment often being negative.
“Therefore, it remains crucial that a factual public awareness campaign gains greater momentum. Moreover, South Africa is amongst the top three largest producers of Nuclear Radioisotopes globally from the SAFARI-1 research reactor operated by Necsa, WiNSA noted.
Currently, the Koeberg Nuclear Power Station hosts the only operational Nuclear Power Reactors on the African continent, with a capacity of 1,800MW baseload power to stabilise the Western Cape grid at one of the lowest costs of production.
For over 30 years, Koeberg has contributed towards both the Western Cape and South African economy through job creation, infrastructure development, community development and transformation.
“As WiNSA, it is important that we become the nuclear ambassadors of this country and the African continent in general. There is a great need, as a collective, to educate our people so that they can understand and appreciate
the technology. The future of women in this sector is promising,” Radebe said.
Source:www.energynewsafrica.com
The lifting and installation of the Molten Salt Receiver (MSR) on top of the world’s tallest solar power tower is complete.
The 262.44 metre high tower stands at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the largest Concentrated Solar Power (CSP) project in the world.
The CSP project is part of the 4th phase of the solar park. The 950MW 4th phase is based on the Independent Power Producer (IPP) model with investments totalling AED 15.78 billion ($4.3 billion).
The Managing Director & CEO of Dubai Electricity and Water Authority (DEWA), Saeed Mohammed Al Tayer said the project is UAE’s contribution towards the building of future of the world with environment-friendly solutions for sustainable development.
Al Tayer stated that the smoothness and continuity of construction work over the past period for this strategic project, despite the coronavirus pandemic. It has taken one and a half years to complete 60% of the CSP tower and without injuries.
The concrete part of the solar power tower is now complete at a height of 222 metres. The MSR was built and assembled while the tower was being built.
Abdul Hamid Al Muhaidib, Executive Managing Director of Noor Energy 1, briefed His Highness on the progress and installation of the MSR. Noor Energy 1 is owned by DEWA, the Silk Road Fund, which is owned by the Chinese Government and ACWA Power from Saudi Arabia.
“ACWA Power is proud to partner with DEWA and Silk Road Fund and support all efforts to make the Dubai Clean Energy Strategy 2050 a reality. Today, we reached another significant milestone in the world’s largest CSP plant, Noor Energy 1. We have completed the lifting of the Molten Salt Receiver in a record time, keeping the highest standards of safety despite the impact of the COVID-19 pandemic and many other challenges. This is yet another demonstration of ACWA Power’s commitment in to the solar industry and the endeavours made in the region to achieve a clean energy future,” said Mohammad Abunayyan, Chairman of ACWA Power.
The MSR is the centre and the most important part of the CSP plant. It receives solar radiation and turns it into thermal energy. Up to 50% of the overall project’s first phase has been completed. This includes the solar power tower, the parabolic basin complex, and the photovoltaic solar panels.
The fourth phase of the solar park combines CSP and photovoltaic technology and is rated for 950MW. It will use 700MW of CSP, 600MW from a parabolic basin complex, 100MW from the solar power tower and 250MW from photovoltaic solar panels.
On its completion, the project will have the largest thermal storage capacity in the world of 15 hours, allowing for energy availability around the clock.
The fourth phase will provide clean energy for 320,000 residences, will reduce 1.6 million tonnes of carbon emissions a year and covers 44 square kilometres.
The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world based on the IPP model, with a planned capacity of 5,000MW by 2030 and investments of up to AED 50 billion ($13.6 billion).
A Power Purchase Agreement was signed in March 2020 for the 900MW photovoltaic fifth phase based on the IPP model. It will become operational in stages starting in the third quarter of 2021.
A total of 129 yellow jerrycans of fuel said to have been packed in a temporary structure erected along the Ghana-Togo borderline purposely for smuggling into the Republic of Togo have been intercepted by security agencies.
According to MyNewsGh.com, which first broke the story, the illegal activity was detected by police officers, led by Assistant Inspector Sumaila Safo, deployed on patrol duties.
The police surveillance team was said to have placed a distress call upon chancing on the information and got reinforcement and together, the team intercepted the fuel and conveyed it to the main border in the two service patrol pick-up vehicles with registration numbers GI 75 and GI 202 driven by Senior Inspector Samuel Amoako and ICO Emmanuel Ganyo respectively.
The police, upon further intelligence, retrieved twelve (12) additional yellow jerricans of fuel from the same location.
The police said all efforts made by the GIS patrol team to arrest the suspects proved futile.
However, the Command is still making efforts to trace and apprehend the said owner(s) of the fuel.
Currently, the one hundred and forty-one (141) intercepted yellow jerrycans of fuel are in the custody of the GIS, Aflao Command pending further investigations and directives.
Source:www.energynewsafrica.com
Norwegian industrial investment company Aker Capital ASA has entered into an agreement with compatriot shipowner Ocean Yield ASA for co-ownership of oil tankers.
Per the agreement Aker will acquire from Ocean Yield 50 per cent of seven tankers with long-term charters.
The joint venture (JV) will own four LR2 product tankers with long-term charter to the Navig8 Group and three Suezmax tankers with long-term charter to Nordic American Tankers Ltd.
Aker will pay $10.2 million for 50 per cent of the shares in two new holding companies, which is equal to the book values.
The investment satisfies Aker’s return requirements, the company said.
Separately, Ocean Yield said it will continue to guarantee the senior secured bank debt against a guarantee fee.
“The JV will be accounted for as an investment in an associated company and will strengthen Ocean Yield’s equity ratio with more than 2 per cent points as the JV’s bank debt will no longer be consolidated. Due to the low amount of new capital raised in the transaction, the impact on net profit will be limited,” according to the shipowner.
The transaction is subject to final documentation.
Ghana’s President Nana Akufo-Addo is wondering why oil rich country Nigeria is not importing salt from Ghana for its petrochemical industry but imports salt from far away Brazil.
The Head of state of the West African nation believes it is about time Nigeria turned to Ghana for the supply of salt for the country’s petrochemical industry.
Ghana’s salt industry has a potential production capacity of 2.2 million tonnes, but can only manage a maximum of 250,000 tonnes, representing 10 per cent of what nature offers on the coast.
Ada, one of the salt mining towns in Ghana, area alone can boast of over half the capacity of the national production.
The potential salt production capacity in the Ada area, that is Songor Salt Project and Solar Salt, is about 1.4 million tons out of which only 100,000 metric tons is being produced.
The area is losing about 135 million annually due to low levels of production. It is for this reason that four land owners of Ada have come together to seek the help of the government in developing the industry.
“It brings a lot of benefit to the country in terms of the contribution it makes to the petrochemical industry.
“As you all know, salt is a special ingredient in the petrochemical products that we are hoping now to develop over our oil fields, the source of foreign exchange earnings.
“We also know what the huge market there is in our neighbouring Nigeria. They are having to buy salt all the way from Brazil when we are just next door,” President Akufo-Addo said when a delegation of chiefs from the Ada Traditional Council paid a courtesy call on him at the Jubilee House, the seat of government.
President Akufo-Addo assured his guests of the government’s determination to develop the salt industry in the area.
He said the industry has the potential of developing the petro-chemical industry and serves as a foreign exchange earner for the country.
The visit to the seat of government was to, among other things, inform the President of the decision made by the chiefs in Ada to do away with factions in the salt industry.
President Akufo-Addo noted that generation after generation has given talk about the potential of the salt industry for the country, especially the salt industry based in Ada but very little had been done about the growth of the industry.
“I think the time has come for all of us to put our heads together and find a way forward. It will bring a lot of benefits to the country in terms of the contribution it will make to the petrochemical industry. As you all know, salt is a crucial ingredient in all the petrochemical products that we are hoping now to develop out of our oil fields,” President Akufo-Addo stated.
President Akufo-Addo was delighted about the chiefs’ decision to seek the government’s intervention in developing the industry.
He said now that there has been consensus, the government would vigorously develop the salt industry in Ada.
The Mankralo of the Ada Traditional Area and Spokesperson of the chiefs, Nene Obikyere Agudey appealed to President Akufo-Addo to intervene in developing the Industry.
He noted that the four land owners of Ada Traditional Area have come together and “we say we are ready.
“All the impediments…all the problems that we had that militated against this take off, we, the people of Ada, will forever remember you that you are the single person, who through your tenure, have been able to bring salt production to its maximum,” the Ada Paramount Chief added.
Source:www.energynewsafrica.com
The Nigerian National Petroleum Corporation (NNPC) has raised an alarm over prevalent low grade and contaminated AGO, otherwise called, diesel offered at discounted prices in parts of the Country.
The warning was contained in a report by NNPC Retail Limited Managing Director, Sir Billy Okoye, admonishing motorists to be wary of the off-spec products.
Sir Okoye stated that the warning became necessary because the low grade, contaminated diesel is harmful to machines and environment, explaining that NNPC Retail Limited as a market leader considered it incumbent upon it to alert the public on the subject.
He assured consumers that NNPC Retail Limited deals only in premium, high-quality products in the interest of Nigerian motorists and users, urging consumers to patronize the company’s stations where the quality of their products is assured.
As a deregulated product, diesel is also imported by other major and independent marketers in the Country.
The Akufo-Addo administration in the Republic of Ghana has challenged claims by the largest opposition party, NDC that it managed the West African nation’s strategic oil company, BOST, better and more efficiently than what the current administration is doing.
The opposition NDC at a press conference addressed by its National Communication Officer, Sammy Gyamfi said it is worthy of note that under the leadership of the visionary John Dramani Mahama, BOST was so efficiently managed such that, for the first time in the history of the company, it was able to trade with major international oil companies including British Petroleum (BP), Vitol, Trafigura amongst others, on an open credit supply system, a situation that helped to drive local fuel prices down in the year 2015 & 2016 even when world market prices dictated upward adjustments in fuel prices.
“The erstwhile NDC-Mahama government restructured BOST’s operations from zero imports in 2013 to running a minimum of five out of the six fully functionally and profitable petroleum terminals across the country.
“We established a petroleum-trading department in the company and within 24 months, the company traded petroleum products of mainly gasoline, gasoil, LPG and crude oil in the West African market to the tune of USD1.5 billion.
“Also, at the time of exiting office in 2017, the NDC-Mahama government bequeathed to the Akufo-Addo government, 200,000 metric tonnes of refined products valued at about GHS1 billion and 2 million barrels of crude (1 million barrels from the TEN fields and 1 million barrels of Qua-Iboe crude from Nigeria) valued at over US$100 million.
“So well did the NDC-Mahama government improve the finances of BOST through prudent management that after reducing the BOST Margin from 10 pesewas to 3 pesewas in the year 2015, we indicated in our 2016 supplementary budget that we were going to totally scrap the 3 pesewas BOST margin on the prices of petroleum products to reduce the cost of fuel products and provide some respite to Ghanaian petroleum consumers.
“It is sad to note today, that as a result of the thievery and plundering of the resources of BOST in the last three and half years, the once profitable and buoyant state asset, which was a partner to several reputable multinational oil companies under the erstwhile NDC-Mahama government has been completely run down by the Akufo-Addo government such that today, the company (BOST) has no strategic stocks of its own and is virtually borrowing to pay its workers,” Sammy Gyamfi said.
However, a statement issued by the current Management of BOST laughed off NDC’s claims.
Contrary to what the opposition NDC claims was the picture of BOST when they left office, the response of the current management of BOST was that the company was in sordid state when they took over.
The statement gave a detailed state of BOST when the NPP took over.
“As of January 2017, the state of BOST, as company, was as follows: A trade debt of $624 million dollars, Legacy debts of GHS 273 million, 2 years operations with unaudited financial statements (2015-2016), Non-operational marine assets, Non-operational petroleum pipelines resulting in 100% reliance on BRVs for products haulage, $10 million of BOST finances locked up in TOR debt through Sahara oil among others.”
The question then is: “Is this the efficiency being referred to?” it quizzed.
The statement explained that the company’s $624 million dollar debt has been reduced to $57 million dollars as at January 2020.
It added that BOST, under the current administration, has settled the entire GHS 273 million legacy debt and revamping of BOST’s marine facilities.
“Two barges and tug boat have been refurbished and operational and currently generating revenue for the company, both of the company’s major pipelines from Tema to Akosombo, as well as from Buipe to Bolgatanga, are currently being refurbished and are expected to be operational in the third quarter of 2020,” it concluded.
Source:www.energynewsafrica.com
• Investment: While renewable energy is growing cheaper, offering huge potential to stimulate the global economy, investment in renewables is equally presenting itself as stable, cost-effective and attractive; offering consistent and predictable returns.
Matthew DiLallo a Senior Energy and Materials Specialist with The Motley Fool, sees many companies benefiting from the expected growth of the renewable energy industry in the coming years. He presented Brookfield Renewable Partners, Clearway Energy, and NextEra Energy (all trading on the New York Stock Exchange) as three companies that stands out relative to others in the industry.
Matthew described all the three companies as routine outperformers. While Brookfield Renewable Partners has generated market-crushing total returns since its inception. It has also beaten the market year to date as well as over the past one, three, and five-year periods. Clearway Energy is also described as having the wind at its back these days. It estimates its cash-flow to soar 22 percent this year, powered by several acquisitions last year. Like Brookfield Renewable, electric utility NextEra Energy’s performance trend appears likely to continue in the coming years. The company expects that its earnings will grow by at least 6-8 percent per annum through 2022. Meanwhile, it anticipates that it can increase its 2.2 percent yielding dividend by at least a 10 percent annual pace during that time-frame.
The consumption, cost, and investment data presented in the comprehensive study from the International Renewable Energy Agency (IRENA), the Energy Information Administration (EIA), the MotleyFool among others, goes to show how decisively the tables have turned in favour of renewables.
A Road Map to 2050
According to the 2019 edition of IRENA’s, Global energy transformation: A roadmap to 2050, aside the pairing electrification with renewables getting cheaper than fossil fuel-based alternatives, it is lowering local air pollution and increasing health benefits; resulting in positive socio-economic benefits and presenting it as a key enabler to build a connected and digitalized economy and society. It suggests that electrification when paired with renewables, goes hand-in-hand with energy efficiency, resulting in lower overall energy demand.
In the estimation of IRENA, by 2050 electricity could become the central energy carrier, growing from a 20 percent share of final consumption to an almost 50 percent share, and as a result, gross electricity consumption would more than double. Renewable power will be able to provide the bulk of global power demand (86%) driven by over 1 billion electric vehicles, increased use of electricity for heat and the emergence of renewable hydrogen. Overall, renewable energy would supply two-thirds of final energy.
2ND PRICING WINDOW JUNE
