Ghana: COPEC Calls For Dissolution Of BOST Board

A consumer advocacy group in the Republic of Ghana, Chamber of Petroleum Consumers Ghana (COPEC) is calling for the dissolution of the board of the Bulk Oil Storage and Transport (BOST) Company Limited. The call follows the resignation of its second Managing Director within a space of three years. Executive Secretary of COPEC, Mr. Duncan Amoah, is of the view that the board which supervised some transactions which allegedly caused the exit of the former Managing Directors of the nation’s strategic oil company must share the blame of their actions. “The existing board should be fired because all the things that led to the resignation and firing of the two heads at the place was supervised by this board,” he said. On Monday, Edwin A. Provencal was appointed as new MD for BOST after George Mensah Okley tendered in his resignation to the President. Mr. Okley took over from Alfred Obeng Boateng who was entangled in corruption allegations. In a statement after the appointment, Chairman of the BOST Board, Ekow Hackman said “Pending the assumption of office by the Managing Director, Mr Moses Mensah Assem, the Deputy Managing Director of BOST, will act as Managing Director. ”The Board wishes to assure all stakeholder and the general public that the company operations will continue uninterrupted.”   Source: www.energynewsafrica.com

Is PDS Capable Of Transforming The Energy Sector?

On 5th August 2014, the Government of Ghana signed the second Millennium Challenge Corporation Compact (MCC) with the US Government under the theme “Powering Ghana for Accelerated and Sustainable Growth”. A major project in the Compact II is the ECG Financial and Operational Turnaround (EFOT) Project which seeks to strengthen the governance and management of ECG by bringing in an acceptable ECG Private Sector Participant (PSP). I followed the takeover of ECG on March 2019 by this single purpose vehicle called PDS with keen interest because to me it’s a wish that the laxities and the weaknesses in the state distribution entity was going to be addressed in due course, especially the financial challenges in the entire electricity supply matrix which hinges on ECG’s financial/revenue efficiency. Therefore, the brouhaha about some alleged breaches with PDS’ bond guarantee in taking over the assets and management of ECG came as a surprise to me. However, analyzing the entire narratives, my initial shock turned into inquisition. Indeed, my probing paid off. I intercepted a progress report on PDS for the last four months of their coming into force, which was being submitted to authorities, and I found it very interesting. This has motivated me to share my thoughts with fellow Ghanaians. I have identified two pivotal events I wish to bring to the notice of Ghanaians. In satisfying all the requirements before taking over the assets and management of ECG as agreed by MiDA and GOG, PDS undertook the following: PDS engaged local financial entities; Cal Bank and Donewell Insurance Company Limited, in undertaking the bond guarantees on their behalf. This, I think is very significant, a positive sign of the PDS’ commitment to our own and the realization of our local content mantra. PDS’ improvement in the system as I understand was achieved with the same workforce of the previous entity (ECG). This cannot be overlooked. Kudos to the government of Ghana and the President in securing workers employment till the end of the 20 years concession period. As I write this article, I am aware of the government’s investigations that will determine PDS’ continued existence as the concessionaire or otherwise. However, the report I have read on PDS’ progress within the four (4) months of their takeover tells very significant and positive stories which cannot be ignored. As a student in the energy industry, I can pick a few and draw attention to what I seriously think we should neither gloss over nor take for granted as a government and as a people. I have read that within four months, revenue to sales collection of PDS has increased to 95.92% from a region of not more than 90%, at the time of their takeover, and this is remarkable. Though it is work in progress, it implies a reduced level of debt stock of the Company, which translates into high liquidity, leading to timely payment of suppliers of the Company, especially the Independent Power Producers (IPPs). The second observation I made from the report is the fact that PDS met a system loss level of 27.3%, but through various technical and commercial interventions, has been able to reduce the figure to 18.6% as at the end of June 2019, as shown in table 1 below. I know it will continue to fluctuate because the real figures can be ascertained at the end of the year. Nevertheless, it is a remarkable achievement, because anytime losses go down, it translates into revenue, which is the bloodline of the industry. If you take the performance of Meralco, the leading Company within the PDS shareholders, they have a single-digit losses level of less than 6% in the Philippines, and I believe they are highly capable of transferring the knowledge and technology in bringing ours further down, when they are given the opportunity to operate in our country. This will translate into higher revenue, and the benefits are enormous. For example, reduced system losses translate into revenue, which has a significant effect on electricity pricing. The more PDS brings the system losses down to a level even lower than what I am told PURC has pegged (21%), it helps bring stability in the electricity tariff. When we have such price stability in the tariffs, it helps both industry and consumers to plan their lives better. It is therefore critical to consider the expertise of Meralco as the lead shareholder in the PDS consortium in reducing system losses, which will inure to the benefit of the power industry and the entire citizenry. Table 1
MONTH   SALES (GWh) PURCHASES (GWh) SYSTEM LOSSES (%)
Mar-19   741.1 1,020.0 27.3
Apr-19   734.9 985.2 25.4
May-19   730.6 984.1 25.8
Jun-19   731.0 897.7 18.6
One other performance indicator which interested me is the high level of debt collection. I gather that about 60% of the Company’s billing is in the credit system. The report indicates that accumulated debt by the previous entity of GH3.365billion has been reduced to GH2.6billion within the past four months. Such effective revenue collection means adequate availability of funds to fuel the entire electricity matrix loop. If PDS have put in place such an efficient running system, especially with the same personnel they inherited, it shows that they have put in place certain structures and monitoring systems which are yielding positive results. Last but not the least of what I came across is on reduced outages by PDS. The table below indicates an initial number of outages of 665 per week which they were confronted with in March, 2019. Currently, PDS has reduce it to 219 outages per week. Technically records indicate that, the system average interruption duration index of 24.87hours in the previous year has been reduced to 17.26hours as of June 2019. That is about 30.6% improvement as compared to the same period last year, this translates into stable power supply. TOTAL NUMBER OF OUTAGES (ALL OUTAGES – UNPLANNED, PLANNED, EMMERGENCIES.)
WEEK week 10 week 11 week 12 week 13 week 14 week 15 week 16 week 17 week 18 week 19 week 20 week 21
Total no of Outages 665 781 681 797 1276 875 803 588 523 669 720 829
WEEK week 22 week 23 week 24 week 25 week 26 week 27 week 28 week 29 week 30 week 31 week 32 week 33
Total no of Outages 727 649 507 498 684 466 630 343 434 342 280 219
If you monitor social media handles, some customers have even testified that for the first time, they have come to realise that availability of power is highly possible even when it rains. Prior to this, it was the general thinking that when the weather turns cloudy, or whenever it rains power should automatically go off. PDS is doing something right. In totality, PDS as a new company, has shown that they have the leadership, transformational strategy and team-oriented focus to bring improvement within the system. If within 4 months all indicators point to a positive change, then why not give them a chance to continue. It is in this vein that I thank the President for the boldness in bringing private participation into the energy distribution system. When all things become equal, what is required of the sector agencies and regulators is to up their game in monitoring and evaluating whatever we have agreed with the PDS to deliver for the benefit of the citizenry and the Government of Ghana   Source:  Kofi Brako (Energy Analyst)  

Tanzania: GE Completes Gas Turbine Upgrade Ahead Of Schedule

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GE and Songas have announced that they have successfully completed upgrades to the entire GE fleet of three LM6000PA and one LM6000PC gas turbines at the Songas Ubungo Power Plant in Dar es Salaam, Tanzania. These technology upgrades will increase the power plant’s efficiency and reliability, enabling Songas to maintain the plant in the most economical way possible. “We are very pleased with GE’s execution because it was completed safely and ahead of schedule, with great commitment and consistency across the four LM6000 units,” Nigel Whittaker, managing director, Songas Ltd said. “The successful completion of this project not only improves Songas’ performance levels, but through the additional reliable supply of electricity, continues to contribute to the economic development of the country, making a significant difference in the lives of Tanzanians.”   GE’s upgrade of the four LM6000PA gas turbines to LM6000PC significantly improves the current LM6000 fleet. GE’s SPRINT (SPRayINTercooling) technology, installed on two of the four units, increases gas turbine performance, improves power flexibility, enhances the combustion system, improves fuel efficiency, extends maintenance intervals for the combustor, hot section and major overhaul and lowers maintenance costs. “Over the past 15 years, Songas and GE have collaborated on the Ubungo power plant, and we’re excited to help enhance operations, increase capacity, and deliver the principles of safety first, quality foremost and operational excellence,”  Elisee Sezan, CEO for GE’s Gas Power business in sub – Saharan Africa said. “Our goal is to bring long-term value to our customers and their power plants, like Songas, to maintain it in the most efficient way possible and, ultimately, contribute to Tanzania’s economic and social development.” The Ubungo power plant provides more than 20 percent of the grid connected power in Tanzania. It includes four GE LM6000 gas turbines, which have been operational since 2004. In 2017, GE signed a multiyear agreement to upgrade gas turbines at the Songas Ubungo power plant in Tanzania.  GE’s LM6000-PF dual fuel gas turbines power the 150-MW Kinyerezi power plant, which also has a multiyear agreement with GE for the long-term, reliable operation of its power plant.

Equinor Selects 10 Start-Ups For Energy Accelerator Program

Norwegian oil and gas company Equinor has revealed the second class of global start-up companies selected to participate in the Techstars Energy Accelerator. Three Norwegian companies participate in the program. The ten start-up companies have been selected from hundreds of applicants across 42 countries. Through an intensive 13-week program they will seek to accelerate their solution by tapping into a global network of experts from Equinor and Techstars as well as the partnering companies Kongsberg and Capgemini, Equinor said on Tuesday. “The energy industry is changing fast, and these companies are at the forefront of that change. Following the success of our first accelerator program last year, we are excited to have a new class of innovative startups working with us for the next three months. I look forward to supporting the teams – and also learning from them,” Al Cook, Equinor’s executive vice president for Global Strategy and Business Development said. The accelerator is hosted at Equinor’s Oslo offices. The ten start-up companies will arrive on September 9. “Norway has a world-class energy-technology industry and is recognized as a true global energy hub. It is the ideal place to engage with subject matter experts if you are working on disruptive solutions within energy,” Audun Abelsnes, managing director Techstars Energy said. The selected companies represent solutions within oil and gas, renewables, new business models and digitalization. At the end of the program in December, they will present their solutions to Equinor, the partners, and other potential investors at a Demo Day. “Kongsberg Digital wants to help the world’s industries with their digitalization journey, and we believe continuous innovation, knowledge sharing, and partnerships are key components for success. We look forward to working with the top ten companies and seeing what mutual benefits we can spin out of the Techstars Energy Accelerator 2019,”  Hege Skryseth, executive vice president in Kongsberg and president of Kongsberg Digital said. “Techstars Energy represents an opportunity to explore innovative ideas that can reshape our industry. We are very excited to be working with this year’s group of startups in the accelerator program and to learn from them,”  Gunnar Deinboll, executive vice president, Capgemini Invent said. The ten companies selected for the program are: Fieldmade, Norway; Fuelsave, Germany; GamY, Germany; Navarra Tech, Brazil; RagnaRock Geo, Norway; Salient Energy, Canada; SeeO2 Energy, Canada; Tempus, UK; Terrapin, Canada; VesselAdmin, Norway. Accepted companies receive up to $120,000 and aim to compress two years of work into 13 weeks. It is worth mentioning that eight out of ten companies from the Techstars Energy class of 2018 signed deals with corporate partners.   Source: offshorenergytoday.com  

Italy’s Eni Makes 1-Tcf Gas Find Onshore Nigeria

Italian oil and gas firm,  Eni has announced that it had made a “significant” gas and condensate find onshore Nigeria, with reserves estimated at 1 Tcf (28 Bcm) of gas and 60 million barrels of condensate, as part of its near-field onshore drilling campaign in the Niger Delta.

 

Eni’s affiliate company NAOC which holds a 20% operating stake alongside state-owned NNPC (60%) and Oando (20%) — made the find in the deeper sequences of the Obiafu-Obrikom fields with the Obiafu-41 deep well.

 

The well — which can deliver in excess of 100 MMcf/d of gas and 3,000 b/d of condensate — will be “immediately” put on stream to increase NAOC’s gas production, Eni said.

 

“The discovery is part of a drilling campaign planned by NAOC and aimed at exploring near-field and deep pool opportunities as ‘immediate time to market’ opportunities,” it said.

 

The find also has further potential that will be assessed with the next appraisal campaign, Eni said.

 

Eni’s equity gas production in Nigeria last year was some 92 Bcf (2.6 Bcm), according to the company’s website, or around 5% of the country’s total gas output.

Nigeria — which has the largest gas reserves in Africa — has made it a priority to unlock and harness its gas potential to increase domestic and industrial power supply.

 

According to NNPC, Nigeria has around 202 Tcf of proven gas reserves — a number that was increased from around 187 Tcf late last year — plus about 600 Tcf of unproven gas reserves.

 

But despite having the largest gas reserves in Africa, only about 25% of those reserves are being produced or are under development, according to Shell.

Stena Forth Drillship To Move To Ghana After Guyana Drilling Conclusion

Offshore drilling firm Stena Drilling has signed a rig contract with Ghana’s Springfield Energy. Springfield Energy has hired the Stena Forth drillship. The drillship is currently on a contract with Tullow Oil in Guyana, where it has this week spudded the Joe-1 well, a fortnight after it had made an oil discovery at the Jethro-1 well in the Orinduik block. The Ghanaian oil and gas firm said the rig deal has set the company on course to make history by becoming the first independent African Energy company to drill in deep water. Springfield will use the Stena Forth rig to drill at the West Cape Three Points Block 2 (WCTP Block 2) where it is the operator.  “This is a huge moment for Springfield Group and, I believe, for Ghana. Deepwater drilling has never been carried about by an independent African Energy company and we are incredibly proud to be on the cusp of being the first to do so,” Springfield Group’s CEO Kevin Okyere said:  “The campaign will first target the Oak-1x well on trend with the Beech discovery, made on the Deep Water Tano Cape Three Points block (DWT/CTP) to the south-west of WCTP Block 2. The next well, Afina-1x, will test the Cenomanian oil potential on a similar play fairway to discovered resources to the east of WCTP Block 2. Springfield continues to work to firm up further drilling locations on the highly prospective WCTP Block 2.” Erik Ronsberg, Chief Executive Officer of Stena Drilling said: “We’re absolutely delighted to have signed a contract with Springfield Exploration & Production Ltd. and very grateful for SEP’s confidence in our company. We have worked in Ghana for several years now, building our Ghanaian crew complement on Stena Forth to over 50%, so thrilled to be playing a part in Ghana’s exciting future together with an inspiring company like Springfield.” While Springfield did not share the terms of the rig contract, Bassoe has estimated the Stena Forth would start its two-month Ghana contract on September 30, at a dayrate of $175,000. Source: offshoreenergytoday.com

Ghana: Energy Minister’s Technical Advisor Takes Over As New MD of BOST

A technical Advisor to Ghana’s Energy Minister has been appointed to replace Mr George Mensah Okley. Mr Okley resigned as Managing Director of the strategic state oil company, Bulk Oil Storage and Transportation Company (BOST), last Friday. Mr Edwin A. Provencal, founder & managing partner at Provencal & Associates (GH) Ltd, affiliate partner of palladium group in Ghana, was nominated by President Nana Akufo-Addo on Monday, August 26, 2019. Mr Mensah Okley was allegedly compelled by the President to resign, after serving for almost a year at the company. Mensah Okley replaced Mr Alfred Obeng Boateng after he was dismissed by President Akufo-Addo. There were reports over the weekend that Mr George Mensah Okley had resigned from his post in relation to issue of contracts at BOST and some serious other challenges he was having with some key staff at BOST, thus, making his work difficult. However, a board member who spoke on conditions of anonymity with energynewsafrica.com refuted the allegations, saying it was not true. A statement signed by Deputy Energy Minister Joseph Cudjoe, requested the Board to take “due note and assess the suitability of Mr Provencal for the appointment accordingly.” Meanwhile, a statement from Chair of the BOST Board, Ekow Hackman said, “Pending the assumption of office by the Managing Director, Mr Moses Mensah Assem, the Deputy Managing Director of BOST, will act as Managing Director. ”The Board wishes to assure all stakeholders and the general public that the company’s operations will continue uninterrupted.”   Source: www.energynewsafrica.com  

ExxonMobil, Mosaic Materials To Explore Carbon Capture Technologies

ExxonMobil and Mosaic Materials have entered into an agreement to explore the advancement of technology to remove carbon dioxide from emissions sources. Mosaic Materials has progressed research on a process that uses porous solids, known as metal-organic frameworks, to separate carbon dioxide from air or flue gas. The agreement with ExxonMobil will enable further discussion between the two companies to evaluate opportunities for industrial uses of the technology at scale. “New technologies in carbon capture will be critical enablers for us to meet growing energy demands, while reducing emissions,” Vijay Swarup, vice president of research and development for ExxonMobil Research and Engineering Company said. “Our agreement with Mosaic expands our carbon capture technology research portfolio, which is evaluating multiple pathways — including evaluation of carbonate fuel cells and direct air capture – to reduce costs and enable large-scale deployment. Adding Mosaic’s approach will allow us to build on their work to evaluate the potential for this technology to have a meaningful impact in reducing carbon dioxide emissions.” “Through this agreement with ExxonMobil, we look to accelerate the pace of our development and demonstrate the business and environmental benefits that our technology can offer,” Thomas McDonald, chief executive officer of Mosaic Materials said.  “Our proprietary technology allows us to separate carbon dioxide from nearly any gas mixture using moderate temperature and pressure changes, substantially increasing energy efficiency and decreasing costs,” he added. Mosaic Materials’ agreement with ExxonMobil is part of Mosaic’s commitment to accelerate the impact of its innovative, low-cost technology, and is Mosaic’s latest direct engagement with companies across a range of industries to demonstrate both the cost reductions and the environmental benefits of employing Mosaic’s solutions. This engagement builds upon ExxonMobil’s extensive portfolio – in collaboration with startups, academia and governments – to develop next-generation energy technologies that improve energy efficiency and reduce greenhouse gas emissions. ExxonMobil supports Cyclotron Road, a fellowship for entrepreneurial scientists that is managed in partnership between Lawrence Berkeley National Laboratory and Activate, an independent nonprofit. ExxonMobil also recently announced a 10-year, up to $100-million agreement to research and develop advanced lower-emissions technologies with the U.S. Department of Energy’s National Renewable Energy Laboratory and National Energy Technology Laboratory. For more than 30 years, ExxonMobil engineers and scientists have researched, developed and applied technologies that could play a role in the widespread deployment of carbon capture and storage. With a working interest in approximately one-fifth of the world’s total carbon capture capacity, ExxonMobil has been able to capture about 7 million tons per year of carbon dioxide, and has cumulatively captured more of it than any other company since 1970.   Source: worldoil.com

Kenya’s First Crude Oil Export Sparks Demands Over Revenue Sharing

Kenya exported its first crude oil on Monday, amid pointed speeches by local leaders asking the government to stick to its commitment to share revenues from future shipments equitably. Although commercial production is years away, the discovery of oil has heightened expectations that citizens, especially those living adjacent to the deposits, will benefit. President Uhuru Kenyatta in March signed into law a long-awaited petroleum bill that regulates oil exploration and production and outlines how revenues will be shared between the government, local communities and companies. Of the revenues due to the state, the law allocates 20% to local government, 5% to the communities living where oil was found and 75% to the central government. An earlier draft gave 10% to the communities. The law also says parliament will review the percentages within 10 years. The law is required for large-scale oil production but was delayed by tussles between layers of government and residents of Turkana, the impoverished northern region where the oil deposits were found. As the first shipment left Kenya’s port of Mombasa, three governors, an oil executive and the president compared carving up the profits to sharing a goat. “When you slaughter a goat, the owner of the goat is left with the leg,” Turkana County deputy governor Peter Emuria Lotethiro said.  “Turkana want their leg,’ he added. Tullow Oil estimates that Kenya’s Turkana fields hold 560 million barrels of oil and expects them to produce up to 100,000 barrels per day from 2022. London-based Tullow said it and its partners had to date invested $2 billion in Kenya. “Having spent $2 billion, the joint venture partners will be able to get a bit of that goat. There is much more investment to come which will create jobs across Kenya,” Tullow Chief Executive Paul McDade said. Mining and Petroleum Minister John Munyes said approval to pump water from neighbouring West Pokot County to pressurise oil wells had been granted. The deal is crucial for next year’s final investment decision on proceeding to commercial production. “By 2020 we should have the plans to let us proceed with the construction of the pipeline from Lokichar to Lamu,” he said. Monday’s shipment was 250,000 barrels of oil. The crude was trucked to the port since there is no pipeline. The shipment’s destination was not announced. Tullow and partner Africa Oil discovered commercial oil reserves in Turkana’s Lokichar basin in 2012. France’s Total has since taken a 25% stake in the project. About two weeks ago, Kenya and a group led by explorer Tullow picked trading company ChemChina UK Ltd to buy its first shipments. ChemChina UK’s initial purchases are small-scale, with full commercial shipments due once the pipeline is built.    Source: Reuters

South Africa: Gov’t To Issue Paper As A Roadmap For Eskom Future

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The South African Ministry of Public Enterprises has issued a statement noting that the government will publish a Special Paper on state-owned power utility Eskom in the next few weeks, which will clearly outline the roadmap to put Eskom on a long-term sustainability path. According to the Ministry, the paper will reflect the “urgent work that is taking place to identify options to resolve the debt challenge, the process for restructuring Eskom and importantly, to ensure a just transition”. Since the announcement of the unbundling by President Ramaphosa during his State of Nation Address in February 2019, the key component of restructuring is the separation of Transmission, the statement read. Since the announcement of this separation, government, in particular, the President and the Minister of Public Enterprises have had initial engagements with unions. The consultations on the future of Eskom are expected to be ongoing at Eskom management level and government level. The Eskom Board and Executives management together with Government will lead engagements at various levels.   Source: esi-africa.com    

Libya’s State Oil Corporation Seeks 67% Pay Rise In Energy Sector

Libya’s National Oil Corporation (NOC) reiterated on Friday its demand for a 67-percent pay increase for the workers in the oil and gas sector, the state oil firm said, after a meeting with Fayez al-Serraj, the head of the internationally recognized government in Tripoli. NOC’s chairman Mustafa Sanalla has discussed the issue of the pay rise with al-Sarraj and reaffirmed the importance of raising the salaries of the workers in the oil and gas sector, as it was initially decided in 2013 but never implemented.   Representatives of the NOC, the Presidency Council, and the ministry of finance will meet this week to discuss the implementation of the planned pay rise, NOC said in a statement. “Oil and gas workers are making enormous sacrifices and facing many risks, especially under current circumstances. Yet, they have managed to deliver a budget surplus of more than $1.4 billion this year alone. The time has come for energy sector workers to receive recognition for their service, and to be recompensed for their efforts by implementing the 67% pay rise,” NOC’s Sanalla said. The head of the oil firm also spoke with the Presidency Council to highlight how important it is for NOC to receive an increased budget for operations and investments in order to raise oil production and consequently, oil revenues, NOC said. Earlier last week, reports emerged that Libya’s eastern strongman General Khalifa Haftar—who is affiliated with an eastern government rival of that of al-Sarraj’s—is boosting his military presence around the country’s largest oil field, Sharara in southern Libya. The security situation in Libya has materially worsened since the spring after Haftar ordered in early April his Libyan National Army (LNA) to march on the capital Tripoli. The self-styled army has been clashing with troops of the UN-backed government in a renewed confrontation that has escalated and disrupted, once again, Libya’s oil production and exports. The latest in a series of force majeures at Sharara was lifted on August 8. Two outages at Sharara in one month forced Libya’s oil production down to below 1 million bpd in the first week of August—the lowest level in five months and a sign of Libya’s wild card status in terms of production consistency.   Source: oilprice.com/www.energynewsafrica.com                        

Flashback: ‘Evil D warfs’ At BOST: Will George Mensah Okley Conquer Them?

  This article was published in September 2018 on several online portals including Ghanaweb.com and Myjoyonline.com…We have decided to published it because of the resignation of Mr George Mensah Okley     I have been wondering whether there are evil dwarfs that have their permanent abode at the Bulk Oil Storage and Transportation Company (BOST) such that, when they feel like striking, they do so by possessing some staff and antagonists to use the media to fight the nation’s strategic national oil company. As I continue wondering, I think, just maybe, that it is about time the new Managing Director, George Mensah Okley, sought divine intervention to purge the hearts of workers of BOST to enable him to have the peace of mind to work to position the company to become the leading oil company in the sub-region, as was the desire of his predecessors. You may not understand my preposition now, but as we move along, you would appreciate why there is the need for divine intervention at BOST. This article is intended to delve into both the past and present happenings at BOST, and by the time the last page flips to a closure, you would concur with me on the need for the divine intervention. I have been trying to refresh my memory on what took me to the head office of BOST for the first time, and, however hard I try, my memory fails me. But, I think my maiden visit to the venue had something to do with the workers’ agitation. Good…the first day I entered the Accra Plains, near the Kpone Barrier, Kpone-Katamanso District, was when the Junior Staff of BOST organized a press conference to level serious allegations of corrupt practices against the then Board Chairman, Alhaji Huudu Yahaya. The Junior Staff Union, led by its Chairman, one Bernard Owusu, via the media, lashed Alhaji Huudu Yahaya, the former 1st Vice Chairman of the current opposition National Democratic Congress (NDC). Because he could not survive that tirade and bombardment, in no time, he was shown the exit. The then Managing Director of BOST, Dr. Yaw Akoto, was also not spared: he was also thrown out. And despite the number of corrupt practices the two were said to have engaged in, neither of them was investigated and prosecuted by a competent court of judicature for the public to believe that they did all the wrongs they were accused of. US$74million rot under Huudu Yahaya Interestingly, when John Dramani Mahama won the 2012 Presidential elections and after being in office for one year, he quickly relieved the then Managing Director of his post and brought in his darling boy, Kingsley Kwame Awuah Darko, to head BOST and appointed Kakra Essamuah, as its Board Chairman. But, after being in office for few months, we started hearing of some agitations at BOST. This time around, it was not the junior staff but rather a section of the senior staff. The agitations were as a result of staff retrenchment the Awuah Darko’s management was undertaking. Unhappy about the exercise, the workers started leaking information into the media, which, they believed, could incriminate Mr. Darko. In their opinion, the retrenchment exercise was a calculated attempt to sack competent staff and replace them with his cronies so he could continue to engage in corrupt practices. In a bid to absolve himself of blame, Kwame Awuah Darko organized a press conference, which was heavily attended, to respond to the various allegations by the section of the workers in the media. In that media encounter, the embattled Managing Director of BOST confirmed reports of fraud, impropriety, arm-twisting and extortion at the strategic national asset, resulting in a massive financial loss of GH¢74.41 million in just four years. However, he indicated that the financial loss did not occur under his stewardship, though it was still in the era of the Mills-Mahama administration with Huudu Yahaya as Board Chairman and Dr Yaw Akoto, as Managing Director. He explained that it was as a result of the gross mismanagement and arm-twisting under the same NDC government, that he signed an agreement with TSL, a Ghanaian subsidiary of Nigerian-owned firm for it to operate, maintain and manage BOST’s petroleum terminals in the country for a year, at a total cost of about US$7.2 million. He told journalists that BOST, in 2010, made a loss of more than GH¢3.8 million, more than GH¢14.2 million in 2011, over GH¢10.85 million in 2012 and GH¢45.56 million in 2013, all totalling over GH¢74.41 million. According to Awuah Darko, who took over the baton of BOST in October 2013, the company made a profit of GH¢8.1 million in 2014, when TSL was contracted. He, however, failed to disclose the amount BOST paid to TSL for a proper and informed balance sheet of profit and loss to be drawn on the accounts of the state-owned company. Fighting credibility battle and in a subtle attempt to allegedly divert attention from serious allegations of mismanagement and political victimization levelled against him, Awuah Darko reportedly leaked a damning report of a Ministerial Committee to the media, to expose the impropriety of his predecessor and former Board Chairman, Huudu Yahaya. The Ministerial Committee of Inquiry, chaired by Clotilde Agbenoto, was set up on June 18, 2013, by the then Minister for Energy and Petroleum, Emmanuel Kofi-Armah Buah, to investigate allegations of fraud, impropriety, arm-twisting and extortion at the Accra Plains and Kumasi Depots of BOST. However, the report was shelved for almost two years by the Minister, until it was leaked to sections of the media, following agitations by BOST workers against their MD Awuah Darko over what they had described as mismanagement of the company. Tensions continued at BOST until Awuah Darko’s governing NDC lost political power to the then opposition New Patriotic Party (NPP), now steering the state vessel. Awuah Darko’s rot Now, when the NPP took over power in 2017, the Member of Parliament (MP) for Assin Central Constituency in the Central Region, Kennedy Ohene Agyapong, popularly known as ‘Akompreko’, launched an onslaught on the former MD of BOST, Kwame Awuah Darko, for allegedly engaging in financial malfeasance. He never spared Awuah Darko anytime he had the opportunity to speak on radio especially, Oman FM, Adom FM, as well as Asempa FM. And as usual of him, Kennedy Agyapong provided documentary evidence of how BOST, under the tenure of Awuah Darko, transferred US$ 40.5 million into Chief of Staff’s Sundries Account during the tenure of the former President Mahama, under dubious circumstances. To demonstrate his anger at the fire-brand NPP legislator for directing his attacks at him, Kingsley Kwame Awuah-Darko has sued Kennedy Agyapong for peddling what he considered to be defamatory comments against him and is demanding GHC5 million in general damages for defamation. He also sued Multimedia’s Asempa FM, as well as Kennedy Agyapong’s Madina-based Oman FM, for using their platforms to tarnish his reputation. Was Awuah Darko right in going to court to clear himself of any wrongdoing? The answer is yes because it is his constitutional right to seek redress at the court if he feels his rights are being trampled upon. Since the case is before a competent court of judicature, I would not want to comment further or I am cited for contempt. But, one thing I am happy about is how the Assin Central law maker has maintained his focus in fighting wrongdoing and abuse of public office by those who had the opportunity to serve the country, or are still serving, despite the threats of legal battles against him. Now, let me flip the page to Awuah Darko’s predecessor, Alfred Obeng Boateng, who is a lawyer and a Degree holder in BSc in Geological Engineering from the University of Ghana and LLM in International Commercial Law, with specialization in Oil and Gas, was appointed in January 2017 by his Excellency Akufo-Addo to head BOST. However, after being in office for some 18 months, President Akufo-Addo showed him the exit and replaced him with George Mensah Okley, who, until his appointment, was the Director in charge of Upstream at the Ministry of Energy. Although reasons for Alfred Obeng Boateng’s dismissal was not made public, it is not clear whether there was anything he did wrong, apart from the sale of the five million litres contaminated fuel saga which is a public knowledge. Blackmail Alfred Obeng Boateng was reduced to ‘twapea’ by Duncan Amoah, the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Ghana, who ran his mouth amok on the former, as though he was the connoisseur of knowledge in the energy sector. Even when the National Security, with the committee composed by the former Energy Minister, Boakye Agyarko, had cleared Alfred Obeng Boateng of blame, Mr Amoah, unabatingly, attacked Mr Boateng in the media. It would interest readers to learn that Duncan Amoah, some time ago, invited Alfred Obeng Boateng to a meeting at Golden Hotel in Accra and in that meeting, Mr Amoah introduced the CEO or the MD of J.K Horgle, one of the Bulk Distribution Companies (BDCs) to his guest, and pleaded with him to consider him by making sure that J.K Horgle received consignment (fuel) from BOST, so that the company could, in turn, sort him out. That way, he (Duncan) would stop being a thorn in the flesh of Alfred Obeng. As if that was not enough, Duncan Amoah made several unreasonable demands from Alfred Obeng Boateng, including making a purported arrangement so that Mr Alfred and other government officials could make a trip to Israel to meet some investors. But as smart as Alfred Obeng Boateng was, he pulled out upon realizing that Duncan Amoah was leading him into trouble. Disappointed by the turn of events, Duncan Amoah then turned around and orchestrated the controversial five million litres of contaminated fuel, by using his cohorts and criminal-minded guys at BOST to blackmail the then Managing Director Alfred Obeng Boateng. He later cooked a cock and bull story against Alfred Obeng Boateng that he had threatened him and went ahead to lodge a complaint with the Tema Regional Police Command. I listened to him on Accra FM on Monday, September 17, 2018, making another claim that some 600,000 litres of contaminated fuel had evaporated from the Accra Plains Depot of BOST. I was expecting Duncan Amoah, who is making himself appear as if he were the only citizen who cares more about Ghana, to talk about the latest development at BOST, which involves the payment of US$3million to Springfield Energy Limited. Is Duncan Amoah only interested in issues involving Alfred Obeng Boateng? Is he now in bed with the current Managing Director of BOST, and so he would not comment on the issue? Or he has suddenly gone deaf and so cannot hear what is happening at BOST currently? Those who claim to be leading civil society groups must be seen to be demonstrating honesty, fairness and above all, integrity for us to believe them. Unfortunately, Duncan Amoah has not demonstrated any of these values. Since the new Managing Director of BOST, George Okley, assumed office, I have visited him once, nonetheless, we could not engage each other because he was scheduled for a meeting at the Jubilee House. But one thing I kept telling him was to institute prayer in the company because I knew there are evil dwarfs at BOST, who always drag MDs into trouble and turn around to release missiles to the media to fire at the MDs. Now, monitoring the current media war against George Okley, need I will be surprised, when the man who went all out to peddle falsehood about Alfred Obeng Boateng, still finds his way at BOST, by visiting the place on a regular basis as if he were a staff?  Why would I be surprised when one of the evil dwarfs, who was moved to head Business Services under Alfred Obeng Boateng, had been brought back to be the head of Finance and, subsequently, misleading George Okley to authorize payment of US$3million to Springfield Energy Limited? Mr Okley should remember I told him to be prayerful and watchful! US$ 3 million doled out to Springfield Energy After the Inquisitor newspaper had published a story with the banner headline: ‘SCANDAL ROCKS BOST BOSS -SPRAYS CASH ON SPRINGFIELD ENERGY’, I read the response from BOST and also the petition submitted to the Commission on Human Rights and Administrative Justice (CHRAJ) by MP for Bongo, Edward Bawa, asking the Commission to investigate the case. In part, the MP’s petition suggested that BOST’s external lawyers asked the company not to pay Springfield the remaining interest of GHc5 million because they did not deserve it. For the sake of readers, I, hereby, reproduce what the MP, Edward Bawa, claimed to be the exact words of the supposed external lawyers of BOST: “We have not revised our view that Springfield Energy is smartly trying to blow hot and cold at the same time. “We, therefore, stand by our professional advice given earlier that BOST should not cave in to the blackmail of Springfield to hand them underserved millions of dollars from the public purse. “The modus operandi of Springfield is not new. It has been so since the inception of this case. Let Springfield boldly go to the court, prove their case in accordance with the law and let the court deliver its judgment. “BOST will then have the option of satisfying the judgment, or if it is unhappy, challenge the judgment higher up. “That way, it would be seen that BOST stood its grounds and fought a good battle to protect the public purse. That way, nobody can accuse all those involved in the case of creating, looting and sharing. This is our position on the matter.” I must confess that this is the first time I have come to believe Edward Bawa on an issue. I was tempted to believe that the purported words of BOST external lawyers were a figment of Bawa’s imagination but upon my independent checks, I discovered that, indeed, those were the words of the external lawyers. It will interest the public to note that the internal lawyers at BOST and John Kojo Arkorful, who is the Head of Finance, are aware of the caution by the external lawyers not to pay the remaining US$5 million, yet somebody misled the current MD to authorize the payment. If our hard working President Akufo-Addo is, indeed, determined to fight corruption and demonstrated in his appointment of the Special Prosecutor, then, he must equally be moved by the current happenings at BOST and make sure that its management is overhauled to make way for new crop of people to assume their position.  Heads must roll The continuous stay in office of the current management would not end well with the country. John Kojo Arkorful and co are a major problem, as far as the progress of BOST is concerned. There are competent people in the country who could help George Mensah Okley to bring the transformation government is expecting at BOST. We cannot allow certain crop of people, who are only interested in what will come to them, to continue to milk the company when we need money to provide hospitals, schools, roads and other social amenities to deprived communities. I cannot conclude this article without making a passionate appeal to His Excellency the President to call his party people to order. This is because there are some who think the President has kept them warming the bench for far too long, and so to get the President to do a substitution, they will undermine appointees so that when the President sacks them, they, the bench-warmers would get the position or their favourites to also taste power. The author, Michael Creg Afful, specializes in Energy Reporting

Ghana: IPPs Meet Finance Ministry Officials Today

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Officials of Ghana’s Ministry of Finance are expected to hold discussions with independent power producers (IPPs) in the West African country, over some pressing issues in the power sector, energynewsafrica.com has learnt. It is not clear what exactly the discussions would centre on but energynewsafrica.com believes it is likely to be on the take-or-pay contracts, which are said to be bleeding the state funds. It would be recalled that Ghana’s Minister for Finance Ken Ofori-Atta, presenting the mid-year review budget statement in Parliament on Monday, July 29, 2019, announced that government would, from August 1, 2019, only pay Independent Power Producers for power the country consumes. The Minister, Ken Ofori-Atta, said government was going to renegotiate take-or-pay agreements because they were bleeding the state funds. The Akufo-Addo government had accused the Mahama-administration of signing some controversial power agreements which seem to be shortchanging the country. The NPP government claimed that, per the agreement, the country is compelled to pay power producers for power they generate but are not consumed by the country. The Finance Minister said the country was currently paying more than $51 million a month under a take-or-pay contract for 154 mmscf per day on the Sankofa Offshore Cape Three Points gas alone, even though the country only takes 60 mmscf per day on average. He said: “Our top technical experts, assisted by counterparts from the World Bank, have subjected the energy sector to a thorough analysis and produced the Energy Sector Reform Programme (ESRP), which identifies the key issues in the sector and proposes solutions.” Mr Ofori-Atta said the ESRP, which has been approved by Cabinet, means that “if we continue with business as usual in the energy sector, the costs to government will increase over time to an accumulated total of over $12.5 billion by 2023.”   Source: enernynewsafrica.com      

Ghana: President Akufo-Addo Compelled BOST MD To Resign?

Managing Director of Ghana’s Bulk Oil Storage and Transportation Company (BOST) George Mensah Okley has resigned, energynewsafrica.com can confirm. Corporate Communications Manager for BOST Marlick Adjei, confirmed the resignation to energynewsafrica.com on Monday, August 26, 2019. “There is going to be a board meeting today, after which the board will issue an official statement,” he said. There were reports over the weekend that Mr George Mensah Okley had resigned from his post in relation to issue of contracts at BOST and some serious other challenges he was having with some key staff at BOST, thus, making his work difficult. However, a board member who spoke on conditions of anonymity with energynewsafrica.com refuted the allegations, saying it was not true. According to some reliable sources, Mr George Mensah Okley was allegedly asked to vacate his post by President Akufo-Addo. It is not clear yet why President Akufo-Addo asked him to resign. Source: energynewsafrica.com