Ghana: CPC To Cut Electricity Cost By 63% As It Cuts Sod For Construction Of $14.0M Biomass Plant
As global efforts to increase investments in renewable energy and alternative sources of energy in the energy mix is seeing significant growth with some industries divesting their source of power, Ghana’s Cocoa Processing Company (CPC) is latest to join the hosts of companies making investments in renewable energy.
CPC, which is located in the West African nation’s industrial city of Tema, will, on Friday, cut the sod for the construction of a power system consisting of biomass gasification and a Combined Heat and Power (CHP) generation package that uses locally available shells and pod husks as biomass fuel feedstock for optimum efficiency, under a Captive Model.
The move is part of CPC’s effort to control its high cost of energy.
The project is being supported by three major foreign development partners namely GP GREEN ENERGY – INDIA, HORUS ENERGIA POLAND & CAPTIVE ENERGY CO including a bank; State Bank of Poland (BGK).
Two local banks namely, Agricultural Development Bank (ADB), Standard Chartered Bank (STANDCHART), Ghana, and the Energy Commission.
The three foreign partners would finance the biomass development; ADB is the LOCAL BANK providing a CONFIRMED IRREVOCABLE PURCHASE ORDER (CIPO) for six months for CPC whilst Standchart Ghana is providing the relative standby Letter of Credit to pay for the Plant and Machinery and the Energy Commission ensuring the processes for procurement of expertise and selection of an Energy Consultant for project implementation.
The project is a US$14.0 million Build Operate and Transfer (BOT) arrangement payable over six years after which at the end of the BOT arrangement, CPC will drive its energy cost down by a whopping 63 percent cost reduction.
Meanwhile, in line with government’s industrialisation policy aimed at boosting the ‘Ghana-Beyond-Aid’ agenda, CPC has, since 2017, redoubled its efforts at increasing its product range and improving packaging to enable the company take advantage of growing global emerging markets for its products.
Accordingly, in December 2018, CPC launched three sets of new ‘GoldenTree’ products.
CPC Ltd, once again, is ready to launch 19 new and improved GoldenTree Cocoa/Chocolate products tomorrow, December 13.
Source:www.energynewsafrica.com
Address Tullow’s Challenges To Save Ghanaian Jobs – Alex Mould To Gov’t
The former Chief Executive of Ghana National Petroleum Corporation (GNPC), Alex Mould is calling on government to as a matter of urgency engage TULLOW and its partners in order to protect the jobs of Ghanaians in the upstream petroleum sector.
According to him, government inability to lift gas from Jubilee field as a result of delays in completing the reverse flow of the WAPCo pipeline from Aboadzi to Tema, topside challenges on FPSO Kwame Nkrumah, reservoir issues at Tweneboa, Enyenra, Ntomme (TEN) were to be blamed for TULLOWS inability to meet its production targets.
In his latest epistle, the Oil and Gas expert suggested TULLOW needed to transform from an exploration to a mature producing company; “this will mean major restructuring and massive layoffs.
“Let’s hope Ghana government will stand firm to ensure that the right ‘fat’ is cut – mainly expensive unnecessary head office staff and expatriates, NOT the highly qualified lower paid Ghanaians.”
Mr. Mould urged TULLOW to eliminate those unnecessary highly paid cushy jobs at their CHISWICK Head Office, “whose time writing charges are suspected to be inflating the cost of oil production of their Ghana operations.”
Read Full Statement
TULLOW OIL CRISIS: ALL IS NOT GLOOMY FOR GHANA – ALEX MOULD
This week, TULLOW Oil (aka TULLOW) shocked the oil world when both its CEO and Exploration Director, who were also board executives, “resigned” with immediate effect. Tullow also suspended dividend payments.
TULLOW, once a £14bn company saw its Net Asset Value (NAV) drop to a little over £560m.
When TULLOW Oil Plc issued its initial public offering (IPO) less than 10 years ago, the value of its shares went north of $20. Last Monday it fell below $1.00, but has since bounced back up to $1.50.
Investment Analysts say that a culture change and debt refinancing in 2022 will be required to support the equity value going forward.
The 75% drop in its price by 1pm on Monday was attributed to the following reasons:
⁃ A reduction in production estimates from 100k to 70-80k bbl/day (Tullow’s share of the total production mainly in Ghana), and then 70k bbl/day from 2021-24;
⁃ A 25-30% downward revision of one of its flagship oil fields in Ghana, TEN;
⁃ Miscommunication on oil quality issues in its highly publicised Guyana discovery;
⁃ Lower than expected investments in Ghana which is required to sustain production at levels needed to ensure the free cash flow promised to investors.
So, what are the real challenges at both Jubilee and TEN fields?
- Jubilee field:
- TEN field:
Maersk Drilling Joins Forces With Halliburton And Petrofac For Seapulse Drilling Program
Offshore drilling contractor Maersk Drilling has signed agreements with Halliburton and Petrofac to collaborate on the exploration program to be delivered under Maersk Drilling’s master alliance agreement with Seapulse.
Maersk Drilling and Seapulse signed the master alliance agreement in December 2018 under which Maersk Drilling is responsible for providing fully integrated drilling services, including the provision of drillings rigs and all related services for a global offshore oil and gas exploration program.
Announcing the new agreements with the oilfield services providers on Wednesday, Maersk Drilling said that Petrofac would deliver well management services, and Halliburton would deliver integrated well services, throughout the program.
The Seapulse portfolio spans shallow water and deepwater wells in several regions. Two wells in the UK North Sea have previously been announced as part of the work scope, which is expected to start drilling in the second half of 2020.
Maersk Drilling COO, Morten Kelstrup, said: “We’re thrilled to join forces with Halliburton and Petrofac for this program which breaks new ground in the industry by using a fully integrated service delivery model aimed at eliminating inefficiencies by aligning incentives and removing complexity across the entire value chain. Halliburton and Petrofac bring strong operational expertise and decades of experience in delivering and integrating oilfield services, which will further contribute to the ability to mitigate the operator cost risk associated with exploration drilling whilst we foster new ways of collaborating across the supply chain.”
Nick Shorten, Managing Director for Petrofac’s Engineering and Production Services West business, said: “Petrofac is delighted to be part of this exciting global supply chain collaboration. The aims of the Maersk Drilling and Seapulse alliance closely align with our own operating principles – we very much look forward to working with all parties to deliver effective and technically robust campaigns.”
“This collaborative model aligns with and leverages Halliburton’s proven integration approach that creates value for our global customers both on- and offshore,” Steve Haden, Senior Vice President of Halliburton Project Management said.
CEO and co-founder of Seapulse, Scott Aitken, added: “We are very pleased to see the well delivery model that we have entered into with Maersk Drilling continue to mature with world-class partners. The Seapulse business model leverages Maersk Drilling’s partnerships’ technological and operational expertise to drill and test a statistically relevant exploration portfolio of a scale normally only associated with major oil companies.”
Subsea 7 Gets Ærfugl Job From Aker BP
Subsea 7 has been awarded a sizeable contract by Aker BP for the Ærfugl Phase 2 gas field development, located approximately 210km west of Sandnessjøen in the Norwegian Sea.
Subsea 7 defines a sizeable contract as being between $50 million and $150 million.
The company said on Thursday that this EPCI contract was a long-distance tie-back involving the application of Subsea 7’s Electrically Heat Traced Flowline (EHTF) technology for a distance of 13.5km from the subsea location to the existing Skarv infrastructure.
Subsea 7 has a long-term subsea alliance agreement with Aker BP. Project management and engineering will start immediately at Subsea 7’s offices in Stavanger, Norway. Fabrication of the EHTF system will take place at Subsea 7’s spoolbase at Vigra, Norway with offshore operations taking place during 2020 and 2021.
Monica Th. Bjørkmann, Vice President Subsea 7 Norway said: “Electrically Heat Traced Flowlines have been developed by Subsea 7, in collaboration with InterPipe, to deliver leading insulation performance and enable cost-effective long-distance tie-backs. We look forward to continuing our alliance with Aker BP for the development of Ærfugl and future projects.”
The Ærfugl is a gas condensate field about 210 kilometers offshore Sandnessjøen in Norway. It is a subsea project, which is being developed in two phases. Both phases are tied into the existing FPSO vessel on the Skarv field, which is located approx. 210 km west of Sandnessjøen.
The Phase 2 of the project was sanctioned last November, three years ahead of the original plan. The goal is to start production from the first Phase 2 well as early as in first half of 2020. This means that production start-up for phase 2 will come before the start-up of Ærfugl phase 1.
Also on Thursday, Aker BP awarded a contract for the subsea production system for the second phase of the Ærfugl development to Aker Solutions. The subsea delivery will include wellheads, vertical subsea trees, satellite structures, control systems, a tie-in module and about 30 kilometers of umbilicals.
Ghana: Striking GRIDCo Workers And Mgt. Meeting Ends Inconclusively
Information available to energynewsafrica.com indicates that a meeting between management of Ghana’s electricity transmission company, GRIDCo, and workers ended inconclusively.
The meeting was for the management of GRIDCo to sit at a table with the striking workers to resolve their concerns for them to return to work.
According to sources, the meeting was adjourned to Thursday, December 12, 2019, because both management and workers failed to reach a consensus.
Workers of the West African nation’s power transmission company have been agitating over the inability of three stakeholders namely ECG, VALCO and NEDco to pay their over GHc1.2 billion indebtedness which they claimed has crippled their operations.
The workers announced a series of industrial action last month and served notice to embark on a sit down strike by December 10, 2019, should ECG, GRIDCo and NEDco fail to settle their debts.
The workers, on Tuesday, declared a sit down strike following the three stakeholders’ failure to meet their demands.
Is There A Looming Crisis In Ghana’s Power Sector?
By: Paa Kwasi Anamua Sakyi
Electricity is widely regarded as a major determinant of economic prosperity of any State. It is the force that propels any economic activity, and indeed the pillar of wealth creation. Onakoya et al. (2013) finds the output of the energy sector (electricity and the petroleum products) usually consolidating the activities of the other sectors which provide essential services to direct the production activities in agriculture, manufacturing, mining, commerce et cetera. Electricity according to Kumi (2017), plays a significant role in undertaking daily activities from cooking, lighting, heating to powering machines in the industrial sector. It is also essential for quality healthcare delivery, education, transport, effective communication, mineral exploration and many more.
Notwithstanding its vital role to the economic segment of the global economy, the power sector is often plagued with crisis which have led to increased poverty rate, slow pace of economic activities, poor health delivery system, environmental degradation, and major development setbacks. Poor funding of the sector, corruption, and shutting down of major power plants due to infrastructural decay and non- performance are to be blamed, according to Emem (2015).
A 2019 research by the African Development Bank (ADB) and Association of Power Utilities of Africa (APUA) in Nigeria concludes that the energy crisis in Nigeria for example, is associated with multiple technical and commercial challenges in its power sector; including high losses, poor maintenance, poor financial viability, supply shortfalls, frequent outages, and unsustainable tariffs below cost recovery levels.
Past Incidents of Power Crisis in Ghana
With the inauguration of Ghana’s Akosombo hydroelectric dam in 1966, hopes were that the power generated from the “Volta Lake” as it came to be called, would perpetually take the country out of darkness; practically availing power to every home and offering stimulus for the modernization of new and existing industries.
However, Ghana was confronted with its first electricity crisis in 1984 as the nation was plunged into darkness as a result of a severe drought of the lake; very much attributable to climate between 1982 and 1984. According to Kumi (2017), the total inflow into the dam between 1982 and 1984 was reported to be less than 15 percent of the expected total, and this triggered power rationing and a reduction of electricity supply to neighboring countries, including Togo and Benin. The country’s failure to add on to the generation capacity in tandem with population growth largely exposed it over-dependence on the hydro power.
Notwithstanding the addition of 160MW to the country’s installed capacity with the commissioning of the Kpong Hydro-electric power station in 1982 (Asante and Clottey, 2007), another power crisis emerged in 1998, largely as a result of low rainfalls and inflows to the Volta Lake; even when the demand for electricity had falling slightly from 5110 GWh in 1991 to 4965 GWh by 1998 (Eshun and Amoako-Tuffour, 2016).
Beyond the first two power crisis, the country had to experience yet another period of inadequate power supply between 2006 and 2007. The third round of power rationing led to the introduction of Thermal Power Plants into Ghana’s generation mix, with the first of these thermal plants being the 550 MW facility (Tapco and Tico) at Aboadze in the Western Region of Ghana (Kumi, 2017).
After 2007, the country was once again visited with darkness between 2012 and 2016. The uniqueness of the 2012 – 2016 power crisis was the longer period the Ghanaian had to endure with rotating Load Shedding timetable, which earned the name “Dumsor”. However, by close of 2016, the country had experience some form of stability in power supply as power plants installed capacity grew from 3,175 megawatts (MW) in 2015 to approximately 3,775 MW by the close of 2016 through the interventions of Karpower Barge (225MW) and AMERI (250MW) et cetera (Energy Commission, 2017).
Low generation capacity to meet the projected demand, poor maintenance schedule for power plants, inadequate supply of natural gas, low stock of liquid fuels, and delay in the completion of Ghana Gas Project — for reason of lack of funds, were identified as key factors that impacted on the reliability of power supply between the period 2012 and 2016 (Energy Commission 2017; Ministry of Finance 2017).
2018/2019 Incident
The country boasted of over 4,310 MW of installed generation capacity as at January 2018, with net dependable capacity exceeding 3,890 MW. Peak demand recorded in 2018 rarely exceeded 2,525 MW. The country also had a significant quantity of natural gas to fuel the power plants which are largely dual-fuel-fired. And the Volta Lake had a decent water level of over 79 meters at January 4th 2019, compared to the prior year level of 76 meters at January 4th 2018 (Energy Commission, 2019).
But in spite of the fact that these situations presents great comfort for a State, Ghana between November 2018 and September 2019, experienced yet another recurring power outages. This situation had developed even though the installed generation capacity was far in excess of the country’s peak demand. The power sector’s poor financial health resulting from mounting legacy debt, poor planning, poor tariff structure, and political interference in decision making, were some of the factors known to have influenced the situation.
Still Waters
Currently the country seem to be enjoying some form of stable power supply, since gas started flowing from the Western power corridor to the Eastern corridor; taking away the huge burden of importing liquid fuels for power generating plants. Plants availability looks quite good with the relocation of the Karpower Plant from the East to the Western corridor, with a decent Volta lake level, and with installed power capacity far exceeding peak power demand. These are comforting enough, as the assurance of power generation in the country is high.
However, the predominant challenge to the provision of reliable electricity supply had been the weak financial position of the power utilities which impact on the ability to produce more power, the ability to transmit and the ability to distribute generated power in an effective and efficient manner.
Availability of funds to ensure system maintenance and expansion remain ever vital. High costs and operational inefficiencies stemming from high payments for installed capacity to power producers; high transmission and distribution losses; poor revenue collections by distributors; and non-payment by Government entities, are still creating additional debts. And to sustain their operations, sector utilities have had to resort to expensive external debt, thus worsening the situation and creating financial distress.
Today the indications are that the country’s power sector debt has soared to unprecedented heights; leaving power generating, transmission and distribution companies in perilous financial position. The sector’s accumulated debt which stood at US$2.3 billion as of March 2017, is reported to have climbed close to US$4 billion. This situation of course is quite worrying, as past experiences have clearly shown that it is the illiquidity in the power sector that has always been a problem in ensuring consistent and reliable power supply in the country.
Writings on the Wall
Since the first quarter of the year 2019, certain developments within the power sector is clearly giving indications that all may not be well with the country’s power sector, and that the country may be sitting on a time bomb.
A report released by the Finance Committee of Ghana’s Parliament in early July 2019, warned that liquidity challenge in the power sector may spur the return of Dumsor if steps are not taken to address it. The report had it that Ghana’s energy sector is currently overburdened with growing indebtedness as it battles with a debt portfolio of over US$4billion. The report revealed that state-owned enterprises (SOEs) in the sector like GRIDCo, Power Distribution Services (ECG/PDS) and the Northern Distribution Company (NEDCo) have for the past two and half years all posted revenue losses. Government’s indebtedness to Karpower was captured as US$150million, ENI US$160million, NEDCo US$162million, IPPs US$1billion, GRIDCO US$171million and Ghana Gas Company US$735billion.
Barely a week after the Legislative Committee report, six (6) IPPs in the country which supply about 1,500 MW of electricity threatened for the first time to shut down their power plants if ECG/PDS failed to settle debts amounting to over US$700 million within eight (8) working days. The IPPs rescinded their decision to shut down their plants in protest, when the ECG made some part-payment to the group. However in late October 2019, the IPPs threatened once more that the country could experience erratic power supply if they are not paid on time, having disclosed that power distributors in Ghana owes them US$1.5 billion.
As if that was not enough, the Senior Staff Association of GRIDCo a power sector stakeholder, threatened government with series of “industrial actions” in late October 2019, if the Finance Ministry does not act immediately to settle the debts owed them by the ECG, VALCO, amongst others. This follows an initial indication to government on May Day this year when the group protested at the march for non-payment of monies owed them by some entities. According to the staff group, the failure by the ECG, VALCO and NEDCo to defray their debts could plunge the country into darkness following the possible withdrawal of service.
In the face of all these developments, one is left to ask if there is a fresh and looming crisis in Ghana’s power sector.
Written by Paa Kwasi Anamua Sakyi, Institute for Energy Security ©2019
The writer has over 22 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media and CNBC Africa.
Contact: [email protected], +233 69 00 95
Ghana: Give Mahama Credit For Indigenous Gas Utilisation-Armah Buah Tells Akufo-Addo
A former Minister for Petroleum in the Republic of Ghana, Emmanuel Armah-Kofi Buah, says the country’s former leader John Dramani Mahama deserves every credit for the indigenous gas utilisation and its associated savings and not President Nana Akufo-Addo.
He argued that ENI project and the 450 megawatts Karpowership in the West African were part of the legacy projects of former President Mahama and the Government of the National Democratic Congress (NDC), which the President Akufo-Addo led Administration must acknowledge.
President Nana Akufo-Addo on December 7, 2019 turned on the valves for the use of natural gas from the ENI-OCTP fields to enable the 450 megawatts Karpowership to use lean gas instead of heavy oil fuel (HFO).
In his speech, the President gave a list of the benefits of gas and how the switch of the Karpowership to natural gas, would save electricity users an amount of US$170.5 million per year and a projected amount of US$1.2 billion over the remaining terms by way of reduced electricity charges to consumers.
Speaking to the press in Ghana’s parliament, Armah-Kofi Buah explained that former President Mahama during his time in office led a historic effort to bring the project on stream and it was part of a comprehensive effort to address Ghana’s energy challenges and address fuel security for the thermal plants.
He said after the successful completion of the Atuabo gas project, the next effort was the ENI’s OCTP project to utilise the associated and non-associated Sankofa gas.
He said the project represented game-changer in the country’s gas-to power ambitions with about 45,000 barrels oil per day (bopd) and 180 mmscf of gas, enough to generate 1,000MW of power daily.
Mr Armah-Kofi Buah said before the NDC left office they initiated processes to interconnect the Ghana Natural Gas Transmission system with the West African Gas Pipeline system part of the broader long term vision to ensure a sustainable and reliable supply of gas.
“This is to allow a reverse flow of gas from the West (Takoradi) to the East to serve power plants in the Tema enclave.”
He said the initiative received cabinet approval before NDC left office, and that was so critical to ensuring that the ENI gas was not stranded.
The Government of the New Patriotic Party, Mr Buah, said failed to prioritise this project.
He said the NDC government commenced the process of relocating the 450MW Karpowership Badge to Takoradi to replace the 230MW ship in Tema to off-take part of the gas.
“Unfortunately, it took this administration three long years of inertia and procrastination resulting in the delay of the relocation of the Karpowership to the Sekondi Naval base.
“This is the reason why the ENI was stranded and resulted in a huge cost to the Ghanaian tax payer,” former Energy Minister said.
Official: Springfield E&P Discovers 1.5 Billion Barrels Of Crude, Gas Offshore Ghana
Springfield Exploration and Production (E&P) Limited, an independent upstream player in the Republic of Ghana and its partners, Ghana National Petroleum Corporation (GNPC) and GNPC EXPLORCO, on Wednesday, officially announced the discovery of 1.5 billion barrels of crude and gas at its Afina-1 well in Block 2, offshore Ghana.
“Springfield has more than doubled its discovered oil in place volume to 1.5 billion barrels and added 0.7tcf of gas. The current undiscovered potential of the Block is estimated at over 3 billion barrels of oil and gas in multiple leads and prospects within various proven reservoir units,” a statement from Springfield E&P said.
Afina-1, which is located at a water depth of 1030 metres, was drilled to a total depth of 4,085 metres and encountered light oil with a gross thickness of 65 metres, with 50 metres light net oil pay in good quality Cenomanian sandstones.
The secondary target in Turonian age sand was drilled at the edge of the structure and encountered 10 metres of hydrocarbon bearing sands consisting of light oil and gas.
Springfield is currently the Operator and Majority Interest Holder (84%) of WCTP Block 2, with GNPC and its exploration company, EXPLORCO, holding the remaining interest.
Commenting on the discovery, Chief Executive Officer of Springfield, Kevin Okyere said: “This is great news for Springfield, Ghana and Africa. We are excited about the discovery as its ties into our vision of becoming a leading African upstream player with a global focus. This, for us, means increased opportunities to impact the lives of our people positively with the resources.”
On his part, Dr K. K. Sarpong, Chief Executive of GNPC, said: “As the national oil company of Ghana, GNPC is proud of this feat, chalked in this all-Ghanaian partnership. This achievement fits into GNPC’s strategic pillars of: ‘replacing and growing reserves’ as well as ‘enhancing sustainability through local content development.”
“This discovery demonstrates once again the high prospectivity of Ghana’s sedimentary basins and the Ghanaian capacity to deliver, given the opportunity.”
About Springfield
Springfield Exploration and Production Limited was incorporated in March 2008 to pursue exploration and production opportunities in Ghana and the West African sub-region. The process of acquiring a block began in 2012, but this was finally awarded by the Government of Ghana in March 2016.
The Company is currently the Operator and Majority Interest Holder of West Cape Three Points Block 2, with the Ghana National Petroleum Company and its exploration company, EXPLORCO holding the remaining interest. From 2016 until now, the company has been building capacity for both upstream and downstream operations with a significant mix of experienced international industry practitioners working alongside their Ghanaian counterparts. In April 2017 Springfield, which is a wholly-owned Ghanaian company, contracted the world’s largest seismic vessel, the Ramform Titan owned by Petroleum Geo-Services (PGS) to undertake a 3D broadband seismic data acquisition on its Block.
Springfield is currently the Operator and Majority Interest Holder (84%) of WCTP Block 2, with GNPC and its exploration company, EXPLORCO, holding the remaining interest.
Commenting on the discovery, Chief Executive Officer of Springfield, Kevin Okyere said: “This is great news for Springfield, Ghana and Africa. We are excited about the discovery as its ties into our vision of becoming a leading African upstream player with a global focus. This, for us, means increased opportunities to impact the lives of our people positively with the resources.”
On his part, Dr K. K. Sarpong, Chief Executive of GNPC, said: “As the national oil company of Ghana, GNPC is proud of this feat, chalked in this all-Ghanaian partnership. This achievement fits into GNPC’s strategic pillars of: ‘replacing and growing reserves’ as well as ‘enhancing sustainability through local content development.”
“This discovery demonstrates once again the high prospectivity of Ghana’s sedimentary basins and the Ghanaian capacity to deliver, given the opportunity.”
About Springfield
Springfield Exploration and Production Limited was incorporated in March 2008 to pursue exploration and production opportunities in Ghana and the West African sub-region. The process of acquiring a block began in 2012, but this was finally awarded by the Government of Ghana in March 2016.
The Company is currently the Operator and Majority Interest Holder of West Cape Three Points Block 2, with the Ghana National Petroleum Company and its exploration company, EXPLORCO holding the remaining interest. From 2016 until now, the company has been building capacity for both upstream and downstream operations with a significant mix of experienced international industry practitioners working alongside their Ghanaian counterparts. In April 2017 Springfield, which is a wholly-owned Ghanaian company, contracted the world’s largest seismic vessel, the Ramform Titan owned by Petroleum Geo-Services (PGS) to undertake a 3D broadband seismic data acquisition on its Block. Svein Liknes Appointed Acting CEO Of Aker Energy
Norwegian oil and gas giant, Aker Energy, has appointed Svein Jakob Liknes, Head of Operations, as acting Chief Executive Officer of the company.
This follows the decision by Jan Arve Haugan to resign.
The firm announced this in a statement issued on Tuesday.
Svein Jakob Liknes has extensive experience both from projects and operations and he has worked closely on the Pecan PDO process, making him the right fit to lead Aker Energy,” Øyvind Eriksen, President and Chief Executive Officer at Aker ASA said.
Svein Jakob Liknes has served as Aker Energy’s Head of Operations, overseeing the company’s current Plan of Development and Operations (PDO) process.
Prior to joining Aker Energy, Liknes held the position as SVP Operations & Asset Development in Aker BP.
Liknes has a degree as Master Mariner with a bachelor in Nautical Science from the University of Stavanger and Western Norway University of Applied Sciences.
Mr.Liknes is a Norwegian citizen.
“I want to thank Jan Arve Haugan for his leadership and relentless work in building a complete exploration and field development organisation in Aker Energy. At the same time, we appreciate the opportunity to maintain our strong and long-lasting collaboration with Jan Arve Haugan in his capacity as board member in Kværner as well as in existing and new projects,” Eriksen said.
The Board of Directors of Aker Energy also made changes in both Aker Energy and TRG Energy, the owner of AGM Petroleum in Ghana in which Kjell Inge Røkke is the main shareholder, to strengthen the two companies and better reflect that they will continue to operate as separate entities also in the next phase.
The main task for TRG Energy is to quantify discoveries, including drilling new appraisal wells. Aker Energy will continue as a service provider to TRG Energy.
In addition to the reallocation of board members between TRG Energy and Aker Energy, Ms Rosalind Kainyah has decided to resign from the Board of Aker Energy and will continue to offer her support through her consultancy business.
Kenya: General Electric Employees Mark Volunteer Day With Kajiado Residents
Employees of General Electric in the East African country, Kenya, have volunteered their time to make a difference in the Kipeto Wind Farm community in Kajiado as part of the company’s volunteer day.
The Volunteer Day included a tour around the installation site for the wind turbines, tree planting within the Kipeto Wind Farm community, donation of beds and installation of 20 computers for the Oloyiankalani Girls’ Secondary School’s computer laboratory.
The initiative was part of GE’s Corporate Social Investment (CSI) of GE Kujenga, which aims to empower people by building valuable skills, equip communities with new tools and technology, and elevate ideas that are helping to solve Africa’s challenges. GE partners with communities, businesses and other key stakeholders to create programmes that address some of Africa’s biggest challenges.
“We’re proud to give back to the community and always look forward to makingel a difference.
“Today’s outreach with the Kipeto wind farm community provides an opportunity for our employees to experience first-hand our technology being deployed to bring wind power to thousands of Kenyans while impacting the community’s students,” Brenda Mbathi, CEO for GE East Africa said.
In 2019, GE invested more than US$3.25 million in its CSI initiatives under GE Kujenga. Additionally, GE volunteers spent approximately 800 hours of their time giving back to the communities and impacting 1,800 beneficiaries across nine countries. Previously, GE worked with Kipeto Energy Plc to refurbish and upgrade the Oloyiankalani Dispensary in Iidamat Ward, Kajiado Central Sub-County which serves more than 5,000 residents.
“Kipeto Energy Plc’s 100-megawatt (MW) wind power project is GE’s flagship onshore wind project in Sub-Sahara Africa, and it has been a long journey working with partners to realise the installation of the first turbine. I am proud to see our employees being part of this exciting initiative by giving back to the community because sustainable programs deliver long-term benefits,” Deo Onyango, GE Onshore Wind Director, Sub-Sahara Africa said.
GE Renewable Energy is providing 60 of its highly efficient GE 1.7-103 turbines to the Kipeto project, providing power to the equivalent of approximately 40,000 homes in the region.
The 100MW Kipeto wind power project will provide clean energy to the national grid as a significant contribution to Kenya’s Vision 2030 and Big Four Agenda.
“We’re proud to give back to the community and always look forward to makingel a difference.
“Today’s outreach with the Kipeto wind farm community provides an opportunity for our employees to experience first-hand our technology being deployed to bring wind power to thousands of Kenyans while impacting the community’s students,” Brenda Mbathi, CEO for GE East Africa said.
In 2019, GE invested more than US$3.25 million in its CSI initiatives under GE Kujenga. Additionally, GE volunteers spent approximately 800 hours of their time giving back to the communities and impacting 1,800 beneficiaries across nine countries. Previously, GE worked with Kipeto Energy Plc to refurbish and upgrade the Oloyiankalani Dispensary in Iidamat Ward, Kajiado Central Sub-County which serves more than 5,000 residents.
“Kipeto Energy Plc’s 100-megawatt (MW) wind power project is GE’s flagship onshore wind project in Sub-Sahara Africa, and it has been a long journey working with partners to realise the installation of the first turbine. I am proud to see our employees being part of this exciting initiative by giving back to the community because sustainable programs deliver long-term benefits,” Deo Onyango, GE Onshore Wind Director, Sub-Sahara Africa said.GE Renewable Energy is providing 60 of its highly efficient GE 1.7-103 turbines to the Kipeto project, providing power to the equivalent of approximately 40,000 homes in the region.
The 100MW Kipeto wind power project will provide clean energy to the national grid as a significant contribution to Kenya’s Vision 2030 and Big Four Agenda.
Ghana: GRIDCo Workers Begin Indefinite Strike Wednesday
Workers of Ghana’s power transmission company, GRIDCo, are set to start an indefinite sit-down strike from Wednesday, December 11 over the mounting debts which they say is crippling the company.
The intended action forms part of a series of measures the staff have resolved to adopt in a bid to get the authorities to address their grievances.
In a press statement issued on Tuesday, it said emergencies will not be attended to outside the normal working hours.
The staff will also hoist red flags at all offices of the company and also wear red armed bands.
Background
On November 1, they held a press conference and warned they will be staging a March as part of efforts to get the debts paid by the state.
Addressing a press conference at the International Press Centre in Accra, Chairman of the Senior Staff Association of GRIDCo, Raphael Kornor said staff have reached their wits end and cannot continue to sacrifice any longer.
The staff, he said, have resolved to embark on various actions if the GHc 250 million the President directed the Finance Minister to be paid GRIDCo is not paid.
The other debts they are demanding are the USD $32, 576,974.05 owed them by VALCO as at September 30th, 2019, the GHc 607 million owed by ECG as at 1st March 2019, the GHc 177 million owed them by NEDCo as at September 30th, 2019 and the GHc 94, 204,903.17 which is the PDS debt which the ECG collected during the suspension of PDS.
Actions to Be Embarked on
As a sign to show how serious they are with their demands, the Senior Staff Association of GRIDCo announced, “With immediate effect, we declare the hoisting of red flags at all locations with red arm bands by all staff. This is to show our displeasure,” Mr. Kornor said.
He further noted, “From the Friday, November 22nd, 2019: staff would treat all emergency work as normal work within the normal working hours. From the Friday, November 29th, 2019, staff are going to march to the ECG office and the Ministry of Finance to picket in demand of our money. If by the close of work Wednesday, December 4th, 2019 all our debts are not paid, we would declare a sit-down strike. Following the sit-down strike, we shall impress upon GRIDCo Management to disconnect all customers indebted to us.”
“We are embarking on these actions to restore the backbone of the NITS and to ensure that GRIDCo remains a fully-owned Ghanaian company managed by full-blooded Ghanaians and not to be thrown out there for people to grab,” Mr Kornor further stated.
Background
On November 1, they held a press conference and warned they will be staging a March as part of efforts to get the debts paid by the state.
Addressing a press conference at the International Press Centre in Accra, Chairman of the Senior Staff Association of GRIDCo, Raphael Kornor said staff have reached their wits end and cannot continue to sacrifice any longer.
The staff, he said, have resolved to embark on various actions if the GHc 250 million the President directed the Finance Minister to be paid GRIDCo is not paid.
The other debts they are demanding are the USD $32, 576,974.05 owed them by VALCO as at September 30th, 2019, the GHc 607 million owed by ECG as at 1st March 2019, the GHc 177 million owed them by NEDCo as at September 30th, 2019 and the GHc 94, 204,903.17 which is the PDS debt which the ECG collected during the suspension of PDS.
Actions to Be Embarked on
As a sign to show how serious they are with their demands, the Senior Staff Association of GRIDCo announced, “With immediate effect, we declare the hoisting of red flags at all locations with red arm bands by all staff. This is to show our displeasure,” Mr. Kornor said.
He further noted, “From the Friday, November 22nd, 2019: staff would treat all emergency work as normal work within the normal working hours. From the Friday, November 29th, 2019, staff are going to march to the ECG office and the Ministry of Finance to picket in demand of our money. If by the close of work Wednesday, December 4th, 2019 all our debts are not paid, we would declare a sit-down strike. Following the sit-down strike, we shall impress upon GRIDCo Management to disconnect all customers indebted to us.”
“We are embarking on these actions to restore the backbone of the NITS and to ensure that GRIDCo remains a fully-owned Ghanaian company managed by full-blooded Ghanaians and not to be thrown out there for people to grab,” Mr Kornor further stated.
Ghana: Tullow CEO’s Resignation Will Adversely Affect Investor Confidence – Expert
A technical consultant for the Ghana Oil and Gas for Inclusive Growth (GOGIG), a civil society in the Republic of Ghana, Mr Samuel Bekoe, has said the resignation of the Chief Executive Officer of Tullow Oil PLC’s and its Head of Exploration Unit ‘signifies doubt’ in the ability of the company and will adversely affect investor and shareholder confidence.
According to him, the share price of Tullow Plc which has plummeted by percent 50 percent may also delay revenue generation from production as compared to what the company was forecasting.
“The fact that both the CEO and the Head of the Production have resigned on the same day definitely shows signs of very significant problems in their operations in Ghana. We [Ghana] are one of Tullow’s major operation sites so we should be very concerned about the fact they are struggling to deliver what is expected of them,” he cautioned in an interview with Ghanaweb.com on Tuesday, December 10.
Bekoe advised that the country learns from this, adding that going forward, government does the necessary audit on the technical aspects and abilities of the company that is allowed to take over the production in the country’s oil fields.
Some Petroleum experts have also warned that the company will embark on some potential cost rationalization to reduce the cost base which may end up incurring debts on the country along with some of its exciting contracts likely to be terminated.
On Monday, December 9, the shares of Tullow Oil PLC on the London Stock Exchange plummeted by more than 50 percent as news of the resignation of its Chief Executive Officer, Paul McDade, was announced due to failure to meet its production targets in Ghana.
According to reports, the lead partner of the Jubilee and TEN fields could not meet its production targets due to technical problems at Jubilee as well as a delay in the completion of a well at the TEN fields.
Tullow which is listed on both the Ghana and London Stock Exchange has also faced challenges in recent months to its plans to develop oil fields in Uganda and Guyana.
The company earlier announced a revision to its key production figures stating that oil production is expected to hover around 87,000 barrels of oil per day (bopd) this year, while lowering production in 2020 of between 70,000 and 80,000 (bopd), as it undertook a review of its production performance issues.
South Africa: NERSA To Hold Eskom RCA Public Hearings In Feb 2020
The National Energy Regulator of South Africa (NERSA) has announced the timelines to process Eskom’s Regulatory Clearing Account (RCA) application for the 2018/19 financial year.
Eskom is requesting a total RCA balance of R27, 323 million. NERSA received Eskom’s 2018/19 RCA application on 8 August 2019.
On receipt of the application, it was screened for compliance with both the Fourth Multi-Year Price Determination (MYPD4) Methodology and the Minimum Information Requirements for Tariff Applications (MIRTA) requirements.
On 13 November 2019, Eskom submitted a revised application after several interactions with NERSA. On 19 November 2019, full compliance with the MYPD4 and MIRTA requirements was confirmed, after all outstanding information was submitted by Eskom.
The Energy Regulator will assess Eskom’s application following due regulatory processes. The indicative timelines for the decision-making process is provided in Table 1 below.
In line with NERSA’s commitment to being transparent and broadening public participation in its decision making process, the public hearings will be held as follows:
The RCA is a correction mechanism of the MYPD, where excess or inadequate returns are managed. It consists of the variance between the actuals for the full financial year and what was allowed in the MYPD decision of the Energy Regulator. By design, the RCA is backward-looking and deals with actuals and facts.
Written comments can be forwarded to [email protected], hand-delivered to 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa. The closing date for written comments is 20 January 2020 at 16:00.
Members of the public and stakeholders who wish to attend or present their views at any of the public hearings must submit their request to [email protected] by 15:30 on 27 January 2020.
Eskom’s RCA application is available on the NERSA website at www.nersa.org.za under ‘Consultation > Notices > Electricity’.
In line with NERSA’s commitment to being transparent and broadening public participation in its decision making process, the public hearings will be held as follows:
The RCA is a correction mechanism of the MYPD, where excess or inadequate returns are managed. It consists of the variance between the actuals for the full financial year and what was allowed in the MYPD decision of the Energy Regulator. By design, the RCA is backward-looking and deals with actuals and facts.
Written comments can be forwarded to [email protected], hand-delivered to 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa. The closing date for written comments is 20 January 2020 at 16:00.
Members of the public and stakeholders who wish to attend or present their views at any of the public hearings must submit their request to [email protected] by 15:30 on 27 January 2020.
Eskom’s RCA application is available on the NERSA website at www.nersa.org.za under ‘Consultation > Notices > Electricity’.
Nigeria: First Solar Mini-Grid Commissioned In Rokota Community
The Federal government of Nigeria, through its implementing agency – Rural Electrification Agency (REA), has facilitated the commissioning of a solar hybrid mini-grid power plant in Rokota Community, Edati local government area, Niger State.
The project is the first to be commissioned under the World Bank-supported Nigeria Electrification Project (NEP).
It will provide clean, safe and reliable electricity to an expected three thousand people in the community.
Speaking during the commissioning of the project, the Village Head of Rokota Community, HRH, Alhaji Adamu Mohammed Rokota, expressed appreciation to the federal government of Nigeria and the World Bank and PowerGen for deploying the solar hybrid mini-grid in the community.
“At Rokota, our children can study under the glow of clean electricity. As enterprising people blessed with kaolin, red clay and iron ore resources, we look forward to more commercial activities and small businesses growing Rokota’s economy.”
Managing Director for REA, Damilola Ogunbiyi emphasised the importance of using off-grid electrification technologies to increase electricity access in Nigeria.
She also stated “there are countless investment opportunities in the off-grid market. This is why the REA is collaborating with private sector solar developers. We are also committed to using renewable energy in the reduction of annual greenhouse carbon emissions by 25,000 metric tons. This is in adherence to Nigeria’s commitment to the Paris Agreement on Climate Change.”
World Bank Nigeria Country Director, Shubham Chaudhuri, in his goodwill message, reiterated the World Bank’s commitment to promoting universal access to electricity.
He noted that “the World Bank is committed to reducing the consumption and use of fossil fuels in energy production through renewable energy investments. Through various renewable energy projects across the world, the Bank ensures that there is an increase in universal access to electricity especially in underserved and unserved communities.”
Managing Director of PowerGen Renewable Energy Nigeria Limited, Alastair Smith in his remarks about the implementation of the transformative project stated that “thanks to the Nigeria Electrification Project, under the Performance-Based Grant which we applied for, we have been able to deliver this solar hybrid mini-grid power plant within two months, a record time. I am proud to say that the mini-grid, with a total solar capacity of 64KW and 360KWh of battery storage, was delivered based on international best practice and standards while also using local labour, and provides sufficient power for about 3,000 people”.
Rokota Community is the first beneficiary of renewable off-grid electricity under the Nigeria Electrification Project Mini Grids component. The component aims to provide clean, safe, reliable and affordable electricity to 300,000 homes and 30,000 local businesses in Nigeria.
World Bank Nigeria Country Director, Shubham Chaudhuri, in his goodwill message, reiterated the World Bank’s commitment to promoting universal access to electricity.
He noted that “the World Bank is committed to reducing the consumption and use of fossil fuels in energy production through renewable energy investments. Through various renewable energy projects across the world, the Bank ensures that there is an increase in universal access to electricity especially in underserved and unserved communities.”
Managing Director of PowerGen Renewable Energy Nigeria Limited, Alastair Smith in his remarks about the implementation of the transformative project stated that “thanks to the Nigeria Electrification Project, under the Performance-Based Grant which we applied for, we have been able to deliver this solar hybrid mini-grid power plant within two months, a record time. I am proud to say that the mini-grid, with a total solar capacity of 64KW and 360KWh of battery storage, was delivered based on international best practice and standards while also using local labour, and provides sufficient power for about 3,000 people”.
Rokota Community is the first beneficiary of renewable off-grid electricity under the Nigeria Electrification Project Mini Grids component. The component aims to provide clean, safe, reliable and affordable electricity to 300,000 homes and 30,000 local businesses in Nigeria.