Oil major Chevron Corporation has seen an increase in its quarterly earnings boosted by record production volumes driven by growth in the Permian Basin and at Wheatstone in Australia.
Chevron on Friday reported earnings of $4.3 billion for second quarter 2019, compared with $3.4 billion in the second quarter of 2018.
Included in the current quarter were earnings of $740 million associated with the Anadarko merger termination fees and a non-cash tax benefit of $180 million related to a reduction in the Alberta, Canada corporate income tax rate. Foreign currency effects increased earnings in the 2019 second quarter by $15 million.
Sales and other operating revenues in second quarter 2019 were $36 billion, compared to $40 billion in the year-ago period.
Michael Wirth, Chevron’s chairman of the board and chief executive officer, said: “Second quarter earnings and cash flow benefited from record quarterly production volumes and the receipt of the Anadarko merger termination fee, partially offset by the impact of lower oil and gas prices.
“Net oil-equivalent production was the highest in the company’s history, driven by continued growth in the Permian Basin and at Wheatstone in Australia.”
“We continue to high-grade our portfolio and made progress on our three-year target of $5-10 billion of asset sale proceeds. During the quarter, we executed a sales agreement for our U.K. Central North Sea upstream assets, which we expect to close later this year. We also completed the acquisition of the Pasadena refinery in Texas, which will enable us to supply more of our retail market with Chevron-produced products and process more domestic light crude oil,” he added.
Chevron’s worldwide net oil-equivalent production was 3.08 million barrels per day in second quarter 2019, an increase of 9 percent from 2.83 million barrels per day from a year ago.
U.S. upstream operations earned $896 million in second quarter 2019, compared with $838 million a year earlier. The increase was primarily due to higher crude oil production, partially offset by lower crude oil and natural gas realizations, higher operating and depreciation expenses primarily related to increased Permian activity, and higher tax items.
The company’s average sales price per barrel of crude oil and natural gas liquids was $52 in second quarter 2019, down from $59a year earlier. The average sales price of natural gas was $0.68 per thousand cubic feet in second quarter 2019, down from $1.61in last year’s second quarter.
International upstream operations earned $2.59 billion in second quarter 2019, compared with $2.46 billion a year ago. The increase in earnings was mostly due to higher natural gas sales volumes, tax benefits mostly associated with a reduction in the Alberta, Canada corporate income tax rate, lower operating expenses, and higher gains on asset sales. Partially offsetting these effects were lower crude oil and natural gas realizations. Foreign currency effects had an unfavorable impact on earnings of $195 million between periods.
The average sales price for crude oil and natural gas liquids in second quarter 2019 was $62 per barrel, down from $68 a year earlier. The average sales price of natural gas was $5.43 per thousand cubic feet in the quarter, compared with $5.64 in last year’s second quarter.
Capital and exploratory expenditures in the first six months of 2019 were $10 billion, compared with $9.2 billion in the corresponding 2018 period.
Source:offshoreenergytoday.com
U.S. oil and gas major, ExxonMobil booked a smaller profit in the second quarter of 2019 compared to the prior-year quarter, but the company’s production increased by 7 percent.
The company posted second quarter 2019 earnings of $3.1 billion, compared with $4 billion a year earlier.
Earnings included a favorable identified item of about $500 million, reflecting the impact of a tax rate change in Alberta, Canada.
The company’s revenues dropped to $69.1 billion in 2Q 2019 from $73.5 billion in the same period last year.
Capital and exploration expenditures were $8.1 billion, up 22 percent from the prior year, reflecting key investments in the Permian Basin.
Oil-equivalent production was 3.9 million barrels per day, up 7 percent from the second quarter of 2018.
Liquids production increased 8 percent driven by Permian Basin growth and reduced downtime, with limited impact from entitlement effects and divestments. Natural gas volumes increased 5 percent, excluding entitlement effects and divestments.
ExxonMobil said that average crude prices were stronger than first quarter, while natural gas prices declined with supply length and crude-linked LNG lag effects.
It is also worth noting that the company increased its estimated gross recoverable resource for the Stabroek block in Guyana from 5.5 billion to over 6 billion oil-equivalent barrels. During the quarter, the company made its 13th discovery on the block with the Yellowtail-1 well.
Source. offshoreenergytoday.com/energynewsafrica.com
The Financial Intelligence Centre (FIC) has frozen the bank accounts of Power Distribution Services (PDS) following the detection of anomalies in the bank guarantee it provided prior to the takeover of the assets of the Electricity Company of Ghana (ECG).
According to the Minister of Information, Mr Kojo Oppong Nkrumah, the accounts were frozen prior to the issuance of an official government statement last Tuesday on the suspension of PDS.
He explained that government quickly alerted the FIC after the detection of anomalies in the PDS guarantee, resulting in the freezing of the company’s accounts.
He noted that the accounts would remain frozen until investigations were completed and all issues unraveled.
“It is important for Ghanaians to note that the government is committed to ensuring that all assets of the Electricity Company of Ghana (ECG) are secure,” Mr Nkrumah assured.
The re-transfer of ECG’s assets in the possession of PDS was ongoing, the minister said.
Source: graphic.com.gh/energynewsafrica.com
The Chamber of Independent Power Producers, Bulk Distributors and Consumers (CIPDiB) in the West African country, Ghana, has inaugurated a 15- member governing board to oversee to the well-being of the chamber and the growth of the power sector.
The board will be chaired by Togbe Afede XIV, who is the President of the National House of Chiefs and Director of Sunon Asogli Power (Ghana Limited), operators of the Sunon Asogli Thermal Power Station at Kpone, near Tema.
Other members are renowned economist and former Chairman of the Public Utilities Regulatory Commission (PURC), Mr Kwame Pianim; the Director of Cenpower Generations, Nana Sam Brew- Butler; the Chairman of Sunon Asogli Power Ghana Limited, Mr Qun Yang; a board member of Early Power Limited, Mr Reginald France, the CEO of the Volta Aluminium Company Limited (VALCO), Mr Daniel Acheampong, the Managing Director of B5 Plus Limited, Mr Bhavesh Kumar; the Country Director of Aksa Energy, Mr Murat Captug; the Managing Director of BXC, Mr Kelvin Wu, and the Country Manager of Karpowership, Mr Volkan Buyukbicer.
The rest are the CEO of CENIT Power, Mr Victor Noja; the Managing Director of Enclave Power, Mr Norbert Anku, and a former Commissioner of the PURC, Mr David Kwadzo Ametefe.
Speaking after the inauguration of the board, Togbe Afede called for commitment on the part of members and other stakeholders to address the power challenges in the country.
“As the chairman of this board, I call on all who matter to serve the national interest by working hard and diligently to give the country stable power,” he said.
He said the wealth of knowledge that members of the board possess would be put to good use to support the government’s agenda of providing reliable power for all citizens.
He underscored the need for capacity building and leveraging appropriate technology as key requirements for a robust energy sector.Some industry players who witnessed the inauguration of CIPDiB Board were Mr Ebenezer Baiden, General Manager in charge of Regulatory and Governance Affairs at the ECG and Dr Isaac Adjei Doku, Director of Commercial Services at the Volta River Authority (VRA).
Mr Ebenezer Baiden, on his part, commended the chamber for bringing together key stakeholders in the power sector.He described the setting up of the chamber as timely, especially when there was an urgent need for stronger collaboration to overcome the challenges in the power sector.
On his part, Dr Isaac Adjei Doku said the contribution of IPPs to the power sector was immense and necessary for national development.
“The VRA views IPPs as collaborators, rather than competitors in power generation. We shall continue to work together to address the power challenges,” Mr Doku said.
CEO of CIPDiB, Elikplim ApetorgborSource:www.energynewsafrica.com
The organizers of 2019 PowerAfrica, IEEE Power and Energy Society (PES), have announced sponsorship package for five Young Professionals (YP) PES members, who want to attend the conference slated for August 20-23 in Abuja, Nigeria.
The package, which is from $1500, covers flight, conference registration, accommodation and feeding.
The IEEE PES/IAS Power Africa 2019 is a premier conference providing a forum for research scientists, engineers and practitioners to present and discuss latest research findings, ideas and emerging technologies and applications in the area of power systems integrations, business models, technological advances, policies and regulatory frameworks for the African continent
The theme for Power Africa 2019 Conference is: ‘Power Economics and Energy Innovations in Africa’.
Criteria to apply:
PES member with active membership for 2019
Young Professional (YP)
Must be an African (Nigerian are not eligible)
Plan to attend Power Africa 2019 Conference in Abuja
To apply, kindly complete the form:https://forms.gle/SudQQ2PtXgiRWzf7A
For more information, please kindly email: [email protected]
Application is opened from 3rd August, 2019 to 10th August, 2019.
Recipients of the award will be informed by 12th August, 2019.
Source: www.energynewsafrica.com
A Ghanaian private legal practitioner, Yaw Oppong, has challenged Akufo-Addo led administration to make available to the public, the demand guarantee documents allegedly forged by the Power Distribution Services (PDS) Ghana Limited.
The Electricity Company of Ghana (ECG) on behalf of government of Ghana on March 1, 2019, signed a concession agreement with PDS, which allowed the latter to manage the distribution business of electricity in the southern sector of the West African country.
However, barely five months after the signing of the agreement, the government has decided suspend PDS, alleging some breaches in the concession agreement.
“The decision follows the detection of fundamental and materials breaches of PDS obligations in the provision of Payment Securities (Demand Guarantees) for the transaction, which have been discovered upon further due diligence,” Information Minister Kojo Oppong-Nkrumah said in a statement.
Speaking on an Accra based Citi FM, lawyer Yaw Oppong said publishing the said documents will help the public get a better look and understanding of the concession fiasco.
“It is important that the guarantees that are at the centre of this discussion are made available to all of us so we can examine it and see what are the anomalies and what these act of fraud that are being complained about so that we will know whether these company that claims that whoever executed the guarantee was not authorized,” he said.
The government has said it will take 30 days to complete its full-scale inquiry into the breaches it detected with the contract of PDS.
Source: www.energynewsafrica.com
The West African Gas Pipeline Company Limited (WAPCo), operator of the West African Gas Pipeline (WAGP) has completed commissioning and performance testing of the Takoradi phase of the Takoradi – Tema Interconnection Project (TTIP).
According to the company, during the performance test, natural gas was successfully
transported from the Western Region of Ghana to Tema, in the eastern part of the country.
“WAPCo is now transporting natural gas from the west to the east at the request of customers,” a statement copied to energynewsafrica.com said.
“This is historic and WAPCo and its shareholders are happy to contribute in a positive way to economic development in the sub region in general and within the specific WAGP states by transporting natural gas from sources where there is abundance to other areas which have little or none,” Greg Germani, WAPCo Managing Director commented.
The TTIP is a collaboration between WAPCo, the Ghanaian Energy Ministry, the Ghana National Petroleum Corporation, the Ghana National Gas Company and Eni Ghana.
The project involves the expansion of WAPCo facilities at Takoradi and Tema as well as the tie-in of the West African Gas Pipeline (WAGP) system at Takoradi to the Ghana National Gas Company’s facility/line.
This was achieved by the execution of various commercial agreements by the parties.
Following the successful completion of the Takoradi phase of the project, the WAGP can be used to transport natural gas from the Western Region of Ghana to the Eastern part and at the same time continue to be used to transport gas from Nigeria to Benin, Togo and Ghana.
The WAGP was originally built to transport natural gas from Nigeria to Benin, Togo and Ghana.
However, in recognition of the changing needs and developments in the sub-regional energy market, WAPCo began to undertake a number of actions to fulfil the dream of its initiator; ECOWAS.
That is, to provide a sub-regional infrastructure that will help promote sub-regional integration and development by transporting natural gas to meet the energy needs of the various countries. Achieving reverse flow is one of the latest in a series of actions undertaken by WAPCo to make the WAGP flexible and adaptable to the needs of the sub region.
The Tema phase of the Takoradi – Tema Interconnection project which will lead to
further expansion of the facilities at WAPCo’s Tema Regulating and Metering Station is being worked to meet the increase gas demands needs in the Tema region.
“WAPCo is committed to ensuring a secure infrastructure that is responsive to the
changing energy needs of Ghana, Togo, Benin and Nigeria. As a testimony to this
commitment, WAPCo continues to safely and reliably operate the WAGP network
and manage its assets integrity in line with world class operational excellence
management systems, the statement concluded.
Source: www.energynewsafrica.com
Ghana is considering plans to export gas to its West African neighbour, Ivory Coast.
This international fuel trade is being pursued by the Ghana National Gas Company (Ghana Gas), an indigenous gas company in the West African country.
CEO of Ghana Gas Company Dr Benjamin K. D. Asante said his outfit intended to put in a facility that would allow the bi-directional transfer of gas between the two countries.
This, he said, was not devoid of the fertilizer plant earmarked for the Jomoro area.
He said the company had been working hard with the Ministry of Food and Agriculture (MOFA) to make the dream a reality.
Dr Ben Asante, who was speaking recently at the commissioning of the company’s operational office complex in the Western Region, used the occasion to pay homage to staff of the company.
He said in his 30 years as an expert in the field of gas, he has realized that the men and women of Ghana Gas were both hardworking and knowledgeable.
This is evidenced in the three-year indigenization of the plant by local engineers, which saves the county $15 million monthly.
He said unlike Nigeria and Trinidad and Tobago which have taken decades to indigenization, the men and women of Ghana Gas used three years to achieve the feat, and “This is a phenomenal feat,” he added.
Dr Ben Asante, however, appealed to the President of the republic to help provide clarity and strength on the national assets institutional and regulatory agencies.
“Mr President, we want to know whether it is Ghana Gas or GNPC which is in custody of Ghana Gas. I know the Ministry is working on it, but we need to provide clarity on that,” he said.
The president, in response, said Ghana gas continues to transform the energy sector positively.
The president, who commended the company for the indigenization exercise, said it was a record time, considering the number of years other countries had taken to do same.
Source: www.energynewsafrica.com
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari, has urged members of the Nigerian Guild of Editors (NGE) to join effort to keep the corporation in check for transparency and accountability.
Kyari gave the charge when a delegation of the Guild led by its president, Ms Funke Egbemode, paid him a courtesy call in Abuja on Thursday.
He said that the major focus of his administration was to ensure transparency and accountability in the operations of the corporation.
According to him, ensuring accountability and transparency is not only the work of the corporation.
“As journalists, you help in shaping policies, we are honoured that you have come to visit us and that is why all our management staff are here to welcome you.
“You are all aware of the challenges with the operation of the corporation, but we have promised to be transparent.
“Already NNPC is seen not to be accountable, you have the duty to make us to be accountable.
“You must make sure that we do the work the way it should be, because all of us are stakeholders in the nation’s oil company.
“Hold us accountable by your work and support us in the effort of ensuring accountability and transparency,” he said.
Kyari further charged the Guild to always contact the corporation to get appropriate and correct information for factual reportage.
Commenting of effort to grow the nation’s oil reserve, he called on the Guild to help to ensure the passage of the Petroleum Industry Bill (PIB) which had lingered since 1999.
He added that appropriate legislation was imperatives to achieve accountability and transparency for economic growth and development in the country.
He noted that concerted efforts were being made to ensure that the nation’s refineries were up and running.
“We are also focusing on gas-to-power to help tackle power challenge in the country. We will look beyond our role to make sure that things work.
“Our doors are open and we are ready to work with you to achieve all our targets and goals,” he said.
Earlier, Egbemode congratulated Kyari on his appointment and described it as well deserved one being a thorough professional.
She said that major aim of the visit was to partner the corporation as the biggest enabler of the nation’s economy.
“Being an organisation that has major effect on the economy, we are willing to partner you and be the ones you can call to disclose what you are doing.
“We are ready to work with NNPC to help Nigerians see the corporation in better light; we have our member in Print, Broadcast and online media.
“We believe that when we work together, we will understand each other, this will foster accountability and transparency,” she said.
Source: nan.ng
The Nigerian National Petroleum Corporation (NNPC) has expressed its desire to extend Nigeria’s trade relations with Turkey beyond crude oil.
The Group Managing Director of NNPC, Mallam Mele Kyari, disclosed this during a courtesy call by the Ambassador of the Republic of Turkey to Nigeria, His Excellency Melih Uluren, at the NNPC Towers, in Abuja.
A press release by the corporation’s spokesman, Mr. Ndu Ughamadu, stated that the Turkish national oil company has trade relations with NNPC.
The GMD promised to build on the existing trade relations with Turkish Petroleum, adding: “We are looking forward to greater cooperation between NNPC and Turkish Petroleum such that we find business in other areas like infrastructure development that both countries will be interested in promoting to the benefit of both countries”.
Speaking earlier, the Ambassador of Turkey to Nigeria, His Excellency Melih Uluren, said his country was eager to deepen economic ties with Nigeria.
He congratulated Mele Kyari on his appointment as NNPC GMD, stressing that his choice for the position was well thought-out as his reputation as an astute leader was well known in the diplomatic community.
JSE-listed coal miner Wescoal has entered into a long-term coal supply agreement with Eskom to supply coal for the next 10 years from its Greenfield development project, Moabsvelden.
The contract was secured with Eskom through Wescoal’s wholly-owned subsidiary Neosho Trading 86.
The signature of the coal sales agreement (CSA) marks the conclusion of 16 months of negotiations with Eskom, which commenced early in 2018.
Moabsvelden is located approximately 5km from the current Vanggatfontein mine in Delmas and formed part of the assets acquired from Keaton Energy during 2017.
Development work, that includes box cut mining and associated mining infrastructure, will commence during Q3, 2019 with first coal to Eskom expected in January 2020.
This project is expected to contribute circa. 3 Mtpa of mined coal towards Wescoal’s production capacity and says Wescoal, “presents a new growth opportunity for all our key stakeholders, namely employees, communities and shareholders”.
The signature of the Moabsvelden CSA falls squarely into the scalability pillar wherein Wescoal announced its intention to fast track the development of internal (organic) growth opportunities.
Source: Esi-Africa.com
Ghana’s Information Minister, Kojo Oppong-Nkrumah has revealed that government has commenced a full scale inquiry into the purported breaches in the concession agreement it signed with the Power Distribution Services Ghana Limited, a private entity which was mandated to manage electricity distribution business in the West African country.
According to the minister, investigation into the alleged breaches in the agreement is expected to be completed within 30 days.
He told journalists at a press briefing in Accra, capital of Ghana on Thursday that the team conducting the inquiry comprises insurance investigation experts, officials of the Energy and Finance Ministries and officials of the Electricity Company of Ghana (ECG) as well as Millennium Development Authority (MIDA).
“The inquiry will determine the nature of the breaches and advise on suggested next steps. By Tuesday, the team is expected in DOHA-Qatar as part of the inquiry. All interested parties are cooperating with the inquiry at this stage,” Kojo Oppong-Nkrumah said.
Government of Ghana, through the Information Minister, Kojo Oppong-Nkrumah, last Tuesday, July 30, 2019 announced the suspension of PDS over some breaches in the concession agreement signed with government.
“The decision follows the detection of fundamental and materials breaches of PDS obligations in the provision of Payment Securities (Demand Guarantees) for the transaction, which have been discovered upon further due diligence.
“The Demand Guarantee were key prerequisite for the lease of assets on the 1st March, 2019, to secure the assets that were transferred to the concessionaire,” the statement indicated.
Giving details on government’s next line of action, Mr Oppong Nkrumah said the inquiry will determine the nature of the breaches and advise on suggested next steps.
“By Tuesday, the team is expected in DOHA-Qatar as part of the inquiry. All interested parties are cooperating with the inquiry at this stage. A second team has been tasked to continue engagement with the American government through its agency the Millennium Challenge Corporation,” he said.
UPDATE ON PDS SUSPENSION
Reference to the Press Statement Issued by the Ministry of Information dated 30th July 2019, on the matter of the suspension of the concession agreement between Government of Ghana and PDS, Government hereby updates the Ghanaian Public as follows;
The full scale inquiry into the detected breaches has commenced and is expected to be completed within 30 days. The team conducting the inquiry comprises insurance investigation experts, officials of the Energy and Finance ministries and officials of the ECG and MIDA as well. The inquiry will determine the nature of the breaches and advise on suggested next steps. By Tuesday, the team is expected in DOHA-Qatar as part of the inquiry. All interested parties are cooperating with the inquiry at this stage.
A second team has been tasked to continue engagement with the American government through its agency the Millennium Challenge Corporation. This engagement is about the possible next steps after the inquiry and channels for sharing information as part of this inquiry. That team is expected to also be in the USA possibly next week as part of their engagement.
Final efforts to ensure a smooth transition between ECG and PDS officials are proceeding without incident.
We reiterate that this breach was discovered by the due diligence of the Ghanaian authorities through ECG and with the support of state agencies.
For the avoidance of doubt, the provision of the payment guarantee has always been a condition precedent and was never changed to a condition subsequent as being speculated by some persons.
Initial Due Diligence led by the transaction advisors did not detect anything wrong with it.
The second level checks (this time led by the Ghana side) initially yielded a response from Al-Koot confirming the guarantee.
It was a third level check by the Ghana side that detected anomalies within Al-koot thereby triggering a fourth level check.The fourth level check involved sending an initial team from the Ghana Mission in Qatar to engage with Al-koot officials for further verification. This fourth level further proved the anomalies and suggested untoward action which is now the subject of the full scale inquiry.
Government will update all stakeholders on the outcome of the inquiry and proceed in accordance with law and the terms of the agreement as it works towards a final resolution of this matter.
A report released by Africa Oil Week and Menas Associates about what lies in store for Africa’s oil and gas industry has concluded that, on balance, the continent’s economic performance is promising, particularly as global oil markets finally recover from their 2015-2016 lows.
Africa’s proven oil and gas reserves respectively account for 7.5% and 7.1% of global totals.
Experts predict that 2019 and beyond will see deep offshore exploration and mega gas finds, with the development of trans-continental pipelines, gas-to-power initiatives and refining potential.
The report delves into major trends for 2019, including political transitions and regional integration through the African Continental Free Trade Agreement (ACFTA) which promises to reduce barriers to intra-African trade, facilitate the movement of people and strengthening Africa’s prominence on the world stage.
A rosy picture is painted for natural gas as global consumption rises. Africa’s gas production grew by 8% between 2017 and 2018 – largely out of Egypt.
In terms of opportunities, sub-Saharan Africa’s two largest producers of oil – Nigeria and Angola – are expected to launch bidding rounds this year. Equatorial Guinea, Uganda, Gabon and Congo Brazzaville have ongoing rounds, Ghana launched its first licensing round at the 2018 edition of Africa Oil Week, and Madagascar is hoped to offer a number of blocks this year.
Africa Oil Week will feature two days dedicated to national showcases and bidding rounds at their upcoming event with 16 countries – including Côte d’Ivoire, Equatorial Guinea and Mozambique -presenting their national hydrocarbon sector to Africa Oil Week’s audience.
Read the report to find out more about the state of the oil and gas industry in Africa, including country profiles of the countries showing particular promise in the coming year.
Some industry players who witnessed the inauguration of CIPDiB Board were Mr Ebenezer Baiden, General Manager in charge of Regulatory and Governance Affairs at the ECG and Dr Isaac Adjei Doku, Director of Commercial Services at the Volta River Authority (VRA).
Mr Ebenezer Baiden, on his part, commended the chamber for bringing together key stakeholders in the power sector.
He described the setting up of the chamber as timely, especially when there was an urgent need for stronger collaboration to overcome the challenges in the power sector.
On his part, Dr Isaac Adjei Doku said the contribution of IPPs to the power sector was immense and necessary for national development.
“The VRA views IPPs as collaborators, rather than competitors in power generation. We shall continue to work together to address the power challenges,” Mr Doku said.
