Explosions Rock Iran’s Largest Port As Oil Products Catch Fire
A fire broke out at Iran’s largest container shipping port, setting off explosions as oil products perpetuated the blaze, according to the Islamic Republic News Agency.
The fire broke out in the facility at the port used for storing oil products.
Iran’s Shahid Rajaee port on the Gulf Coast is North of the Strait of Hormuz—a critical chokepoint for oil tankers traveling to a variety of destinations.
INRA reported that the blaze was currently under control per local officials, but that due to the flammable nature of the oil products near the blaze, it is possible that fires will flare up again.
The port is critical for Iran, handling 39 percent of all cargo transit in Iran as of 2017, including oil product shipments.
Iran’s crude oil exports remain in the spotlight as the United States appears steadfast in its resolve to bring the sanction nation’s oil exports to zero. Oil exports from Iran have fallen to 400,000 barrels per day in May due to the sanctions, which is significantly down from April. In April 2018, Iran exported 2.5 million bpd of crude oil—a far cry from today’s 400,000 bpd.
Reports have surfaced, however, suggesting that this 400,000 bpd might be lower in reality, as Iran attempts to circumvent Washington’s sanctions by turning off transponders, making it impossible to track Iran’s shipments and calculate the total exported. Iran has long insisted that the United States will be unable to bring its exports to zero.
Today’s fire could provide some cover for Iran on that point, should oil flows drop further this month.
Signs are emerging that the Trump administration may be willing to sit down to the negotiating table with Iran over the nuclear deal with “no preconditions”, showing that the US may be willing to set aside its previous list of demands.
Source: Oilprice.com
Explosions Rock Iran’s Largest Port As Oil Products Catch Fire
A fire broke out at Iran’s largest container shipping port, setting off explosions as oil products perpetuated the blaze, according to the Islamic Republic News Agency.
The fire broke out in the facility at the port used for storing oil products.
Iran’s Shahid Rajaee port on the Gulf Coast is North of the Strait of Hormuz—a critical chokepoint for oil tankers traveling to a variety of destinations.
INRA reported that the blaze was currently under control per local officials, but that due to the flammable nature of the oil products near the blaze, it is possible that fires will flare up again.
The port is critical for Iran, handling 39 percent of all cargo transit in Iran as of 2017, including oil product shipments.
Iran’s crude oil exports remain in the spotlight as the United States appears steadfast in its resolve to bring the sanction nation’s oil exports to zero. Oil exports from Iran have fallen to 400,000 barrels per day in May due to the sanctions, which is significantly down from April. In April 2018, Iran exported 2.5 million bpd of crude oil—a far cry from today’s 400,000 bpd.
Reports have surfaced, however, suggesting that this 400,000 bpd might be lower in reality, as Iran attempts to circumvent Washington’s sanctions by turning off transponders, making it impossible to track Iran’s shipments and calculate the total exported. Iran has long insisted that the United States will be unable to bring its exports to zero.
Today’s fire could provide some cover for Iran on that point, should oil flows drop further this month.
Signs are emerging that the Trump administration may be willing to sit down to the negotiating table with Iran over the nuclear deal with “no preconditions”, showing that the US may be willing to set aside its previous list of demands.
Source: Oilprice.com
Declare State Of Emergency For Our Power Sector-Nigerians Urges Buhari
Nigeria’s President Muhammadu Buhari has been advised to declare a state of emergency in the West African nation’s power sector.
This call comes from some US-based Nigerians who recently participated in an opinion survey conducted by the News Agency of Nigeria (NAN) in New York.
According to THISDAY, Nigeria currently generates an average of 4,000MW of electricity for a population exceeding 180 million, a situation that constrains growth and development.
Responding to the survey, the President of the Nigerians in Diaspora Organisation (NIDO), New Jersey chapter, Kazeem Bello, underlined that reliable power supply as well as comprehensive human capital are the foundation for economic and national development.
“The government should take the bull by the horn and declare a state of emergency in the power sector,” Bello stated.
He added: “Nigerians are very creative and industrious people; just give them constant and stable power supply, you will see wonders.”
Call for an enabling environment for the private sector
Bello urged Buhari’s administration to intensify its efforts at creating an enabling environment for the private sector to thrive.
He made a call for the government to invest in innovation with the youth at the centre of it all, and then to “make funds available to small-holder private sector players”.
“We have billions of Naira being owed AMCON [the Assets Management Corporation of Nigeria] by rich Nigerians, but they are not paying the money.
“Why don’t you refinance those loans and direct them to millions of Nigerians that will gladly take them to generate economic activities and then pay back,” Bello said.
“Privatization contract was a bad business proposal”
Speaking to THISDAY, former National Chairman of the Institute of Electrical and Electronic Engineers (NIEEE), Emmanuel Akinwole, appealed to President Buhari, to review the power sector privatization agreement to resolve the problems in the sector.
Akinwole was quoted stating that the previous privatization contract was a bad business proposal that could not work. However, he conceded that a review of the contract would make a difference.
“I am a procurement expert to World Bank standard, the regulation says if you realize there is a bad contract, what you need to do is renegotiation,” he said.
He further stated: “If after you entered the contract, you now see the facts you did not see before, you have to rearrange it, so that there is a win-win situation. That is why we are challenging the government, that it has identified the problems in the last four years – the reasonable option now is to call the other parties and review the solution options.”
Osei Prempeh Gets Top Job At GOIL
Lawyer Osei Kwame Prempeh, Acting Managing Director and Group Chief Executive of GOIL Company Limited
A former Deputy Attorney General and Minister of Justice, Kwame Osei-Prempeh has been appointed as the acting Managing Director and Group Chief Executive of GOIL Company Limited.
His appointment took effect from Monday, June 3, 2019 a statement issued by the Public Relations Manager of the company, Robert Kyere, announced.
Mr. Osei-Prempeh has been a Board Member of GOIL since 2017. He takes over from Mr. Patrick Akorli who has taken his leave prior to retirement after 23 years of service to GOIL.
Mr Osei-Prempeh has a wealth of experience in public service and in private practice as a senior legal practitioner.
He attended SDA Secondary School in Agona-Ashanti where he obtained his GCE Ordinary Level Certificate and SDA Secondary School in Bekawi-Ashanti for his Advance Level Certificate.
He proceeded to the Kwame Nkrumah University of Science and Technology (KNUST), Kumasi where he graduated with BA (Hons) degree, A Qualifying Certificate in Law at the University of Ghana and hence to the Ghana School of Law for his BL degree and was called to the Bar in 1990.
Mr Osei-Prempeh holds a Certificate in Legislative Drafting and Master of Arts in Conflict, Peace and Security from the Kofi Annan International Peacekeeping Training Centre.
PRESS RELEASE FOR IMMEDIATE RELEASE
GOIL GETS NEW MANAGING DIRECTOR
The Board of Directors of GOIL Company Limited has appointed Mr. Kwame Osei-Prempeh as the Acting Managing Director and Group Chief Executive of the Company.
His appointment took effect from 3rd June 2019.
Mr. Osei-Prempeh has been a Board Member of GOIL since 2017. He takes over from Mr.
Patrick Akorli who has taken his leave prior to retirement after 23 years of service to GOIL.
Mr Osei-Prempeh has a wealth of experience in public service and in private practice as a senior legal practitioner. He served as Ghana’s Deputy Attorney-General and Minister of Justice from June 2006 to January 2009 and was the Member of Parliament for Nsuta Kwamang Beposo in the Ashanti Region between 1997 and 2013.
Robert Kyere
Public Relations Manager
Norway: Aker BP Hits Dry Well In North Sea
Norway’s Aker BP has completed the drilling of wildcat well 15/6-15 in the North Sea, offshore Norway, without hitting hydrocarbonsWest Africa”
The well was drilled about 15 kilometers north-east of the Gina Krog field and 225 kilometers west of Stavanger. The well is dry, the Norwegian Petroleum Directorate said on Tuesday.
The primary exploration target for well 15/6-15 was to prove petroleum in reservoir rocks from the Middle Jurassic Age (the Hugin and Sleipner formation).
The secondary exploration target was to examine reservoir rocks from the Triassic Age (the Skagerrak formation).
The well, drilled by the Deepsea Stavanger drilling rig, encountered the Sleipner formation with a thickness of about 125 meters, of which 40 meters were reservoir rocks of good to moderate reservoir quality.
The Skagerrak formation was encountered with a thickness of about 140 meters, of which 15 meters were reservoir rocks with poor reservoir quality. The well is characterized as dry.
This is the first exploration well in production license 814, which was awarded in APA 2015.
The well was drilled to a vertical depth of 3761 meters below the sea surface and was terminated in the Skagerrak formation.
Water depth at the site is 109 meters. The well will now be permanently plugged and abandoned.
The Deepsea Stavanger rig will now proceed to production license 777 in the central part of the North Sea to continue drilling wildcat well 15/6-16 S, where Aker BP is the operator.
Source: offshoreenergytoday.com
Karl Johnny Hersvik, CEO of Aker BP
The secondary exploration target was to examine reservoir rocks from the Triassic Age (the Skagerrak formation).
The well, drilled by the Deepsea Stavanger drilling rig, encountered the Sleipner formation with a thickness of about 125 meters, of which 40 meters were reservoir rocks of good to moderate reservoir quality.
The Skagerrak formation was encountered with a thickness of about 140 meters, of which 15 meters were reservoir rocks with poor reservoir quality. The well is characterized as dry.
This is the first exploration well in production license 814, which was awarded in APA 2015.
The well was drilled to a vertical depth of 3761 meters below the sea surface and was terminated in the Skagerrak formation.
Water depth at the site is 109 meters. The well will now be permanently plugged and abandoned.
The Deepsea Stavanger rig will now proceed to production license 777 in the central part of the North Sea to continue drilling wildcat well 15/6-16 S, where Aker BP is the operator.
Source: offshoreenergytoday.com Equinor Sets Timeline For Rosebank FID
Norwegian oil firm Equinor has set a new timeline for the Rosebank offshore project in the UK.
The company which recently bought Chevron out of the Rosebank project, said Tuesday that after the award of a three-year extension for the Rosebank licenses by the UK Oil and Gas Authority, a final investment decision for Rosebank is now planned to be taken by May 2022.
An extension for a period of three years has been awarded for Licences P1026, P1191 and P1272.
“Together with our partners, Suncor, and Siccar Point, we are fully focused on bringing this much anticipated UK development to realization,” says Hedda Felin, Equinor’s senior vice president for UK and Ireland offshore
“We believe there is more value to capture in Rosebank including the opportunity to reduce development cost. There are similarities with other recent projects in Equinor’s portfolio, such as Johan Castberg and Bay du Nord, where we have made significant improvements to the concept approach, particularly in how we design and plan new developments in harsh environments, but also through the application of digitalization.
“We see that improvements in the concept and planning phase will also support an efficient execution of the project,” Felin continues.
The Rosebank field was discovered in 2004 and lies about 130 km northwest of the Shetland Islands in water depths of approximately 1,110m. Other partners in the field are Suncor Energy (40%) and Siccar Point Energy (20%).
The potentially recoverable volumes at Rosebank are expected to be more than 300 million barrels.
Before Equinor bought Chevron’s stake and took over the operatorship of the field, Chevron planned to develop Rosebank as a subsea development tied back to a floating production, storage and offloading (FPSO) vessel, with natural gas exported via pipeline.
Equinor holds a 40% operated interest in the Rosebank project. The other partners are Suncor Energy (40%) and Siccar Point Energy (20%).
Source: offshoreenergytoday.com
GE To Potentially Cut Over 1,000 Jobs In France
General Electric (GE) announced it is considering ways to cut costs and make its operations more efficient due to the shrinking market for power plants in France.
According to Reuters, GE is planning to cut up to 1,044 positions, mainly at its Belfort site, which employs 4,300 people.
It is reported that the company would potentially cut 792 out of 1,900 jobs at the gas power unit, and possibly 252 other support positions.
The remaining reductions also would occur mainly at Belfort, which handles gas, steam, nuclear and hydro technology, the company said.
In response to this development, French Finance Minister Bruno Le Maire said he would fight to save jobs at one of the firm’s factories in eastern France.
“We are ready to fight alongside you … and local politicians and obviously alongside GE workers to ensure the industrial future of the GE site,” said Le Maire.
Proposed reductions at GE
The company presented its plans to French union officials on Tuesday.
The company maintains that the proposals “are in line with the company’s intention to improve operational and financial performance of its gas activities”.
Reuters reported that French industrial group Alstom was Belfort’s biggest employer until 2014 when it sold its gas turbine manufacturing business to GE, which pledged to create 1,000 jobs to win backing for the deal from the French government.
However, that commitment fell short as the gas turbine power plant market collapsed.
General Electric has created only 25 jobs, and in February agreed to pay $56 million into a reindustrialization fund for falling short of the target.
Le Maire said he wanted the money to be used in Belfort to support projects in aeronautics, dismantling nuclear plants and the hydrogen industry.
Volta, Oti Regions To Experience Two Days of Power Outage
Residents in parts of Volta and Oti Regions would experience two days of power outage between this Thursday June 6 and Friday June 7,2019.
The power outage, which would be from 9:00am to 6:00pm, is to allow Ghana Grid Company (GRIDCo) to work on Kpeve Bulk Supply Point in South Dayi.
Some of the areas to be affected are Tsito, Amedzope, Anfoega, Hohoe, Kpando, Fodome and Likpe, Alavanyo, all in the Volta Region.
Nkonya, Wurawura, Dambai and Kadjebi are some communities in the Oti Region that will be affected by the two-day power outage.
8 Years Of Oil Production In Ghana – Independent Report
Eight years of oil production in Ghana has come to an end and, as usual, the Fair Trade Oil Share (FTOS) – PSA Campaign Team, under the auspices of the Centre for Natural Resources and Environmental Management (CNREM), has the painful task to present to Ghanaians, sovereign owners of the oil resources, our independent report on how Ghanaians are being robbed off their oil wealth in the name of investment.
This is coming at a time when there seems to be some awakening at last to the colossal financial losses to Ghanaians successive governments – not only the ones occurring under the present NPP regime – have caused Ghanaians. These losses far outweigh the sums being borrowed from the Chinese for which our country’s natural resources and forest reserves are being further sacrificed and mortgaged to repay. We maintain that had the NDC and Parliament listened to out pleadings to consolidate the PSA, Ghana would not be in its present dire straits deep in debt and piling on more.
As usual, our report is limited to analyzing the major economic benefits that make up the Government Take. These are the Royalties, Carried and Participation Interests and Corporate Taxes paid by the Foreign Oil Companies (FOCs) under the Royalty Tax/Hybrid System Fiscal Regime Ghana is operating. The results are compared to expected earnings if PSA was adopted in order to bring out the losses.
As a reminder, the legal framework which supported the PSA (Production Sharing Agreement) was on our legal books since the 1980s (PNDCL 64 and 84), but both the NPP and NDC Governments decided to ignore them and signed recent oil agreement contracts contrary to the spirit and intent of these laws by using the Royalty System. They thereby have failed to take advantage of the oil boon to garner the resources to avert the economic crisis and deprivations Ghanaians are currently facing, not to mention the current wrangling and accusations of shenanigans between the NPP and NDC.
NOTE: Taxes paid, according to our calculations from oil lifted, display a huge shortfall which is currently a whistleblower case and subsequent litigation, details of which are available.
Explanation of tables of our findings
At the end of the 2018 production year, 311,134,513 barrels of Oil worth US$23,844,352,884 were produced, excluding Gas of which production figures are difficult to come by.
The Royalty Tax/Hybrid System earned Ghana 53,444,527 barrels of oil worth US$4,106,510,085 from the total production of oil. With Corporate Taxes of US$621,488,944 added to the US$4,106,510,085, Ghana earned US$4,727,999,029, representing 19.83% of total production revenue at cost.
Ghana is expected to pay Tullow the lead operator almost US$2 billion by the end of 2025 under the Royalty Tax/Hybrid System (Ref. World Bank Report. Energizing Economic Growth in Ghana. June 2013. Page 54)
The FOCs had 257,689,986 barrels worth Gross Revenue of US$19,737,842,799. With the deduction of paid Corporate Taxes of US$621,488,944, the FOCs earned a gross revenue net of taxes in the sum of US$19,116,353,855, representing 80.17% of total production revenue from crude oil alone.
If Ghana had adopted PSA which PNDC Law 84 supports and taken the Least-Minimum Government Take of 42% of total production revenue set by the US Government Accountability Office (GAO) which should accrue to a host country for allowing its oil and gas resources to be exploited, Ghana would have earned US$10,014,628,211.
At the upper limit of 60% also set by GAO, Ghana would have earned a total of US$14,306,611,730 as at the end of 2018 without paying a cent or a pesewa on capital development cost and daily operating expenses as is presently happening.
Bizarrely, GNPC officials are on record for telling Ghanaians that Ghana is not contributing to the oil production, hence the low shares and revenues Ghana is deriving. All this, of course, are blatant misinformation to cover up the huge financial losses their dismal stewardship is causing Ghanaians.
Fellow Ghanaians, the verdict is yours to make as to which of the two fiscal regimes could have made Ghanaians, sovereign owners of the oil and gas resources, derive the most potential benefits. Is it not clear as daylight that it is the Production Sharing Agreement rather than the Royalty Tax/Hybrid System which you have been made to believe over the years is the best for you, while they get their 2-5% “local partners” shares with companies formed in tax havens overseas?
Source: Solomon Kwawukume
NOTE: Taxes paid, according to our calculations from oil lifted, display a huge shortfall which is currently a whistleblower case and subsequent litigation, details of which are available.
Explanation of tables of our findings
At the end of the 2018 production year, 311,134,513 barrels of Oil worth US$23,844,352,884 were produced, excluding Gas of which production figures are difficult to come by.
The Royalty Tax/Hybrid System earned Ghana 53,444,527 barrels of oil worth US$4,106,510,085 from the total production of oil. With Corporate Taxes of US$621,488,944 added to the US$4,106,510,085, Ghana earned US$4,727,999,029, representing 19.83% of total production revenue at cost.
Ghana is expected to pay Tullow the lead operator almost US$2 billion by the end of 2025 under the Royalty Tax/Hybrid System (Ref. World Bank Report. Energizing Economic Growth in Ghana. June 2013. Page 54)
The FOCs had 257,689,986 barrels worth Gross Revenue of US$19,737,842,799. With the deduction of paid Corporate Taxes of US$621,488,944, the FOCs earned a gross revenue net of taxes in the sum of US$19,116,353,855, representing 80.17% of total production revenue from crude oil alone.
If Ghana had adopted PSA which PNDC Law 84 supports and taken the Least-Minimum Government Take of 42% of total production revenue set by the US Government Accountability Office (GAO) which should accrue to a host country for allowing its oil and gas resources to be exploited, Ghana would have earned US$10,014,628,211.
At the upper limit of 60% also set by GAO, Ghana would have earned a total of US$14,306,611,730 as at the end of 2018 without paying a cent or a pesewa on capital development cost and daily operating expenses as is presently happening.
Bizarrely, GNPC officials are on record for telling Ghanaians that Ghana is not contributing to the oil production, hence the low shares and revenues Ghana is deriving. All this, of course, are blatant misinformation to cover up the huge financial losses their dismal stewardship is causing Ghanaians.
Fellow Ghanaians, the verdict is yours to make as to which of the two fiscal regimes could have made Ghanaians, sovereign owners of the oil and gas resources, derive the most potential benefits. Is it not clear as daylight that it is the Production Sharing Agreement rather than the Royalty Tax/Hybrid System which you have been made to believe over the years is the best for you, while they get their 2-5% “local partners” shares with companies formed in tax havens overseas?
Source: Solomon Kwawukume Ghana: Aker Energy Invests $300 Million In Deepwater Tano Cape Three Point Block
Jan Arve Haugan, CEO of Aker Energy
Aker Energy has revealed that it has invested $300 million in the development of Deep Water Tano Cape Three Point oil block and its related activities in the Western Region of Ghana, in West Africa.
Chief Executive Officer of Aker Energy Jan Arve Haugan disclosed that his company had done a lot of work since it took over the block from its original owner, Hess Petroleum.
“We have done about 50% of work on the block, and have so far invested $300 million in Ghana,” the Norwegian oil and gas company CEO explained.
Recently, Aker Energy submitted its Plan Of Development (POD) for the DWT/CTP block to the Ministry of Energy for assessment of the work done so far.
The plan is subject to approval from relevant Ghanaian authorities, upon which Aker would initiate a process to make a final investment decision (FID).
First oil from the Pecan field is estimated at 35 months after the FID is made.
Speaking at a two-day Sustainable Ocean Industries Conference in Ghana’s capital, Accra, Jan Arve Haugan said Aker Energy was committed to the development of the block, saying, “We will bring to our 50 years’ experience in Norway to bear to make life easy for Ghanaians.”
Aker has been a pivotal part of the industrial development of the oil and gas sector in Norway over the last 50 years, with about 85 percent of all fields on the Norwegian Continental Shelf being developed in part by the Aker Group.
“We will continue to apply and share learnings from Aker BP and Aker Group to optimize the way we operate and contribute to developing the industry further, and build on the strong work that has already been done by other operators in Ghana,” Jan Arve Haugan said.
The Aker Energy CEO touted the competence of the company and said additionally that it knows how to build the industry not only on extracting oil but also delivering on the indices.
He assured Ghana that Aker Energy has no other ambition than developing the Deepwater Tano/Cape Three Point.
“We have no other ambitions. Aker BP focuses on North Sea and Aker Energy focuses on Ghana. Based on that, we are extremely sure that we will deliver on all our commitments,” he concluded.
First oil from the Pecan field is estimated at 35 months after the FID is made.
Speaking at a two-day Sustainable Ocean Industries Conference in Ghana’s capital, Accra, Jan Arve Haugan said Aker Energy was committed to the development of the block, saying, “We will bring to our 50 years’ experience in Norway to bear to make life easy for Ghanaians.”
Aker has been a pivotal part of the industrial development of the oil and gas sector in Norway over the last 50 years, with about 85 percent of all fields on the Norwegian Continental Shelf being developed in part by the Aker Group.
“We will continue to apply and share learnings from Aker BP and Aker Group to optimize the way we operate and contribute to developing the industry further, and build on the strong work that has already been done by other operators in Ghana,” Jan Arve Haugan said.
The Aker Energy CEO touted the competence of the company and said additionally that it knows how to build the industry not only on extracting oil but also delivering on the indices.
He assured Ghana that Aker Energy has no other ambition than developing the Deepwater Tano/Cape Three Point.
“We have no other ambitions. Aker BP focuses on North Sea and Aker Energy focuses on Ghana. Based on that, we are extremely sure that we will deliver on all our commitments,” he concluded. BP Sells Gulf Of Suez Oil Blocks In Egypt To Dragon Oil
BP’s CEO Bob Dudley
Oil major British Petroleum (BP) has agreed to sell its Gulf of Suez oil concessions in Egypt to Dragon Oil, the Dubai-based oil and gas company for an undisclosed sum.
BP said that under the terms of the agreement, Dragon Oil will purchase producing and exploration concessions, including BP’s interest in the Gulf of Suez Petroleum Company (GUPCO). Dragon Oil is a wholly-owned subsidiary of the Emirates National Oil Company (ENOC).
“The deal, which is subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval, is expected to complete during the second half of 2019 and is part of BP’s plan to divest more than $10 billion of assets globally over the next two years. Financial details are not being disclosed,” BP said.
Bob Dudley, BP Chief Executive, said: “Egypt is a core growth and investment region for BP. In the past four years we have invested around $12 billion in Egypt – more than anywhere else in our portfolio –– and we plan another $3 billion investment over the next two years. We look forward to continuing to broaden our business here, working closely with the government of Egypt as we develop the country’s abundant resources.”
Hesham Mekawi, regional president, BP North Africa, added: “We continue to bring on new developments and deliver important gas supplies for the country. We remain on track to triple our 2016 net production from Egypt by 2020. As we grow our business here, we also keep our portfolio under review. We believe Dragon Oil is well-placed to operate these mature assets, delivering further value for Egypt.”
Source: offshoreenergytoday.com
GNPC Undertakes 2D Seismic Survey On Voltaian Basin-Amewu
Ghana’s Minister for Energy and Petroleum, John Peter Amewu has disclosed that the country’s national oil company Ghana National Petroleum Corporation (GNPC) has undertaken 2D seismic survey across the least explored basin, Voltaian Basin.
According to him, government would continue in its effort to promote reconnaissance surveys in areas with inadequate data as a strategy to de-risk those areas and close the data gaps.
“De-risking sedimentary basins is one of important way of peaking investor interest in a country’s upstream industry,” the Minister stressed.
Speaking on the topic: “Policies and Strategies to Optimize the Benefits of Ghana’s Petroleum Resources” at a two day conference on sustainable ocean organized by the Norwegian Embassy in Accra, Mr Amewu said his ministry is in the process of finalizing a National Energy Policy for onward submission to cabinet for approval.
The document, the minister said, contains policy directions and strategies aimed at optimizing the benefits of Ghana’s petroleum resources.
Mr Amewu explained that the country has seen immense activities with its resultant challenges, especially in the upstream petroleum space since the existing National Energy policy was approved in 2010.
He, thus, stressed the need for a new review of the existing policy to address the current challenges.
Touching on the ongoing Licensing Bid Round, Mr Amewu said “even though we had an impressive Expression of Interest (EoI) and pre-qualification process, the submission of bids was less than desired, which is a clear indication of challenges confronting the upstream industry.”
He said to avoid such occurrences in future the Ministry is having a second look at our existing legal, regulatory and fiscal regimes.
In this regard, Mr Amewu said his ministry on 24th May held a workshop with key Civil Society Organizations (CSOs), International Oil Companies (IOCs) and relevant stakeholders to deliberate on how to move the industry forward.
“We received a lot of inputs especially from the IOCs and CSOs which will improve on the way we do business and ultimately, maximize our benefits from the industry,” he said.
The Minister emphasized on the need for collaboration and cooperation between all the relevant stakeholders including industry, CSOs, the media and Ministries, Department and Agencies to ensure the maximization of benefits from Ghana’s petroleum resources.
Upstream Success in West Africa”
Speaking on the topic: “Policies and Strategies to Optimize the Benefits of Ghana’s Petroleum Resources” at a two day conference on sustainable ocean organized by the Norwegian Embassy in Accra, Mr Amewu said his ministry is in the process of finalizing a National Energy Policy for onward submission to cabinet for approval.
The document, the minister said, contains policy directions and strategies aimed at optimizing the benefits of Ghana’s petroleum resources.
Mr Amewu explained that the country has seen immense activities with its resultant challenges, especially in the upstream petroleum space since the existing National Energy policy was approved in 2010.
He, thus, stressed the need for a new review of the existing policy to address the current challenges.
Touching on the ongoing Licensing Bid Round, Mr Amewu said “even though we had an impressive Expression of Interest (EoI) and pre-qualification process, the submission of bids was less than desired, which is a clear indication of challenges confronting the upstream industry.”
He said to avoid such occurrences in future the Ministry is having a second look at our existing legal, regulatory and fiscal regimes.
In this regard, Mr Amewu said his ministry on 24th May held a workshop with key Civil Society Organizations (CSOs), International Oil Companies (IOCs) and relevant stakeholders to deliberate on how to move the industry forward.
“We received a lot of inputs especially from the IOCs and CSOs which will improve on the way we do business and ultimately, maximize our benefits from the industry,” he said.
The Minister emphasized on the need for collaboration and cooperation between all the relevant stakeholders including industry, CSOs, the media and Ministries, Department and Agencies to ensure the maximization of benefits from Ghana’s petroleum resources.
Upstream Success in West Africa” West Africa’s Premier Upstream Oil And Gas Event
The 5th Annual West Africa’s Premier Upstream Oil and Gas Event is taking place in Dakar, Senegal, from 18th-20th June 2019.
The conference is under the theme:“Promoting cross border collaboration for future Upstream succession West Africa.”
Why Upstream West Africa?
The Upstream E&P spotlight is once again firmly placed on the prolific region of West Africa. With recovering oil prices and the huge growth in the global gas market, from licensing rounds to deepwater drilling through to FLNG developments & oil production, West Africa is set for a busy 2019 and beyond.
Super Major BP and their partners will move towards the FID (Final Investment Decision) on the Mauritania & Senegal cross border giant offshore Tortue/Ahmeyim gas project. Cairn Energy & Woodside Energy have submitted the development plans to the Senegalese Government for the world class SNE Field which aims to bring the first FPSO into Senegal. FAR ltd & PETRONAS are currently drilling the SAMO prospect which can really open the MSGBC basin beyond the confirmed discoveries in Mauritania/Senegal into The Gambia.
The Sierra Leone Petroleum Directorate will launch the fourth bid licensing round of deep and ultra-deep blocks covering 31,653 square kilometres and is hoping to replicate the fortunes of the MSGBC basin. Liberia is also hoping to reignite interest from the international oil community with further licensing rounds which will spark another period of deepwater offshore exploration.
Cote d’Ivoire is aiming to double Oil & Gas output to 200,000 BOE per day by 2020. With 4 producing blocks current output is 50,000BPD Oil and 240 MCF Gas mostly through Foxtrot International and CNR.
A revision of the country’s block map covering 87,000 sq km of sedimentary basin, mostly offshore took place in 2017 and direct negotiations have seen a strong uptake from IOC’s. Tullow acquired 4 new blocks alone and are expecting good results to complement its operations in Ghana.
Ghana has launched its first ever competitive bid round with three blocks in its offshore Central Basin. Initial indications from sources in the Ministry of Energy suggest that BP, Total, ExxonMobil, Chevron, Rosneft, Sinopec and CNOCC are all interested in bidding. Tullow is aiming to increase production to 180,000 BPD by the end of the year and has also committed to drilling 8 new wells in 2019.
Nigeria is currently Africa’s No.1 Oil producer and 6th largest global producer at 2.5 million BPD. Nigeria is looking to increase its oil output by over 180,000BPD next year and gas output to 3.4 billion cubic feet per day by 2020. Pretty much all of the Super Majors are present in Nigeria with Royal Dutch Shell looking to approve the Bonga South West project which will add 150,000BPD alone once completed. Indigenous Nigerian Operators such as First E&P, Seplat & Oando all have significant interest in marginal fields in Nigeria and are looking to grow their share of the market.
The Upstream West Africa Summit is the only Oil & Gas event in West Africa that brings all of the industry leaders together from the region annually. For 3 days the selected delegates gather together to knowledge share & discuss best practices through thought leadership, take 1-2-1 meetings and network. Now in its 5th year, the Upstream West Africa Summit has gone from strength to strength and promises to be the best yet. If you are looking to meet with C-level Oil & Gas executives in West Africa, then this is the must attend event for you.
Norwegian Oil Fields In Shutdown Threat As Strike Over Pay Looms
A possible strike over pay could see Norway lose roughly 440 000 barrels of oil equivalent a day in production.
The Norwegian Oil and Gas Association and the Norwegian Organisation of Managers and Executives (Lederne) began mediation at 10.00 Monday over pay and conditions.
The mediation follows a recent decision by Lederne to break off negotiations with the with Norwegian Oil and Gas, employer’s association for oil and supplier companies, over the offshore agreement on pay and conditions.
“Lederne thereby rejected an offer within the framework for the lead sectors set by the Confederation of Norwegian Enterprise (NHO), the Confederation of Vocational Unions (YS) and the Norwegian Confederation of Trade Unions (LO) earlier this year,” the Norwegian Oil and Gas Association said,Jan Hodneland, lead negotiator for Norwegian Oil and Gas: “It’s crucial that we avoid excessive pay growth in the time to come. Increased costs will make jobs more uncertain instead of secure and long-term. So it’s important that this and future settlements are brought in within a responsible framework.”
Lederne has about 1000 members of the 7500 unionized workers covered by the offshore agreements.
According to the Norwegian Oil and Gas Association, Lederne has issued an official notice that 198 personnel will down tools on the following installations:
Gjøa (Neptune Energy): 75 members
Ekofisk 2/4 K and 2/4 B (ConocoPhillips): 28 members
Kristin (Equinor): 24 members
Draugen (Okea): 23 members
Ivar Aasen (Aker BP): 17 members
Oseberg East (Equinor): 16 members
Gudrun (Equinor): 15 members.
According to the Norwegian Oil and Gas Association, a possible conflict would mean that Gjøa, Kristin, Draugen, Ivar Aasen, Oseberg East, and Gudrun would have to shut down.
As a consequence, the output would also cease from associated fields such as Tyrihans, Maria and Vega. This would mean a daily production loss of roughly 440 000 barrels of oil equivalent.
“Production from a number of Norwegian fields would be affected by a possible conflict, which is serious,” notes Hodneland. ”We, therefore, hope agreement can be reached with Lederne through mediation.”
Production from fields in the Ekofisk area has been shut down from Monday, June 3, in connection with planned maintenance, and will therefore not be affected by a possible conflict in the short term, the oil and gas body said. A possible strike may not be initiated until 24.00 on 3 June 2019 at the earliest, it added.
Source: Offhoreenergytoday.com