Ghana: LPG Cylinder Recirculation Pilot Begins In Obuasi, Oforikrom In July
Ghana’s downstream petroleum regulator, the National Petroleum Authority (NPA), is piloting its LPG cylinder recirculation model policy which is aimed at addressing safety issues in Obuasi and Oforikrom in July.
This means that LPG consumers in the two towns in the West African country, will no longer carry cylinders to go and refill them. Instead, consumers would go to designated LPG redistribution stations with their empty cylinders to exchange for an already filled cylinder.
The purpose of the cylinder recirculation model is to ensure safe delivery of LPG and curb explosions at gas stations.
Cabinet gave approval on October 12, 2017, for the implementation of cylinder recirculation model policy following explosions at the Mansco Gas Station at Atomic Junction, in Accra.
Speaking at the launch of Health Safety Security and Environment (HSSE) Manual for the Energy Sector, Dr. Amin Adam noted that after the piloting, government would then roll out the policy in other parts of the country.
“I’m happy to inform you that we will start a pilot of this in July in Obuasi and Oforikrom, with a view to scaling up nationwide by the end of year. By this, customers of LPG will no longer have to hold cylinders that they have difficulty in even managing in their homes.
“They have to now use cylinder that is managed by people who are trained to do so. In other words, you have to go to the cylinder exchange point, where there will be filled cylinders to take and go and use. Bring an empty cylinder and take a filled cylinder. So what it means is that, there will no longer be cylinder discharged at the exchange point, nor will you have a cylinder bought by you from the seller who is not able to train you on how to use the cylinder. “This is all aimed at ensuring the safety of our people; safety of our environment; safety of the patrons of our services,” he explained.
Call for safety
Dr Amin Adam who expressed serious concerns about gas explosions which has ended the lives many, especially customers charged petroleum downstream, operators especially fuel stations to ensure safety of the stations and their customers.
He told them to bear in mind that if they fail to with safety protocols and their business gets burnt they stand the chance of losing customers and their investment.
“Those who come to patronize our services must be protected by us. In the marketing parlance, they will say that “your customer is the king.”
“So, if the customer is the king, and the customer is not protected, and the customer is so exposed to danger, and the customer decides to make decides to make appropriate choices, your business is in danger.
“And I tell you, many customers are becoming so aware to avoid services or service providers that do not provide safety measures to protect them. Of all the explosions that we have experienced so far, either from petrol stations or LPG stations, patrons of the services, customers, more customers have died than the workers that are providing the services. More customers have suffered serious injuries than the workers themselves. Because you go and most of the stations have just one or two workers so even if there are explosions, the workers are only two people, but you would have seen tens of people coming for the services. And for the others, even though there are not coming for the services, they may be passing by, and yet all of them are exposed to the danger, just because of the negligence of one business person.
“We should never, under any circumstances, put profiteering over the safety of our customers,” he concluded.
Minor Oil Discovery For Aker BP In North Sea
Norwegian oil and gas company Aker BP has finalized the results after drilling wildcat well 24/9-15 S (Froskelår Nordøst) and appraisal well 24/9-15 A, located in the North Sea offshore Norway.
The drilling resulted in a minor oil discovery.
The wells are located in production license 340 where Aker BP is the operator.
The wells, which are also pilot wells for test production, were drilled diagonally and horizontally, 2 and 3 kilometers northeast and north respectively, from the subsea template on the Bøyla field in the central part of the North Sea, and 225 kilometers west of Stavanger, the Norwegian Petroleum Directorate (NPD) informed on Monday.
The 24/9-12 S (Frosk) oil discovery was proven in reservoir rocks (injectites) in the Eocene (the Intra Hordaland group) in the winter of 2018. Prior to drilling of appraisal well 24/9-15 A, the operator’s resource estimate for the discovery was between 5 and 10 million standard cubic meters (Sm3) of recoverable oil.
The objective of well 24/9-15 S was to prove petroleum and reservoir potential in (injectites) in the Intra Hordaland group. The well encountered a vertical oil column of 49 meters with sandy layers totaling about 10 meters, mainly with very good reservoir properties. The oil/water contact was encountered 1836 meters below the sea surface.
The preliminary size of the discovery is between 0.3 and 1.6 million Sm3 of recoverable oil, and it extends into the neighboring license, 869. The licensees will continue to assess the discovery together with other nearby discoveries, with regard to follow-up and a potential development.
The objective of well 24/9-15 A was to delimit the northern part of the 24/9-12 S (Frosk) oil discovery. The well encountered oil-bearing injectite zones totaling 50 meters with very good to extremely good reservoir properties in the Hordaland group. The oil/water contact was not encountered.
The result of the delineation of the 24/9-12 S (Frosk) oil discovery is presumed to lie within the resource range estimated earlier. The plan is to carry out test production from bilateral wells in the Frosk reservoir starting in the third quarter of 2019 and with an initial duration of six months.
The production will take place via the subsea template on the Bøyla field and will be transported 26 kilometers north to the Alvheim production vessel (FPSO). The primary objective of the test production is to reduce the risk associated with recovering these resources.
The wells were not formation-tested, but data has been collected.
These were the seventh and eighth exploration wells in production license 340, which was awarded in APA 2004.
The well 24/9-15 S was drilled to respective vertical and measured depths of 1900 and 4310 meters below the sea surface.
The well 24/9-15 A was drilled to respective vertical and measured depths of 1810 and 3853 meters below the sea surface. The wells were terminated in the Hordaland group in the Eocene.
Water depth at the site is 119 meters. The wells have been permanently plugged and abandoned.
Wells 24/9-15 S and 24/9-15 A were drilled by the Scarabeo 8 drilling rig, which will now drill a production well on the Marulk field in production license 122 in the Norwegian Sea, where Vår Energi is the operator.
Source: offshoreenergytoday.com
Report: Two Workers Killed Aboard Shell’s Auger Platform In Gulf Of Mexico
Two offshore workers have reportedly been killed in an incident aboard Shell’s Auger platform in the U.S. Gulf of Mexico.
According to Reuters, the incident happened on Sunday morning during a test related to “a lifeboat launch and retrieval capabilities” at the Auger deepwater platform. One other person sustained a non-life-threatening injury.
U.S. Coast Guard has yet to respond to Offshore Energy Today’s request for comment.
As for the Auger platform, in 1994, it was the world’s first tension leg platform, operating in the US Gulf of Mexico, moored to the sea floor 830 meters (2,720 feet) below. The platform’s life was extended when it in 2014 began producing energy from a nearby Cardamom field.
Ghana’s Energy Ministry To Announce Winners Of Oil Blocks In Its Maiden Bid Round July 2
The Ministry of Energy in the Republic of Ghana will on Tuesday, July 2, 2019, announce the winners for the three oil blocks it earmarked for competitive bidding in the maiden licensing bid rounds.
Negotiations and awarding of the oil blocks are expected to follow after the announcement of the winners.
The West African country, early this year, earmarked about five oil blocks for exploration.
Three of the blocks-2, 3 and 4-were to go through competitive bidding process, while two blocks 5 and 6 were supposed to be direct negotiations.
Block 1 was reserved for the Ghana National Petroleum Corporation (GNPC).
The bidding round attracted multinational oil companies such US oil and gas giant ExxonMobil, British Petroleum (BP), China National Offshore Oil Corporation (CNOOC) Qatar Petroleum and Aker Energy.
The rest were Cairn Energy, Global Petroleum Group, First E&P, Sasol, Equinor and Harmony Oil and Gas Corporation, Tullow Ghana Limited, Total, ENI Ghana, Vitol and Kosmos Energy.
Unfortunately, most of the oil majors pulled out at the last minute.
ENI and Vitol, as well as Tullow Ghana Limited, were the only companies that submitted bids for block 3, with First E&P submitting bid for block 2.
Exxon, Shell May Return To Explore For Oil In Somalia
Exxon and Shell could return to Somalia ahead of an oil bid round that the East African country plans to hold later in 2019, Reuters has reported on Friday, citing a statement from Somalia’s oil ministry.
Shell and Exxon, which had a joint venture to explore five blocks offshore Somalia, stopped exploration and development in 1990 under force majeure because of the protracted hostilities in the country.
The two oil supermajors have accrued rentals to the government since then, Shell told Reuters in a statement, while the Somali oil ministry said on Friday that an agreement was signed on June 21 in Amsterdam, settling the issues with the rentals and other obligations on offshore blocks accrued.
Exxon and Shell have agreed to hold talks with Somalia’s government to convert their decades-old contracts in line with the new petroleum law that Somalia passed in May.
Yet, despite these developments, the force majeure remains in place, Shell told Reuters.
Last month, Somalia passed its new Petroleum Law, hoping that it is “at the beginning of a journey that will be key to Somalia’s sustainable development and poverty reduction, as well as the continued development of the stable state and civil institutions,” Somalia’s Minister of Petroleum & Mineral Resources, Abdirashid Mohamed Ahmed, said.
Somalia currently doesn’t produce oil, but hopes that it could hold a lot of oil and gas as “recently completed seismic programs highlighted similar geological structures to those with proven oil & gas reserves in neighboring basins located in Seychelles, Madagascar, Kenya, Tanzania, and Mozambique indicating that Somalia could become one of the most significant oil plays in offshore East Africa,” the oil ministry said in May.
Somalia launched in February a licensing round for 15 blocks, tentatively setting the bid date for November 7, 2019.
The country hopes that seismic surveys and drilling of exploration wells could begin in 2020-2021.
While drafting the details of an oil bid round, Somalia will also have to attend hearings in September 2019 at the International Court of Justice (ICJ) in The Hague over its maritime dispute with Kenya.
In February this year, Kenya broke diplomatic relations with neighbor Somalia after a row over several oil and gas blocks escalated into an open conflict.
Source: Oilprice.com
Kenya Power Investigates Allegations Of fraud In The Postpaid Billing System
Kenya Power is investigating an incident from 2018 where information was received from some customers and members of the public on fraudulent activities targeting unsuspecting customers.
In a statement, the utility noted that it immediately commenced investigations on the alleged fraudulent activities which have since been completed.
According to Kenya Power, they were noted to be cybercrimes involving some of their staff members and members of the public.
Disciplinary action on members of staff found culpable has been initiated and is ongoing.
Owing to the fraudulent activities being criminal in nature, the Directorate of Criminal Investigations (DCI) got involved. The Company fully supports the ongoing investigations by the DCI and are confident that the culprits will be brought to book.
At the same time, the Company is continually working to enhance the customer experience and improve existing controls to forestall such occurrences in future.
In addition, Kenya Power wants to inform its customers and members of the public that all payments for Kenya Power services, including electricity connections and power bills can only be made through its banking halls, appointed banks and other authorized mobile money payment channels such as Airtel Money and MPESA Paybill numbers 888888 for postpaid and 888880 for prepaid services.
Official receipts are issued upon payment. Any other payment outside these channels are deemed fraudulent.
“We urge our customers to remain vigilant to avert cases of fraudsters targeting our operations and to report suspicious transactions to the nearest Kenya Power office or police station.
“The Company continues to make every effort to ensure that our services deliver improved customer experience. We also take this opportunity to appreciate our valued customers, and thank them for their unwavering support over the years,” the utility concluded.
Source:Esi-Africa.com
West Africa Will Begin Cross-Border Sale Of Electricity In 2020
From 2020, West Africa will commence cross-border sale and distribution of electricity among member states of ECOWAS.
This is according to Chairman of Regulatory Council of the ECOWAS Regional Electricity Regulatory Authority (ERERA), Honoré Bogler, who confirmed the development to Premium Times.
Bogler revealed this while he was in Abuja, Nigeria after the swearing in of the three-man regional regulatory council.
The chairman assured that his council would reposition the power sector of the West Africa region.
Bogler noted: “No country in the sub-region has the necessary funding to get electricity to every home in every country. That is why the heads of states and government decided to create a market power pool so that all the potentialities we have in the region, in terms oil, gas, sun, wind – could be harnessed for the benefit of the people.
“The only limitation we face to harness these potentialities has been lacking of funds to get these resources working for the population.”
Supervising the electricity market
Bogler further reiterated the mandate of ERERA, which he said it to provide the link between all the interest groups, supervise the effective functioning of the electricity market, by arbitrating on any dispute arising from the arrangement between the operators.
“The aim is to have a power market in the region, working with commercial rules and regulations that will be sustainable. We think people will have the best price of electricity if we use the regional resources that are cheaper to feed our network. ERERA will monitor and supervise all these to get it running in an organized manner.
“By 2020, the region will be ready for the transmission of power from one country to the other,” he said.
He continued: “Once that is achieved, we will go into the phase of the plan whereby all the countries in the region would have the opportunity of buying electricity from the market through the regional lines.”
Source: Esi-Africa.com
Tullow Oil Posts $500m In Profits For 2019 First Half
Tullow Oil has announced five hundred million dollars in profits for the first half of this year [2019].
The company’s revenue also recorded 900 million dollars.
Tullow is however hopeful that the figure will inch up when production levels increase to expected levels.
Tullow, in its trading statement, said the increase in production in West Africa from 95,000 to 100,000 barrels of oil per day, should push the returns to the company for the remaining six months of the year.
This is expected to be triggered by further wells which are expected to come on stream in Ghana.
For the first six months of this year, Tullow’s Administrative expenditure reached fifty million dollars while the cash flow which measures how well the company generates cash to pay its debt obligations and fund its operating expenses, also recorded 100 million dollars.
In a remark, the CEO of Tullow Paul McDade described the company’s performance as steady progress overall across the business in the first half of the year.
He added that the management expects another year of solid free cash flow generation.
“Tullow has made steady progress overall across the business in the first half of the year. Our balance sheet remains strong and we expect another year of solid free cash flow generation.”
Meanwhile, Tullow’s average floor price to protect it from global oil price fluctuations is pegged at 56.72 dollars per barrel.
Ghana: Interruption In Gas Supply Caused Thursday’s Power Outage-GRIDCo
Ghana’s power transmission company, Ghana Grid Company Limited (GRIDCo), has attributed the cause of Thursday’s power outage, which was experienced in some parts of the West African country, to an interruption in gas supply from Atuabo Gas Processing Plant to the generating plants in the Western Region.
Some parts of the country on Thursday, 27 June 2019 experienced a power outage in the evening for several hours.
The situation compelled persons living in the affected areas to go on social media platforms to express their frustration. It was unclear what might have caused the interruption in power supply.
However, in a statement copied to energynewsafrica.com, GRIDCo explained that the outage occurred “when all the generators in the Aboadze enclave, i.e. TAPCO, TICO and Ameri, suddenly ceased operation due to the loss of gas supply feeding these generating plants.”
“All generators which tripped had been reconnected to the National Interconnected Transmission System (NITS)” by Friday morning and “all bulk supply points have been restored”, the statement added.
It also said: “We regret any inconvenience caused to customers and the general public” and assured the general public that it will continue to “work with all stakeholders to provide adequate and reliable electricity supply to customers.”
Construction Of First-Ever Bitumen Plant Begins In Ghana
A ground breaking ceremony has been performed for the construction of the first-ever bitumen plant in Tema, in the Greater Accra Region, Ghana.
The country’s Energy Minister John-Peter Amewu performed the ground breaking ceremony with the assistance of officials of GOIL Company Limited and its Ivorian partners, SMB.
In a speech delivered by Mr John-Peter Amewu, on behalf of President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo, he assured Ghanaians that the government would deliver major roads that are more robust and could stand the weather conditions of the country.
According to the President, this is in furtherance of government’s massive road construction programme in 2019 and 2020.
The $35 million joint venture between GOIL and Ivoire’s Societe Multinationale de Bitumes (SMB) of La Cote D’Ivoire would be completed in two years and involves the construction of a bitumen plant for storage of raw bitumen. 
The plant woukd be milling raw bitumen and polymers to produce PMB and bitumen emulsions.
President Akufo-Addo noted the increasing demand for bitumen paved roads in Ghana, indicating that the Ministry of Roads and Highways intend to rehabilitate and construct several thousands of kilometres of highways and urban with Polymer Modified Bitumen (PMB), a bold attempt at improving the lifespan of our roads.
“Our promise to provide quality road infrastructure for the people of Ghana is continuous and unrelenting until the people receive good transport infrastructure and service. Due to the success of the PMB, which is proven to give a longer life span to asphalted roads, the Ghana Highways Authority also plans to continue using it for all major highways resurfacing or construction in the country”, he emphasized.
He congratulated GOIL and SMB for the venture, which, he said, was a classic example of the potential cooperation in development worthy of emulation in the ECOWAS sub-region
The Acting Managing Director and Group CEO of GOIL, Mr. Kwame Osei-Prempeh, explained that the partnership with SMB dates as far back as 2003 when GOIL decided to market bitumen.
The objective was to play a major role in the construction of roads through the supply of bitumen which, at the time, was dominated mainly by multinationals.
He acknowledged the yeoman’s role played by his predecessor, Mr. Patrick A.K. Akorli, for the foresight and determination that has brought the dream to fruition.
He equally acknowledged the great work by Nana Yaw Owusu, Otumfuo’s Mpaboahene and representative of SMB, as well as the GOIL team, for the patriotic vision for Ghana.
The Managing Director of SMB, Mr. Mamadou Doumbia of La Cote D’Ivoire, acknowledged that Ghana has been the company’s main and proud customer, supplying the country of about 80% of the bitumen requirement.
He promised that the project would further cement the economic cooperation between Ghana and Cote D’ Ivoire.
Present at the ceremony were the Board Chairman of GOIL, Hon. Kwamena Bartels, Board members and Management of GOIL, Chiefs of the area, officials from Ghana Highways Authority and other business partners of GOIL
The plant woukd be milling raw bitumen and polymers to produce PMB and bitumen emulsions.
President Akufo-Addo noted the increasing demand for bitumen paved roads in Ghana, indicating that the Ministry of Roads and Highways intend to rehabilitate and construct several thousands of kilometres of highways and urban with Polymer Modified Bitumen (PMB), a bold attempt at improving the lifespan of our roads.
“Our promise to provide quality road infrastructure for the people of Ghana is continuous and unrelenting until the people receive good transport infrastructure and service. Due to the success of the PMB, which is proven to give a longer life span to asphalted roads, the Ghana Highways Authority also plans to continue using it for all major highways resurfacing or construction in the country”, he emphasized.
He congratulated GOIL and SMB for the venture, which, he said, was a classic example of the potential cooperation in development worthy of emulation in the ECOWAS sub-region
The Acting Managing Director and Group CEO of GOIL, Mr. Kwame Osei-Prempeh, explained that the partnership with SMB dates as far back as 2003 when GOIL decided to market bitumen.
The objective was to play a major role in the construction of roads through the supply of bitumen which, at the time, was dominated mainly by multinationals.
He acknowledged the yeoman’s role played by his predecessor, Mr. Patrick A.K. Akorli, for the foresight and determination that has brought the dream to fruition.
He equally acknowledged the great work by Nana Yaw Owusu, Otumfuo’s Mpaboahene and representative of SMB, as well as the GOIL team, for the patriotic vision for Ghana.
The Managing Director of SMB, Mr. Mamadou Doumbia of La Cote D’Ivoire, acknowledged that Ghana has been the company’s main and proud customer, supplying the country of about 80% of the bitumen requirement.
He promised that the project would further cement the economic cooperation between Ghana and Cote D’ Ivoire.
Present at the ceremony were the Board Chairman of GOIL, Hon. Kwamena Bartels, Board members and Management of GOIL, Chiefs of the area, officials from Ghana Highways Authority and other business partners of GOIL Ghana: Energy Ministry Develops HSSE Manual For Energy Sector
Ghana’s Ministry of Energy has developed a Health Safety Security and Environment Manual for its energy sector.
The manual, which is expected to guide all the players in the energy sector, in the pursuit of their activities, was developed with support from the Ghana Oil and Gas for Inclusive Growth (GOGIG) Programme.
Speaking at the launch of the manual on Wednesday, 26th June, 2019, Deputy Minister for Energy in charge of Petroleum Dr Mohammed Amin Adam noted that the sustainability of the energy sector resides in a vibrant health, safety security and environmental sector that is continually reviewed to meet changing trends.
“It is, therefore, our collective responsibility to ensure that the change in HSSE culture that we start today remains a part of us always,” he stated.
“I require the regulators to lead the successful implementation of the manual with maximum collaboration of all players in ensuring that the ultimate objectives are achieved,” he said.
He commended the hard work of the Multi-Stakeholder Working Group and all involved in the successful development of the manual.
Dr Amin urged all industry players to prioritise the safety of their staff and promote environmental friendliness along the entire value chain, by complying with international best practices and the country’s standards and regulations.
Copies of the manual were presented to the representatives of both players in the upstream and downstream for their respective companies.
MoU To Deal With Incident
Dr Amin revealed that the Energy Ministry, in collaboration with relevant ministries, had drafted an MoU on Incident Investigation.
The MoU, he explained, would be signed between the ministry and other relevant ministries whose agencies undertake incident investigations in the energy sector.
“The aim of the MoU is to coordinate the incident investigation process and the monitoring of recommendation measures implementation,” he explained.
Dealing With Climate Change
The Ministry, Dr Amin noted, has also developed a Climate Change-Smart Energy Action Plan to ensure compliance of government institutions within the energy sector with International Climate Change protocols.
The implementation of the plan would involve the submission of climate change mitigation activities being undertaken by our sector agencies for publication.
Also in the draft is the Sustainability and Social Inclusion Policy for the Energy Sector.
This policy seeks to ensure that energy sector projects include social systems of communities that are impacted by the projects on a sustainable basis during the project planning, development and implementation phases.
He commended the hard work of the Multi-Stakeholder Working Group and all involved in the successful development of the manual.
Dr Amin urged all industry players to prioritise the safety of their staff and promote environmental friendliness along the entire value chain, by complying with international best practices and the country’s standards and regulations.
Copies of the manual were presented to the representatives of both players in the upstream and downstream for their respective companies.
MoU To Deal With Incident
Dr Amin revealed that the Energy Ministry, in collaboration with relevant ministries, had drafted an MoU on Incident Investigation.
The MoU, he explained, would be signed between the ministry and other relevant ministries whose agencies undertake incident investigations in the energy sector.
“The aim of the MoU is to coordinate the incident investigation process and the monitoring of recommendation measures implementation,” he explained.
Dealing With Climate Change
The Ministry, Dr Amin noted, has also developed a Climate Change-Smart Energy Action Plan to ensure compliance of government institutions within the energy sector with International Climate Change protocols.
The implementation of the plan would involve the submission of climate change mitigation activities being undertaken by our sector agencies for publication.
Also in the draft is the Sustainability and Social Inclusion Policy for the Energy Sector.
This policy seeks to ensure that energy sector projects include social systems of communities that are impacted by the projects on a sustainable basis during the project planning, development and implementation phases. Government of Ghana Misusing Oil Cash – Ato Forson Claims
A former Deputy Minister of Finance in the Republic of Ghana believes the government of the day is veering off the status quo as far as the spending of oil revenue is concerned.
Mr Cassiel Ato Forson, who is the Member of Parliament for Ejumako Enyan Essiam in the Central Region argued that oil revenues are expected to be used for investments that are self-sustaining, however, the Akufo-Addo administration, he said, is investing the money into projects that do not generate income to finance themselves.
Speaking on the floor of Ghana’s parliament on Wednesday, 26 June 2019, Mr Ato Forson, said: “Mr Speaker, it is not for nothing that the oil revenue is heavily regulated. Apart from the extraction industry that we regulate revenues and expenditure that are approved, tax revenue is oftentimes not regulated in terms of its expenditure.
“Because this kind of revenue depletes over a period of time, it is important for us to regulate and that is why all over the world, countries are moving for the regulation of the use of oil revenue.
“Clearly, we are seeing a system where we are using our oil revenue for consumption and for that reason, we have often said that there is the need for us to reverse to the status quo”, the opposition MP stated.
He added: “The status quo has always been that we use a chunk of the oil revenue for the purposes of investment that can pay for itself but unfortunately where we are using it for consumption.”
Meanwhile, a member of the Minority on the Finance Committee of Parliament, Mr Benjamin Kpodo has kicked against the free-for-all free senior high school being funded with oil money.
He said: “Free SHS should be discriminatory so that those of us who can pay should be made to pay. We are not opposed to free senior high school education but we are saying that the rich who can pay should be made to pay.”
He stressed: “We are solidly in favour of it but we want it to be discriminatory so that those of us who can pay should pay. The programme should target the very poor so that there will be equality.”
W&T Offshore Takes ExxonMobil’s Eastern Gulf Of Mexico Assets For $200 Million
Houston-based W&T Offshore has entered into a purchase and sale agreement with ExxonMobil to acquire its interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico, offshore Alabama, and related onshore processing facilities for $200 million.
W&T said on Thursday that the deal includes working interests in nine GOM offshore producing fields and an onshore treating facility that are immediately adjacent to existing properties owned and operated by W&T.
The company also said that the agreement allows for significant synergies, consolidations and cost savings as W&T will become the largest operator in the area.
The agreement adds net proved reserves of 74 million barrels of oil equivalent (Boe) of which 99% are proved developed producing and 22% are liquids as of the effective date.
According to the company, the deal offers potential to add incremental reserves with little or no capital by consolidating operations and extending field life.
ExxonMobil produced approximately 19,800 net Boe per day from the acquired properties in the first quarter of 2019, of which 25% was liquids.
W&T also said that the transaction provides additional upside opportunities from potential future drilling locations and facility modifications.
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, “We are pleased with this purchase of producing properties which meets all the criteria we have outlined in the past as necessary to drive increased shareholder value from acquisitions. These low decline assets are highly accretive, free cash flow positive, and adjacent to our current operations thereby providing us the opportunity to recognize increased scale, rationalize operations and capture cost efficiencies to further grow cash flow.
“In addition, we also have the opportunity for further growth in reserves from potential field life extensions and drilling and facility upgrade opportunities. We believe this acquisition, with its long-life reserves, production and infrastructure, complements our ongoing strategy to recognize value for our shareholders through drill bit success, effective risk and cost management, and joint venture partnership.”
The acquisition consists of working interests in nine shallow water producing fields and related operatorship in the Mobile Bay area and will expand W&T’s presence to become the largest operator in the area.
The purchase also includes ExxonMobil’s onshore treating facility which, along with the company’s existing treating facility, will allow for flexibility in processing the produced gas and allow for future consolidation of operations. The total purchase price is $200 million subject to customary post-effective date adjustments. The effective date is January 1, 2019, and the transaction is expected to close on or about August 30, 2019. The acquisition will be funded from W&T’s available cash on hand and revolving credit facility.
Total net proved reserves to be acquired are 74 million barrels of oil equivalent, of which 22% are liquids. The vast majority of the reserves are classified as proved developed producing.
Source: offshoreenergytoday.com
Tracy W. Krohn, Chairman and Chief Executive Officer, stated, “We are pleased with this purchase of producing properties which meets all the criteria we have outlined in the past as necessary to drive increased shareholder value from acquisitions. These low decline assets are highly accretive, free cash flow positive, and adjacent to our current operations thereby providing us the opportunity to recognize increased scale, rationalize operations and capture cost efficiencies to further grow cash flow.
“In addition, we also have the opportunity for further growth in reserves from potential field life extensions and drilling and facility upgrade opportunities. We believe this acquisition, with its long-life reserves, production and infrastructure, complements our ongoing strategy to recognize value for our shareholders through drill bit success, effective risk and cost management, and joint venture partnership.”
The acquisition consists of working interests in nine shallow water producing fields and related operatorship in the Mobile Bay area and will expand W&T’s presence to become the largest operator in the area.
The purchase also includes ExxonMobil’s onshore treating facility which, along with the company’s existing treating facility, will allow for flexibility in processing the produced gas and allow for future consolidation of operations. The total purchase price is $200 million subject to customary post-effective date adjustments. The effective date is January 1, 2019, and the transaction is expected to close on or about August 30, 2019. The acquisition will be funded from W&T’s available cash on hand and revolving credit facility.
Total net proved reserves to be acquired are 74 million barrels of oil equivalent, of which 22% are liquids. The vast majority of the reserves are classified as proved developed producing.
Source: offshoreenergytoday.com
BDCs Commends BOST For Setting-Up Call Centre
The Bulk Oil Distribution Companies (BDCs) in the West African country, Ghana,have commended the management of Bulk Oil Storage and Transportation (BOST) company limited for setting-up a Call Centre to enable stakeholders have quick response to issues regarding their stock balance.
The BOST Call Centre will serve as a vital information network to ease doing petroleum transportation business as well as serve as interface between BOST and other stakeholders in the petroleum sector.
Mr Senyo Hosi, Chief Executive Officer of Chamber of Bulk Distribution Companies commended BOST for the innovative means to address stakeholders concern especially through the Call Center platform.
He advised that BOST train those who would man the centres to ensure that “when we call at any time someone will respond and address our concern”.
Mr Hosi said this at the quarterly “BOST MD’s Stakeholder Engagement Platform,” organized in Accra.
The BOST MD Stakeholder Platform was created to cement relationship with players in the industry, address misconceptions and outline measures under the new management.
Mr George Mensah Okley BOST Managing Director, setting the tone for the discussion, classified BDCs as BOST’s main clients, therefore “we must reduce the incidence of unwarranted industrial tension.
“Before I took office, there was a whole lot tension between BOST and the BDCs. Any issue that come out from BDCs into the media is about BOST and I intentionally created this platform where we can come meet face-to-face to talk”.
He said the BOST MD’s Stakeholder Engagement platform which forms part of the new brand image under our strategic plan seeks to build confidence and clear any tension which existed between stakeholders.
“We must all feel free to engage directly instead of depending on third party information and speculations on social media; now if BOST want to implement something that may appeared not to be in the interest of a section of our stakeholders we believe through the periodic interaction they will understand the broader national interest.
“We are all stakeholders working for the interest of mother Ghana, so let us be guided by national interest and not individual or sectional interest”.
Mr Okley also used the occasion to explain BOST’s One System Rule which seeks to create interconnectivity among the BOST Depots at Tema, Akosombo, Maame Water, Kumasi, Bolga and Buipe.
The system, he said, would reduce the physical movement and deposit of products before one can transact business; “the BOST One System Rule is like the banking system, if you deposit products at one point, you can withdraw at the other end provided you submit the necessary documentation”.
He said BOST is working with all stakeholders for the smooth take-off and implementation of the system; “We are still engaging stakeholders to understand the system, we have all agreed to educate our constituents before the eventual take-off”.
Mr Okley also revealed that BOST is discussing with the software developer to address issues raised, and other operational hiccups identified for smooth implementation.
“We have not started running the one system rule but all the stakeholders have agreed in principle to go by the new system and in our deliberations, we have realized this challenge and so we are going to meet with the software company and the National Petroleum Authority,” he said.
Scores of the stakeholders at the third BOST MDs Stakeholder Engagement Platform commended the Board and management of BOST for the initiative and called on other government companies to create stakeholder’s engagement platforms.
The stakeholders discussed overstay products, fees, how they can collaborate as industry, challenges that they are having with the porter, socialization and one system rule, upgrading and lost claim that the BDCs brought to BOST.
Source: GNA