Guyana’s First FPSO Named In Singapore
Naming ceremony for SBM Offshore’s Liza Destiny FPSO, destined for ExxonMobil’s Liza field in Guyana, was held last Saturday at Keppel Shipyard in Singapore.
During the ceremony, SBM Offshore’s CEO Bruno Chabas said: “This is a very special vessel, which will be the first to operate offshore Guyana. It is a great achievement by all involved in the EPC phases thanks to excellent teamwork. SBM Offshore is very much honored to play its part in this journey for our client ExxonMobil and was honored to host as Godmother the First Lady of the Co-operative Republic of Guyana, Her Excellency Madam Sandra Granger.”
The topsides for the FPSO was delivered by Dyna-Mac, while Keppel was responsible for the conversion of the hull from a VLCC, as well as for the integration of the hull and the topsides.
The FPSO has a 120,000 barrels a day capacity and is part of the first phase of the Liza field development.
ExxonMobil’s Liza field sits in the giant Stabroek block, which covers almost 27,000 square kilometers, circa 200 kilometers offshore Guyana and where ExxonMobil has struck more than a dozen oil discoveries which are yet to be developed.
Following arrival in Guyanese waters later this year the SBM Offshore installation team will install the FPSO on the offshore location field. The FPSO, the first of several to be deployed in Guyana, will be spread moored in water depth of 1,525 meters and will be able to store 1.6 million barrels of crude oil.
Source: offhsoreenergytoday.com
IEA Launches New Global Commission For Urgent Action
The International Energy Agency has launched a new Global Commission for Urgent Action on Energy Efficiency.
The launch which took place at the start of the IEA’s Global Conference on Energy Efficiency opened in Dublin on 24 June, was attended by government ministers, CEOs and energy experts from around the world to discuss critical topics like financing, policy innovation and digitalization.
The new Commission was announced by Dr Fatih Birol, the IEA’s Executive Director, and Prime Minister Leo Varadkar of Ireland of which Mr Varadkar will be the honorary chairperson.
Several important political and business leaders have already agreed to join the commission to advance progress on energy efficiency, which the IEA views as the very first fuel of a sustainable global energy system.
Over 400 energy efficiency leaders from more than 50 countries are attending the Dublin event, which is the IEA’s fourth annual global conference on the subject.
The gathering aims to identify how to unlock the vast potential of energy efficiency, bringing a wide range of important benefits, from greenhouse gas emissions reduction, to improved energy security and supporting economies to grow while delivering environmental and social benefits.
“No meaningful energy transition can take place without energy efficiency,” Dr Birol said.
“At our largest ever energy efficiency conference, I’m delighted to have such strong support from Prime Minister Varadkar and other high-profile leaders for the launch of this new commission to spur urgent action around the world.”
The composition of the commission will be announced next week.
A particular focus of this year’s conference is the impact of digitalization on energy efficiency, and lessons learned from leaders around the world. At the event, the IEA launched a new online knowledge resource library demonstrating how digital technology innovation is opening new opportunities for energy efficiency enhancement
Source: Esi-Africa.com
Ghana: BOST Praised For Involving Stakeholders In Decision Making
The introduction of Call Centre by the new management of Bulk Oil Storage and Transportation (BOST) company limited led by the Managing Director Mr. George Mensah Okley has received applause from its stakeholders Bulk Oil Distribution Companies (BDCs).
At a stakeholders meeting organized by Mr. George Mensah Okley on Tuesday June 25, 2019 at Airport West Hotel in Accra to discuss issues confronting the industry, the Managing Director of BOST revealed that his engagement with the stakeholders is to put an end to the tension which existed between BOST and BDCs in the past.
Speaking to peacefmonline.com in an interview, Mr. George Mensah Okley again mentioned that his desire to engage the stakeholders in constant meetings is to restore confidence of their stakeholders and also carve a good image before the Bulk Oil Distribution Companies as they remain key industry players.
“The BDCs are our main clients and key stakeholders we offer our services to them. Before I took office, there was a whole lot tension between BOST and the BDCs. Any issue that come out from BOST into the media is about BOST and I intentionally created this platform where they can come for all of us to discuss issues so that by so doing we will brand our image, we will have a new image before the BDCs, then they will have confidence in us and clear any tension which existed between us so that they will feel free and if we want to implement something that is not in their interest, they will know that it is to the advantage of the industry at large but not for our selfish gain and that is what we have achieved so far”, he averred.
The Managing Director of BOST together with other stakeholders at the meeting 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.
He added that the meeting with the stakeholders will not be a nine-day wonder as the Tuesday June 25, 2019 meeting marked the third time, they have met; reiterating that they have met twice within this year, promising to meet quarterly every year.
“This meeting is the third time but this is the second time for this year; so it is every quarter that we have decided to meet to discuss issues regarding the industry and we are not only meeting BDCs, we have been doing one to with the transporters quarterly”, he disclosed.
Explaining the one system rule which has been agreed to, Mr. George Mensah Okley said that the one system rule is that we have depots in Tema, Akosombo, Maame Water, Kumasi, Bolga and Buipe. So normally if you want to put your product, all the receiving point is at Tema; when they put their products at APD, before they can take them at Kumasi, the products have to move physically to Kumasi because if you have not move your products there, you cannot take them and sell but what the one system rule does is that, it is like the way the banking system work; if you put your money in a bank at one branch, you should be able to redraw it in any other branch of the bank without physically transferring your money to the branch where you are redrawing the money and that is the one system rule. The moment you put your products at APD, the receiving depot, they can pick them anywhere”.
Even though the one system rule is not operational yet, the MD for BOST said system has taken effect as they have all agreed in principle as there is a challenge with the platform which does not give room for the products to be accounted for due to the software design, explaining why the meeting was held to deliberate on it.
“We have therefore concluded to have a meeting with the software company to make that space on the platform. 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 NPA”, he said.
Interacting with one of the stakeholders from Blue Ocean Investment, the gentleman who only gave his name as Emmanuel urged other government companies to emulate the meeting between BOST and its BDCs stakeholders as it is not a common practice with government companies to involve their stakeholders in decision making.
“…because we have a situation where government companies don’t involve their stakeholders in their discussions. They come up with plans and decisions that are not known to us; then there will be this back and forth, going back to work on things but in a case where BOST is involving us in their operations now, we have an input into whatever they do. So when issues come up, we accept them because we were part of decision making process and I think the other government agencies should all employ this; the GRA, NPA and other ones who are also in the line of the petroleum industry, they should involve us the industry players and stakeholders into their decision making, so that whenever they come up with any decision, it will be applauded by all and I think that will be the best way to go for us in the industry”, he recommended.
Talking about BOST Call Centre, Emmanuel explained that the Call Centre will enable stakeholders to have quick response to issues regarding their stock balance as such vital information in past can take 3 months before they know the stock they have at a particular location.
“One key thing is that BOST has now created a Call Centre and when we have issues, we can just call the call center and we have people who will give quick response to issues…for instance, now whenever I want to check my stock balance, somebody will be pick the call and quickly check it for me on online and give me information but formerly, we don’t get such vital information rapidly as sometimes it will take 3 months before you know what stock you have at a particular location and so I will give credit to the new management system in place because this is working perfectly for us now”, he narrated.
Ghana’s Petroleum Revenue Must Be Utilized Judiciously – PIAC
The Public Interest and Accountability Committee (PIAC), an independent statutory body mandated to promote transparency and accountability in the management of petroleum revenues in the West African country, Ghana, is calling for more judicious use of revenue generated from the country’s petroleum sector for accelerated economic growth.
According to Dr Steve Manteaw, who is the Chairman of PIAC, “it is important that we set our priorities right in order to fully harness potentials in the sector.”
He cited the persistent interference in the Ghana National Petroleum Corporation’s (GNPC) affairs and the tendency to use it in financing quasi-fiscal expenditure.
Dr. Manteaw, who was launching the 2018 PIAC Annual Report’ in Kumasi, cautioned that this development, if not checked by Parliament, would undermine the operational efficiency and sustainability of the Corporation.
According to PIAC, cumulative revenue of US$4.97 billion was realized from the country’s annual petroleum receipts within the period of 2011-2018.
The priority areas selected for development from these receipts included agriculture and industry, science, technology, healthcare and public security.
The rest are environmental protection, rural development, social welfare, provision of potable water, strengthening of institutions and infrastructure development.
Dr. Manteaw argued that the country could not make a significant headway in poverty reduction if policy-makers failed to invest in the railway sector.
“The surest way to facilitate economic activities to create wealth, thereby improving the living conditions of the people is to build a good railway system.”
“This is because the cost of road construction and maintenance is too high,” the PIAC Chairman stated.
Professor Seth Asiamah, a technocrat and Chairman for the occasion, said the nation must work assiduously to harness potentials in the petroleum sector.
This was critical to improving the living conditions of the people.
Mr. Simon Osei-Mensah, Ashanti Regional Minister, gave the assurance that the government was committed to bringing development to the people through vibrant policies in the petroleum sector.
Source: GNA
Ghana: Energy Ministry Pushes Target For Universal Electricity Access From 2020 To 2025
Ghana’s Ministry of Energy has reviewed its target of ensuring universal electricity coverage from 2020 to 2025.
According to the Ministry, it has become necessary even as it implements new measures to enhance energy efficiency in the country, as well as address the remaining challenges in ensuring energy supply to some rural parts of the country.
In 1989, the West Africa country set out a 30 year National Electrification Scheme to achieve universal access to reliable electricity supply between 1990 -2020.
The baseline, at the time, showed a National Electricity Access of about 25% with only 5% rural penetration.
To support this agenda, Parliament passed the Renewable Energy Act, providing the legal and regulatory framework necessary for enhancing and expanding the country’s renewable energy sector.
As at the end of 2018, national electricity access reached 84.32%.
This comprised 93% urban and 71% rural coverage.
Speaking at the 5th Mini Grid Action Learning Event and Summit, Deputy Minister for Energy, Dr. Amin Adam said the Ministry of Energy will use mini-grids and stand-alone projects to ensure national access to energy by 2025.
“Our target for universal access was 2020 but because of the difficulty in reaching out to some of our communities through the national grid we have had to revise the target to 2015 so that we can adopt measures as well as raise the financing necessary to be able to reach out to these communities”.
He added that the Ministry will acquire fifty-five new grids next year to be deployed across various islands and lakeside communities in the country at a cost of US$230 million.
“We are ready for the full implementation of 55 new mini-grids for islands and lakeside communities in the Sene East, Krachi East and West Pru, Nkwanta North and South, Gonja Central, East and West and Krachi Nchumuru Districts of Ghana from next year, under a US$230 million Investment Plan for the Scaling-Up Renewable Energy Programme,” he said.
Source: citinewsroom.com
Egyptian Red Sea License Round Closes 1st August 2019
The Egyptian Ministry of Petroleum and Mineral Resources is offering 10 exploration blocks in the underexplored Egyptian Red Sea in close proximity to well established hydrocarbon production.
The closing date for the submission of bids is 1st August 2019 at 12pm Cairo time (more info).
TGS data available for the license round consists:
- 10,318 km Red Sea ’18 (RS18) 2D long-offset broadband seismic, PSTM/PSDM (view map)
- >16,500 km 2D calibrated vintage seismic
- 3,650 km2 of reprocessed 3D
- 12 calibrated wells with legacy data (11 with logs)
- Interpretation of vintage data and literature pack (including gravity, magnetics, seep, geological reports, and more)
- Intergrated interpretation products of the RS18 seismic, gravity and magnetic data
Peruvian Gov’t Approves Tullow’s Entry In Two Offshore Licenses
The Government of Peru has approved Tullow Oil’s entry into the country’s two offshore licenses, Z-38 and Z-64. Tullow and Karoon plan to drill an exploration well in license Z-38 in early 2020.
Tullow Oil in January 2018 agreed terms to add six new licenses covering 28,000sq km offshore Peru to its portfolio. Tullow agreed with PeruPetro to acquire a 100% stake in Blocks Z-64, Z-65, Z-66, Z-67 & Z-68.
Tullow also agreed to acquire a 35% interest in the offshore exploration Block Z-38 in the Tumbes Basin off Peru through a farm-down from Karoon Gas Australia.
However, in May 2018, the Supreme Decrees, authorizing PeruPetro, the state regulator, to execute license contracts for these blocks, were revoked by the Peruvian Government.
Since the revocation, Tullow has formally expressed its continued interest in the licenses. The company continued working closely with PeruPetro towards execution of these licenses.
Come May 2019 and Karoon’s farm-out of a 35% interest in Block Z-38 was completed, according to a statement by Karoon.
Under the agreement, Tullow will fund a 43.75% of the cost of the first exploration well, capped at $27.5 million (at 100%), beyond which Tullow will pay its 35% share of the total well cost. In addition, Tullow will pay $2 million and a share of Block costs incurred on and from January 9, 2018 at completion, with a further $7 million payable upon declaration of commercial discovery and submission of a development plan to PeruPetro.
In an operational update on Wednesday Tullow said that the government had now approved its entry into licenses Z-38 and Z-64. Work continues to secure other licenses.
Tullow also added that an exploration well is being planned for drilling in the Karoon-operated Z-38 license in early 2020.
Karoon has already started tendering for a drilling rig, which will drill the Marina-1 well offshore Peru. The Marina prospect has a best case gross prospective contingent resource of 256 mmbbls at 100% interest.
Block Z-38 lies 10 kilometers offshore from the coast of northern Peru, 56 kilometers west of the city of Tumbes and 39 kilometers west of Caleta Cruz. The block is in water depths ranging from 300 meters along its eastern boundary to over 3,000 meters in the west and covers an area of 4,875 square kilometers.
In addition, Tullow has said that, following interpretation of 3D seismic acquired over Block C-18 in Mauritania, it has decided not to proceed into the next exploration phase and has withdrawn from the license.
TechnipFMC Pays $301.3M To Settle Brazil Bribery Case
Oilfield services company TechnipFMC has agreed to pay $301.3 million to the U.S. and Brazilian authorities to resolve anti-corruption investigations in Brazil and relating to the intermediary, Unaoil for bribery paid to Brazilian officials in exchange for contracts.
TechnipFMC has agreed to resolutions with the U.S. Department of Justice (DOJ), the U.S. Securities and Exchange Commission (SEC) Staff and the Brazilian authorities (the Federal Prosecution Service (MPF), the Comptroller General of Brazil (CGU), and the Attorney General of Brazil (AGU)).
As part of this resolution, TechnipFMC entered into a three-year Deferred Prosecution Agreement (DPA) with the DOJ related to charges of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) related to conduct in Brazil and with Unaoil.
In addition, Technip USA, Inc., a U.S. subsidiary, pled guilty to one count of conspiracy to violate the FCPA related to conduct in Brazil. The Company will also provide the DOJ reports on its anti-corruption program during the term of the DPA.
According to the U.S. Department of Justice, the charges arose out of two independent bribery schemes: a scheme by Technip to pay bribes to Brazilian officials and a scheme by FMC to pay bribes to officials in Iraq. Technip and FMC merged into TechnipFMC in January 2017. In 2010, Technip entered into a $240 million resolution with the Department of Justice over bribes paid in Nigeria.
Bribery paid to Brazilian officials in exchange for Petrobras contract
According to admissions and court documents, the DOJ statement on Tuesday reveals, in at least 2003 and continuing until at least 2013, “Technip conspired with others, including Singapore-based Keppel Offshore & Marine Ltd. (KOM) and their former consultant, to violate the FCPA by making more than $69 million in corrupt payments and “commission payments” to the consultant, companies associated with the consultant and others, who passed along portions of these payments as bribes to Brazilian government officials who were employees at the Brazilian state-owned oil company, Petrobras, in order to secure improper business advantages and obtaining and retaining business with Petrobras for Technip, Technip USA and Joint Venture.
In addition, the DOJ said, Technip made more than $6 million in corrupt payments to the Workers’ Party in Brazil and Workers’ party officials in furtherance of the bribery scheme.
Also, according to the DOJ, beginning by at least 2008 and continuing until at least 2013, FMC conspired to violate the FCPA by paying bribes to at least seven government officials in Iraq, including officials at the Ministry of Oil, the South Oil Company and the Missan Oil Company, through a Monaco-based intermediary company in order to win secure improper business advantages and to influence those foreign officials to obtain and retain business for FMC Technologies in Iraq.
TechnipFMC has agreed to pay a total of $301.3 million to these authorities to resolve investigations into by former employees’ conduct dating back over a decade ago, TechnipFMC said on Tuesday.
“TechnipFMC fully cooperated with these authorities, and this is the first simultaneous resolution to include all U.S. and Brazilian authorities. TechnipFMC will not be required to have a monitor and will, instead, provide reports on its anti-corruption program to the Brazilian and U.S. authorities for two and three years, respectively,” TechnipFMC said.
U.S. Attorney Donoghue said: “Today’s resolutions are the result of a continuing multinational effort to hold accountable corporations and individuals who seek to win business through corrupt payments to foreign officials, and who attempt to use the U.S. financial system to carry out those crimes. We will continue to prioritize identifying and bringing to justice those who would corrupt the legitimate functions of government for personal financial gain.”
DOJ Assistant Director Johnson said: “In attempting to cheat the system, Technip violated the FCPA. Through the collaboration and dedicated efforts of the FBI and our foreign partners, Technip is being held accountable for perpetrating illegal schemes and justice is served.”
Former employees to blame
Doug Pferdehirt, Chairman and CEO of TechnipFMC, stated: “Today we announce the resolution of these investigations. This conduct dating back over a decade ago, taken by former employees, does not reflect the core values of our Company today. We are committed to doing business the right way, and that means operating with integrity everywhere.
“Our strong compliance program supports this commitment, and we will continue to enhance our program to ensure that our employees have the practical tools and resources to do business the right way. We will remain focused on rewarding the trust that our clients have put in TechnipFMC by delivering industry-leading innovation, superior client service, and exceptional project execution.”
In Brazil, TechnipFMC subsidiaries Technip Brasil – Engenharia, Instalações E Apoio Marítimo Ltda. and Flexibrás Tubos Flexíveis Ltda. entered into leniency agreements with both the MPF and the CGU/AGU related to conduct in Brazil dating back over a decade ago. The Company has committed, as part of those agreements, to make certain enhancements to their compliance programs in Brazil during a two-year self-reporting period, which aligns with its commitment to cooperation and transparency with the compliance community in Brazil and globally, TechnipFMC said.
Additionally, TechnipFMC has reached an agreement in principle with the SEC Staff, subject to final SEC approval, the oilfield services provider said.
TechnipFMC has also said it been cooperating with an investigation by the French Parquet National Financier (PNF) related to historical projects in Equatorial Guinea and Ghana.
“To date, this investigation has not reached resolution. TechnipFMC remains committed to finding a resolution with the PNF and will maintain a $70 million provision related to this investigation,” Technip said.
Fine reduced due to full cooperation
The U.S. Department of Justice said on Tuesday that in the resolutions with the DOJ, TechnipFMC received credit “for its substantial cooperation with the Department’s investigation and for taking extensive remedial measures.”
“For example, the company separated from or took disciplinary action against former and current employees in relation to the misconduct described in the statement of facts to which it admitted as part of the resolution; made changes to its business operations in Brazil to no longer participate in the type of work where the misconduct at issue arose; required that certain employees and third parties undergo additional compliance training; and made specific enhancements to the company’s internal controls and compliance program,” DOJ said.
It added: “Accordingly, the criminal fine reflects a 25 percent reduction off the applicable U.S. Sentencing Guidelines fine for the company’s full cooperation and remediation
Source: Offshoreenergytoday.com
Asantehene Urges Ghanaians To Support GOIL
Otumfuo Osei Tutu II, the Asante King of the West African country,Ghana, has called on Ghanaians to continue to patronize GOIL fuels, and products for the loyal service the company has rendered to the nation.
“GOIL is for all of us Ghanaians and we must help for the company to flourish, and any work belonging to us Ghanaians we should make it successful because same Ghanaians are employed to work for such a company. Also the profits remains in the country,” he admonished.
The Otumfuo made this statement at the official opening of an ultra-modern office complex in Kumasi.
The modern 75-capacity office has cash booths, a fire-fighting arena fitted with modern equipment and other ancillary facilities, will serve the middle belt and upper middles belt zones of the company’s operations.
The Asante King, lauded the achievements of GOIL to stay atop the oil marketing business despite stiff competition from international companies.
He praised GOIL particularly for salvaging the unregulated surge in oil prices by creating a benchmark pricing here in Ghana.
“I will applaud GOIL because they have been able to compete with international market, and have sustained prices for us Ghanaians. The reason am here is because some years back if I could recall the prices of fuel was not stable and the other oil marketing companies in Ghana were quoting higher prices, only GOIL was the company that was able to stabilize the prices of fuel in Ghana for us Ghanaians to make purchase of fuel.”
Otumfuo Osei Tutu entreated Ghanaians, should support other local companies like GOIL and initiatives that would sustain the country’s economy.
He also encouraged GOIL Company Ltd, as the premier indigenous oil marketing company, to continue to create jobs for the large chunk of the Ghanaian youth.
“I would like to thank the management of GOIL to continue with the good job, and create more opportunity for the youth to get jobs to do.”
The Acting Managing Director of GOIL, Kwame Osei-Prempeh, who has taken over from Patrick Akorli, on the side lines of the ceremony, updated the public that GOIL is expanding their services beyond oil marketing, which includes a soon to start bitumen depot, as well as an LPG recirculation plant and also GOIL would undertake upstream oil exploration in collaboration with ExxonMobil.
“In some few weeks from now, we are going to cut the tape for the construction of a new bitumen depot in Tema. And we are starting an LPG re-circulation plant in Tema and Kumasi, which is starting the end of this month. And we are moving upstream with ExxonMobil,” he updated.
Source: EOP
TGS Vice President Hopes Oil Producing Countries Can Set Clear Timelines For Licensing Bid Rounds
Vice President of the world’s leading seismic company, TGS, in charge of Africa, Mediterranean & Middle East Regions, Mr Will Bradbury, is hoping oil producing countries that are planning to launch licensing bid round for their oil blocks can set clear timelines in order to attract investors.
He believes that if timelines are clearly stated with specifics as to how oil companies can acquire acreages, it will help prospective companies, which intend to bid for oil block, to decide and plan ahead.
Mr Bradbury further stated that “this will also help to reduce the risk associated with oil exploration”.
He gave the advice in an exclusive interview with energynewsafrica.com via telephone on a wide range of issues regarding the upstream industry.
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Decline in data investments
Records available indicate that investments in seismic data declined from $8.86billion in 2013 to $3.8billion in 2017, representing about 60% decrease in seismic investments globally.
Speaking to the issue, Mr Bradbury said the decline can certainly be attributed to the fall in oil price within that period.
“The oil price dropped drastically and that had an impact on investment. What we saw is that there was cut in exploration budget by most oil companies,” he explained.
He was, however, optimistic that investment in seismic data would pick up going forward, given the current trend.
This, in his estimation, is as a result of upcoming licensing bid round in some oil producing countries.
Projects
Currently, TGS has acquired 3D seismic data and multi-beam which cover Senegal, Gambia and Guinea.
TGS is also reprocessing some existing data for Ghana, Nigeria, Togo and Benin.
Asked which area he expects oil growth to come, he mentioned West Africa and Latin America.
Will Bradbury, who said the oil and gas sector in Africa has a bright future, noted that Africa is in competition with South America and underscored the need for African countries to do things that would entice investors.
Regulatory regime
Touching on the regulatory environment in Africa, Mr Bradbury said there has been transparency, honesty and openness in all conversations and discussions.
“We try and do open conversation. We have good discussions,” he said.
TGS is also reprocessing some existing data for Ghana, Nigeria, Togo and Benin.
Asked which area he expects oil growth to come, he mentioned West Africa and Latin America.
Will Bradbury, who said the oil and gas sector in Africa has a bright future, noted that Africa is in competition with South America and underscored the need for African countries to do things that would entice investors.
Regulatory regime
Touching on the regulatory environment in Africa, Mr Bradbury said there has been transparency, honesty and openness in all conversations and discussions.
“We try and do open conversation. We have good discussions,” he said. ExxonMobil To Sell Rest Of Norwegian Assets
US oil major ExxonMobil is reportedly looking to sell all off its assets in Norway. The move has the potential to be Norway’s biggest sale since 2006, according to energy intelligence group Wood Mackenzie.
Reuters reported on Saturday, June 22 that ExxonMobil was considering selling all of the stakes it holds in oil and gas fields off the Norwegian coast, including stakes in Equinor-operated Snorre and Shell-operated Ormen Lange fields.
ExxonMobil sold its operated assets in Norway to HitecVision- backed Point Resources back in 2017, which later went on to merge with Eni Norge, creating Var Energi
ExxonMobil continues to hold ownership interests in over 20 producing oil and gas fields operated by others. In 2017 the company’s net production from these fields was around 170,000 o.e. barrels per day.
According to Reuters, ExxonMobil is now looking to get rid of its non-operated assets in the country.
Speaking after reports that ExxonMobil is preparing to put its Norwegian upstream portfolio up for sale, Neivan Boroujerdi, principal analyst, Europe upstream, at Wood Mackenzie, said: “The move doesn’t come as a surprise. We recently highlighted Norway amongst a $48 billion pool of assets from which we think ExxonMobil could meet its recently announced $15 billion divestment target.”
He added: “The sale has the potential to be the Norway’s biggest since Statoil’s merger with Norsk Hydro announced in 2006.
“While Norway is no longer core to the overall business, ExxonMobil’s position is substantial enough to receive an attractive exit price, particularly as Norway remains one of the premium M&A markets in the world.
“It’s a highly cash generative business with low operating costs, producing 150,000 barrels of oil equivalent per day. The portfolio is predominantly operated by Equinor, which has laid out its own plans for increased oil recovery in the coming years – so it will come with future investment opportunities.
“In terms of buyers, the new wave of North Sea independents are likely to be the front runners. Although the oil-heavy portfolio could deter some buyers looking to appease the investor community before an IPO in the coming years.”
Source: offshoreenergytoday.com
Senegal President’s Brother Resigns Over Offshore Gas Deal Corruption Claims
The brother of the President of the West African country, Senegal, has reportedly resigned from his government position following allegations that he was paid bribes related to a 2014 award of offshore blocks.
The resignation follows an investigation by BBC, according to which Aliou Sall, brother of President Macky Sall, was involved in suspicious, corruption-like dealings, with a company owned by Romanian businessman Frank Timis, and related to a suspicious award of gas-rich offshore blocks to Timis’ company.
According to BBC, Frank Timis in 2012 established Petro-Tim, a company which was awarded exploration rights in two large offshore concessions “even though it had no track record in the industry,” beating larger and experienced oil companies to the acreage.
Per the BBC investigation, Aliou Sall – the president’s brother – was employed by a Frank Timis-related company, where he was paid $25,000 a month over a five-year period, getting in total $1.5 million. Aliou was reportedly paid for consultancy services in a field in which he had no prior experience, which was reportedly linked to offshore blocks awarded.
Furthermore, BBC has discovered that Frank Timis made a $250,000 payment to Agritrans Sarl, a company owned by the Senegal president’s brother Aliou Sall.
After gas was found in the offshore acreage in 2016, BP then in April 2017 bought 30 percent stake in the blocks from Frank Timis’ firm for $250 million, but that, the documentary says, is just the start, as “the real cash comes from the royalties.”
According to BBC, BP has agreed to pay between $9.27 billion and $12.56 billion dollars to Timis Corporation over the next 40 years, despite having knowledge that Frank Timis might have paid bribes to the president’s brother, and despite the possibility that the offshore blocks were awarded through corruption.
Global Witness put the alleged figures into context. It said earlier this month: “Senegal’s budget last year was $6.3 billion, and about 40% of the population lives on less than $2 a day.”
In its documentary, BBC said: Our evidence suggests that the people of Senegal have been cheated out of billions of dollars. It’s Frank Timis who is getting that money, and it’s BP who has helped him to cash in.
BBC has said that both BP and Frank Timis have denied any wrongdoing.
Aliou Sall has described the reported $250,000 payment as imaginary, denying he has ever received it. According to reports of his resignation from Deposits and Consignments Fund Senegal on Tuesday, he said the allegations against him were untrue and said that there was a campaign against him with the aim to dehumanize him.
Source: Offshoreenergytoday.com
Ghana: Electricity Consumers Would Have Paid More Than 11.17% Increment But For Review Of Generation Cost-PURC Boss
The Executive Secretary of Ghana’s Public Utilities Regulatory Commission (PURC), Mami Dufie Ofori, has stated that consumers would have paid more than the 11.17% tariff increase had government not reviewed cost of power generation.
Additionally, some efforts by power companies to introduce efficiency in their services also influenced the decision of the Commission to set the tariff at 11.17%.
“The figures they brought (government) was factored into our decision. If we had gone by the last year’s figure, then, the tariff would have gone higher than what we announced,” she said.
The PURC, last week, announced that effective July 1, 2019, electricity tariff in the country would increase by 11.17%.
According to the PURC, the decision was taken after careful consideration of proposals by the various stakeholders in the power sector.
The increment has, however, not gone down well with a section of the public, with some Ghanaians describing the increment as insensitive.
Addressing the media on Monday, 24th June, 2019, Mami Dufie Ofori highlighted on key indicators the Commission looked at before increasing the electricity tariff.
“In arriving at this decision, the PURC took into consideration several issues, and key amongst them are the ECG/PSP Process, Projected Inflation Rate, Ghana Cedi/US Dollar Exchange Rate, Prudent Cost of Operation of Utility Companies, Projected Electricity & Water Demand for the 2019-2020 tariff period,” she listed.
She explained that the key objective of the tariff review was to sustain the financial viability of utility service providers, as well as ensuring delivery of quality service to consumers.
“The key assumptions underpinning the determination and approval of the tariffs for the regulated market are as follows: Electricity, 2019-2020 Electricity Supply Plans, Generation Mix of 23% Hydro and 77% Thermal, Ghana Cedi-US Dollar Exchange Rate of GHS5.05/USD 1.00, Projected Inflation Rate of 8%, Projected Fuel Prices, Expected Increase in Electricity Demand, Transmission System Losses of 4.1%, Expected Increase in Volume of Electricity to be Transmitted of 8.6%, Base Distribution Aggregate Technical & Commercial Loss Ratio of 22.6%, Provision for Uncollectible Revenue of 2%, Water, Electricity Cost, Cost of Chemicals, Ghana Cedi-US Dollar Exchange Rate,” she explained.
“The Commission will continue to monitor the impact of this policy change on the utilities and customers,” she assured consumers.
The 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission.
It is, therefore, expected that the utilities would be able to cover their Administrative, Operations and Maintenance Costs, resulting in the provision of quality utility services for consumers.
The Commission reiterated its unwavering commitment to ensuring the sustainability and growth of quality electricity and water service provision for socio-economic development.
Details of the approved electricity and water tariffs effective July 1, 2019, and the rationale for the tariff decisions would be published on the Commission’s website.
Africa Oil & Power To Honour Senegal President As ‘Africa Oil Man of the Year’
President of the Republic of Senegal, H.E. Macky Sall, will be bestowed with the prestigious ‘Africa Oil Man of the Year’ award during the Africa Oil & Power conference, to be hosted from October 9 to 11, 2019, in Cape Town, South Africa.
The President will be presented the award during the conference, in which he will also present the keynote address.
Senegal is a global hotspot for oil and gas discoveries—well-known as the place in Africa to make major oil and gas finds, due in large part to a decade’s long campaign by Sall to improve transparency, create an attractive investment environment and spark new growth.
“As African countries across the continent aim to spur growth and diversify economically, Senegal is a prime example of a country making energy work—creating an enabling environment for business to succeed, attracting huge international investments, while providing for a strong local capacity and downstream investment options,” said Guillaume Doane, CEO of Africa Oil & Power.
“H.E. Macky Sall is one of Africa’s top leaders, not just in oil and gas, but as an advocate for overall economic success. We are honored to present him this award,” a statement issued by Africa Oil & Power and copied to energynewsafrica.com said.
Sall first worked as the CEO of Petrosen from 2000–2001, before becoming the country’s Minister for Mines Energy and Hydraulics in 2001.
After a long political career in Senegal, Sall was elected president of Senegal in 2012, and pushed through a series of reforms to revive Senegal’s economy and attract international investors.
“In a continent where border disputes have held back the development of offshore resources, President Macky Sall insists on a more productive outcome. He worked with his counterpart of Mauritania, H.E. Mohamed Ould Abdel Aziz, to secure an agreement to jointly develop offshore resources for the mutual benefit of both countries,” said Jude Kearney, former Deputy Assistant Secretary for Service Industries and Finance at the U.S. Department of Commerce, during the Clinton Administration and currently President of Kearney Africa Advisors.
This form of agreement represents the best practice for the development of cross-border resources, and in this particular case, is based on the landmark Frigg Agreement of 1976 between the UK and Norway.
That case showed that when leaders work together, resources can be developed peacefully to benefit the people of both nations.
“The agreement between Mauritania and Senegal paved the way for the development of the Tortue field through cross-border unitisation, with a 50%-50% initial split of costs, production and revenue, as well as a mechanism for future equity redeterminations based on field performance. It takes leadership, vision and foresight to get this done,” continued Kearney.
Today, Senegal has one of the fastest growing economies in the world, and is the fastest growing economy in West Africa.
Sall has closely guided the development of two multi-billion dollar oil projects off the coast of Senegal—the world-class SNE oilfield and the Greater Tortue/Ahmeyim gas project.
The Greater Tortue project reached FID in December of 2018, and has already awarded several initial contracts, including the EPCIC contract for the development of the needed FPSO to Technip for an estimated $500 million to $1billion.
The SNE oilfield is expected to reach FID this year and both projects are scheduled to start producing export revenues in the early 2020s.
To ensure the country’s new oil revenue would directly benefit the country, Sall advocated for a new hydrocarbons code, which was approved by the national assembly this year, and he also created the agency Cos-Petrogaz to oversee the oil and gas sector and issue licences.
Other reforms aimed at promoting transparency included limiting the presidential terms from seven years to five years, to be renewed once, and launching the Emerging Senegal Plan in 2014, which provides detailed planning for Senegal’s continued social and economic development.
The fourth annual Africa Oil & Power, to be held from October 9-11 in Cape Town, has a theme of ‘Make Energy Work’ that would focus on how oil, gas and power can generate greater opportunities for the people of African nations and stimulate sustainable economic growth.
Africa Oil & Power industry leaders would celebrate Sall’s notable achievements and spark conversations on Making Energy Work throughout the continent.
The last recipient of this award was OPEC Secretary General, H.E Mohammed Sanusi Barkindo.
H.E. Barkindo guided OPEC through one of its most turbulent periods, with a sustained oil price decline and a loss in global market share.
He is credited with restoring market stability on a global scale through the landmark deal between OPEC and non-OPEC members to cut oil production.