Mozambique to make a big announcement around LNG in June
Following a meeting on Tuesday, the President of Mozambique, Filipe Nyusi, and Anadarko Petroleum Corporation Chairman and CEO, Al Walker, announced plans for Mozambique LNG to make an important announcement during a celebratory event on June 18, 2019 in Maputo.
In a statement, Anadarko said that it was also noted that all issues under negotiation between the Government of Mozambique and Anadarko have been satisfactorily resolved.
“We expect June 18 will become a historic day in Mozambique as we announce that one of the most important and transformational projects in our country’s history is ready to advance to the next stage,” said President Nyusi.
“We recognise Anadarko’s continued commitment to moving this project forward to becoming a reality.”
“With commitments for financing in place, off-take secured, and all other issues under negotiation successfully addressed, we are excited to take the next step with the expected announcement of a Final Investment Decision (FID) for the Mozambique LNG project on June 18,” said Walker.
“Mozambique LNG is among the most significant projects that our company or any other has undertaken, given the scale of the project, size of the resource, and the potential long-term transformational benefits it represents for Mozambique.
“We are grateful for the continued support of the people and government of Mozambique, our co-venturers, and the thousands of men and women working in the Cabo Delgado region to develop this exciting project. We look forward to celebrating the official sanctioning of Mozambique LNG on June 18.”
Ghana: Energy Minister Defends Renegotiated AGM Contract
Energy Minister, Hon. John-Peter Amewu
Ghana’s Minister for Energy, John-Peter Amewu has mounted spirited defence for government’s decision to renegotiate a Petroleum Agreement (PA) the previous administration signed with AGM, a company affiliated to Aker Energy, a Norwegian Oil firm.
He held that the renegotiated Petroleum Agreement was done in the best interest of the West African country.
The Minister, and for that matter the President Akufo-Addo-led administration has come under fire for renegotiating the AGM contract.
Policy Think Tank, IMANI -Africa, Public Interest and Accountability Committee (PIAC), as well as a former CEO of Ghana National Petroleum Corporation Alex Mould, have criticised government for the renegotiated PA, which, they say, is bad compared to the previous one.
However, addressing investors at the ongoing Offshore Technology Conference in Houston, Texas, USA, Energy Minister John-Peter Amewu defended the government’s decision.
“The agenda for government for undertaking the current renegotiation of the AGM block is not to deny Ghanaians, the shareholders, the resource owners of what they ought to be due. We believe sincerely that 100% of nothing compared to 5% of 10. It is better to have 5% of 10,” he argued.
“Resources institute do not own any value unless they are brought to the world. It is clear that the current renegotiation that the government has achieved through the AGM block is something that will benefit all Ghanaians,” he added.
Reinforcing his message to Ghanaians, Mr Amewu said: “I want to use this opportunity to let everybody here understand that, the doubting Thomases that are of the view that, that era of sticking to the old gang that Petroleum Agreement will never be renegotiated, is gone.
“He was of the view that if Ghana should attract investors, then there was the need for the country to be dynamic and not hold on to the old way of doing things, which either drive away investors or scare them from coming.
“Gone are the days when companies will only work in challenging areas, and where there is conflict with the intention of increasing their returns on investments. Current dynamics and integrated companies are looking for peaceful environment, good governance and rule of law,” he stated.
Licensing Round
Touching on Ghana’s Licensing Round Bid for the five oil blocks, Mr Amewu said the ministry received 67 applications from more than 14 countries.
Amewu, who described the licensing round as the most competitive within the sub-region, said the interest in the licensing round clearly demonstrates the good governance, transparency, rule of law that the current government is practising.
“We’re currently going through our first ever licensing round to award Exploration and Production Rights, and soon after this, we will commence the second licensing round during which companies will be invited to express interest for the blocks that will be auctioned,” he said.
Capacity Building
The Government of Ghana, the Minister said, wants to take the oil and gas industry to a level where Ghanaian companies will be rendering to exploration companies in Ghana and beyond, all manner of services; be it equipment supplies, FPSO manufacturing, catering services et al.
“We want to bridge the gap between the oil and gas industry and the tertiary institutions and ensure that these institutions are well-equipped to churn out professionals who are both practically and theoretically competent.
He, therefore, charged the Petroleum Commission to collaborate with the International Oil Companies (IOCs) to create internship and research opportunities for undergraduate and postgraduate students in the oil companies.
He also appealed to International Oil Companies to help establish well-equipped laboratories in the universities, so that undergraduate and postgraduate students can familiarise themselves with the equipment and software being used in the oil and gas industry.
“This way, they can become readily employable and will require only minimal training when they come out of school and are employed by you (IOCs),” he said.
Invitation To Investors
The Minister made a passionate appeal to Ghanaians and international businesses to collaborate and explore the investment opportunities in Ghana’s oil and gas sector.
“I appeal to those in the diaspora to come home and invest in our oil and gas sector, for it is through investment that we can build local capacity for Ghana’s Oil and Gas sector.”
US Threatens Iran With Show Of Force
The United States and Iran continued to trade barbs on Wednesday over the Iranian nuclear deal and Iranian oil exports as the United States stands firm on its position that it will succeed in reducing Iranian oil exports to zero, according to a US briefing reported by Asharq Al-Awsat.
The US responded to flare ups in tensions with Iran with Iran’s Special Envoy Brian Hook vowing that any attack against the United States or its allies would be met with a show of force.
Hook assured an unsettled market that it had already factored in Iran’s oil exports falling to zero. Oil prices were up in afternoon trading, with WTI up over 1 percent on the day.
The strong words from the United States came after Iran announced it would no longer be curbing its nuclear program, threatening to go even further, saying it would resume enriching uranium at a higher level if the EU fails to live up to its end of the agreement by continuing Iranian oil purchases.
“In order to secure its rights and restore balance to the demands of the parties to the agreement, the Islamic Republic of Iran has no option other than “reducing commitments”,” Rouhani said in a statement.
The EU is finding itself between the proverbial rock and hard place as it struggles to not run afoul of US sanctions against a major oil supplier. Reaffirming its commitment to the sanctions, the United States said it would quickly respond to any sanctions violation by the EU.
US Special Assist to the President and Senior Director for Weapons of Mass Destruction added on Wednesday that Iran should expect more sanctions “very soon”.
The United States had announced on Tuesday that it was deploying the USS Abraham Lincoln Carrier Strike Group and a bomber task force to the U.S. Central Command region “to send a clear and unmistakable message to the Iranian regime.”
Source: Oilprice.com
Exclusive Photos From Ghana’s Day At OTC, Texas, USA
EnergyNewsAfrica.com brings you some of the photos captured by our camera at the ongoing Offshore Technology Conference in Houston, Texas, USA.
These exclusive pictures were taken at a special event dubbed ‘Ghana’s Day’, which had a panel discussion focusing on “Ghana’s Upstream Sector, Policy, Regulations, Local Content, Local Capability and Investment Case for Ghana’s Upstream Sector.”
Niger Fuel Tanker Explosion Kills 58 People
Fifty-eight people died in Nigers capital Niamey after an overturned tanker truck exploded as crowds collected spilt fuel, authorities and witnesses said Monday.
The blast on the RN1 route near the international airport Sunday night left the burnt trucks wreckage, motorbikes and debris scattered over the road.
Nearby houses were damaged by fire.
The explosion left 58 dead, the presidency said in a statement.
“Motorbike riders and people were all around the truck when it exploded all of a sudden,” a local trader said. “I saw at least 40 dead.”
BURST INTO FLAMES
Witnesses said people were trying to collect petrol leaking from the truck, which had overturned on railway tracks, when the explosion happened.
“Just before midnight I went out and I saw the truck overturned. People came from everywhere to take gas, then I saw fire on its side and everything burst into flames,” a college student told AFP.
Nigerian President Mahamadou Issoufou visited some of the injured in hospital in the capital.
Prime Minister Brigi Rafini and the Interior Minister Mohamed Bazoum inspected the site of the explosion, describing a scene of “real drama.”
MOTORCYCLE ENGINE
Bazoum said the truck had tipped over while trying to park. Crowds and motorbike drivers rushed to the scene to take fuel from the tanker.
“Unfortunately one of the motorcyclists did not switch off their engine. There must have been a spark that caused a massive blast,” the minister said.
He said 37 people were injured. Most were in a very serious condition in hospital with burns.
Niger, a poor West African country, has tried to stamp out fuel smuggling from neighbouring Nigeria.
Nigeria, a major oil producer, has seen similar deadly accidents and explosions in the past when people try to steal fuel from oil pipelines.
More than 100 people died in an explosion in southern Nigeria in 2012.
Exclusive Photos of Ghanaian Delegation At OTC, Texas, USA
EnergyNewsAfrica.com brings you some of the photos captured by our camera at the ongoing Offshore Technology Conference(OTC) in Houston, Texas, USA.
Ghanaian Delegation at Ghana’s Pavilion at the NRG Park, venue for the OTC
The Delegation at Chateau Crystalle, where the Ghana Houston Chamber of Commerce held its Oil and Gas panel discussion
Photos from Aker Energy Career Fair at Hilton Garden Inn 
The Delegation at Halliburton
The Delegation at Chateau Crystalle, where the Ghana Houston Chamber of Commerce held its Oil and Gas panel discussionPhotos from Aker Energy Career Fair at Hilton Garden Inn The Delegation at Halliburton S.Africa And S.Sudan Sign Exploration And Production Sharing Agreement
South Africa and South Sudan have signed exploration and production sharing agreement to boost oil production.
The agreement is the second EPSA signed since South Sudan gained independence in 2012 and shows progress for the country’s oil industry as production resumes at existing oilfields and new exploration begins.
The deal will see Block B2 operated by state-owned Strategic Fuel Fund (SFF), the Ministry of Petroleum and Nilepet, the national oil company of the Republic of South Sudan.
According to the South African Department of Energy, South Sudan is an established, world-class petroleum-producing region, whose territory includes a large part of the Cretaceous rift basin system that has proved petroliferous in Chad and Niger as well as Sudan.
Under this agreement, which includes a six-year exploration period, the SFF alongside Nilepet will launch a comprehensive aerogravity survey exploration campaign, seismic acquisition and drill wells with great prospectivity.
The SFF will also invest in capacity building initiatives, training of South Sudanese citizens, social and community development projects and ensuring local content and the empowerment of women.
“The petroleum resources of Block B2 are vast. For South Sudan to reach its target of bringing back production levels of around 350,000 barrels of oil per day and beyond, we need committed new entrants like the SFF,” said the Minister of Petroleum Hon. Amb. Ezekiel Lol Gatkuoth.
“South Sudan has great potential, yet our country remains vastly under-explored, and we believe the entry of new players like the SFF will lead to new world-class discoveries very soon given the aggressive exploration program and great petroleum viability of Block B3. This will support South Sudan’s economic revival and improve trade with other African countries.”
“We are bullish about this strategic and unique opportunity into Block B2 with great petroleum potential. It provides South Africa with a chance to further strengthen its energy security while entering one of the top three most lucrative onshore oil and gas markets in Africa,” said Hon. Jeff Radebe, South African Energy Minister.
“South Africa has supported peace and economic development in South Sudan since the country’s independence and this is the continuation of long-term cooperation between both our countries and people. Investment is key to guaranteeing the economic progress of South Sudan.”
Last year, South Africa’s Department of Energy pledged to invest $1 billion into South Sudan’s petroleum industry, with the aim of securing affordable energy supplies for South Africa.
The countries are in talks to set up a 60,000 barrel per day refinery to supply oil products to the local market in South Sudan, as well as to secure exports to Ethiopia and other neighbouring countries.
“SFF is looking forward to working with our counterparts in South Sudan to make discoveries on this block. We believe there are highly significant quantities of oil in Block B2. Our work program and acquisition of new seismic will reveal better information on various structures. We look forward to a few wildcats and appraisal wells in the near future. We are thankful to the Government of South Sudan for this opportunity”, stated Godfrey Moagi, Acting CEO of SFF.
The B2 area includes productive parts of the Muglad Basin and is part of the 120,000 square kilometer Block B which was split into three in 2012. There has been much interest in the Block B acreages since the entry of Oranto Petroleum to Block B3 in 2017. Much of South Sudan’s oil and gas blocks are yet to be fully explored and resources assessed. South Sudan currently produces 160,000 barrels of oil per day.
The CEF group is a South African state owned company responsible for finding solutions to meet South Africa’s energy needs. Through its subsidiaries, the Petroleum Oil and Gas Corporation of South Africa (PetroSA), Petroleum Agency South Africa (PASA), Strategic Fuel Fund (SFF), African Exploration Mining and Finance Corporation (AEMFC) and iGas, the group also manages the operations and development of South Africa’s oil and gas assets.
Source: Esi-Africa.com
Tullow Oil plc Awards Over $10bn Contracts To Indigenous Companies-Kweku Awotwi
Mr Kweku Andoh Awotwi, Vice-President of Tullow Oil plc
Tullow Oil plc, one of the operators of Ghana’s Jubilee Fields, has awarded contracts totalling $10.6 billion to Indigenous Ghanaian Companies operating in the country’s upstream sector.
Tullow Oil plc’s Vice President Mr Kweku Awotwi revealed this at a reception organised by the Ghana -Houston Chamber of Commerce under the theme: ‘Strengthening Diaspora Participation in Ghana’s Oil and Gas Sector‘, at Chateau Crystalle in Houston, Texas, USA.
He noted that the expansion of Ghana’s upstream sector, with new entrants coming in, sets the sector up for further growth.
Pondering on how the diaspora leverages the positive changes and potentially new prospects in the oil and gas value chain where many have already achieved successes, he said expected to see more successes.
“This is possible by drawing on the experience of others, partnering successful companies, using the right technological innovation and investing. This also benefits and grows the Ghanaian economy. I expect to see a further burst of activity in the years ahead,” he said.
According to him, attending such conference allows them to reflect on the strides Ghana’s oil and gas sector has made.
“[It] reminds us of our privileged role and responsibility to propel the growth and development agenda that allows Ghana and its people to reap the benefits of a sector as important as ours,” he said.
Mr Awotwi believes one of the ways to achieve that is by strengthening diaspora participation in the country’s oil and gas sector through Localisation, Local content and Supply Chain initiatives.
Production from Ghana’s two assets, Jubilee and TEN, continue to present an exciting opportunity for Ghana and Tullow to build world-class competitive in-country capability, as well as draw on the competencies of Ghanaian technical professionals from the diaspora.
“For Tullow, this allows us to recruit highly talented personnel with great potential to deliver on Tullow’s operations and support the oil and gas value chain. As a result, we have made great progress in our decade-long localisation and local content vision,” he said.
He indicated that the combination of locally and internationally trained professionals across the technical and non-technical fields make up Tullow Ghana’s workforce.
The company has 64% nationals and expatriate staff of 36% with 63% nationals making up their leadership team. Also, the company boasts of 44% Ghanaian technical staff and 64% expatriate staff.
“We continue to focus on localisation in the technical areas to drive our oil portfolio and the future of Ghana’s oil and gas sector.
“Tullow continues to make strides in recruiting efforts for professionals in the diaspora. Since 2008, we have recruited professionals in Geoscience, Petroleum Engineering and Operations from the diaspora to support our localisation agenda,” the MD said.
Mr Awotwi said the development and progression of all their employees remain priorities for them, and they continue to seek a fair balance between in-country and diaspora recruitment and training and developing existing employees.
“It is one of the reasons Tullow invests in capacity building. Participation in Ghana’s oil sector is not just about recruitment and employee development. Businesses can also tap into diverse opportunities in the oil and gas value chain.
“Tullow Ghana has done quite a bit reserving specific contracts for Ghanaians operating in sectors such as technical services, logistics and materials, procurement, communication, security and marine services,” he added.
Former GNPC Boss Blasts Parliament For Ratifying Renegotiated AGM Deal
Alex Mould is former GNPC boss
A former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), Alex Mould, has said the government had no justification to amend the petroleum agreement with AGM petroleum for oil exploration.
He also said Parliament’s decision to ratify the deal for exploration in the Deep South West Tano oil block was a bad one.
Addressing a forum organised by the Caucus for Democratic Governance, Ghana, he said AGM’s push for the amendment of the agreement which was first signed in 2013 without any major work on the block was against international standards in the industry.
He explained that GNPC when he was the helm of affairs, agreed with AGM to give GNPC 49% because Corporation had invested a lot of resources in the block before handing over to AGM for oil exploration.
He questioned why the government would agree to review the deal knowing that AGM is yet to commencement work on the oil block.
“It seems that AGM has been given a new lease of land through a sole retender and Government has reduced its stake from 49% to 18%. Be mindful that AGM was originally given this block from a competitive tender and 3 other companies that are changing the terms before they start work is akin to our controversial road contractors who bid slowly only to come back before the work starts and add to the variation.”
“Even in road contracting, this is not allowed. Also, it is our understanding that the original local content partner is being replaced by a new local content partner called Quad Energy. This company was set up months ago before Minister of Energy brought this ridiculous amendment to Parliament and they shamefully approved given the questions and issues raised.”
Controversial oil agreement
The amended deal was ratified at an emergency Parliamentary sitting last Friday amid opposition by some civil society groups and the Minority parliamentarians.
Under the previous deal, Ghana will receive 10% royalties and in addition to that, the GNPC will secure 10% free carried interest.
The GNPC under the previous deal was also expected to benefit from additional participating interest of 15%.
GNPC’s Exploration and Production Company Limited (Explorco) will also get 24%.
The existing Petroleum Agreement gives Ghana a potential 43% stake, made up of Carried and Participating Equity Interests of 25% and a Commercial Interest of 24% of the remaining 75%.
However, per the renegotiated agreement ratified by Parliament, Ghana’s 10% royalties has been maintained.
However, the free carried interest of GNPC has been increased to 15%.
Under the newly approved agreement, GNPC’s additional interest has also reduced to 3%, but GNPC’s Explorco will not take up shares in the new agreement.
Cash flow problems choke energy sector – IMF
Peter Amewu, Minister of Energy
The International Monetary Fund (IMF) has observed that state-owned enterprises (SOEs) in the energy sector are reeling under cash flow problems and inefficiencies that collectively make the sector a threat to fiscal stability.
It mentioned weak governance and inadequate tariff structure as other challenges that had contributed in placing “financial pressures” on firms in the sector.
“Electricity tariff cuts in March 2018 (of up to 30 per cent) have added to these financial problems and, consequently, to fiscal risks,” the fund said in its seventh and eighth review documents released earlier this month.
It noted that the situation in the energy sector was now “a key fiscal risk” to the economy, as the entities “contribute to a substantial drain on public finances”.
According to the fund, the three major SOEs in the energy sector – the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo) and the Volta River Authority (VRA) – have been inefficient since 2014 and as a result, registered negative average return on equity over the last four years.
It, therefore, warned that although ongoing efforts to resolve legacy debts were helpful, they “cannot replace the need to secure the sector’s financial viability”.
Cost of fuel
In the documents that preceded the country’s exit from the Extended Credit Facility (ECF), the fund said “cash flow problems and inefficient operations affect electricity sector SOEs and the gas sector”.
“The core electricity SOEs – the electricity distributor, ECG2; the transmission company, GRIDCo; and the power supplier, VRA – have generated a negative average return on equity since 2014.
“A supplier to the ECG can expect to wait over a year, on average, to get paid.
“Simultaneously, the time it takes ECG to collect from its customers has increased to over 200 days,” it said.
It explained that the situation was not limited to the energy sector but extended to the gas sub-sector, where an off-take agreement for gas supply from the Offshore Cape Three Points field was impacting negatively on public finances.
It noted that the agreement, which entered into operation in October 2018, required Ghana to make monthly payments equivalent to 0.7 per cent of gross domestic product (GDP) annually.
With the 2018 GDP reported at GH¢300.59 billion, it means that the agreement cost the country about GH¢2.1 billion last year alone.
Fiscal Risk Statement
The fund noted that the taking over of the distribution network of ECG by Power Distribution Services (PDS), a private consortium, the streamlining of VRA through asset sales and the establishment of a single SOE as oversight agency “will help reduce SOE-related fiscal risks over the medium term”.
“The publication of the first Fiscal Risk Statement (by the Ministry of Finance in March) will help remind policy makers and citizens of existing fiscal risks and inform investors and other stakeholders about the steps the government is taking to address them,” it added.
New agency
The fund said the government had taken promising steps to increase monitoring, “including via the soon-to-be-established oversight entity, the State Interest and Governance Authority (SIGA).
“Much more needs to be done, though, starting with actions under the World Bank’s forthcoming budget support operation.
“Proper cost recovery for electricity tariffs is also needed,” it said.
In December 2018, the GRAPHIC BUSINESS found that the ECG suffered a net loss of GH¢1.15 billion as of June that year.
The losses were largely due to foreign exchange losses, resulting from the cedi depreciation, lower tariffs and strong growth in inefficiencies.
The half-year loss was more than double the loss the company posted in the whole of 2017.
In 2017, ECG recorded a loss of GH¢521.95 million – the highest since 2014, according to its statement of comprehensive income for the period ending June 30, 2018.
electricity SOEs – the electricity distributor, ECG2; the transmission company, GRIDCo; and the power supplier, VRA – have generated a negative average return on equity since 2014.
“A supplier to the ECG can expect to wait over a year, on average, to get paid.
“Simultaneously, the time it takes ECG to collect from its customers has increased to over 200 days,” it said.
It explained that the situation was not limited to the energy sector but extended to the gas sub-sector, where an off-take agreement for gas supply from the Offshore Cape Three Points field was impacting negatively on public finances.
It noted that the agreement, which entered into operation in October 2018, required Ghana to make monthly payments equivalent to 0.7 per cent of gross domestic product (GDP) annually.
With the 2018 GDP reported at GH¢300.59 billion, it means that the agreement cost the country about GH¢2.1 billion last year alone.
Source: Graphic.com.gh
Ghanaian Delegation Tours Halliburton, USA
A Ghanaian delegation to the Offshore Technology Conference in Houston, Texas, USA, has visited Halliburton, a Houston-based oil and gas services provider to familiarise themselves with the operations of the company.
The delegation, led by the Deputy Minister for Energy in-charge of Infrastructure and Finance, Joseph Cudjoe, was taken through presentations about the company’s operations by officials of the company.
Founded in 1919, Halliburton celebrates its 100 years of service as one of the world’s largest providers of products and services to the energy industry.
It employs about 60,000 workers from about 140 nationalities in more than 80 countries.
The company helps its customers maximise value throughout the lifecycle of the reservoir-from locating hydrocarbons and managing geological data to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset.
Currently, Halliburton has established a branch in Ghana, and has Joint Venture Partnership with BBS Engineering Limited and providing all the engineering works for ENI,Tullow Oil PLC, Siapem, MODEC and Aker Energy.
In a brief remarks, Joseph Cudjoe charged the authorities of Halliburton to ensure that Ghanaians were properly integrated into the activities of the company.
Senior Area Manager in-charge of Halliburton Africa Operations, Mr. Bharath Kannan indicated that the company is committed to increasing training in technology transfer to about 10 percent for Ghanaians under their employment.
CEO of Petroleum Commission Egbert Faibille Jnr urged the company to adhere to the laws regulating Ghana’s upstream sector.
We’ll Announce New Utility Tariffs In June – PURC
The Public Utilities Regulatory Commission (PURC) has said it will announce the next utility tariff adjustment in June to be implemented in July.
The PURC after taking tariff proposals from power companies such as the Northern Electricity Distribution Company (NEDCo), the Electricity Company of Ghana (ECG) and the Ghana Grid Company (GRIDCo) at a public hearing on tariff adjustment on January 14, announced that new tariffs for 2019 was to take effect from February 1.
However, according to PURC, the announcement was delayed due to the takeover of Power Distribution Services (PDS) from the ECG.
Speaking to an Accra based FM station, Head of Public Relations at PURC, Bawah Munkaila said an accurate tariff adjustment can only be determined after enough data has been gathered from the new service provider.
“We will be coming out with the next tariffs which will be effective from the 1st July. However we are announcing the tariffs within the month of June because of the takeover by PDS. We are observing some emerging trends and the takeover by PDS and are inculcating it as a condition so that after they start operating, we will be able to take the revenue requirement that is needed by PDS and all that will be inculcated in the tariff. We decided to hold on and give it another quarter to be able to give tariffs that will stand the test of time.”
The PURC had earlier on indicated that electricity tariffs will remain unchanged till July 1, 2019.
The PURC, in a statement, said changes in electricity tariffs, which is expected to take effect on July 1, 2019, will be announced in due course.
The PURC had said the decision to maintain tariffs was due to “critical emerging issues in the sector which are expected to affect the final tariff setting.”
Energy Minister Woos Ghanaians In Diaspora
Ghana’s Minister for Energy has called on Ghanaians in the diaspora to form partnership to invest in the country’s nascent oil and gas sector.
According to Mr John-Peter Amewu, there are a lot of opportunities in both the upstream and downstream sectors of the country, saying Ghanaian investors should take advantage of these and make investments.
“Come and invest in the petroleum sector of Ghana. The Government of Ghana needs you to help develop the country to where we all aspire it to be as a people. I assure you there is room for everyone,” he said.
John-Peter Amewu made the call when he addressed members of the Ghana-Houston Chamber of Commerce (GHCC) at a reception, under the theme: ‘Strengthening Diaspora Participation In Ghana’s Oil And Gas Sector’ at Chateau Crystalle in Houston, Texas, USA.
Upstream Sector
He drew the attention of Ghanaians in the diaspora to the provisions of the Local Content and Participation Regulations, LI, 2204, which requires at least 5% equity participation of an Indigenous Ghanaian Company (IGC) in each Petroleum Agreement in Ghana.
He said, until an IGC is part of a Petroleum Agreement, the PA would never be ratified.
The Local Content Regulation also empowers the Minister for Energy to waive or allow an IGC acquire less than 5% equity participation in a Petroleum Agreement.
“I encourage you to take advantage of these provisions of the Local Content Regulations (L.I. 2204) to participate in oil and gas exploration and production in Ghana,” he said.
He assured them that Ghana’s sedimentary basins are de-risked and highly prospective, saying, “Our motherland is politically stable and we have some of the best fiscal and regulatory regimes in the world.
“The maritime boundary dispute with our western neighbour has been resolved. Apart from the oil price, even that is also increasing, nothing should scare you from contributing to petroleum exploration and production in Ghana, if you have the wherewithal. Even if you don’t have the wherewithal as an individual, form partnerships and you will be surprised by what you can do together.”
Downstream Sector
Touching on the opportunities in in the downstream, Mr Amewu said government intends to develop a petroleum hub in the country and this, he said, would require refining and processing facilities, port discharge, storage, distribution and transportation facilities, as well as trading petroleum products in Ghana for the West African sub-regional markets to accelerate the growth of the downstream sub-sector.
“There are also farm-in opportunities in some existing licences, and the Petroleum Commission will be on standby to link you with the companies holding such licences. In the case of farm-ins, equity is acquired according to one’s strength.
“Our LPG promotion policy also encourages the use of LPG across the country, which requires the establishment of optimally-sized and professionally operated major LPG refill plants across the country and the expansion of LPG storage and distribution infrastructure to all parts of the country,” he added.
The Minister noted that the downstream local content policy reserves all the opportunities regarding LPG access across the country for Indigenous Ghanaian Companies.
He commended the leadership of the Ghana-Houston Chamber of Commerce for organising the programme.
In an interview with energynewsafrica.com, the Chairman of Ghana-Houston Chamber of Commerce, Mr Henry Ansah, said: “Our membership is not only for oil and gas: we are in all sectors and oil and gas is only one piece our members are involved in. But those who are involved or willing to know more about the oil and gas sector, this partnership will give them that opportunity.
“We have a lot of students here (Houston) who are in the engineering sector and we hope that they will be able to conduct them through what is available in Ghana, so that when they finish school, they will not think of what is only available here (Houston), but have two options-either to work here in the US or repatriate to Ghana.”
He said going forward, the GHCC would to deepen its collaboration with the Ministry of Energy because “it will help us know the recognised and strategic nature that the chamber here can help in working with them.
“I know the theme for this year is: ‘Increasing The Diaspora Participation In Oil And Gas’. I know a lot of people want to go to Ghana but they lack the information on the various sectors. We will provide them with the relevant information, educate them on what they need to know so that they invest right,” he concluded.
Israel Shut Down Its Only Natural Gas Field Amid Rocket Fire From Gaza
Israel’s Energy Minister Yuval Steinitz ordered on Sunday that the country’s only operating natural gas field, the offshore Tamar field, be closed as a precaution after violence between militants in the Gaza Strip and Israel flared up at the end of last week.
The natural gas from the Tamar field is being pumped by a subsea pipeline from a rig which is within the range of some the hundreds of rockets fired from the Gaza Strip at Israel over the past few days.
The temporary closure of the Tamar field put Israel’s energy supply into an emergency mode, as power plants need to use alternatives to the natural gas they receive from the field to keep operating, according to The Times of Israel. The power plants will be burning diesel, coal, and liquefied natural gas (LNG) from a ship anchored in Israel’s north.
The emergency energy situation was initially expected to last a week, The Times of Israel reported on Sunday, citing Hebrew-language business daily The Marker.
The latest flare-up between Israel and militants in the Gaza Strip saw some of the worst fighting in years, according to The Wall Street Journal. More than 600 rockets were fired from the Gaza Strip to Israel, which in turn responded with strikes on military targets in the Gaza Strip.
Lives were lost on both sides, including civilians, at the peak of the fighting on Sunday.
Early on Monday, Palestinian militants said that they had agreed a ceasefire with Israel, after a weekend of heightened hostilities which killed at least four Israelis and 25 Palestinians.
Israel’s energy ministry said on Monday that the Tamar gas field would resume operations after the ceasefire was agreed, and that energy minister Steinitz had instructed Noble Energy, the Texas-based operator of the field, to prepare to restart pumping natural gas.
Source: Oilprice.com