Nigeria: Dangote Refinery To Be Operationalised In 4Q 2020
The Dangote refinery is not expected to come onstream until the end of 2020 due to issues with the importation of steel and other equipment, according to executives at the company in a Reuters report.
The 650,000 bpd Dangote refinery will make a significant contribution to aiding Nigeria in addressing its refined petroleum products problem and the need to spend a big piece of its budget on importing fuel.
A Dangote executive said the company could start using the refinery’s tank farms as a depot to warm up operations.
“We will be able to complete the (refinery) project by the end of next year – mechanical completion,” Devakumar Edwin, Group Executive Director of Dangote said.
Ghana: KARPOWERSHIP Shuts Down In Preparation For Relocation
Karpowership Ghana Company Limited, one of the independent power producers in the West African nation, Ghana, has announced that its 470MW Karadeniz Powership Osman Khan in Tema will be off the grid on Tuesday, August 13, 2019.
This is in preparation for the relocation of the powership to the Western Region.
A statement issued by the Communication Department of the company said: “The Powership will depart from the Tema Fishing Harbour on Thursday, August 15 and would berth at its new location within the Sekondi Naval Base on Friday, August 16.
“In the light of the relocation, the Powership would be off the national grid for a maximum period of 17 days to enable us carry out various pre-commissioning works to successfully connect to the 330kV transmission lines in Sekondi,” the statement said.
The relocation is in line with government’s strategic policy for the Powership to utilise natural gas from the Western Enclave.
This would save the government millions of dollars annually.
“Karpowership would keep all its stakeholders informed on further updates about the project,” the statement concluded.
It is not clear whether the shutdown would lead to power outages.
Meanwhile, power transmission company, Ghana Grid Company (GRIDCo), is expected to issue a statement to this effect.
Source: energynewsafrica.com
Guyana: Tullow Makes First Oil Discovery On Orinduik License Offshore
Tullow Oil has made an oil discovery at its Jethro-1 exploration well, drilled on the Orinduik license offshore Guyana.
The Jethro-1 was spud in early July, using the Stena Forth drillship. It was drilled to a Total Depth of 4,400 meters in approximately 1,350 meters of water.
Tullow said on Monday that evaluation of logging data confirms that Jethro-1 is the first discovery on the Orinduik license and comprises high quality oil bearing sandstone reservoirs of Lower Tertiary age.
The well encountered 55m of net oil pay which supports a recoverable oil resource estimate which exceeds Tullow’s pre-drill forecast. Tullow will now evaluate the data from the Jethro discovery and determine appropriate appraisal activity.
According to Tullow, this discovery significantly de-risks other Tertiary age prospects on the Orinduik license, including the shallower Upper Tertiary Joe prospect which will start drilling later this month following the conclusion of operations at the Jethro-1 well.
The non-operated Carapa 1 well will be drilled, later this year, on the adjacent Kanuku license to test the Cretaceous oil play.
Tullow is the operator of the Orinduik block with a 60% stake. Total holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc.
Commenting on the discovery, Chief Executive Office of Tullow Oil, Paul McDade said: “This substantial and high value oil discovery in Guyana is an outcome of the significant technical and commercial focus which has underpinned the reset of our exploration portfolio. It is an excellent start to our drilling campaign in the highly prolific Guyana oil province. We look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign and the material follow-up exploration potential in both the Orinduik and Kanuku licenses.”
In a separate statement on Monday Eco Atlantic said that Jethro-1 is a significant oil discovery.
Colin Kinley, COO and Co-Founder of Eco Atlantic, said: “Jethro is a fantastic find for us. This discovery was made due to our team at Eco and Kinley Exploration stepping out beyond the conventional exploration plays and seeking new resources through old-fashioned exploration science.
“The Jethro-1 well confirms the continuance of the petroleum system onto the Orinduik Block, up dip from the prolific discoveries on the Exxon-operated Stabroek Block. The well has resulted in a mitigation of risk of the presence of quality reservoir sands, seal and trap parameters. We have multiple drilling targets on the block with similar geophysical characteristics and we are moving the Stena Forth drillship immediately to its next target, Joe-1. The Joe-1 location is just a short move to a shallower target, and is expected to spud mid-August.
“The Orinduik Block, and the corner of the block where Jethro is located, were selected and pinned for drilling long before the first Exxon discovery.”
Gil Holzman, CEO and Co-Founder of Eco Atlantic stated: “This is a transformational event for the Company, and we now need to strategically plan for an even brighter future. With multiple targets to consider, and Joe as the next prospect to be drilled, we will now pursue our evaluation of the timing for wells to develop the Jethro field and to expediently bring it on production. We are funded for at least six additional wells.
The non-operated Carapa 1 well will be drilled, later this year, on the adjacent Kanuku license to test the Cretaceous oil play.
Tullow is the operator of the Orinduik block with a 60% stake. Total holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc.
Commenting on the discovery, Chief Executive Office of Tullow Oil, Paul McDade said: “This substantial and high value oil discovery in Guyana is an outcome of the significant technical and commercial focus which has underpinned the reset of our exploration portfolio. It is an excellent start to our drilling campaign in the highly prolific Guyana oil province. We look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign and the material follow-up exploration potential in both the Orinduik and Kanuku licenses.”
In a separate statement on Monday Eco Atlantic said that Jethro-1 is a significant oil discovery.
Colin Kinley, COO and Co-Founder of Eco Atlantic, said: “Jethro is a fantastic find for us. This discovery was made due to our team at Eco and Kinley Exploration stepping out beyond the conventional exploration plays and seeking new resources through old-fashioned exploration science.
“The Jethro-1 well confirms the continuance of the petroleum system onto the Orinduik Block, up dip from the prolific discoveries on the Exxon-operated Stabroek Block. The well has resulted in a mitigation of risk of the presence of quality reservoir sands, seal and trap parameters. We have multiple drilling targets on the block with similar geophysical characteristics and we are moving the Stena Forth drillship immediately to its next target, Joe-1. The Joe-1 location is just a short move to a shallower target, and is expected to spud mid-August.
“The Orinduik Block, and the corner of the block where Jethro is located, were selected and pinned for drilling long before the first Exxon discovery.”
Gil Holzman, CEO and Co-Founder of Eco Atlantic stated: “This is a transformational event for the Company, and we now need to strategically plan for an even brighter future. With multiple targets to consider, and Joe as the next prospect to be drilled, we will now pursue our evaluation of the timing for wells to develop the Jethro field and to expediently bring it on production. We are funded for at least six additional wells. Egypt: IFC, MIGA Ink Deal For 252MW Wind Farm
IFC and MIGA, members of the World Bank Group have signed an agreement to support the development of a 252MW wind farm by Lekela in Egypt’s Red Sea governorate.
In a statement, the IFC noted that it will provide $84 million in financing while MIGA will offer $122 million in financial guarantees, helping to bolster the production of clean energy, lower generation costs, and diversify the country’s energy mix.
The wind farm, West Bakr Wind, located in the Gulf of Suez, is expected to produce over 1,000 gigawatt-hours per year, at a tariff well below the average cost of generation in Egypt.
The project is set to power more than 350,000 homes and avoid more than 550,000 tonnes of carbon dioxide emissions annually.
It is part of the government’s Build, Own, Operate framework and a key pillar of targets to generate 20% of electricity from renewable energy sources by 2022, reducing Egypt’s reliance on natural gas.
“The West Bakr Wind project will play an important role in supporting the diversification of Egypt’s generation capacity by delivering a best-in-class and competitively priced clean power in the country,” Chris Antonopoulos, CEO of Lekela said.
Antonopoulos added: “As our first project in Egypt, we see a great opportunity with wind here, and we look forward to working in the country for years to come.”
The IFC’s contribution, in the form of much needed US-dollar-based long-term financing, includes a loan of up to $26 million and $58 million from IFC’s innovative syndications platform, the Managed Co-Lending Portfolio Programme.
MIGA is providing guarantees of up to $122 million to help Lekela manage non-commercial risk. IFC and MIGA are also providing key environmental and social guidance to safeguard an important migratory bird flyway.
The project highlights the World Bank Group’s strategy in Egypt to help the government meet its renewable energy targets, and free up natural gas resources for export to generate foreign exchange.
“We are committed to supporting the government’s programme in Egypt and boosting the production of clean, wind-generated electricity,” Walid Labadi, IFC Country Manager in Egypt, Libya, and Yemen said.
“The Lekela wind farm will help lower the average cost of electricity generation in Egypt and boost private sector participation in this key sector, while sending a strong signal to the market about our commitment to the country’s renewable energy programme,” Labadi said.
In addition, the project supports private sector development and financing in a key sector, building on the World Bank Group’s success with the landmark Benban Solar Park in promoting well-structured, bankable projects.
“We are delighted to continue working with investors, such as Lekela, who have deep expertise and a long-term commitment to developing renewable solutions in Africa,” said Sarvesh Suri, Director for Operations in MIGA. “This project will deliver reliable, clean energy to hundreds of thousands of domestic consumers.”
The IFC and MIGA’s engagements complement the World Bank Development Policy Financing programme, a new $1 billion programme signed in December 2018 to support the second generation of Egypt’s reform programme, which will focus on developing the private sector while enabling inclusive growth.
Source: IFC/MIGA/energynewsafrica.com
South Africa: Eskom To Resume Work On Failed Transformers
South African power utility Eskom has announced they are ready to resume with operations to replace failed transformers in Ivory Park, Johannesburg.
The assets’ failure is due to illegal connections and meter bypasses, which resulted in network overloading.
Eskom met with Ivory Park councillors, officials from the City of Joburg and the taxi association on Thursday, 1 August 2019 in an effort to enable Eskom technicians to work safely in the area.
However, the meeting collapsed as there was no agreement reached on the process to engage the community.
“We would like to urge the community of Ivory Park to collaborate with Eskom to adequately deal with this matter by allowing us access to the area so that we can conduct audits, remove illegal connections, disconnect bypassed meters and issue fines for the contraventions. The intention for the preceding activities is to avoid the repeat of damage to the equipment and electricity network,” Motlhabane Ramashi, Eskom’s operations and maintenance senior manager in the Gauteng Operating Unit said.
According to the utility, it has a schedule and a plan in place that outlines how and when the replacements of failed equipment will be executed.
The parastatal said in a statement that the process is consistent with its operations, which applies throughout Eskom Gauteng and will not be deviated from.
The utility said that it is not in a position to continuously replace failed mini-substations and pole-mounted transformers in areas where the residents are not paying for their electricity.
Non-payment of electricity does not only impact on the security of supply for paying customers but also contributes to increased energy and revenue losses coupled with increased operational costs.
This is not sustainable and not in line with Eskom’s revenue management practices. The non-payment further frustrates efforts to improve on Eskom’s financial and operational objectives.
The community of Ivory Park, surrounding areas, and others in similar conditions in Gauteng are urged to collaborate with Eskom to ensure supply is restored and paid for.
“Eskom employee safety will take priority at all times and the community can assist by submitting a written commitment to Eskom guaranteeing its staff safety and non-interference while they perform their work,” concluded Ramashi.
Source:esi-africa.com/energynewsafrica.com
Aker Energy To Announce Competitive Bidding For Drilling And Well Contracts In September
Norwegian oil and gas firm Aker Energy, operator of the Deepwater Tano Cape Three Point (DWT/CTP) Block offshore of the Western Region of the Republic of Ghana is set to open tender for well drilling contracts in September 2019.
“Latest by September, we will issue expression of interest and then award the contracts beginning of next year,” Edward Owusu-Manu, who is the Supply Chain Manager at Aker Energy, disclosed this to energynewsafrica.com.
He added that after the issuance of the Expression of Interest, the company would then go through certain internal and external approvals including approval from petroleum commission in line with the Petroleum (Local Content and Local Participation) Regulations 2013 LI 2204.
Meanwhile, Aker Energy has held a seminar to build the capacity of local suppliers that the firm would deal with during its production activities offshore.
According to Edward Owusu-Manu, the conference had become necessary to acquaint prospective suppliers of the company with operational requirement.
“We are trying to go to the market for drilling and well services contracts, so we find it important that we actually engage instead of just sending emails to our suppliers,” he said.
“It is important that we start looking at the strategy especially for drilling and wells. So, this is to prepare our suppliers in anticipation of the drilling that will start sometime next year,” he added.
He said Aker Energy would comply with local content regulations of the country.
This follows concerns on local content participation raised by some suppliers at the event.
“We are aware that with this new development, there might be new companies that might want to come into the industry and it is a requirement by the local legislation for every international company to partner; link up with any local company and then form joint ventures to be able to provide that service,” Mr Owusu-Manu stressed.
Some of the issues discussed bordered on Technical and/or upcoming opportunities, Procurement processes, Quality, Health, Safety, Security and Environment (QHSSE) in the company’s, procurement process, Taxes (Reimbursement, Cash Refund and Withholding Taxes), among others.
The conference saw about 200 participants, both local and international.
Aker Energy has assured its prospective suppliers of fairness in its tender process.
Currently, Aker Energy is awaiting approval of its Plan of Development (POD) from the government to commence drilling operations on its allocated oil block offshore by 2020.
Source: energynewsafrica.com
Nigeria: Profile Of PowerAfrica Conference Speakers
With barely a week for the West African country, Nigeria, to host this year’s PowerAfrica Conference in Abuja, energynewsafrica.com brings you the profile of some of the speakers billed for the four days’ conference.
This year’s Power Africa Conference, which is the 6th edition, is expected to bring together academics, professionals and other stakeholders to review the state of power and energy challenges in Africa and proffer sustainable solutions.
The theme for the conference is: ‘Power Economics and Energy Innovations in Africa’.
Sreekumar Nhalur Sree is keen to use his professional skills towards making Energy a catalyst for sustainable development. He joined Prayas (Energy Group) in 2000 after working in the industry for 14 years in ‘IT applications to power’.
He works to improve electricity service to the poor and democratize sector governance. This is through policy analysis, regulatory interventions and capacity building of civil society groups.
He also devotes some time to the Hyderabad section of the Institute of Electrical & Electronics Engineers; Knowledge In Civil Society, a trust involved in strengthening knowledge commons in Science & Technology and Ananda Bharathi, a school for under-privileged girls.
Education: Bachelor degree in Electrical Engineering from IIT- Bombay, 1984 Masters Degree in Power Systems Engineering from IIT-Kharagpur, 1988
James R. (Jim) White (Moderator) James R. (Jim) White has been the training director of Shermco Industries, Inc., in Irving, Texas since 2001. He is a certified electrical safety compliance professional (CESCP) through the NFPA and one of approximately 130 Level IV senior certified technicians through NETA.
A principal member for Shermco Industries on the NFPA Technical Committee “Recommended Practice for Electrical Equipment Maintenance” (NFPA 70B), he represents the National Electrical Testing Association (NETA) and is also an alternate member of NFPA Technical Committee “Standard for Electrical Safety in the Workplace” (NFPA 70E), a principal representative of NEC Code Making Panel CMP-13, and principal representative of ASTM F18 Committee “Electrical Protective Equipment For Workers.”
White is a senior member of IEEE and past chairman (2008) of the IEEE Electrical Safety Workshop. In 2011, he received the IEEE/PCIC “Electrical Safety Excellence” award, and in 2013 he was honored with NETA’s “Outstanding Achievement Award.”
John Nelson John Nelson, Founder and Senior Consultant, started NEI in 1982 and continues to dedicate his life to the company he created. John has an extensive engineering background and possesses a wealth of instrumental knowledge. He is an IEEE Life Fellow, the highest honor bestowed upon an engineer.
Also, John has authored dozens of technical papers on topics such as protection, arc-flash, grounding, and safety. To this day, John spends a majority of his time on-site and in the field rather than at his desk.
This gives him knowledge and perspective on power systems that is unparalleled in the industry. John received his Master of Science in Electrical Engineering from the University of Colorado Boulder in 1975
Daleep C. Mohla Daleep C. Mohla’s dedication to developing safer equipment and promoting safety standards has helped reduce the number of electrical-related accidents in the workplace over the past 25 years.
With experience designing and constructing the electrical infrastructure of petrochemical facilities while with Union Carbide from 1976 to 2001, Mohla employed his “safety by design” concepts, examining each infrastructure design aspect to maximize safety, resulting in many innovations. To spread his safety concepts, Mohla became very involved in the standards field, assisting in creating new standards and modifying existing ones.
During the 1990s, Mohla served as chair of the Electrical Functional Team of the Process Industry Practices group, convincing industrial entities to share electrical safety designs.
Mohla continues to contribute his expertise to the standards process today, serving multiple IEEE Standards Association Working Groups related to petrochemical industry safety and arc flash hazard analysis and recommended practices to improve electrical safety.
An IEEE Fellow, Mohla is currently a principal consultant with DCM Electrical Consulting Services, Inc. in Missouri City, Texas.
Ghana: The Future Of The Petroleum Downstream Industry Under Hassan Tampuli
The influence of a regulatory authority’s work over an industry like the petroleum downstream may not be as apparent, as perceived by the general Ghanaian public.
Nonetheless, as the regulator for the downstream petroleum industry, the National Petroleum Authority (NPA) has over the past few years been embarking on strategic initiatives that are designed to efficiently bring relevance to all industry players, while emphasizing compliance to the Authority’s standards and criteria, for operating within the downstream industry.
Safety is deliberately a constant feature in all of the Authority’s campaigns, as it endeavors to deliver maximum satisfaction to the Ghanaian consumer, as well as various stakeholders within the sector.
At the 3rd Ghana International Petroleum Conference (GHIPCON), the Chief Executive of NPA, Mr Alhassan Tampuli revealed that the sector has “contributed over GHS86 billion to Ghana’s GDP representing an average of about 8% per annum in the period 2013 to 2018”.
This is testament to the downstream petroleum industry’s significance to Ghana’s economy. The growth in consumption of “15% from 3.4million Mt in 2017 to 3.9 million Mt in 2018”, according to Mr Tampuli, makes safety a key feature in regulation.
With the petroleum downstream consisting of everything from fuel refinery to delivery to the final consumer, safe storage and transportation of products is crucial. Hence, the NPA’s Safety Campaign, which was launched in 2017.
Recent occurrences reveal this campaign’s importance, and the need to laud NPA for the initiative’s successes.
At least 50 people died, and 101 sustained severe injuries when a petrol tanker exploded in Benue, Nigeria.
Despite the lives lost and injuries caused, the damages extend beyond the accident. This confirms the potential hazard posed by Bulk Road Vehicles (BRVs).
Adherence to safety measures would have prevented this accident. But simple statements of concern aren’t enough to ensure safety.
The causes, are interrelated in a conspicuous chain of events. Media reports suggest siphoning of fuel by villagers, who live around where the BRV toppled over due to poor state of the road as the cause. But the driver’s negligence, or the BRV’s poor condition may have been the cause.
Therefore, much as the NPA and industry players are working with Roads and Highways Department to make roads motorable, the NPA is not relenting on its efforts.
To curb such occurrences, the Authority under Mr Tampuli is taking proactive measures, including; licensing of BRVs, rigorous inspection of BRVs, pre loading inspection of BRVs, training of BRV drivers, and installation of tracking devices on BRVs.
In line with NPA Act, Act 691, 2005, BRVs that fully meet licensing requirements are licensed prior to approval to load petroleum products from licensed depots. A total number of 3,468 BRVs have been licensed. But BRVs still operate illegally, causing the NPA to collaborate with the security agencies to prevent illegal operations.
Also, BRV inspection companies, with DVLA licensing have been licensed by the Authority to inspect BRVs, before they are licensed biannually.
Again, loading depots are authorized to inspect all BRVs before loading, to ensure that they have authorization and are safe to load, before allowing them to load petroleum products.
In line with the Road Traffic Regulations 2012, L.I 2180, the NPA collaborates with the DVLA and Road Safety Limited to develop modules for training and certification of BRV drivers in defensive driving and safe handling of petroleum products.
These trainings help to prevent accidents and crimes like the diesel tanker driver and his mate, who set a tanker on fire in the Eastern Region. They emptied and sold its 54,000 litre diesel load worth GHC280, 260. This theft would have cost the BRV owner so much without tracking of the BRV.
The NPA installs tracking systems on BRVs for independent monitoring to confirm delivery of petroleum products, from loading depots to various discharging points nationwide.
Current installation of,1000 more digital tracking devices to augment what exists will further restrict the criminals like the tanker driver and his mate, diverted diesel meant for Yendi, and sold the entire load before setting the BRV ablaze.
Through these strict measures, the USD12million losses recorded annually by the Unified Petroleum Price Fund (UPPF) will be prevented, and efforts increased to ensure effective and efficient distribution of fuel nationwide.
The NPA’s task is great. But under Mr Tampuli’s leadership, and staff efforts at the NPA, though daunting, the challenge posed by the expected growth of the industry is surmountable, and requires collaboration from all stakeholders.
Source: Ijahra Musah Larry
Tanzania: 61 People Killed In A Fuel Tanker Explosion
At least 61 people have been killed and 70 injured when a fuel tanker exploded on a busy road in Tanzania, government spokesperson Hassan Abbas said.
The vehicle overturned on the road in Morogoro, 175 kilometers (109 miles) west of Dar es Salaam, according to Kebwe Stephene, the regional commissioner of Morogoro.
An eyewitness said the truck was going at speed and was trying to avoid a motorcyclist on the main road near Msamvu bus station. The driver appeared to lose control and the truck overturned.
The bus station serves as a major hub for passengers traveling to other parts of Tanzania and is a popular spot for boda-bodas, motorbike taxis common in the region.
Stephene said the crash attracted a large crowd. When someone noticed the truck’s cargo was leaking, many rushed to get buckets and containers to collect the fuel.
According to eyewitnesses, there were more than 150 people at the scene when the truck exploded around 20 minutes after the accident.
“We just heard an explosion and then the motorbikes were falling all over the place, we were running around,” said Hamza Jones, one of the witnesses. “I fell down there because everyone was trying to run and so they were pushing each other,” he added
Photographs of the incident show large flames and thick black smoke rising from the wreckage and dozens of motorbikes scattered around.
Abbas said authorities believe many of the dead are people who were trying to collect the fuel from the truck.
The explosion happened around 8:30 a.m. local time (1:30 a.m. ET). Abbas said the rescue operations finished by 3 p.m. local time. The scene was cordoned off and all bodies were removed from the scene into a local hospital for identification, he said.
Those injured in the blast were treated at the government-run Morogoro Referral Hospital, Abbas added.
The road connecting Morogoro with Dar es Salaam, the country’s most populous city and former capital, is one of Tanzania’s key throughways, used to transport imports and exports to and from the coast.
Source: cnn/energynewsafrica.com
According to eyewitnesses, there were more than 150 people at the scene when the truck exploded around 20 minutes after the accident.
“We just heard an explosion and then the motorbikes were falling all over the place, we were running around,” said Hamza Jones, one of the witnesses. “I fell down there because everyone was trying to run and so they were pushing each other,” he added
Photographs of the incident show large flames and thick black smoke rising from the wreckage and dozens of motorbikes scattered around.
Abbas said authorities believe many of the dead are people who were trying to collect the fuel from the truck.
The explosion happened around 8:30 a.m. local time (1:30 a.m. ET). Abbas said the rescue operations finished by 3 p.m. local time. The scene was cordoned off and all bodies were removed from the scene into a local hospital for identification, he said.
Those injured in the blast were treated at the government-run Morogoro Referral Hospital, Abbas added.
The road connecting Morogoro with Dar es Salaam, the country’s most populous city and former capital, is one of Tanzania’s key throughways, used to transport imports and exports to and from the coast.
Source: cnn/energynewsafrica.com Nigeria: Mele Kyari Urges NLNG Management To Look Beyond Train-7FID
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has urged the Management of the Nigerian Liquefied Natural Gas (NLNG) to set their gaze beyond the execution of the much awaited Final Investment Decision on Train-7 billed for October, 2019.
Welcoming the top-level NLNG Management team, led by its Managing Director, Engr. Tony Attah, to the NNPC Towers on, Kyari charged the company to consider the October Train-7 FID on the project as a done deal, noting that the focus should be on “what else can we do beyond Train7 to expand NLNG operations’’.
The 8Million-Tones Per Annum (MTPA) Train -7 project is designed to expand the company’s production capacity from 22- 30MTPA.
The NNPC GMD assured of the unflinching commitment of the Federal Government and the NNPC Management in the future expansion drive of NLNG, saying all obstacles that could impede the actualization of the Train-7 FID project should be promptly identified and removed ahead of the October 2019 timeline.
Engr. Attah, in his presentation, applauded the historic role of the NNPC in the successful midwife of NLNG, 30 years ago, through sheer vision and sense of purpose.
The NLNG MD said the company would be relying on the usual invaluable support from the corporation to achieve the successful execution of the Train-7 FID project and lots more.
He announced that the project would generate a projected 12,000 jobs with massive spine-offs on the nation’s economy.
Ghana: OMCs Cited In Auditor General’s Report Are Not Defaulters- AOMCs
The Association of Oil Marketing Companies in the Republic of Ghana has explained that some of its members who were cited in the 2016-2017 Auditor’s Report as having defaulted in their tax obligations have fulfilled “these obligations honourably.”
The Association, thus, sees no reason the media should feast on the report and make it look as if its members were wrongdoers.
Media reports suggested that the Auditor General’s report has cited OMCs such as GOIL, Radiance Energy, Star Oil and others for defaulting in taxes and levies due to the state.
But a statement signed by Kwaku Agyeman-Duah, who is the Industry Coordinator and Chairman of the Association of Oil Marketing Companies, offered clarification.
Below is the full statement
Our attention has been drawn to some media discussions on a section of the above report, implicating some OMCs/LPGMCs in the non/delayed payment in petroleum taxes and levies in respect of November 2016 to November 2017.
We would like to clarify as follows;
Most of the OMCs/LPGMCs mentioned in the report therein have fulfilled these obligations honourably. The few others have either had their indebtedness rescheduled or reconciled appropriately.
Some of the purported debts were as a result of liftings which were tax exempt, but have since been appropriately reconciled and declared. Audit queries per such indebtedness have been duly addressed and OMCs/LPGMCs have been cleared from list of defaulters.
It is pertinent to note that the nature of tax payments usually results in some form of arrears from month to month on Ghana Revenue Authority (GRA) books, due to when petroleum products were lifted and when the 21 + 4 days payment window starts and ends.
The period under review (November 2016 – November 2017), witnessed unprecedented spate of the illegal fuel smuggling which culminated in the delay or non-payment of taxes, a result of low sales at retail outlets due to stock turnover from fourteen (14) days to forty-five (45) days on the average.
It is noteworthy that we are obliged to pay the taxes whether products are sold or not, hence OMCs/LPGMCs resort to borrowing from banks at high interest rates to settle such taxes, reducing their financial strength especially so, when bulk consumers like unpaid contractors are amongst the defaulters. Nevertheless, it is in this vein that we are clamouring for a “Pay As You Sell” (PAYS) policy, where OMCs/LPGMCs pay taxes on volumes of products sold, not just on the volumes lifted within a window.
Further, there currently exist the Electronic Record & Document Management Systems (ERDMS) which makes it impossible for OMCs/LPGMCs owing taxes, no matter how little, to continue lifting petroleum products.
Finally, we would like to reiterate the commitment of over one hundred and thirty (130) OMCs/LPGMCs (who routinely pay their taxes), to continue working closely with the major stakeholders to ensure maximum revenue generation for government and entrench our position as responsible corporate citizens.
Kwaku Agyemang-Duah
Industry Coordinator
Source: www.energynewsafrica.com
PDS Saga: Donewell Backs Gov’t’s Decision To Investigate Deal
Donewell Insurance Company Limited (DICL), an indigenous Ghanaian insurance company at the centre of the botched Power Distribution Services (PDS) concession agreement, has welcomed government’s decision to investigate the deal.
The company in a statement said, all appropriate processes were followed throughout its handling of the deal and accused Qatar-based Al-Koot Insurance and Reinsurance Company of deceit.
Government of Ghana about two weeks ago suspended the concession agreement Electricity Company of Ghana signed with the Power Distribution Services Ghana Limited over what it described as the ‘fundamental and material’ breaches of the agreement.
PDS worked with Donewell Insurance to finance the deal. They then engaged Jordanian based broker JoAustralia Reinsurance Brokers who were tasked with the job of finally making the required payments to secure the final demand guarantees from Al Koot.
But Al Koot on July 16, 2019, through its Chief Officer General Insurance, Mr Osman Hag Musa, wrote to ECG alerting them about a situation of fraud in which the initial guarantee submitted was allegedly forged by an employee of the company who lacks the authority to issue such a guarantee.
Donewell explains in the statement that a key component of the agreement was to find an ‘A’ rated Standard & Poor’s company to reinsure the Guarantee and DICL’s brokers, JoAustralia Reinsurance Brokers secured a cover from Al Koot in accordance with international best practices.
Prior to the payment of premium to its Broker, DICL said it sought the requisite approvals from its Regulator to allow for the payment of premium for the reinsurance of the Guarantees, which was duly made to the Broker through a Swift Payment to complete the process on March 21, 2019.
The company, in view of this, “expresses its deepest shock at and disagreement with the allegations made by Al Koot in its letter dated July 16, 2019.”
The statement added: “It is important to note that in an email dated July 22, 2017 sent by Yahya Ali Al Nouri, the Reinsurance Manager of Al Koot, in which Osman Hassan Hag Musa, the author of the July 16, 2019 letter was copied, Mr Al Nouri is designated as a signatory to the technical documents of Al Koot. On February 26, 2019, Al Koot made a request to JoAustralia to arrange a full retrocession of its share/portion of the risk/guarantee; which request was acceded to by JoAustralia.
“On April 16, 2019, JoAustralia sent a credit note to Al Koot notifying the latter that in accordance with the mutual agreement between the two companies, JoAustralia had credited Al Koot’s holding( Client) Account as per a credit note dated 16th April,2019,” the statement.
In the circumstances, DICL as a responsible corporate citizen welcomes the decision of the Government of Ghana to investigate the allegations of fraud related to this transaction, the statement added.
Source: myjoyonline.com/www.energynewsafrica.com
Source: myjoyonline.com/www.energynewsafrica.com Texas A&M, Petrochemical Companies Partner To Train Emergency Responders
In a new approach to help protect their facilities and the citizens who live nearby, several petrochemical companies are partnering with the Texas A&M Engineering Extension Service (TEEX) to provide emergency response training to the agencies surrounding their plants to protect community safety.
Though incidents are rare at the nation’s petrochemical plants, when a fire occurs as it did at the Intercontinental Terminals Company in Deer Park earlier this year, the company and the community rely on mutual aid help from other nearby companies they have agreements with. However, when the plant in trouble is isolated with no other companies located close enough to help respond, they have to rely on local first responders to assist in extinguishing the blaze and protecting the community.
Some petrochemical plants are located in small or rural communities where the local volunteer fire department or municipal fire department may not have the funding to send their firefighters to the specialized training needed to fight these kinds of fires, said John Burge, who directs the industrial firefighting program at TEEX’s Emergency Services Training Institute (ESTI).
Valero, ExxonMobil Pipeline Co. and LyondellBasell are among the companies that have recently established training grants and partnered with TEEX to provide hands-on fire and hazardous materials training to firefighters from communities that surround their plants in the Houston area, across Texas and the Midwest. The training grants cover the costs for the firefighters to attend specialized training courses at the 296-acre Brayton Fire Training Field in College Station, Texas, which is one of the largest live-fire training facilities in the world.
The specialized TEEX course, “Industrial Emergencies for Municipal Based Responders,” or IEMBR, was requested by LyondellBasell for firefighters that serve communities around their facilities.
“Safety is embedded in our company culture and our staff often trains with local first responders to improve preparedness,” said Dale Friedrichs, LyondellBasell vice president, Health, Safety and Environment. “Texas A&M offers exceptional training which broadens the skills of firefighters. We understand the funding challenges that some municipalities face, and we’re honored to support those who put their lives on the line every day.”
“Funding from Valero allowed us to train approximately 60 firefighters from across the Midwest in the proper techniques for extinguishing ethanol fires,” Burge said. “These firefighters from communities surrounding Valero plants will take those skills back home and share their new knowledge with fellow firefighters where they will be better prepared to respond to emergencies and help protect their community and the Valero assets. This is good for both the community and the facility.”
The firefighters who come to Brayton Fire Training Field for training get hands-on experience fighting actual fires on large, full-scale props simulating industrial plants, storage tanks, pipe racks, process units, rail car loading terminals, hazmat chemical leaks and crude by rail fires. “Lectures only go so far,” Burge says. “Until they actually fight these fires, the lessons can be difficult to learn; but once they ‘look the devil in the eyes,’ they won’t forget.”
For ExxonMobil, TEEX is providing 16 hours of training for up to 150 firefighters in HazMat liquid pipeline and industrial fire emergencies.
Malaysia: Barakah Takes Petronas To Court Over Licence Suspension
Malaysian offshore services provider, Barakah Offshore Petroleum has sued compatriot Petronas for RM 1.02 billion ($243.7 million).
Barakah said earlier this week in a filing with Bursa Malaysia that its wholly-owned unit PBJV had issued a notice of demand and dispute on August 5 to both Petronas and Petronas Carigali after the company’s license was suspended by Petronas for three years.
Namely, the three-year suspension, issued on July 8, was based on the grounds of adverse reports of PBJV’s performance under a contract for provision of underwater services for Petronas Carigali.
Barakah added that this suspension was issued after the completion of the contract. In response to the suspension, PBJV issued a notice to dispute the validity of the suspension.
The company said that the contract was successfully carried out and completed prior to the suspension. Also, Barakah stated that “upon completion of the contract, the positive appraisal was subsequently given by Petronas Carigali hence making the suspension unwarranted.”
With the license suspended, PBJV is unable to undertake or bid for new contracts from Petronas but it is still allowed to continue and complete its existing and on-going contracts with Petronas.
According to the offshore service provider, the amount of RM1.02 billion was based on the loss of future profits, reputation, and shares’ market price.
It is worth noting that Petronas and Petronas Carigali were given 14 days to comply with the demand.
Source: offshoreenergytoday.com