Oil Workers At Libya’s Largest Field Want Salary Hikes

Oil workers at Sharara, the largest field in Libya which has recently re-opened after a three-month hiatus, have demanded a salary increase of 67 percent as they try to return oil production at the site to its normal 315,000-bpd production rate, Reuters reported on Monday, citing a video that the workers have posted.

The government decided to raise the salaries by 67 percent back in 2013, but the raise never materialized, while Sharara continues to suffer from frequent closures due to armed groups occupying it.

According to Reuters, workers at two other oil fields in Libya are also demanding a salary increase by two thirds.

Libya’s internationally recognized National Oil Corporation (NOC) supports the salary hike demands, saying that oil workers continue to work under extremely difficult circumstances, adding that it was disappointing that a salary increase has not been included in Libyan government’s budget for this year.

In early March, the Sharara oil field returned to operations after being closed for production in December, when clashes between militant groups forced NOC to institute a force majeure.

Sharara has been one of the main reasons the North African country is widely seen as a wild card in global oil price forecasts.

Since it accounts for around a third of the country’s total oil output, Sharara, like the export terminals in the Oil Crescent, has become a natural target for various groups vying for power and control over Libya’s oil wealth.

As of last week, Libya’s oil production was 1.2 billion pbd according to Tripoli-based finance minister Faraj Bomtar, and a further increase is expected in the coming days.

Sharara was said to be pumping 270,000 bpd as of March 19.

While rising production at Sharara could boost Libyan oil production and revenues, security issues and frequent outages at the field and at other Libyan facilities and ports make market observers and OPEC cautious about predicting supply from the country.

Source: Oilprice.com

Next Maritime Dispute-Egypt/Sudan

Another maritime boundary dispute in Africa could be getting started as Sudan’s Foreign Ministry summoned Egypt’s ambassador to Khartoum, Hossam Issa, over Egypt offering oil and gas exploration blocks “in Red Sea areas subject to Sudanese sovereignty.”

Just recently Egypt’s South Valley Egyptian Petroleum Holding Co. or Ganope, offered up 10 oil and gas exploration blocks in the Red Sea for sale through a tender, with bids due to close on August 1. Sudan claims that at least some of those blocks are in its waters and urges oil and gas companies against submitting bids on them.

The Halayeb triangle, which is controlled by Egypt, has been claimed by Sudan since the 1950s. Cairo says it is Egyptian territory and it has long been a source of contention between the two neighbors.

Foreign Ministry Undersecretary Badreddin Abdullah expressed Sudan’s protest at the offer and called on Egypt “not to proceed in this direction that contradicts the legal status of the Halayeb triangle,” the Ministry said in a statement.

On March 20, Saad al-Deen Hussein al-Bishri, Minister of State at Khartoum’s Ministry of Oil, said that offering four of the 10 blocks and other unnamed ones “within Sudanese lands in the Halayeb area … are considered a direct intrusion into the authorities of the Sudanese Oil and Gas Ministry in granting licenses for oil and gas exploration in that area.”

A report by SUNA, Sudan’s state-news agency, cited al Bishiri as saying “It is considered an illegal operation that carries legal consequences which will be borne by the entities carrying out this operation.”

Sudan’s Foreign Ministry “warns companies operating in the field of oil and gas exploration against submitting any bids in the mentioned area”, it said in the statement. Sudan “renews the invitation extended to brotherly Egypt to use peaceful means to end this border dispute.” Source: petroleumafrica.com

Tanzania LNG Talks to Begin in April

Tanzania’s Energy Ministry says that talks with foreign operators on the development of its planned LNG facility should conclude in September. Talks are expected to begin early next month.

Construction of an LNG export terminal near huge offshore natural gas discoveries in Tanzania’s deepwater arena have been delayed by regulatory issues for a few years.

“The government has officially decided to begin talks in early April for construction of the LNG project,” Tanzania’s energy ministry said in a statement. “We are keen to implement this key project for the economy and we plan to … conclude the talks in September this year.”

The talks are aimed at negotiating a host government agreement, which is seen as a crucial step towards reaching a FID for the project.

The decision to push talks forward was reached following a meeting on March 22 between the African country’s energy minister, Medard Kalemani, and Mette Ottøy, a senior VP at Equinor.

Equinor, alongside Royal Dutch Shell, Exxon Mobil and Ophir Energy, plan to build a $30 billion onshore LNG plant.

Enel buys GE renewable energy assets to boost capacity

General Electric has sold approximately 650MW of renewable energy projects to Italian power giant, Enel.
The assets which have a market value of $900 million, was sold for a comparatively lower $256 million, the company said in a statement. The sale comprises seven projects belonging to joint-venture partners Enel Green Power North America Renewable Energy Partners (EGPNA REP) and General Electric Capital’s Energy Financial Services. The projects involved include assets in Utah, Kansas, Nevada and North Dakota. A small solar facility generating 2.4MW in Vermont was also included in the deal. Enel says the deal will help its consolidated renewable energy capacity in the US as per its strategy. According to Reuters, General Electric was looking to sell its stake in the joint venture to help pay off its $121 billion debt, as of the end of 2018.EGPNA REP could be worth more than $1 billion, sans debt, excluding debt, Reuters said. The EGPNA REP sale means that approximately 1.1 gigawatts of hydroelectric and wind assets are left in the joint venture, as per Enel. If half of this is still owned by General Electric, further disposals may be on the cards. Source:esi-africa.com

Tower Vandalism: Energy Minister suspects sabotage

Energy Minister, John-Peter Amewu Energy Minister John-Peter Amewu believes the vandalism on the Volta Smelter Transmission tower at the Ghana Grid Company Limited (GRIDCo) may be politically motivated. He said it could be a deliberate attempt to sabotaging government’s efforts of ensuring that there is uninterrupted supply of power to Ghanaians. He described the act as barbaric, uncivilised, unpatriotic and undemocratic on the part of those who did that. Mr Amewu made these remarks when he visited the GRIDCo’s transmission site to inspect the extent of damage of the high tension pylons near the company’s Head Office in Tema. Officials of Ghana Grid Company Limited discovered that one of the pylons near the head office, which transmitted power from Karpower and AKSA to the national grid, had been hacked down. The unfortunate incident is believed to have been carried out in the wee hours of Monday, 25th March, 2019. The Minister noted that some corrosive chemicals had been detected around most of the towers along the lines with the intension of destroying them in future. “It baffles my mind how human beings can do this to our motherland. We can’t be subjecting our own country to this treason. We are working hard just because we want to leave a Ghana that is better for everybody to pride in, so I don’t expect us to be witnessing things of this nature,” he stated. He cautioned persons behind the barbaric act, be it political party members or persons who simply do not want the best for this country and for that matter the government, to get ready to face the full rigors of the law for the unforgivable act. According to him, the police and National Security are investigating the act of lawlessness to ensure that the culprits are brought to book. The Energy Minister assured Ghanaians that the technical team is working to ensure that the impact of the destruction on power supply is minimised. Chief Executive Officer for GRIDCO, Jonathan Amoako-Baah said management would intensify security measures at the site to prevent recurrence of the barbaric acts.

Osagyefo Barge suicide police officer didn’t steal

The police in the Western Region have denied reports that the officer who committed suicide was part of the four persons being investigated for theft at the Osagyefo Power Barge at Efassu near Half-Assini. Marine Police officer Sergeant Fuseini Mohammed was on duty at the Barge Sunday with one other when he allegedly shot himself dead with his AK47 riffle. This was after he sent his colleague to buy him a razor blade. A handwritten note found on him read: “I cannot face this disgrace about something I know nothing about”. The note had three numbers, including that of his wife. Reports emerged Monday that the deceased was one of the four persons recently accused of stealing cables, fridges and other valuables from the Barge, but the Police say that cannot be accurate. Western Regional Police Public Relations officer, DSP Olivia Ewurabena Adiku, said they have not yet established what caused Sgt Mohammed to take his life as she ruled out reports that he was being investigated for theft. “Those who were involved [in the theft] are currently on interdiction,” she said, noting that “he [Sgt Mohammed] is not part of those who were involved in that stealing at the Osagye Barge”. She grounded her statement on the fact that once an officer is interdicted, “you hand over all your police accoutrement; you don’t go to work because we are investigating your case and sometimes the idea is that when you’re post you might interfere with investigations” DSP Adiku said if Sgt Mohammed was a part of the officers in the theft case, which is now before the Attorney General’s officer, he would not have been assigned to go on duty on Sunday. “As at now we don’t really know what made him take his life. Police is investigating that aspect,” she said. Meanwhile, she said the body has been deposited at the Police Hospital for autopsy to be conducted. The 125 MW Osagyefo barge is a mounted gas turbine electric power generating station located at Effasu in the Western Region of Ghana. The 77 metre long barge is designed to burn either natural gas or diesel fuel. Source: 3news.com

Tower Vandalism: CID gathers evidence for investigation

Investigators from the Criminal Investigation Department (CID) of the Ghana Police Service have visited the scene where one of GRIDCo’s transmission towers in Tema has been hacked down, to gather evidence. The evidence they picked included a hacksaw the suspects left behind. The incident, which is believed to have occurred around 1am resulted in power interruptions in Greater Accra and Ashanti Region. According to GRIDCo, the damaged tower transmitted power from Karpower, VRA plants and AKSA to the national grid. The incident happened Monday dawn and officials of the Ghana Grid Company discovered it when they reported to work. The incident is likely to affect power supply in most areas in and around Tema. CEO of GRIDCo, Jonathan Amoako-Baah, who confirmed the incident to this portal, said they are shocked as to why someone could do that to the country. He wondered whether those who did that did it so that there would be power outages for the public to talk about it. Mr Amoako-Baah, who expressed worry about the incident, however, said they are reviewing the situation to determine the impact of power supply.

Electrification of vehicles is crucial to fuel economy

A new study has found that electrification of light-duty vehicles (LDVs) is going to be crucial to ensure that fuel economy can be effectively improved, especially if diesel shares keep falling. The global average fuel consumption of newly registered LDVs reached 7.2 litres of gasoline-equivalent per 100 kilometres (Lge/100 km) in 2017 within an LDV market where sales have grown by around 10% between 2015 and 2017. This is according to a report issued by the International Energy Agency (IEA), which builds on a series of Global Fuel Economy Initiative (GFEI) working papers investigating the fuel economy of newly registered LDVs across the world from 2005 to 2017. The GFEI is a partnership of the IEA, United Nations Environment Programme, International Transport Forum of the OECD, International Council on Clean Transportation, Institute for Transportation Studies at University of California Davis, and the FIA Foundation. The results are tracked relative to established GFEI targets, which are an intermediate target of 30% improvement of new LDV fuel economy, weighted globally, by 2020, and 50% by 2030. Read more: Who will win the eco-transportation race?
Electrification of vehicles
Electrified vehicles are already contributing positively to improve the country-weighted average fuel consumption by up to 3.5%. Japan experienced the largest gains due having to the largest market share globally for hybrids, followed by the United States with a mix of electrified vehicle types (HEV, BEV, and PHEV). Electrification in China was also very relevant to improve the average fuel economy, thanks to a fast-growing market share for BEVs and PHEVs. Countries that currently have high average fuel consumption values (which typically go hand-in-hand with high shares of large and heavy vehicles) can benefit the most from electrification since electrified vehicle efficiency is less dependent on size and weight.
Policy recommendations
Meeting the 2030 GFEI target at the global level requires a widespread adoption of regulatory policies setting requirements for the improvement of fuel economies over time, combined with fiscal instruments to stimulate consumer demand for the vehicle technologies that offer the best performance. Long-term commitments are important to ensure that the investments necessary to deploy electrification technologies, which are crucial to meeting the GFEI targets in a phase where consumers are losing confidence in diesel, can take place. Tightening the rules governing the measurement of fuel consumption during tests, combined with measures capable of safeguarding on-road compliance, are essential to ensure that all stakeholders take effective action to meet the policy goals.

Energy players call for renewable finance restructure

“Meeting the universal electricity access objective within the next decade will require the roll-out of off-grid and mini-grid solutions at scale,” said Daniel Schroth, acting director of renewable energy & energy efficiency at the African Development Bank. Schroth was speaking at the recent Energy Access Investment Forum, which took place from mid-March in Abidjan, Cote d’Ivoire. Energy industry stakeholders that attend the forum have called for a restructuring of the financing mechanisms enabling the development of off-grid and mini-grid connectivity in Africa. The event had support from the Alliance for Rural Electrification, GET. invest (formerly the Africa-EU Renewable Energy Cooperation Programme), the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEEE) and UNIDO. Despite Africa’s significant energy resources endowments, over 500 million people on the continent are still without access to electricity. “This forum is certainly an opportunity for investors, project developers and other stakeholders to learn more about upcoming support schemes, innovative products and new business models to accelerate rural electrification and advance the market for decentralised renewable energies,” said Marcus Wiemann, executive director of ARE and the 2019 conference chair. Meanwhile, Mahama Kappiah, executive director of ECREEE, said that lack of adequate project management in Africa’s energy sector is a major drawback to private investments. “The money is not the problem. The way projects in the energy sector are prepared for financing is the problem…we need to address the institutional and regulatory issues in the energy sector so that Africa can attract more private investments,” said Kappiah. Joao Cunha, manager of the renewable energy initiatives division at the AfDB highlighted that the bank has been a strong supporter of Africa’s energy sector. “It’s a top priority…we can see that the sector is evolving as decentralised energy systems are fast expanding with the proliferation of off-grid technologies…so, de-risking investment upfront is key to attracting more investment.”

Breaking News: GRIDCo’s Transmission Tower in Tema hacked down

The vandalised tower Reports reaching energynewsafrica.com has it that one of the pylons near the Head office of Ghana Grid Company (GRIDCo), which is transmitting power from Karpower and AKSA to the national grid, has been hacked down. The incident happened Monday dawn and officials of the Ghana Grid Company discovered it when they reported to work. The incident is likely to affect power supply in most areas in and around Tema. CEO of GRIDCo, Jonathan Amoako-Baah, who confirmed the incident to this portal, said they are shocked as to why someone could do that to the country. He wondered whether those who did that did it so that there would be power outages for the public to talk about it. Mr Amoako-Baah, who expressed worry about the situation, however, said they are reviewing the situation to determine the impact of power supply. Items retrieved from the scene included a hacksaw. Director for Systems Control at GRIDCo Mark Baah is stunned about the incident, said: “A human being deliberately cut it. It’s unbelievable. I haven’t seen anything like this.”

Marine police officer shoots himself at Osagyefo Power Barge

The deceased A Marine Police officer has reportedly shot himself dead at Osagyefo Power Barge at Efassu near Half-Assini in the Western Region. The police officer whose name is not immediately known, is said to have left a note before taking his own life. “I can’t take this disgrace, something I don’t know anything about”, the note read. The note, according to sources, contain the contact of his ‘wife’ and other two phone numbers. The cause of his death is not immediately known, but it is believed to be linked to a case in which four police officers have been interdicted for stealing cables, fridges and other valuables from the Osagyefo Power Barge. The Osagyefo Barge is a 125 MW barge-mounted gas turbine electric power generating station located at Effasu in the Western Region of Ghana. The 77m long barge is equipped with a pair of single-cycle heavy-duty gas turbine units built by Ansaldo that have a combined generating capacity of 125 MW. It is designed to burn either natural gas or diesel fuel. The 125 MW power barge was ordered by the Ghanaian government in 1995 with financial assistance from the Overseas Economic Cooperation Fund of Japan. It was intended to generate electricity from natural gas obtained from offshore production fields. The project development called for 450 MW of combined cycle power barges to belated in a man-made lagoon. The barge was built in Italy at Navalmare Yard, completed in 1999, and delivered to Ghana in October 2002. It was then moored at the Sekondi Naval Base in Sekondi until 2005, when it was moved to Effasu after the completion of dredging necessary to allow it to enter the harbour there.

Venezuela National Assembly Votes For Ban On Oil Shipments to Cuba

The opposition-led National Assembly of Venezuela this week voted to suspend crude oil shipments to Cuba after its president, Juan Guaido, slammed these exports as “funding dark purposes” in a tweet from Sunday. The Economist Intelligence Unit reports that Guaido’s proposal was voted for unanimously and took immediate effect. However, it remains to be seen whether it will take actual effect as the Maduro government still seems to be in charge of PDVSA, the troubled national oil company. Last week, Guaido tweeted that Venezuela was sending around 47,000 bpd of crude to Cuba and these were worth US$2.58 million that would be better used at home. “Venezuela needs more than ever to leverage its resources, rather than fund dark purposes. For years, Cuba’s interference was allowed, justifying with an ideological brotherhood that was nothing more than giving away our oil,” the self-declared interim president of Venezuela said when Venezuela was struck by a large-scale power outage. Venezuela is Cuba’s largest oil supplier under a barter deal sealed by the late leaders of the two countries, Hugo Chavez and Fidel Castro. The deal envisaged Cuba getting regular shipments of crude in exchange for its highly trained doctors and other professionals to work in Venezuela. At one point during this partnership, Cuba was receiving more than 100,000 bpd of Venezuelan crude, an analysis by Oliver Pieper for Deutsche Welle said. Now, however, this is probably down by a half as Venezuela struggles to keep its fields producing. Even so, Venezuelan crude is an important part of Cuba’s energy mix and its elimination from this mix would almost certainly lead to power outages for Cuba as well. According to the Economist Intelligence Unit, Guaido’s National Assembly cannot stop Venezuelan shipments of crude to Cuba unless the U.S., which was quick to recognize the opposition leader as the legitimate leader of Venezuela, imposed more sanctions, targeting shipping and insurance companies involved in Venezuela crude oil exports to the island.

Baru Reveals Algeria Pipeline Plans

Nigeria is considering taking its planned northern corridor gas supply pipeline further north. Nigeria National Petroleum Company (NNPC), the state-run oil and gas firm, plans to amend its pipeline plans to extend it into Algeria.

Maikanti Baru, head of NNPC, told members of PETAN that in furtherance of NNPC’s African integration drive, it was considering extending the ongoing Ajaokuta-Kaduna-Kano (AKK) gas pipeline system across the Sahara to Algeria. NNPC indicated more than six months ago that it was working with a Chinese consortium to finalize the term sheet for financing of the 614-km, AKK pipeline project estimated to cost $2.8 billion.

Baru also revealed that the government plans to extend the WAGP to Morocco, reaffirming the government’s plan to the WAGP to Morocco, and commended PETAN for its contribution to the development of the Nigerian petroleum industry.

The NNPC chief confirmed the company was making progress in its search for oil in the northern part of the country, adding that the Kolmani River-II well, which spud last month, has recorded a drilling progress of 6,700 ft. According to a statement, Baru made the disclosures when he received an award from executives of the Petroleum Technology Association of Nigeria (PETAN). The statement signed by NNPC’s Group General Manager, Group Public Affairs, Ndu Ughamadu, quoted Baru as saying that the target of the corporation for the Kolmani River drill was 14,200 ft, even as he added that the depth could be longer, depending on findings

Zuma says nuclear could’ve solved load shedding

South Africa’s former President Mr. Jacob Zuma, whose administration has been blamed for the power outages his country is experiencing, has said the power crisis could have been averted if only the country had built nuclear reactors. In an interview with Business Day on Friday, Zuma said the costly nuclear build programme he supported during his presidency could have “solved our problems, once and for all”. Zuma, who resigned as president in mid-February 2018, said the Russians would have been the most trustworthy country to carry out the project, because of their support in the struggle against apartheid. Proposals to build a second nuclear power station, with an estimated cost to the economy of around R1trn, were criticised as unaffordable during Zuma’s term. The DA Public Enterprises spokesperson, Natasha Mazzone, said on Friday that a nuclear build would be an “impossibility” given the current state of the economy. “Our country is in a much worse economic position that we were a few years ago, we simply cannot afford nuclear. Instead, we need to diversify our energy mix by bringing renewable energy to the grid,” said Mazzone. Zuma’s spokesperson Vukile Mathabela did not immediately reply to a request for comment on Friday. ‘If we went for nuclear’ The president, however, told Business Day he is convinced nuclear is the right way to go. “We are going to pay trillions of rand because of the problems of energy….but if we went for nuclear, we will be out of spending trillions for a shorter amount of time and we’ll make more trillions,” he told the newspaper. South Africans has been experiencing rolling blackouts for the past week as Eskom grapples with a shortage of available capacity. According to Eskom, the shortages have been caused by a lack of diesel supplies, scheduled and unscheduled outages at generation units, and the devastating effect of a cyclone that hit Mozambique on transmission lines. “The fact of the matter is nuclear could solve our problems, once and for all.” “Now we are in deep [trouble], we are therefore increasing the debt of the country with no hope to bring it down. That is the problem,” said Zuma. A High Court in 2017 halted the country’s nuclear ambition, ruling that the procurement processes was unlawful, following an application by environmental activists. The court quashed the government’s attempts to secure 9.6 GW of nuclear power, including the initial determination to procure nuclear energy in 2013, the cooperation agreements signed with Russia, the US and South Korea, as well as former energy minister Tina Joemat-Pettersson’s decision to hand over the procurement of nuclear energy to Eskom in 2016. “Russia carried the biggest load in supporting us. So we cannot, when we are now free, forget about people who were our friends at the time of need,” Zuma told Business Day. While nuclear still forms part of SA’s energy mix, there are currently no plans to move forward with procuring new nuclear-powered reactors. In July 2018, at a BRICS meeting in Johannesburg, President Cyril Ramaphosa told Russian President Vladimir Putin that South Africa could not afford new nuclear reactors.