Ghana, Burkina Faso, others to benefit from World Bank’s $200m funding to boost power supply
The Board of the World Bank Group has approved the Regional Off-Grid Electrification Project (ROGEP) for Ghana and 18 other countries to increase electricity access of households.
The project includes $150 million in the form of credit and grant from the International Development Association (IDA) and $74.7 million contingent recovery grant from the Clean Technology Fund to help the West African Development Bank and ECOWAS’ Center for Renewable Energy and Energy Efficiency expand off-grid access to electricity for populations in 19 countries in West Africa and the Sahel region.
The countries include Benin, Burkina Faso, Cape Verde, Cameroon, Central African Republic, Chad, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo.
The overall objective of ROGEP is to increase electricity access of households, businesses, and public institutions using modern stand-alone solar systems through a harmonized regional approach. The project is expected to benefit about 1.7 million people currently living without electricity connection or with unreliable supply, as well as businesses and public institutions who will use modern stand-alone solar systems to improve their living standards and economic activities.
“So far, only 3 percent of households in West Africa and the Sahel are served by stand-alone solar home systems, and 208 million people in the sub-region do not have access to electricity. The project seeks to assist regional policy makers to address barriers to create a regional market for stand-alone solar systems, which is essential to reduce energy poverty in the region, and entrepreneurs to take opportunities in this market through development of scalable business solutions,” said Rachid Benmessaoud, Coordinating Director for Regional Integration in West Africa.
“The new project will help adopt regional standards and regulations to establish a regional market with harmonized policies that will attract larger market players for the benefit of all participating countries.”
Although stand-alone solar systems have a large market potential in West Africa and the Sahel, investments in off-grid renewable energy have lagged behind in the sub-region. The new project maximizes finance for development by crowding in private investments to deploy innovative technologies. By developing a regional market, it will help better address the important growth in demand for reliable electricity and will help create jobs.
The new project is aligned with the World Bank Group’s twin goals of poverty reduction and shared prosperity and the Africa Climate Business Plan. Furthermore, it will implement a pilot to test business models to electrify schools and health clinics critical for the Human Capital Project in West Africa.
Thirteen Western Region towns to experience four days’ power outage
Residents of Shama Ituma, Daboase, Essaman, Supom Dunkwa, Sekyere Krobo, Aboso, Beposo, Anlo Beach,and other surrounding areas in the Western Region who want to enjoy electricity from the national grid should rather make alternative arrangements to have power supply between 8am and 4pm from Saturday, 27th April to Tuesday, 30th April, 2019.
This is because the Ghana Grid Company (GRIDCo) had requested the Power Distribution Services (PDS) to curtail power to the aforementioned towns to enable it continue with the construction of the Aboadze-Prestea-Kumasi 330kV Transmission Line.
Contained in a release, PDS expressed regret of any inconvenience that would arise as a result of the power outage.
Poor Electricity Supply Affecting Our Operations-GWCL Boss
Poor supply of electricity is seriously affecting the operations of the Ghana Water Company Limited (GWCL), the Managing Director of the company has said.
According to Dr. Clifford Abdallah Braimah, the situation might compel GWCL to cut off partnership with its power supply partners.
He said the company had sought to develop alternative sources of generating power to ensure stable supply of electricity to its water treatment plants across the country to ensure frequent distribution of water to consumers.
He said due to the poor supply of electricity from PDS, GRIDCo, Northern Electricity Distribution Company (NEDCo) amongst others, the company had commissioned feasibility study for the construction of Hydro Electric Power systems at Mampong, Weija, Barekese and the results were very positive.
Dr Braimah made this known on Tuesday when he visited one of the company’s water treatment plants at Dalun in the Kumbungu District in the northern region, as part of his visit to assess the activities of the company.
He said reports on the feasibility study would soon be sent to government for approval in order to kick start the Hydro Electric Power system projects.
Dr Braimah said the company would soon bring some technocrats from Czech Republic to assess and plant a horizontal turbine system in Dalun to help generate electricity to support GWCL activities in the northern region.
He said poor electricity supply from PDS had damaged some of the company’s machines at various water treatment plants citing the recent damage of some Auto-transfomers at Dalun, which interrupted regular water supply to consumers.
He said the water treatment plant at Dalun for over 16 hours on Monday had not been able to supply water to its customers due to lack of electricity which affected the company’s activities and its consumers greatly.
” NEDCo, the electricity supply line that is supposed to give us enough power, has connected a lot of communities to that line resulting in the low distribution of water to Tamale and its surroundings” he said.
Mr Braimah also expressed regret on the irresponsible sand winning activities carried out along the river beds of the White Volta at Nawuni, the company’s source of raw water intake for the Dalun water treatment plant, leading to its contamination.
He said these irresponsible activities would lead to higher cost in water treatment as well as increase in water tariffs and therefore called on the traditional authorities and stakeholders within the area to help stop the sand winning activities.
He advised consumers not to always be quick to blame GWCL whenever there was interruption in water supply since most times it’s not the company’s fault and assured that the company would continue to do its best to serve its customers.
Exxon Inks Large LNG Deal Despite China/US Trade Row
Exxon has inked a contract with Chinese Zhejiang Energy for the supply of 1 million tons of liquefied natural gas annually, the supermajor said, adding the Chinese company will build a new import terminal for the shipments.
Reuters reports that the terminal Zhejiang Energy will build will have a capacity to hold 3 million tons of LNG with a US$1.34 billion price tag. Sinopec, China’s largest refiner, will be partner of Zhejiang in the project.
The deal is significant first because it may go a certain way towards quenching concern that the trade dispute between Washington and Beijing would affect LNG trade just as China’s demand for the superchilled fuel is rising steadily.
However, as one analyst told Reuters, the deal is not part of the bilateral negotiations that have recently raised hopes that the trade war saga could end in a mutually beneficial deal.
“The gas supplies to the Zhejiang firm will come from Exxon’s portfolio production outside the U.S.,” Chen Zhu said, adding that the terminal will begin operations sometime in 2022 or 2023. The analyst noted that Exxon already has two LNG supply deals with Chinese companies, and not just any companies: the supermajor will supply LNG to Sinopec and CNPC.
Secondly, it is a long-term deal—20 years—which is even better news for other U.S. companies betting on LNG: long-term supply commitments are what they all need to secure the funding needed for the construction of the liquefaction facilities, which normally cost billions of dollars.
Exxon is one of the largest global players in liquefied natural gas, holding stakes in LNG projects that combined have a total capacity of some 65 million tons of the fuel annually. This includes the Papua New Guinea LNG project where Exxon is the majority partner and which specifically targets the Asian market—the driver of future global LNG demand.
Source: Oilprice.com
Putin Loses Popularity As He Raises Taxes And Rewards Oil Companies
Mock headstones for President Vladimir Putin are the latest signal that Russian citizens are unhappy with this year’s tax hikes, according to Meduza,, with Putin’s polling numbers taking a hit.
The tax hikes, however, are offset somewhat by Russia calling on its oil companies to hold fuel prices steady to insulate its people from the high price of fuels.
But in addition to the tax hikes, the government has also agreed to pay the oil companies back for doing so—compensating them for 60 percent of the difference between European fuel prices and Russian fuel prices.
Of course, lower fuel prices are usually welcomed by the masses, but to make this happen, Russia is unleashing $8 billion from its sovereign wealth fund and giving it to the oil companies—oil companies that have enjoyed a rather flush year. And it is this part of the arrangement that has stoked controversy in the country.
Russia’s sovereign wealth fund, which currently sits at almost $60 billion according to Reuters, was funded largely on the backs of these oil companies; a fiscal rule requires that Russian oil revenues stemming from anything above $40 per barrel be stashed in this wealth fund. But it was also designed to insulate the country from geopolitical turmoil and economically hard times that may arise in future years, for future generations.
The interesting turn of events that created the need to hold fuel prices steady stemmed largely from higher oil prices in the last year—higher oil prices that Russia is partially responsible for as it continues to cooperate with OPEC to curtail production.
The production cuts, however, did little to tarnish the bottom line of the Russian oil giants. Rosneft’s 2018 full year revenue was up 37 percent. Lukoil’s revenue was up over 35 percent.
Ghana: We need more indigenous companies participation in the Oil & Gas Industry – Ntow Danso
The Chief Executive Officer of Dansworld International Services Limited (DISL), an indigenous Ghanaian company, Bernard Ntow Danso has reiterated the call for more indigenous companies to participate in Ghana’s Oil and Gas Industry.
“The Oil and Gas industry needs more local participation in every aspect of it,” he stated.
He argued that the sector is making waves and it is time more indigenous Ghanaian companies enter the industry to ensure the oil money stays within the Ghanaian Economy to support Government’s grand agenda of promoting indigenous Ghanaian businesses.
To qualify as a Ghanaian/indigenous company, the company must have at least 51% of its equity owned by a Ghanaian with 80% executive and senior management positions and 100% non-management and other positions occupied by Ghanaians.
Mr. Ntow Danso made the call when his company received registration permit from the Petroleum Commission to undertake General Consultancy Services and Sanitation services within the petroleum sector.
The registration permit will enable Dansworld to undertake Environmental Management Services like cleaning services, fumigation, Hazardous & Non-Hazardous waste management, and landscaping & garden maintenance services in both the upstream and downstream petroleum sector.
The permit is in line with Ghana’s Petroleum (Local Content and Local Participation) REGULATIONS 2013, (L.I 2204) which allows Ghanaian/indigenous company, to have at least 51% of job opportunities in the oil and gas sector.
Pledging Dansworld’s commitment to quality services for customers in Ghana and beyond, he added that, “The Company has recently undertaken the requirements for ISO certification and should have the full certification by August 2019, as we seek to expand our quality services to other countries”.
DSIL is an Environmental Services Provider with a track record of excellence, having worked in various sectors of the Ghanaian economy and offers the best there is in general cleaning and waste management services across various districts of Ghana.
The company is geared up to contribute towards government’s overall agenda in the petroleum sector by providing excellent cleaning services.
Kenya: Tatu City development completes its first solar installation
As part of a 30MW strategy for Tatu City real estate developer Rendeavour has installed its first solar power plant in Kenya.
Tatu City is a 5,000-acre mixed-use development with homes, schools, offices, a shopping district, medical clinics, nature areas, a sport and entertainment complex, and a manufacturing area for more than 150,000 residents.
The city’s first solar power plant – installed on the roof of Dormans Coffee’s global headquarters at Tatu Industrial Park – provides 1MW of electricity.
Installation of the entire plant, including 15km of cables, took only six days to complete. The installation is in line with Rendeavour’s long-term commitment to environmental conservation through harnessing renewable energy sources.
According to the developer, schools and businesses are already open at Tatu City, and a range of houses are under construction to suit all incomes.
Located in Kiambu County, Tatu City represents a new way of living and thinking for all Kenyans, creating a unique live, work and play environment that is free from traffic congestion and long-distance commuting.
“Tatu City’s strategy is to install solar panels on all rooftops at the industrial park, the largest in East Africa,” said Nick Langford, Kenya Country Head for Rendeavour, Tatu City’s owner and developer.
“Solar power allows us to contribute to clean energy, which is one of the United Nations Sustainable Development Goals,” Langford said.
“The power produced from the solar panels will be distributed for use by homes and businesses within the city. We are proud of this milestone and pleased to know that residents will enjoy sustained power supply at very minimal costs.”
Tatu Industrial Park is zoned for light, non-polluting industries. Leading international, regional and local companies are positioning their business at Tatu City for growth in East Africa and beyond. They include Dormans Coffee, Kim-Fay, Unilever, Coopers K-Brands, Chandaria Industries, Freight Forwarder Kenya, Stecol, and Tianlong.
Backed by CDC Group and International Finance Corporation, Africa Logistics Properties at Tatu Industrial Park is the largest Grade A warehousing in Kenya. The development is expected to attract tens of thousands of day visitors.
Source: Esi-Africa.com
Ghana: Former Petroleum Commission Boss, Theophilus Ahwireng appointed MD of MODEC
A former Acting Chief Executive Officer for Petroleum Commission Mr Theophilus Ahwireng has been appointed as the new Managing Director of MODEC Production Services Ghana JV Limited (MPSG).
His appointment is effective today,April 23, 2019.
Theophilus Ahwireng is a seasoned technical and business leader with three decades of experience in the Upstream Oil and Gas industry as well as the extractive industry.
Until his recent appointment, Theophilus was Technical Advisor to the Ministry of Energy on issues relating to the Upstream Petroleum sub-sector under the Ghana Oil and Gas Inclusive Growth (GOGIG), a DFID funded programme.
Prior to that, he was the acting CEO of Petroleum Commission, Ghana between 2013 and 2017.
He also worked for Ghana National Petroleum Corporation (GNPC) in a variety of roles for over twenty years.
Theophilus Ahwireng was also the Leader of the Interim Management Committee credited with the successful turnaround of Prestea Sankofa Gold Limited into a profitable company between 2006 and 2008.
“Having a leader of Theophilus Ahwireng’s calibre will propel our business aspirations and we are very pleased to welcome him to the organisation,” said Koji Kawabe, Vice President of MPSG.
Commenting on his appointment Theophilus Ahwireng said, “MODEC is contributing effectively to Ghana’s petroleum production and power supply and its contribution is significant. As I join the company, I look forward to working with the team to deliver even better results for the company and all its stakeholders.”
About MODEC Production Services Ghana JV Limited
MODEC Production Services Ghana JV Limited is the operator of two FPSOs on behalf of Tullow Ghana Limited namely, FPSO Kwame Nkrumah for Jubilee fields and FPSO Prof. John Evans Atta Mills, for TEN fields.
The company is a subsidiary of MODEC Inc., a leading specialist and provider of competitive floating solutions for the offshore oil and gas industry such as Floating Production, Storage and Offloading (FPSO) vessels and Tension Leg Platforms (TLPs). MODEC also has an excellent track record of EPCI (Engineering, Procurement, Construction and Installation) as well as charter and operations projects.
NPA hints of amending Act to clampdown on petroleum smugglers
Ghana’s Petroleum Downstream Regulator,NPA, has hinted that it will seek for the amendment of the ACT establishing the Authority, in order to apply tougher sanctions on persons or individuals caught to be dealing in petroleum theft.
The NPA in February this year confiscated petroleum products smuggled into the country estimated to be about GHC1 million.
The regulator said a total number of 28BRV, 6 canoes, 4 mobile pumps and 5 outboard motors carrying 709,250 liters of illegally smuggled petroleum products with taxes and levies value of GHC1, 150,186 have been confiscated.
The arrest, made in collaboration with the security agencies, is part of ongoing plans by the NPA to deal with fraudsters in the industry.
Speaking at the OIL and FUEL Supply Chain Security Conference on how to prevent fuel fraud in London, Mr. Hassan Tampuli, who is the CEO of NPA, said after more than ten years of its establishment, it is only appropriate the law is reviewed to enable the NPA to apply heavy sanctions on those caught to be engaging in fuel smuggling activities.
But while the NPA awaits that to happen, Mr. Tampuli said his outfit will continue to deploy technology to help block smuggling channels, while other channels are explored to combat fuel theft.
“We intend going forward to use more technology like the use of flow meters at the depots and fuel receiving facilities,” he said, adding; “we insist that if they don’t get the flow meters at those facilities, we will procure for them and ensure that they are working.”
U.S. Won’t Release SPR Barrels To Calm Oil Markets
The United States will not be dipping into its Strategic Petroleum Reserves (SPR) to calm unsettled markets today, according to S&P Global Platts sources who were commenting about rising oil prices as WTI surpassed $65 per barrel in the late afternoon.
The US may, however, consider tapping into the SPR if oil prices are too high over the summer months, according to the same sources, although President Donald Trump confidently proclaimed on Monday that Saudi Arabia and other OPEC players have the ability to turn on the taps to make up for any oil supply shortfalls left by Iran now that waivers are behind us, marking the true beginning of the US sanctions on Iran.
WTI was trading up $1.62 (+2.53%) at 3:45pm EST, reaching $65.69. Brent was trading up $2.14 (+2.97%) at $74.11—the highest price in five months.
The purpose of the 700+million-barrel SPR is to insulate the United States in the event of a supply emergency, although the fact that it exists also sends the message to other oil producers that the United States has the ability to flood the market with oil should it choose to do so. It is the largest supply of emergency crude oil in the world, according to the energy.gov website.
The United States has tapped its SPR to weather global supply disruptions three times, although it has released barrels at other times as well as part of planned drawdowns. In August last year, the United States moved up a planned 2019 SPR release to soften the blow of US sanctions on Iran. The United States, however, granted eight purchases of Iranian oil waivers, sending the price of oil downward on the news.
Those waivers will officially end on May 1, the White House announced on Monday.
Source: Oilprice.com
Nuisance charges and fees suffocating OMCs-Agyemang- Duah
Mr Kwaku Agyemang- Duah, Chairman of AOMCs signing a Safety Declaration Form
The Association of Oil Marketing Companies (AOMCs) has expressed concern over the numerous operating charges and fees imposed on Oil Marketing Companies (OMCs) thereby suffocating the operators in the sector.
“These unprecedented charges, have the tendency of becoming a cost component, which would eventually increase the overhead cost of operation, hence the fuel price hikes in this era of already high cost of petroleum products,” the AOMC, stated in a statement signed by Mr Kwaku Agyemang-Duah, Industry Coordinator.
The statement addressed to some Metropolitan, Municipal and District Assemblies (MMDAs) and obtained by the Ghana News Agency said the OMCs were over burdened with the numerous charges and fees.
The AOMC Chief Executive Officer noted that the business signage fees, and other materials displayed at Filling Stations which were part of mandatory requirements for the granting and issuance of a permit to construct a Filling Station by the National Petroleum Authority attracted fees also from the MMDAs.
“These charges and fees being collected within the MMDAs jurisdiction appear to be duplicating the fees and other charges paid to statutory and regulatory bodies,” the AOMC reminded the MMDAs.
Some of the fees and charges suffocating the OMCs are; Environmental Protection Agency Processing and Permit Fees; MMDAs Business Operating Permit Fees; MMDAs Signage and Advert Fees; Fire Permit Fees; Ghana Standards Authority Verification Fees charged per each pump.
Other charges are; Vehicle Branding Fees; Ground Rent and Stool Lands Fees;; Royalty Fees; Ghana Music Association Fees; Business Operational Fees and Ghana Highway Authority entry and exit fees.
The OMCs also paid Ghana Revenue Authority, National Petroleum Authority, Factories Inspectorate and other mandatory taxes and levies.
Scores of OMC operators stated that these fees and charges were chargeable per each filling stations per year, “the net effect is too huge which accounts for the fuel prices hikes.
“Most institutions including; statutory bodies, MMDAs and private sector actors see the OMCs as financial reservoirs to siphon money from. We are into business, so we will invariable transfer the huge overhead cost to the consumer”.
The OMC Operators therefore appealed for a regulated mechanism to ensure that the MMDAs and other regulated authorities synchronised their charges and levies to eliminate double taxation.
The OMCs said those operating in traditional areas also paid additional dues and fees to the traditional rulers.
Halliburton Expects Offshore Oil Spending To Jump In 2019
Halliburton Company expects total global offshore spending to jump 14 percent this year, one of the world’s largest oilfield service providers said on Monday as it announced its Q1 2019 results.
Iran Threatens To Block Key Oil Chokepoint If It Can No Longer Export Crude
Iran will block the world’s most important chokepoint for global oil trade, the Strait of Hormuz, if Tehran is barred from using it to export its oil, Navy Rear Admiral Alireza Tangsiri, Commander of the Islamic Revolution Guards Corps (IRGC), said on Monday, just as the U.S. announced that it would not be extending any waivers to Iranian oil customers.
“According to international law, the Strait of Hormuz is a marine passageway and if we are barred from using it, we will shut it down. In case of any threat, we will have not even an iota of doubt to protect and defend the Iranian waters. We will defend our prestige and embark on reciprocal acts when it comes to defending Iran’s right,” Iranian Fars news agency quoted Tangsiri as saying in an interview with Arabic-language al-Alam news channel on Monday.
U.S. Secretary of State Mike Pompeo tweeted early on Monday, confirming earlier reports that the U.S. planned to end all waivers when they expire in early May:
“Maximum pressure on the Iranian regime means maximum pressure. That’s why the U.S. will not issue any exceptions to Iranian oil importers. The global oil market remains well-supplied. We’re confident it will remain stable as jurisdictions transition away from Iranian crude.”
The Department of State confirmed:
“Today we are announcing the United States will not issue any additional Significant Reduction Exceptions to existing importers of Iranian oil. The Trump Administration has taken Iran’s oil exports to historic lows, and we are dramatically accelerating our pressure campaign in a calibrated way that meets our national security objectives while maintaining well supplied global oil markets.”
Brent crude rallied 2.83 percent at 11:47 a.m. EDT on Monday on the news.
Over the past year, Iran has threatened several times to close the Strait of Hormuz for all tanker traffic if the U.S. drives Iranian oil exports to zero.
The Strait of Hormuz is the world’s most important chokepoint, with an oil flow of 18.5 million bpd in 2016, the EIA estimates. Some 80 percent of the crude oil shipped through the Strait of Hormuz goes to Asian markets, the EIA has estimated using data from Lloyd’s List Intelligence tanker tracking service. China, Japan, India, South Korea, and Singapore are the largest destinations for oil moving through the Strait of Hormuz.
Source:Oilprice.com
Key Nigerian Oil Export Pipeline Under Force Majeure After Fire Breaks Out
The operator of the Nembe Creek Trunk Line—one of the two key pipelines of Nigeria’s Bonny Light crude grade capable of transporting 150,000 bpd to the export terminal—declared on Sunday force majeure, due to a fire suspected to have been the result of an illegal third-party breach.
“Our Operations Emergency Response team was immediately activated and following its urgent intervention and containment action, we are constrained to shut in injection as well as other related operations into the NCTL. In accordance with standard procedure, we requested the other injectors to do same,” Nigerian operator Aiteo said in a statement, as carried by Sahara Reporters.
Before the fire broke out, the Nembe Creek Trunk Line was operating smoothly, which raises suspicion that the fire was the result of an “illegitimate, third-party breach of the functionality of the pipeline,” the statement by Aiteo spokesman Ndiana Matthew said.
Investigations into the cause of the fire continue and the stakeholders will be briefed in details in due course, said the company.
Two months ago, a fire erupted in an area around the Nembe Creek Trunk Line, but then Aiteo said that the pipeline was not impacted by the fire. At that time in early March, Shell, whose Nigerian unit operates exports from the Bonny Light terminal, said that there was no force majeure declared on Nigeria’s Bonny Light exports.
Bonny Light is a popular grade among refiners globally and its production is 200,000 bpd-250,000 bpd. The Bonny Light terminal or the pipelines feeding crude to the export facility were subject to many disruptions and declarations of force majeure in 2016 and 2017, when militant activity across the Niger Delta was frequently shutting oil exports from Nigeria.
Now, any potential disruption of the Bonny Light crude oil exports in the coming days or weeks could further tighten an already tightening market with the U.S. reportedly aiming at zero Iranian oil exports and tightening the sanctions on Venezuela, plus unrest in Libya, and continued cuts by OPEC and allies.
Source: Oilprice.com