Ghana: Gov’t $7b Savings On PPA’s Cancellation Claim Misleading – Alex Mould
A former CEO of Ghana National Petroleum Corporation (GNPC), Alex Mould has disputed claims by President Akufo-Addo administration that it made over $7 billion savings from the cancellation of some Power Purchase Agreements (PPA)’s signed during the John Mahama administration.
According to Mr Mould, a PPA is signed between Independent Power Plant (IPP) investor and the off taker (in this case Electricity Company of Ghana (ECG)), and that nowhere was Government directly a party to that agreement.
He revealed that government “is only involved when the investors’ financiers require a guarantee to mitigate political risk.”
He said since government was not obliged to give such political risk support to the IPP development, “in the form of a Governmemt Consent and Support Agreement (GCSA) or in more recent times a Put/Call Option Agreement (PCOA), unless of course the government wanted a particular IPP developed, all the PPAs would expire worthless as no IPP could be developed without the explicit support of government”
In his latest educative series on project financing, the energy and finance expert said a PPA was not the end of the transaction but rather a necessary requirement to get the investor’s financiers interested in commencing the approval process.
Mr Mould stated that since the IPP investors had not reached a financial investment decision to move forward with the IPP projects they thus had not committed financially to the project and that, “this cannot be said to be costing the Government of Ghana significantly, let alone $7B (USD).”
“How then does cancelling a number of PPA’s when Investors’ financiers have not committed to these IPPs (with no mention of accompanying Government Consent and Support Agreement/PCOAs), save the Government of Ghana so much money?” he queried.
Mr. Mould who is also the former Executive Director of Standard Chartered Bank said such “references are disturbingly misleading to the public, and can only be alleged either from a strong point of ignorance of the overall process or simple political maneuvering – or both.”
Read Full Statement
IPP CANCELLATION: – NO SAVINGS MADE – ALEX MOULD In recent times, there have been discussions about the current administration’s ability to save the people of Ghana USD7 billion by terminating some of the Power Purchase Agreements (PPAs) signed with Independent Power Producers (IPP)’s during the former administration under H.E John Mahama.
These PPAs – initiated by the Electricity Company of Ghana (ECG) and approved by PURC were entered into with the aim of resolving the power crisis at the time (Dumsor) – are being portrayed as some of the reckless agreements the NDC government entered into and which the NPP Government is seeking to rectify.
In order to decipher the validity of this claim, it is important to stay educated on the overall process and nuisances surrounding any IPP investor’s ability to obtain financing for a power plant project end-to-end.
One must also understand the role of important agreements in the value chain of such Power Purchase Agreements (PPAs), Government Consent and Support Agreements (GSCAs) etc., and appreciate the roles of key participants such as Off-Takers, Financing Institutions/Creditors, Government, etc.
To kick off the financing process, an interested IPP investor must prove its capability to raise the necessary project financing to ECG. While doing this, the IPP investor must concurrently convince its financing partners (i.e. banks/financial institutions) of its ability to produce a solid Off-Taker agreement with a credible power Off-Taker i.e. ECG.
This dynamic dilemma of balancing these two adjoining work streams (1: Demonstrate promise of financing capability 2: Provide assurance of credible off-take) creates a known “chicken and egg” situation for the IPP investor i.e. which one comes first?
To move forward in the process and be taken seriously by its financing partners, the IPP investor must work diligently to enter a signed PPA with Off-Taker (i.e ECG).
This PPA allows for required due diligence activities required by financing partners (i.e. banks) to commence, which include investigating validity of demand, and the creditworthiness of the counterparty (i.e. ECG) to fulfill its obligations.
To demonstrate the “chicken and egg” realities embodying this early stage of the process, please note that before entering the PPA, the Off-Taker (ECG) also seeks to comfort from the financial institutions backing the IPP investors, and uses these interactions to assess the IPP investor’s overall financial whir-withal to reach financial close, known as Financial Investment Decision (FID), to bring the IPP development to fruition;
Following the requirement of obtaining a solid PPA with ECG, financing partners of the IPP investor reviews the country’s political risk, and most likely will require government support in the form of a Government Consent and Support Agreement (GCSA) or a Put/Call Option Agreement (PCOA)).
This agreement is necessary if the financial institutions believe, as in the normal practice in developing countries, that there is a high potential of interference by Government (current or future administrations) which may jeopardize the IPP investor’s ability to meet its obligations to them.
Used as a mitigation agreement between the IPP investor and key Off-Taker, this agreement basically places a burden on the Government to make the IPP investor whole, if there is a default caused by the government or any of its agencies i.e. Public Utility Regulatory Commission (PURC) or, if there is Government interference on pricing and or payments due from Government – a common practice in our parts of the world.
To partake in a solid GCSA /PCOA with any serious IPP investors, it is common knowledge that the Government of Ghana was unable to instill the long-term confidence required independently, and needed the backing of renowned credit worthy development financial institutions such as World Bank, AfDB for the tenor required (approximately 15 years). In other words, any serious IPP investor, together with its financial partners, who entered into a PPA with ECG from 2006 onwards, would not be able to build the Independent Power Plant in Ghana unless it had supportive assurances made by the Government of Ghana’s (which would have to be credit-enhanced by a development bank such as World Bank or AfDB).
Take for instance the eniGhana Sankofa-Gye-Nyame gas project; as a requirement for support of the E&P gas development project, the World Bank was also required to support the financing of the 4 IPPs to off-take the gas to produce power (Gas2Power) by backing the PCOA issued by government required for the financing of the IPPs, the PCOAs issued by Government of Ghana was credit enhanced (i.e supported) by the World Bank.
In this project, the World Bank acted in two key roles – as credit enhancer to the chosen IPP and also to the SGN Gas Project directly. Without this innovative arrangement, the project would not have been executed.
Please note that when a PPA is signed between an IPP investor and ECG, Government is not obliged to give a PCOA unless the Government finds it necessary to do so i.e. unless Government wants that particular IPP developed.
Giving the lack of creditworthiness, and common challenges to recover full execution costs that have plagued the power industry for years, no Independent Power Producer (IPP) investor will endeavor to build an IPP without clear support by Government (GCSA/PCOA).
In short, without a GSCA or a PCOA no IPP can be developed irrespective of the strength of the PPAs signed between ECG and IPP investor.
So, a PPA on its own – without a GCSA/PCOA – is only a preliminary requirement, in a very long negotiating process.
A PPA on its own does not guarantee the financial backing of an IPP investor, and is used by IPP investors to simply kick-start the process of garnering early interest of financial institutions in the potential opportunity. And normally, a timeframe is stipulated in a PPA for the investor to obtain final investment decision (FID) from its financial institutions after all the above due diligence has been fully undertaken
In actuality, only about 6/7 PPA’s have resulted in government backing these developments by the issuance of a GCSA/PCOA since 2008, and each GCSA/PCOA also has been credit enhanced (supported) by a AAA credit development financial organisation such as the World Bank or AfDB (again, at the request of the Government of Ghana).
How then does cancelling a number of PPA’s (with no mention of accompanying GCSA/PCOAs), save the Government of Ghana so much money?
These PPAs which have not reached a financial investment decision to move forward with the IPP investment, cannot be costing the Government of Ghana significantly, let alone $7 billon.
Such references are disturbingly misleading to the public, and can only be alleged either from a strong point of ignorance of the overall process, political maneuvering – or both.
Obtaining a PPA is not the end of the transaction but rather the beginning of the transaction and a long negotiation process.
It is our duty to keep the Citizens of Ghana informed.
Signed,
Akex Mould
Norway: Equinor Strikes Oil At Sputnik Wildcat
Equinor has made an oil discovery at the Sputnik prospect in the Barents Sea offshore Norway.
The exploration well was drilled some 30 kilometers northeast of the Wisting oil discovery and 350 kilometers north of Hammerfest.
According to Equinor, recoverable resources at the Sputnik offshore discovery are preliminarily estimated at 20-65 million barrels of oil.
The well encountered a 15-meter oil column in a Triassic sandstone reservoir. Fluid samples contain light oil and water.
“We are encouraged by this result as it confirms the presence of oil north of the Wisting discovery, where Equinor has acquired a strong acreage position,” said Nick Ashton, Equinor’s senior vice president for exploration in Norway and the UK.
“The geology in the Barents Sea is complex, and more work lies ahead to determine commerciality. But this discovery shows that persistence and our ability to learn from previous well results does pay off,” says Ashton.
“Detailed fluid analysis combined with geological and geophysical mapping will be carried out to fully understand the commercial potential of the Sputnik discovery. If confirmed that the structure comprises volumes that can be recovered in a commercially viable way, the partnership will assess possible development solutions,” Ashton said.
The Sputnik well (7324/6-1) was drilled to a vertical depth of 1569 meters below the seabed by semi-submersible drilling rig West Hercules, which has now moved on to drill the Equinor operated Lanterna well in PL796 in the Norwegian Sea
Equinor is the operator and holds 55% of the PL855 license. Partners are OMV (25%) and Petoro (20%).
Source: offshoreenergytoday.com
Equatorial Guinea: Obiang Lima Invites All African Oil And Gas Ministers To Attend The 5th GECF Summit.
Equatorial Guinea’s Minister for Mines and Hydrocarbons has extended invitation to Ministers of Oil and Gas producing countries to attend this year’s 5th Gas Exporting Countries Forum(GECF) Summit.
The 5th GECF Summit will showcase the role and future of gas development on the African continent.
This will be the first time that it is held on the African continent.
Determined to showcase Africa’s gas potential and promote intra-Africa cooperation, Equatorial Guinea’s Minister for Mines and Hydrocarbons, H.E Gabriel Mbaga Obiang Lima, continues his tour of Africa to invite GECF and non-GECF nations to attend the 5th GECF Summit which will be hosted for the first time on the African continent.
Through the 5th GECF Summit, Minister Obiang Lima hopes to promote gas development on the continent as a means to drive economic growth.
In a statement copied to energynewsafrica.com, it said “during his recent visit to Uganda, Minister Obiang Lima met with Minister for Energy, Irene Muloni and invited her to attend the 5th GECF Summit.”
The landmark event will take place in Malabo on November 25-27, 2019.
Speaking about Equatorial Guinea’s interest in supporting the development of Uganda’s oil and gas industry, Minister Obiang Lima encouraged the country to continue with its oil and gas plans which are “the best one can find anywhere in the world,” he said.
He further stated that, should the East African country continue with its plans, Equatorial Guinea may learn from it in the years to come.
This visit follows the signing of a Memorandum of Understanding (MoU) by both countries in 2017 for cooperation in oil and gas development.
Under the MoU, Equatorial Guinea will provide guidance to Uganda and assist it in achieving its oil and gas production targets, and advise it on the signing of petroleum agreements.
In a bid to transform its oil and gas sector, Uganda is developing its infrastructure in key sectors as a means to drive investment into the country.
Although Equatorial Guinea has a thriving oil sector with 1.1 billion proven oil reserves, the country – which is also a GECF member – holds great potential in its gas industry, boasting an estimated 145 billion cubic meters of proven gas reserves.
Further, Equatorial Guinea has set ambitious goals for its gas sector development including Alen Gas and Condensate Field on Bioko Island, which is said to be 600 billion cubic feet of natural gas equivalent and the construction of a natural gas mega-hub project, which has resulted in it, leading the LNG2Africa initiative which aims to create a continental gas market.
Upcoming stops on the tour include Egypt and Algeria.
Source: www.energynewsafrica.com
Norway: Aker BP Strikes Dry Well In The North Sea
Norwegian oil and gas operator Aker BP has failed to find oil at the 6608/6-1 exploration well in the North Sea.
The well is located in the production license 762, 170 kilometers west of Sandnessjøen. The objective of the well was to prove petroleum in reservoir rocks from the Permian Age.
According to the Norwegian Petroleum Directorate, the well 6608/6-1 encountered about 285 meters of carbonate rocks in the Zechstein group in the Permian.
These are partially tight and partially with poor reservoir quality, but with four meters of moderate reservoir quality. The well is dry.
This is the first exploration well in production license 762, which was awarded in APA 2013.
The well was drilled to a vertical depth of 2724 meters below the sea surface, in a water depth of 288 meters. The well has now been permanently plugged and abandoned.
The Deepsea Stavanger semi-submersible drilling rig was used for the operation. The rig has now started drilling of wildcat well 30/12-2 in production license 986 in the North Sea, where Aker BP ASA is the operator.
Ghana: Aker Energy To Increase Beneficiaries Of Its Scholars Programme To 200 Students
Norwegian oil and gas company Aker Energy has announced plans to increase the number of beneficiaries for its scholarship package for JHS graduates who are entering SHS from 150 to 200 this year.
Aker Energy’s scholars programme, which is in partnership with GNPC, was introduced in 2012 and it is presently the flagship social investment project of the company.
So far, about 721 students have been selected from 10 coastal communities in the western part of the West African country.
The programme started with six partner secondary schools, but, presently, has 10 partner SHSs and a nursing and vocational schools where beneficiaries are placed.
As a result of the free Senior High School policy being implemented by the government of the West African country, Ghana, Aker Energy’s scholarship package covers school materials such as trunk, chop box and books.
Other important elements of the scholarship package are counselling and mentoring, career seminars, frequent visits to check on beneficiaries’ well-being and their academic performance.
Speaking at the Aker Energy-GNPC Schorlars Programme Class of 2019 in Takoradi, in the Western part of the Republic of Ghana, Aker Energy’s External Relations Manager Officer Bernice Sam, said the selection of beneficiaries for this year’s scholarship programme is expected to commence as soon as the BECE results are released.
“Our preparations towards this exercise includes broad awareness raising activities in junior high schools and in communities so that students and parents alike have prior knowledge of the criteria, selection process and venues,” she said.
Scholars come from so many communities including Jomoro District-Bonyere, Allengenzule, New Nzulenzu, Ellembelle District-Anokye, Atuabo, Basake, Takinta, Teleku Bokazo Nzema East District-Axim, Nsein, Kegyina Ahanta West District-Akwidaa, Lower Dixcove, Gyabenkrom, STMA-Fijai, New Takoradi Ntankoful, Shama, Inchaban, Abuesi and Supomo Dunkwa
The event saw the celebration of Aker Energy’s Class of 2019 WASSCE graduands.
In all, 125 graduated and out of this number, 30 were from GSTS, 20 from Archbishop Porter School, 13 from Nkroful Agric School, six from Half Assini Sec. School, 51 from Nseim Secondary School while five will be graduating from nursing and vocational schools.
According to Mrs Bernice Sam, 40 outstanding scholars who had 5As were taken on a field trip to the University of Cape Coast and Takoradi Technical University to have a feel of the ‘campus’ and to interact with faculty.
She said Aker Energy is in the process of developing a tertiary level scholarship programme which “we expect to roll-out soon to be able to support SHS scholars who want to continue to the tertiary level.
About Aker Energy
Aker Energy is an upstream petroleum company operating the Deepwater Tano / Cape Three Points oil block that is located offshore Ghana.
The parties to the Deepwater Tano/Cape Three Points (DWT/CTP) Petroleum Agreement are Aker Energy Ghana Limited (50% interest), Lukoil Overseas Ghana Tano Limited (38% interest), Ghana National Petroleum Corporation (10% interest) and Fueltrade Limited (2%interest).
The mission of Aker Energy is building the oil and gas operator of choice offshore Ghana by maturing resources in a safe, efficient and reliable manner to the mutual benefit of company partners and the people of Ghana.
Source: energynewsafrica.com
The programme started with six partner secondary schools, but, presently, has 10 partner SHSs and a nursing and vocational schools where beneficiaries are placed.
As a result of the free Senior High School policy being implemented by the government of the West African country, Ghana, Aker Energy’s scholarship package covers school materials such as trunk, chop box and books.
Other important elements of the scholarship package are counselling and mentoring, career seminars, frequent visits to check on beneficiaries’ well-being and their academic performance.
Speaking at the Aker Energy-GNPC Schorlars Programme Class of 2019 in Takoradi, in the Western part of the Republic of Ghana, Aker Energy’s External Relations Manager Officer Bernice Sam, said the selection of beneficiaries for this year’s scholarship programme is expected to commence as soon as the BECE results are released.
“Our preparations towards this exercise includes broad awareness raising activities in junior high schools and in communities so that students and parents alike have prior knowledge of the criteria, selection process and venues,” she said.
Scholars come from so many communities including Jomoro District-Bonyere, Allengenzule, New Nzulenzu, Ellembelle District-Anokye, Atuabo, Basake, Takinta, Teleku Bokazo Nzema East District-Axim, Nsein, Kegyina Ahanta West District-Akwidaa, Lower Dixcove, Gyabenkrom, STMA-Fijai, New Takoradi Ntankoful, Shama, Inchaban, Abuesi and Supomo Dunkwa
The event saw the celebration of Aker Energy’s Class of 2019 WASSCE graduands.
In all, 125 graduated and out of this number, 30 were from GSTS, 20 from Archbishop Porter School, 13 from Nkroful Agric School, six from Half Assini Sec. School, 51 from Nseim Secondary School while five will be graduating from nursing and vocational schools.
According to Mrs Bernice Sam, 40 outstanding scholars who had 5As were taken on a field trip to the University of Cape Coast and Takoradi Technical University to have a feel of the ‘campus’ and to interact with faculty.
She said Aker Energy is in the process of developing a tertiary level scholarship programme which “we expect to roll-out soon to be able to support SHS scholars who want to continue to the tertiary level.
About Aker Energy
Aker Energy is an upstream petroleum company operating the Deepwater Tano / Cape Three Points oil block that is located offshore Ghana.
The parties to the Deepwater Tano/Cape Three Points (DWT/CTP) Petroleum Agreement are Aker Energy Ghana Limited (50% interest), Lukoil Overseas Ghana Tano Limited (38% interest), Ghana National Petroleum Corporation (10% interest) and Fueltrade Limited (2%interest).
The mission of Aker Energy is building the oil and gas operator of choice offshore Ghana by maturing resources in a safe, efficient and reliable manner to the mutual benefit of company partners and the people of Ghana.
Source: energynewsafrica.com Ghana: Connection Of Transmission Lines To Karpowership Commences At Secondi Naval Base
Work has begun to connect the transmission lines to allow the Karadeniz Powership Osman Khan, simply referred to as Karpowership, to resume the supply of power to the national grid after relocating from Tema to Takoradi.
The 470-megawatts (MW) Karadeniz Powership which is being managed by Karpowership Ghana Company Limited arrived at the anchorage of the Home Port of the Western Naval Command, Sekondi in the Sekondi-Takoradi metropolis last Thursday evening.
The powership, which propelled itself from Tema to the Western Region and in the company of two tugboats, arrived at the anchorage at 10:30 p.m. last Thursday and early yesterday morning, it entered port and positioned at a jetty, the size of a football field.
Managing Director of Karpowership Ghana Company Limited, Mr Volkan Buyukbicer, in an interview with journalists said after the successful voyage, work would begin immediately and that the relocation was a win for Ghana and the company.
“I must say today we have achieved what we describe as a ‘big move’, which is very important for the energy sector recovery programme to enable the country to utilise the volume of gas produced offshore Ghana,” he said.
After the successful mooring, “we will immediately move in to connect to the transmission lines already in place to resume supply of the 450MW to the national grid.”
“We have arrived, we have started work, but we will work faster to beat the 17-day timeline we have given to the nation and I must say at the moment we are on course,” he said.
Mr Buyukbicer said the use of natural gas was environmentally friendly because it burned cleaner than other fossil fuels and gas came with enormous benefits not only to them as power generators but also the nation as a whole.
Savings
“When we talk about the economy and natural gas I will say it’s cheaper compared to other fossil fuels and the country will, through the use of the gas, save millions of dollars and help government to meet its contractual agreements with gas producers,” he said.
At the port of the Navy, workers were still working on pipelines that would connect the gas to the powership.
The lines stretch to cover a distance of about 10 kilometres made up of 1.5 kilometres of marine and 8.5 onshore pipeline from the metering station of the Ghana National Gas Company (Ghana Gas) to the shore at Ngyeresia.
Generates 450MW
The powership, which generates 450MW power to the national grid, is currently off after disconnecting from the grid in order to set sail to Sekondi.
Immediately after the reconnection to the grid at its current location, the powership would continue to run on heavy fuel oil (HFO) until in the middle of November 2019, when it will be connected to off-take the natural gas from the country’s oil fields.
Construction works on the jetty at Sekondi started in August last year.
It also saw the construction, expansion and reinforcement of the breakwater from two metres to four.
Benefits
When connected, the generating units will be supplied with the 90 million standard cubic feet of gas daily (MMSCFD), which will reduce the cost of transporting gas to Tema and make gas cheaper compared to HFO.
Source: graphic.com.gh/www.energynewsafrica.com
Nigerian Gov’t Ordered To Pay $9bn To Private Gas Firm
A British judge has ordered the Nigerian government to pay $9bn in assets to a small private company.
The firm, P&ID, had reached a deal with the Nigerian government in 2010 to build a natural gas plant – but the deal fell through two years later.
P&ID then sued the government for failing to provide the gas or install the pipelines it had promised to build.
The firm was first awarded $6.6bn (£5.4bn) in 2017, but the London court has now added $2.4bn in interest.
According to the firm’s website, the deal would have allowed it to “build a state-of-the-art gas processing plant to refine natural gas…[that] Nigeria would receive free of charge to power its national electric grid”.
The firm said it had accrued interest of $1.2m a day as a result of the collapsed deal, but the government’s legal team said this was “manifestly excessive and penal”, AFP reported.
The final amount of more than $9bn is equivalent to about 20% of Nigeria’s declared foreign reserves of $45bn.
The government also told the Commercial Court in London that English courts did not have the authority to rule on the dispute.
Nigeria argued that as the original deal was made under Nigerian law, “the seat of the arbitration was Nigeria”.
“I am prepared to make an order enforcing the final award,” he said in his ruling statement. “I will receive submissions from the parties as to the precise form of order appropriate.”
The judge’s decision converts the 2017 arbitration award into a legal judgement, which allows P&ID to try to seize assets from Nigeria.
Andrew Stafford QC, the barrister representing P&ID, told Reuters the firm would “begin the process of seizing Nigerian assets in order to satisfy this award as soon as possible”.
Nigeria’s solicitor general Dayo Apata said the government would appeal against the decision.
Source: BBC
South Africa: Voith Launches On-site Machining And Servicing Tools
Voith, a technology group which provides array of services including energy and oil and gas, has introduced on-site machining and service tools for customers, businesses and authorities in South Africa.
The new services include the refurbishment of plant components in installed or independent state by linear and circular milling, as well as drilling, boring and welding.
The portable on-site machine equipment ensures increased plant up-time and safety.
Cutting assembly, dismantling and transport costs for the refurbishment and maintenance of plant equipment are reduced to a minimum.
“During the past two years, we built up an extensive range of on-site machining and repair services through the acquisition of equipment and the training of new staff.
“Now, we can provide cost-effective workshop-quality machining for the largest and smallest on-site machining projects in Southern Africa,” Anton Harris, Head of Service and Managing Director of Voith Hydro in South Africa said during the launch on Thursday.
“Besides the use in the hydropower sector, the equipment is also applicable to all fields of processing industry in Africa such as the oil and gas or the mining industry.
“For hydropower plants, the Voith range of services is amplified to assessments, trouble shooting, repair and assembly services–along the whole life cycle of an operating plant.”
The on-site machining equipment is stored in sea freight containers on the Voith company premises in South Africa.
From there, the equipment is ready to be shipped on the road or on the seaway to any location in Southern Africa.
Overview of Voith’s On-site Machining Equipment
For a whole range of different boring, drilling and facing applications, there are three heavy-duty line boring machines, which can be equipped with different heads and with an orbital welding machine for welding and re-profiling applications.
The linear mill is a bed-type milling machine for universal use in a fast and accurate way.
Together with the adjustable head mounting options for angular milling and the different tooling options, a wide range of milling jobs can be fulfilled.
Voith’s circular mill is equipped with an incremental drive and can be setup for the machining of large internal diameters and flanges.
While the circular mill comes in a customised container with removable roof and door header, the linear mill and the line boring machines are delivered in steal boxes, or depending on the application in a container.
For repairs and installations, a fully-equipped tool container is also available.
Source:www.energynewsafrica.com
“Besides the use in the hydropower sector, the equipment is also applicable to all fields of processing industry in Africa such as the oil and gas or the mining industry.
“For hydropower plants, the Voith range of services is amplified to assessments, trouble shooting, repair and assembly services–along the whole life cycle of an operating plant.”
The on-site machining equipment is stored in sea freight containers on the Voith company premises in South Africa.
From there, the equipment is ready to be shipped on the road or on the seaway to any location in Southern Africa.
Overview of Voith’s On-site Machining Equipment
For a whole range of different boring, drilling and facing applications, there are three heavy-duty line boring machines, which can be equipped with different heads and with an orbital welding machine for welding and re-profiling applications.
The linear mill is a bed-type milling machine for universal use in a fast and accurate way.
Together with the adjustable head mounting options for angular milling and the different tooling options, a wide range of milling jobs can be fulfilled.
Voith’s circular mill is equipped with an incremental drive and can be setup for the machining of large internal diameters and flanges.
While the circular mill comes in a customised container with removable roof and door header, the linear mill and the line boring machines are delivered in steal boxes, or depending on the application in a container.
For repairs and installations, a fully-equipped tool container is also available.
Source:www.energynewsafrica.com Sinanju, ExxonMobil Sign Charter For LNG-Fuelled Bunker Tanker
Sinanju Logistics Services, the tanker operating arm of Sinanju Tankers Holdings has entered into a two-year time charter agreement with ExxonMobil Asia Pacific for an LNG-powered new-build bunker tanker.
The vessel will deliver ExxonMobil’s new engineered marine fuels to ocean-going vessels within Singapore port limits from Q1 2020. The vessel will join Sinanju’s 13-vessel bunker fleet in December 2019.
Under the Maritime Singapore Green Port Programme, registered vessels that are serviced by alternative or cleaner marine fuelled harbour crafts during their port stay – such as receiving bunker from LNG-powered bunker tankers – stand to receive a 10% port dues concession.
“As responsible stakeholders of the maritime industry, we are stepping up to promote the use of LNG as a sustainable alternative marine fuel to reduce greenhouse gas emissions and we encourage more of such bunker tankers to operate in Singapore,” Sinanju’s managing director Ju Kai Meng said.
Marine Vicky is a 103-metre long 19-m wide bunker tanker classed by Bureau Veritas and has a carrying capacity of 7,990 dwt. It is equipped with a 55 m3 LNG tank paired with a fuel gas supply system on deck for engine propulsion, Sinanju said. The vessel is built at Keppel Offshore & Marine’s shipyard in Nantong, China, under the Maritime and Port Authority of Singapore’s LNG bunkering pilot programme.
“ExxonMobil is glad to be partnering with Sinanju in its effort to reduce emissions in its operations. We are committed to doing our part to meet the demand for cleaner marine fuel supplies safely and reliably, while at the same time, reduce environmental impact and provide sustainable solutions,” Koh Sing Liang, Asia Pacific Sales Director of ExxonMobil Marine Fuels said.
Source: naturalgasworld.com/energynewsafrica.com
Ghana: GNPC Received US$98.29m In First Half Of 2019
Ghana’s national oil company, GNPC, received an amount of US$98.29 million from the petroleum revenue during the first half of 2019, the country’s central bank has announced.
Similarly, the Annual Budget Funding Amount (ABFA) received US$165.66 million whiles the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF) received an allocation of US$69.85 million and US$29.94 million respectively during the period under review.
A report published on the central bank’s website said: “In H1 2019, a total amount of US$434.48 million comprising lifting proceeds of the Ghana Group, surface rentals, PHF income and corporation income tax was received into the PHF.
“Total petroleum revenue distributed was US$363.74 million. GNPC received US$98.29 million, ABFA received US$165.66 million whiles GSF and GHF received an allocation of US$69.85 million and US$29.94 million respectively during the period under review.
GHF and GSF total return year to date (YTD) was 4.71% and 1.33% respectively.
“Realised income on the GPFs in H1 was US$11.20 million (GHF contributed US$6.72 million and GSF contributed US$4.48 million) as compared to H2 2018 total net realised income of US$9.26 million (GHF contributed US$5.31 million and GSF contributed US$3.95 million). GSF and GHF accumulated reserves were US$455.53 million and US$521.83 million respectively.
“Global economic growth is projected to decline from 3.6% in 2018 to 3.3% in 2019 before picking up slightly to 3.6% in 2020. Growth has moderated amid weak growth in the Eurozone, continued trade policy uncertainty, concerns about China’s greater-than-envisaged growth slowdown outlook at the weakest pace in at least 27 years, higher tariffs on Chinese imports, threats of tariff imposition on Mexican imports, and lingering “no-deal” withdrawal of the United Kingdom from the European Union.
“The balance of risks thus remains skewed to the downside, the major central banks have adopted a dovish stance to monitor implications of incoming data and global economic developments. This dovish stance is favourable for global financial conditions with positive implications for emerging markets and frontier economies in the near-term as investors seek higher yields.
“The crystallization of these risks has in the near to medium term created a flight to quality with safe haven bond yields falling and is impacting positively on the marked-to-market valuations of the portfolios of the Ghana Petroleum Funds.”
Source: laudbusiness.com/energynewsafrica.com
Nigeria: VON Lauds NNPC On Reputation Turnaround
The Voice of Nigeria, the mass communication apparatus dedicated to dissemination of information from the country to the outside world, has applauded the improved global reputation of the Nigerian National Petroleum Corporation (NNPC) which was accentuated with the appointment of Mallam Mele Kyari as the Group Managing Director.
Leading a top level management delegation to the NNPC Towers on Thursday, Osita Okechuku, Director General of the agency, noted that the elevation of Mallam Kyari to the position of GMD of NNPC has helped to place a seal of credibility on the operations and activities of the Corporation.
The VON DG explained that based on its varied interaction with global radio audiences, the agency was in a position to feel the pulse and changing perception about the Corporation within the last four years, noting that VON was ready to partner with the Corporation to consolidate this remarkable improvement.
Mr. Okechukwu proposed the creation of a Joint Intervention Partnership with the NNPC, a package which he explained would help both organization seek a workable and mutually beneficial alliance for the common good of the larger population.
Welcoming the VON delegation to the NNPC Towers, Mallam Kyari said the NNPC was favourably disposed to innovative ideas and solutions that would help in effective execution of its mandate of superintending over the nation’s vast hydrocarbon resources for the benefit of all Nigerians and stakeholders.
While acknowledging the strategic role of VON in the Federal Government’s external information dissemination matrix, Mallam Kyari assured that the Corporation would continue to work towards steady improvement of its transparency and accountability quotient.
Egyptian Company To Build Solar PV Plants In Select African Countries
An Egyptian state-owned company, Arab Industrialization Organization (AOI) has announced that it will launch solar power plants in Uganda, Congo, Tanzania, Eritrea, Somalia and Southern Sudan, with capacities ranging from 2 to 4MW.
The company will be responsible for the design, financing, construction and operation of the plants.
The projects will produce electricity as well as desalination plants in targeted countries.
The initiative also benefits from a grant approved by the Egyptian government to the tune of $12 million.
Egypt boasts one of the most progressive renewable energy programmes in Africa, which has seen one of the world’s biggest solar parks come to fruition.
The Benban solar complex located in the city of Aswan in southeastern Egypt is one of the largest of its kind in the world at 1.65GW and is set to be completed by year-end.
The North African company also recently commissioned the 200MW Suez wind farm.
A second 252MW wind project recently achieved financial close.
Kosmos Hires Maersk Drillship For Equatorial Guinea Well
A Maersk Drilling-owned drillship has been hired by Kosmos Energy to drill an exploration well offshore Equatorial Guinea.
The drilling contractor said through its social media channels on Friday that its drillship Maersk Voyager had been signed by Kosmos Energy to drill the S-5 exploration well offshore Equatorial Guinea.
According to Maersk Drilling, the contract has been novated to Kosmos from Noble Energy after a one-well option was exercised on the rig’s current contract.
The rig owner added that the work is expected to start in September this year.
Noble Energy awarded a70 day contract to the Maersk Voyager drillship for operations in Equatorial Guinea earlier this year.
The contract started in 2Q 2019 and was scheduled to end in July 2019. The contract also included one one-well option.
Bassoe estimated that Maersk Voyager’s dayrate with Noble Energy was around $165,000.
Below is the tweet
Extended! Our drillship hashtag#MaerskVoyager has been signed by Kosmos Energy to drill the S-5 hashtag#exploration hashtag#well offshore hashtag#EquatorialGuinea. The contract has been novated to Kosmos from Noble Energy after a one-well option was exercised on the hashtag#rig’s current contract. Work is expected to commence in September this year. https://maerskd.co/Voyager hashtag#MaerskDrilling
MODEC Issues $1.1 Billion In Bonds To Refinance FPSO In Brazil
MODEC has announced that an affiliate has issued a project bond in the international capital markets outside Japan to refinance an FPSO chartered to the TUPI consortium led by Petrobras in Brazil, with the aim of strategically diversifying its financing sources for MODEC’s entire FPSO charter business.
In recent years, the number of FPSO charter projects simultaneously executed by MODEC is increasing and the scale of financing for these projects is also expanding.
In response to these changes in the business environment, the aims of issuing the project bond are to enhance MODEC Group’s financial stability by diversifying its financing sources for FPSO projects, as well as to secure financing flexibility for the future growth of the MODEC Group.
This project bond was issued for the FPSO Cidade de Mangaratiba MV24 which has been deployed and is currently in operation at the Iracema Sul (formerly Cernambi Sul) oil field, operated by Petrobras, in the giant “pre-salt” region offshore Brazil. The shareholders of Cernambi Sul MV24 B.V., which owns the FPSO, are MODEC, Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation.
The FPSO is currently chartered by a consortium formed by Petrobras (65%), Royal Dutch Shell plc (25%) and Petrogal Brasil S.A. (10%) under a fixed-price charter contract that extends until 2034. The FPSO achieved the first oil production in October 2014 at which time, the 20-Year charter of the FPSO began.
MODEC was responsible for the engineering, procurement, construction, mobilization and installation of the FPSO, as well as a MODEC Group company in Brazil is providing operations and maintenance services for the FPSO. The FPSO, a best in class FPSO both globally and in Brazil, accounts for approximately 4% of Brazil’s daily hydrocarbon production.
The capital cost for the construction of the FPSO was originally financed by equity capital from the four Sponsors of Cernambi Sul MV24 B.V., as well as by project finance from the Japan Bank for International Cooperation (JBIC) and commercial banks. Proceeds from the issuance of the project bond were used to refinance the project finance and make a distribution to Sponsors.
This transaction marks the first project bond for an FPSO project sold in the Regulation S/Rule 144A market, and was sold to a broad range of international investors outside Japan, mainly in Europe and the United States. Total investor demand for the issue was approximately 2-times the issue amount of the $1.1 billion project bond. The strong reception for the bond in the international market highlights MODEC’s highly praised asset management capabilities as well as operations and maintenance for FPSOs.
MODEC is currently carrying out 11 FPSO charter projects simultaneously all over the world, and four more FPSOs are currently under construction. With diverse means of financing, which can be applied to both existing and new charter projects, MODEC is able to respond more flexibly to the recent burgeoning demand for FPSOs and thus establish a robust position in the FPSO industry.