Ghana: Karpowership’s Utilisation Of Natural Gas Will Save Electricity Users $170.5M Annually-Akufo-Addo

Michael Creg Afful
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Ghana: Karpowership’s Utilisation Of Natural Gas Will Save Electricity Users $170.5M Annually-Akufo-Addo
Ghana’s President Nana Akufo-Addo says the decision to switch 470MW Karpowership from depending on heavy fuel to natural gas is likely to save electricity users an amount of $170.5 million per year, and a projected amount of $1.2 billion over the remaining term of the contract. He said in line with government’s policy of promoting the use of gas as the primary fuel for power generation, the 470-megawatt Karpowership is now running on natural gas, instead of Heavy Fuel Oil (HFO), for the generation of electricity. “In line with government’s policy of promoting the use of gas as the primary fuel for power generation, the 450-megawatt Karpowership is now running natural gas, instead of Heavy Fuel Oil (HFO), for the generation of electricity. “This follows the relocation of the Karpowership from its original location in Tema to the Sekondi Naval Base, in the Western Region, and the successful conversion of 90% of its engines to run on natural gas. As a result, Ghana will save a monthly take-or-pay cost of $40 million, resulting in projected annual savings to the country of $480 million. “Specifically, the switch of the Karpowership to natural gas will save electricity users an amount of $170.5 million per year, and a projected amount of $1.2 billion over the remaining term of the contract, by way of reduced electricity charges to consumers. Commissioning the facility on Saturday, 7th December, 2019, in Secondi in the Western Region, President of the West African nation said “the arrangement that we have made with the companies is that the gas that comes out of the ground belongs to us. We are not paying for it. If it is ours, we should use it.” Additionally, the President stated that the conversion is to ensure the maximum utilisation of indigenous gas (OCTP gas) in the Western Region, “to reduce, to the barest minimum, or to eliminate the financial consequences under the take-or-pay obligation.” Explaining the rationale for the relocation of Karpowership, he noted that the Western Region “is where the gas of our country originates. So, the gas is right next door, and it can feed the facility easily. There are several savings that come out as a result, now that we are going to use gas as the primary source of power generation in the country. We are talking significant sums of money over the course of the next 10 years. We are looking at something in excess of $1 billion worth of savings in the generation of power via gas”. As a result of this, President Akufo-Addo explained that the use of natural gas “helps bring down the cost of electricity, saves our country, and makes it possible for us to look at a secure source of powering the transformation of our country’s economy and for the industrial development of Ghana. That is our main goal.”With Government determined to move the country away from being mere producers and exporters of raw materials, the President indicated that stable, affordable and reliable power is required. Reiterating the commitment of his Government to putting Ghana on a sound footing, he stressed that the development that is going to take place in Ghana over the years ahead is one that will not only benefit all sections of our society, but will also be irreversible. “The business in Ghana where we go forward and stumble and then go back, we want to put that behind us by making intelligent arrangements in all sectors of our national life, especially in our energy sector, so that from now on when we are going forward, we can keep on going forward and forward and forward,” President Akufo-Addo added. The President thanked the “competent people” at GNPC, VRA, GRIDCo, Ghana Gas, and the Electricity Company of Ghana “for doing an exceptionally good job in trying to protect our nation and its economic potential and development.”  

Landlocked Developing Countries Turn To Renewables To Socio-Economic Development(Article)

Michael Creg Afful
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Landlocked Developing Countries Turn To Renewables To Socio-Economic Development(Article)
Almost 40 per cent of people living in landlocked developing countries (LLDCs) still lack access to energy. The Political Declaration adopted by the High-Level Midterm Review of the Vienna Programme of Action (VPoA) for Landlocked Developing Countries highlights the importance of renewables in addressing this challenge. The International Renewable Energy Agency (IRENA) is working extensively with LLDCs to help them tackle the energy access gap through increased uptake of renewables which have become increasingly cost competitive and accessible as a result of rapidly falling costs.  As a catalyst and enabler of development, societies cannot grow without access to reliable and affordable energy services. And while notable progress has been made on energy access in recent years with the total number falling below 1 billion, a significant number of people in LLDCs still live without reliable energy and remain the furthest behind. Disconnected from global markets and a lack of access to the open ocean has made it difficult for LLDCs to match the pace of development seen elsewhere. Innovations in technology and business models, together with falling costs, have supported the rapid uptake of renewables worldwide, offering affordable energy access to even the most isolated of rural communities. In 2017 alone, at least 34 million people gained access to energy through off-grid solutions, including solar lighting, solar home systems and mini-grids. IRENA supports LLDCs by identifying any existing policy and regulatory limitations and offering recommendations, through its Renewables Readiness Assessment (RRA) tool. The aim is to encourage investment by creating an attractive, favourable environment.  To date, the Agency has worked with a number of LLDCs in the development of RRAs, which also identify the optimal renewables mix for countries, allowing them to maximise their full and unique resource potential. To date, RRAs have been conducted in 9 LLDC countries, including Azerbaijan, Bhutan, Mali, Mongolia, Niger, the Republic of Moldova and Zambia.  Another notable example of IRENA’s country-level engagement with LLDCs is the development of the Eswatini Energy Masterplan 2034. The roadmap was developed as result of the joint Energy Planning Capacity-Building Programme in cooperation with the Kingdom of Eswatini, aligning the country’s national energy sector with its development objectives. In addition to offering countries knowledge and expertise, IRENA’s collaboration with the Abu Dhabi Fund for Development (ADFD) funds the deployment of renewable energy projects in developing countries. The work of the IRENA/ADFD Project Facility has financed renewable energy projects in countries like Rwanda and Burkina Faso, helping them gain access to low-cost capital to fund the deployment of renewable energy projects.  IRENA is now moving towards further strengthening its support to countries on the ground to mobilise investments and scale up projects through new partnerships and initiatives. In this context, IRENA, UNDP, Sustainable Energy for All, in coordination with the Green Climate Fund announced the Climate Investment Platform, at the UN Climate Action Summit in New York.  Partnerships are key to achieving the Sustainable Development Goals. Recognising the role renewable energy plays in addressing them, IRENA has strengthened its cooperation with United Nations organisations. Last September, the Agency and UN-OHRLLS signed an MOU to step up cooperation to implement the energy component of the VPoA.   This article was first published on IRENA’s website

Ghana: ECG Retrieves GH¢200,000 From Illegal Connections At Dansoman

Michael Creg Afful
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Ghana: ECG Retrieves GH¢200,000 From Illegal Connections At Dansoman
The Dansoman District Office of the Electricity Company of Ghana (ECG) has, since January this year, retrieved more than GH¢200,000 from customers who were using electricity illegally. The amount represents penalties and surcharges imposed on the individuals and corporations caught using power for free. The Dansoman District Manager of the electricity distribution and retail company in the West African nation, Mr Vincent Osei-Appiah, told the Daily Graphic that a special monitoring team set up to audit electrical connections in factories, warehouses and workshops led to the uncovering of the canker. “The identified customers were engaged in illegalities such as direct connections, meter tampering and meter bypass,” he said. He added that following the success achieved by the task force so far, the scope of its operations would be expanded to include all categories of customers in the district. The Dansoman District is one of seven operational districts of the ECG in the Accra West Region. The acting General Manager, Accra West Region of the ECG, Mr Emmanuel Ankomah, warned that the region would wage a relentless “war” on all illegal activities as the Christmas season beckoned. “We want to make the Accra West Region the model for others to emulate. Special measures, including strategic partnerships with the security agencies, have been taken to identify, surcharge and rectify all illegal connections in the region,” he said. Mr. Ankomah advised ECG customers to report any suspected illegal connection to the nearest ECG office and pledged that aside from the identity of the whistleblower being protected, “there is a cash reward for the informant”.

Ghana: ECG MD Accompanies President To Commission Karpower Interconnection Project (Photos)

Michael Creg Afful
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Ghana: ECG MD Accompanies President To Commission Karpower Interconnection Project (Photos)
The Managing Director of Ghana’s power distribution and retail company, Electricity Company of Ghana (ECG), Kwame Agyeman-Budu on Saturday joined the President of the Republic, H.E. Nana Addo Dankwa Akufo-Addo to commission the Karpowership Interconnection Project at the Western Naval Command in Secondi. The 470MW Karpowership is one of the power producing plants whose generated power is distributed by ECG. It is expected that connecting the plant to indigenous gas will save the government huge sums of money every month as compared to when it was connected to heavy fuel. Also present at the ceremony were Minister for Energy, John-Peter Amewu, William Owuraku Aidoo, Joseph Cudjoe, CEOs of VRA, GRIDCo, GNPC and Ghana Gas Company Ltd. MD’s was accompanied by GM of MD’s office, Dan Adjei-Larbi, GM Baiden Ebenezer, and MD’s Executive Assistant, Kwame Kyeretwie-Amponsah.              

Asia Poised To Become Dominant Market For Wind Energy

Michael Creg Afful
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Asia Poised To Become Dominant Market For Wind Energy
Asia could grow its share of installed capacity for onshore wind from 230 Gigawatt (GW) in 2018 to over 2600 GW by 2050, a new report by the International Renewable Energy Agency (IRENA) has suggested. By that time, the region would become a global leader in wind, accounting for more than 50 per cent of all onshore and over 60 per cent of all offshore wind capacity installed globally. According to the “Future of Wind” published at China Wind Power in Beijing today, global wind power could rise ten-fold reaching over 6000 GW by 2050. By midcentury, wind could cover one third of global power needs and – combined with electrification – deliver a quarter of the energy-related carbon emission reductions needed to meet the Paris climate targets. To reach this objective, onshore and offshore wind capacity will need to increase four-fold and ten-fold respectively every year compared to today. “With renewables, it’s possible to achieve a climate-safe future,”IRENA’s  Director-General Francesco La Camera said. “Low-cost renewable energy technologies like wind power are readily-available today, representing the most effective and immediate solution for reducing carbon emissions. Our roadmap for a global energy transformation to 2050 shows that it is technically and economically feasible to ensure a climate-safe, sustainable energy future. Unlocking global wind energy potential will be particularly important. In fact, wind energy could be the largest single source of power generation by mid-century under this path. This would not only enable us to meet climate goals, but it would also boost economic growth and create jobs, thereby accelerating sustainable development.” The global wind industry could become a veritable job motor, employing over 3.7 million people by 2030 and more than 6 million people by 2050, IRENA’s new report finds. These figures are respectively nearly three times higher and five times higher than the slightly over one million jobs in 2018. Sound industrial and labour policies that build upon and strengthen domestic supply chains can enable income and employment growth by leveraging existing economic activities in support of wind industry development. But to accelerate the growth of global wind power over the coming decades, scaling up investments will be key. On average, global annual investment in onshore wind must increase from today USD 67 billion to 211 billion in 2050. For offshore wind, global average annual investments would need to increase from USD 19 billion to 100 billion in 2050. Statistical highlights:
  • Asia would account for more than 50% of global onshore wind power installations by 2050, followed by North America (23%) and Europe (10%). For offshore, Asia would cover more than 60% of global installations, followed by Europe (22%) and North America (16%).
  • Within Asia, China would take the lead with 2525 GW of installed onshore and offshore wind capacity by 2050, followed by India (443 GW), Republic of Korea (78 GW) and South-East Asia (16 GW).
  • Globally, the levelised cost of electricity (LCOE) for onshore wind will continue to fall to 2-3 cents USD/kWh by 2050compared to 6 cents USD/kWh in 2018. Costs of offshore wind will drop significantly to 3-7 cents USD/kWh by 2050 compared to 13 cents USD/kWh in 2018.
  • Wind turbine size for onshore applications will increase, from an average of 2.6 megawatts (MW) in 2018 to 4-5 MW for turbines commissioned by 2025. Offshore applications will likely increase to 15-20 MW in a decade or two. Floating wind farms could cover around 5-15% of the global offshore wind installed capacity (almost 1 000 GW) by 2050.
Read the full report “Future of Wind”.    This article was published by IRENA in October this year          

Ghana: Electrical Technician Convicted For Stealing ECG Meters

Michael Creg Afful
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Ghana: Electrical Technician Convicted For Stealing ECG Meters
An electrical technician who stole six single-phase prepaid electricity meters belonging to Ghana’s electricity distribution and retail company, Electricity Company of Ghana (ECG) and sold them has been convicted and sentenced by a circuit court in Accra, capital of Ghana. The 27-year –old, John Afadi, was convicted on his plea of guilty to eight counts, including interfering with the ECG system and stealing. He was fined 400 penalty units, representing GH¢4,800 or in default spend two years in hard labour in prison. Graphic.com.gh reports that the court, which was presided over by Mrs. Afia Agbanu, asked Afadi to pay GH¢2,000 as compensation after hearing the facts of the case. Fact The Manager of the ECG Prosecution Unit, Mr Paul Assisi Abariga, told the court that the Kasoa North District Technical Officer of ECG alerted the police after he received complaints from some individuals who claimed ECG meters installed in their homes developed faults shortly after it had been installed by Afadi. He said in a April 2019, Afadi sold and installed a meter to the first victim at a cost of  GH¢800 but the victim found that the meter was not working so he contacted Afadi to find out why but he failed to solve the problem. In the same month, Afadi sold another meter at a cost of GH¢1,000 to the second victim and it was also found to be faulty. The third victim also bought a meter from Afadi at GH¢1,060 while Afadi also sold a meter to the fourth victim at the cost of GH¢1,200. The court heard that when the buyers detected the faults on the meters and contacted Afadi, he failed to fix the problem and avoided their calls. They reported the matter to the Kasoa North District of the ECG separately and they were told the meters were stolen ones. On November 23, 2019, Afadi was arrested and when searched, two single-phase meters were found on him. He was handed over to the Investigation Unit of the ECG in Accra where he was processed and put before the Accra Circuit court.       Souce: www.energynewsafrica.com

Africa Is World’s Hottest Exploration Frontier-African Energy Chamber

Michael Creg Afful
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Africa Is World’s Hottest Exploration Frontier-African Energy Chamber
The African Energy Chamber has referred to Africa as the hottest frontier globally in terms of oil exploration based on several discoveries made over the few years. The world’s largest discovery this year was made of the Mauritanian coast by KOSMOS Energy to add up to other discoveries made by Equatorial Guinea’s Noble Energy and Springfield Group of Ghana in West Africa. The Chamber revealed that in 2020, hundreds of blocks and acreages will be up for grab across the continent from Senegal to Nigeria to Somalia. These were contained in the organisation’s latest African Energy Outlook 2020, which also called for sustained fiscal reforms to attract capital and technology into exploration in the continent. In 2020, the competition will be fierce to attract capital from a diversifying basket of explorers now coming from North America, Europe, Russia, China, India, South East Asia and the Middle East. The outlook mentioned that several African countries revised their legal and fiscal framework in 2019, to incentivise exploration, as new world-class discoveries were yet again made on the continent. With the signing of no less than 9 PSCs in 2019 following the passing of its brand new Hydrocarbons Code, the outlook added that Gabon in Central Africa, has shown that investors are ready to keep betting on Africa, provided that the right legislation and framework are put in place. However, the Chamber stressed on concerns raised by investors over uncertain fiscal terms in sub-Saharan Africa. To this end, it called on governments to find better ways to reconcile their expectations of short-term tax gains with the need for sustainable and long-term investment in exploration. The importance of increasing exploration efforts cannot be under-estimated in Africa, the outlook stressed. According to NJ Ayuk, the African Energy Chamber Chairman, who doubles as CEO for Centurion Law Group, “2020 needs to be a drilling year and that Africa has the highest exploration success rates in the world. “In basins like the MSGBC, international explorers like Kosmos Energy have even had a 100 percent success rate from all their exploratory drilling,” he added. “It is up to African governments and legislators to provide the right framework to keep attracting these kind of players ready to take risks and bet on our continent’s potential.” Promoting and supporting exploration efforts across the continent is a key goal of the Chamber in 2020, as stated in its latest outlook for the sector.   Source:www.energynewsafrica.com                

Angola Set To Attract Even More Foreign Direct Investment (FDI) In 2020

Michael Creg Afful
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Angola Set To Attract Even More Foreign Direct Investment (FDI) In 2020
Africa Oil & Power, the continent’s premier platform for energy investment and policy, is set to return to Angola in 2020 to host the next edition of Angola Oil & Gas(AOG) from June 16-17, 2020 in Talatona. Surrounding the conference will be a year-long global drive to present opportunities to a targeted audience of relevant investors. Endorsed by the Ministry of Mineral Resources and Petroleum and in partnership with the African Energy Chamber, the Angola Oil & Gas (AOG) Conference & Exhibition will be the focal point of an international investment drive aimed at bringing new deals to the table and signing up new entrants to Angola’s oil and gas sector. “Thanks to the President’s sweeping reforms, Angola has embarked on an ambitious drive to attract foreign direct investment,” Guillaume Doane, CEO of Africa Oil & Power said.  “Africa Oil & Power is proud to support those ongoing efforts with a global promotional campaign. The AOG Conference & Exhibition, which has become an unmissable, unrivaled national investment event, will provide a strong anchor point for the 2020 initiative.” Capital inflows into bankable projects will be a primary objective of the 2020 effort. Ongoing initiatives being promoted include the 2020 oil and gas licensing round, marginal field development, gas monetization, Sonangol’s Regeneration Program and attractive projects across the value chain, including the international tender for the Soyo refinery and the ramp-up of the Cabinda and Lobito refineries. The 2020 event aims to expand in size, scale and prestige. Anchored by a VIP program of senior government officials and global CEOs, AOG 2020 will be the premier gathering for deal making and networking. Discussion points will include offshore oil and gas exploration and licensing, gas monetization, market entry, the ease of doing business in Angola, digitalization and oilfield technologies. New to the conference will be a Digitalization and Technology forum, which will showcase advanced technologies pioneered in Angola on the exhibition floor.            

Nj Ayuk Among Top 100 Most Influential Africans List

Michael Creg Afful
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Nj Ayuk Among Top 100 Most Influential Africans List
The Executive Chairman of the African Energy Chamber and CEO of the Centurion Law Group, Nj Ayuk, has been named as one of the top 100 most influential Africans in 2019 by NewAfrican Magazine. Providing a rapid review of some of the major events and developments across Africa, the Most Influential Africans (MIA) listing highlights key achievements of African individuals across geographies and industries this year. The listing notably includes personalities and executives from sports such as Siya Kolisi, key politicians such as President Nana Akufo-Addo or Prime Minister Abiy Ahmed, and movers and shakers of the business world such as Aliko Dangote and Ibukun Awosika. Described as an “energy broker”, the listing highlights Nj Ayuk’s voice in offering remedies for the continents’ resource curse and praises his best-seller on Amazon, Billions At Play: The African Energy and Doing Deals for offering a comprehensive road map for Africa to do a better job at using its vast natural resources to fuel economic growth and improve the lives of millions of Africans. “It is humbling, to be honored but in my heart, I know you did not buy into our message just for me, you did because you believe in what Africa and Africans can be. We should never apologise for being Pan African and Pro Africa,” declared NJ Ayuk. “This is proof that the message of the African Energy Chamber and Billions At Play: The African Energy and Doing Deals that energy must work better for Africans is being heard,” he added. Others featured on the list include Akinwumi Adesina, President of the African Development Bank; Marcia Ashong, Founder and CEO of The Boardroom Africa; Trevor Noah, Comedian and Political Commentator; Mark Bristow, CEO of Randgold Resources; Strive Masiyiwa, Businessman and Philanthropist and Tonye Cole, co-founder and former Group Executive Director of Sahara Group; Benedict Oramah, President of Afrieximbank to name a few.   Source: www.energynewsafrica.com

Ghana:  We’ll Address Staff Agitations – GRIDCo CEO

Michael Creg Afful
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Ghana:  We’ll Address Staff Agitations – GRIDCo CEO
The Chief Executive Officer of Ghana’s power transmission company, GRIDCo, Ing. Jonathan Amoako-Baah, has committed to addressing the issues raised by workers of the company in relation to unpaid debts by some of its bulk customers. Staff groups of the power transmission company in the West African nation last Tuesday hit the streets of Accra, Ghana’s capital city to express their displeasure about the inability of Electricity Company of Ghana (ECG), Volta Aluminum Company (VALCo) and Northern Electricity Distribution Company (NEDCO) to settle their debts totaling some GHS1.2billion. These payments have been outstanding for sometime now and has caused GRIDCo to fall behind on some of its debt obligations. Currently, French development partner, Agence Française de Development (AFD), has suspended disbursements of a US$170 million facility to the GRIDCo due to its inability to meet the payment terms.
Ing. Jonathan Amoako-Baah, CEO of GRIDCo
Speaking at a Long Service Awards event for 151 staff in Tema, Ing. Amoako-Baah said: “Management has taken note of recent staff agitations in the media and is very committed to addressing the issues raised. High stakeholder engagements are ongoing to find solutions to the company’s current financial situation. We place a high premium on our responsibility to protect the interest of staff and we will not renege on our fiduciary duty.” GRIDCo’s current financial situation has stifled ongoing capital projects such as the expansion of its power export capacity to neighboring Burkina Faso. Meanwhile, the company has served notice that it will not countenance unethical behavior from staff such as absenteeism, misappropriation of company property for personal use and leakage of confidential corporate information. The CEO, speaking at the same event, said the company is taking active steps to promote a sustainable work environment by upholding honesty, integrity and accountability.     Source:www.energynewsafrica.com

Austria: OPEC Members Meets In Vienna

Michael Creg Afful
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Austria: OPEC Members Meets In Vienna
Global oil producers are meeting in Vienna, Austria, for the 177th OPEC Meeting. Through the meeting, the producers will aim to determine the management of oil production in 2020. In a statement, the African Energy Chamber urged African OPEC and non-OPEC members to commit to the Declaration of Cooperation and ensure compliance. “This is of key importance as it keeps the path to dignity and prosperity for African economies open,” the statement said. The meeting falls amidst the climate change debate which has put pressure on the global energy industry to implement less carbon-intensive energy solutions. Attending the 177th Meeting, the Africans see this gathering as an opportunity for OPEC members to focus on the realities of energy poverty on the African continent and provide a solution that allows Africa to still meet its objectives of improving power access and building competing economies while participating in the dialogue about addressing climate change. “Climate change is real. At the African Energy Chamber, we do not reject its existence and impact on the environment, instead, we are determined to express the importance of Africa’s progress not being halted particularly when it is progressing towards its summit,” NJ Ayuk, Executive Chairman of the African Energy Chamber and author of Amazon best-seller, Billions at Play: The Future of African Energy and Doing Deals, said. “There must be a dialogue between businesses and governments about the future of the global energy industry, but, African business must be on the table. Accounting for 7.3 percent of global oil reserves and 7.2 percent of global gas reserves, Africa should have a voice,” added Ayuk. Last week, the African Energy Chamber launched a petition against the proposition that in the wake of the climate change debate, Africa should limit the development and exploration of its full hydrocarbon potential. This, it has done not as a means to reject the realities of climate change, but rather as a plea to be given the same opportunity as our western counterparts to develop and industrialise our countries. Secretary General of OPEC, H.E. Mohammad Sanusi Barkindo said earlier this year that: “The oil industry must be part of the solution to the climate change challenge. The scale of the challenge means that no single energy source is a panacea; nor can the contribution of an entire industry or group of countries be overlooked. This is not a race to renewables alone; it’s a race to lower greenhouse gas emissions.”

Namibia: Two Wind Farms Totalling 90MW Are Set To Be Built Soon

Michael Creg Afful
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Namibia: Two Wind Farms Totalling 90MW Are Set To Be Built Soon
Namibia’s national power utility company NamPower has announced plans to build two wind farms that will be located near the coast in the Tsau//Khaeb (Sperrgebiet) national park, southwest of the country. The first wind farm will be developed by NamPower with an investment of $68 million once a meteorological mast (metmast) determines the annual energy production capacity over the next year. If wind measurements are deemed viable then it is anticipated that 16 wind turbines will be installed, producing 40MW. The second wind project will be developed as part of a public-private partnership (PPP) through a competitive bidding process. The independent power producer that wins this concession will be responsible for building a 50MW wind farm. The power will be sold to NamPower under a Power Purchase Agreement. “After 12 months of data collection and formal tendering for specifications in the market, the project can begin. Studies are underway at the sites,” Ernst Krige, senior engineer at NamPower said. Krige added that the choice of companies, after a thorough review, will depend in particular on the project’s environmental impact management model since the wind turbines will be built in the Tsau//Khaeb (Sperrgebiet) national park. The bird and bat study is particularly critical as there are a large population of larks and alario canaries in the area.    

Nigeria: Shell Wins Oil Spill Court Case Against Nigeria

Michael Creg Afful
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Nigeria: Shell Wins Oil Spill Court Case Against Nigeria
Shell has won a court ruling that blocks the enforcement of more than a half a billion dollars for damages against the oil supermajor in a decade-old oil spill case in Nigeria.   A Nigerian court ruled back in 2010 that Shell was liable for an oil spill in the Ejama-Ebubu community in 2001, and awarded the sum plus interest to the community. Shell, which has fought several lawsuits over oil spills in the Niger Delta in the 1990s and early 2000s, has also sought to have the cases transferred to Nigerian courts instead of in UK courts. The Ejama-Ebubu community, however, had the award claim registered in London, which could have potentially meant that UK courts could enforce the award against Shell. But UK judge Jason Coppel set aside the registration on Thursday, thus preventing UK courts from enforcing the award. A lawyer for the Nigerian community told Bloomberg they would appeal today’s UK court decision, while a Shell spokesman said that the supermajor continues to believe that “no payment was due” in the case that is still being tried in Nigerian courts. Shell and its Nigerian unit have also been dragged through the courts over the supermajor’s alleged complicity in abuses of human rights in Nigeria’s military suppressing protests in the oil-rich Niger Delta in the 1990s, especially in the Ogoniland area. In early 2018, the UK Court of Appeal ruled that Nigerian communities cannot pursue Shell in UK courts over oil spills in the oil-rich Niger Delta, upholding a previous High Court ruling that UK-based multinational companies cannot be tried in England for the actions of their subsidiaries overseas. The Nigerian villagers claim that they have been severely affected by years of oil pollution from pipelines owned by Shell and that both the London-based parent company, Royal Dutch Shell Plc, and its Nigerian subsidiary SPDC are responsible for the pollution.    

Libyan Oilfield Is Offline Again

Michael Creg Afful
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Libyan Oilfield Is Offline Again
Libya’s El Feel oilfield has been shut down, due to an unlawful closure of a valve on an oil export pipeline, Libya’s National Oil Corporation (NOC) has revealed. This is the second time in two weeks that the oilfield has been shut down. The 73,000-barrels-per-day El Feel field was shut down in the middle of last week due to airstrikes, after the eastern-based Libyan National Army (LNA), led by Khalifa Haftar, retaliated after forces loyal to the UN-backed Libyan government in Tripoli allegedly took control of the oilfield in the southwest.   “Production will remain shuttered until military activity ceases and all military personnel withdraw from NOC’s area of operations,” NOC chairman Mustafa Sanalla said last week after the airstrikes on El Feel. A day later, military activity at the field stopped and production resumed, NOC said, with Sanalla noting that Libyan oilfields are vital sources of revenues for the country and that the fields “must not be treated as military targets.”   Sanalla who described the situation as worrying said that “This is another criminal attempt to disturb the work of NOC and it harms the Libyan economy. We call on the local leaders and authorities in the area to identify the offenders.” Speaking to reporters at the OPEC meeting in Vienna on Thursday, Sanalla told Reuters: “Unfortunately we lost 73,000 barrel per day today.” Libya’s oil production was volatile in the spring and summer after Haftar—whose forces control most of Libya’s oilfields—ordered in early April his Libyan National Army to march on the capital Tripoli. Two outages at the biggest oil field, Sharara, in one month forced Libya’s oil production down to below 1 million bpd in the first week of August—the lowest level in five months. Libya’s production stabilized and even increased in September and October—to 1.16 million bpd and 1.167 million bpd, respectively, according to OPEC’s figures. Yet, Libya is exempted from the OPEC+ production cuts due to its fragile security situation.  
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