Aker BP In Small Gas Discovery In North Sea
Norwegian oil and gas company, Aker BP has completed the drilling of a wildcat well and an appraisal well located in the North Sea and made a small gas discovery as a result.
The wells are located in production license 869, where Aker BP is the operator. The wells were drilled about 6 kilometers southwest of the Bøyla field, and about 230 kilometers west of Stavanger.
The Norwegian Petroleum Directorate (NPD) reported on Wednesday that the objective of wildcat well 24/9-13 was to prove petroleum in reservoir rocks (sand injectites) in the Eocene. The objective of appraisal well 24/9-13 A was to prove petroleum/water contacts.
The well 24/9-13 encountered a gas column of about 3 meters in the Hordaland group, whereof a total of 2 meters of sandstone with mainly good reservoir quality. Several sandstone layers with mainly good reservoir quality were also encountered, totaling 17 metres in the Balder formation. These showed traces of petroleum.
The sandstones are interpreted as being remobilized sand from the Heimdal and Hermod formation, and injected into overlying stratigraphy in the Rogaland and Hordaland group.
The appraisal well 24/9-13 A encountered a gas column of about 40 meters in injectite zones, of which a total of 7 meters of sandstone with good to very good reservoir quality. The sandstones are interpreted as being injected sands in the Hordaland group, as in well 24/9-13.
Petroleum/water contacts were not encountered in any of the wells, but the wells overall proved a gas column of minimum 77 meters.
According to the NPD, preliminary estimates place the size of the discovery between 0.6 and 1.7 million standard cubic meters (Sm3) of recoverable oil equivalents. The licensees will assess the well results for further delineation of the discovery.
The wells were not formation-tested, but extensive data acquisition and sampling have been conducted. These are the third and fourth exploration wells in production license 869, which was awarded in APA 2016.
The well 24/9-13 was drilled to a vertical depth of 2272 meters below the sea surface. 24/9-13 A was drilled to respective vertical and measured depths of 2240 meters and 3433 meters below the sea surface. Both wells were terminated in the Heimdal formation in the Palaeocene.
Water depth at the site is 118 meters. The wells have been permanently plugged and abandoned.
Wells 24/9-13 and 24/9-13 A were drilled by the Deepsea Nordkapp drilling rig, which will now drill a production well on the Skogul field in production license 460, where Aker BP is also the operator.
Source: offshoreenergytoday.com/www.energynewsafrica.com
Ghana: Rehashed Policies Won’t Solve Energy Worries – ACEP
Government of Ghana needs to get more innovative with its policies if it is to arrest the many challenges threatening sustainability of the energy sector, an energy think tank Africa Centre for Energy Policy (ACEP) has said.
In a statement titled ‘ACEP’s Analysis’ on energy sector issues in the supplementary budget, the think-tank noted the need for a holistic relook at policies within the energy space to enable government come up with a sustainable solution.
According to ACEP, government’s assessment of the energy sector challenges and measures for addressing them have always been a rehash of old issues which were known to it since 2017.
“The measures outlined by government in the supplementary budget to deal with these challenges need to be re-examined, to determine whether they are capable of addressing the challenges and will not end up creating further problems in the future,” said the statement signed by ACEP’s Executive Director, Benjamin Boakye.
“The most significant challenges facing the energy sector are the excess procurement of power generation systems which the country does not need, and gas – both on Take-or-Pay bases. The effect of this is that government is saddled with huge debt burdens,” it said, adding that “the difference, however, is that this time the energy sector bills have crystalised, sending panic waves through government’s finances.”
The prospect of debt recurrence in the energy sector, from any objective assessment, it observed, threatens the country’s socio-economic development and hence must be treated with the urgency it deserves.
“Unfortunately, what is happening today is not an event. ACEP is on record as having cautioned government on many occasions, since 2015, of the catastrophic commitment to more power than could be reasonably projected to be the country’s demand. At the same time gas supply commitments were generated on wrong assumptions, which ACEP has extensively written on.”
Among the issues affecting the sector, ACEP noted, is the subscription to many unwarranted Power Purchase Agreements (PPAs) – which has resulted in excess dependable capacity of about 1900 MW.
The excesses, which are consistent with a World Bank projection in 2017, has created a situation where about 60 percent of the take-or-pay capacity sits unutilized.
This translates to a debt burden of US$500million a year for the taxpayer, according to the budget.
The Finance Minister stated that the contracts were inherited, hence making an admission that the problems are not new. This raises questions as to government’s delay in taking action since January 2017. ACEP observes that not much urgency was attached to addressing the issue until it reached a crisis point.
The key measure proposed by the minister is to convert all Take-or-Pay contracts to Take-and-Pay contracts effective August 1, 2019. This means government has taken a unilateral decision to suspend its obligation of the terms in the Take-or-Pay contracts.
“Needless to say, this will amount to a breach of government’s contractual obligations under the affected PPAs – with potential judgment debt liabilities. Of course, ACEP estimates that abrogating some of the take-or-pay contracts and incurring the resulting liability will still be cheaper than sticking with the Take-or-Pay obligations for the duration of the PPAs.
“If this is also the position of government, a better way would have been to communicate with the companies its decision before making a public announcement,” the statement further read.
Other measures proposed by government to deal with the excess capacity include increasing power exports and increasing productive uses of electricity through industrialization.
On the issue of increasing power for exports, ACEP is of the opinion that the market is largely limited for the quantum of excess supply the country is faced with.
It said the country’s excess capacity is bigger than the total power needs of Togo, Benin and Burkina Faso, which are the primary targets of Ghana. Additionally, in those countries, access to electricity is very limited; 35%, 29% and 20.3% respectively. The total electricity consumption from these countries is about 1034MW, which is significantly below their installed capacity of 2478MW.
More significantly, ACEP indicated that the transmission infrastructure to extend electricity to those countries remains a medium- to long-0term aspiration, defeating Ghana’s short-term projections for export of power, while it continues to pay for capacity charges.
Another impediment to the country’s hopes of power export, ACEP noted, is price-competitive advantage from Nigeria and Ivory Coast for the sub-regional market – because Nigeria and Ivory Coast export cheaper power in the sub-region.
While Nigeria sells to Benin between 6-7 cents/kwh and that of Côte d’Ivoire is about 10 cents/kwh, conversely, Ghana’s generation cost averages 12-15 cents/kwh. This reduces the available market to Burkina Faso, and marginally to Benin and Togo where Ghana has infrastructural advantage.
The statement also said medium- to long-term generation dynamics in the targetted countries may not augur well for Ghana: “The countries Ghana expects to export electricity to already have medium- to long-term plans to generate their own electricity.
“In some instances, donor programmes such as the Power Africa Programme of the United States of America has initiated plans to accelerate access through off-grid solutions and installation of thermal plants.
“Therefore, Ghana cannot hope on taking advantage of increases in access for those countries in the long run.
“Again, with consistent decline in price of solar, which has higher yield in the Sahel regions, high cost of electricity in Ghana will struggle to compete with solar – which can be deployed quickly for small- to medium-scale firms.”
Source:thebftonline.com/www.energynewsafrica.com
Saudis To Suppress Oil Supply In September To Stabilize Market
Saudi Arabia plans to keep oil exports below 7 MMbpd next month as the OPEC country allocates less crude than demanded by customers to help stabilize the market, according to Saudi officials.
State-run Saudi Arabian Oil Co., known as Aramco, will make a cut of 700,000 bpd in its allocations to customers in all regions next month, the officials said, asking not to be identified because the matter isn’t public.
The country’s production will be lower in September than this month, they said.
The cut in the allocations to customers comes despite strong demand for oil in all regions, the officials said.
The kingdom could have produced about 10.3 MMbpd because demand is much higher, but decided to keep output and exports suppressed and reduce customer requests by 700,000 bpd, they said.
The Saudis and their partners in the OPEC+ coalition are determined to do what they can for market stability, they said.
Saudi Arabia, the world’s largest oil exporter, has already cut production more than required under an agreement between the Organization of Petroleum Exporting Countries and allies outside of the group to help drain inventories and reach market stability.
Oil has been swept up in a global market meltdown as the U.S.-China trade dispute worsened, spurring fears it would morph into a currency war.
Prices recovered some of their losses on Thursday after a Saudi official, speaking anonymously, said the kingdom won’t tolerate a further sell-off and has phoned other producers to discuss a response. But a cooling global economy and the U.S-China trade dispute are putting a brake on fuel demand, so even if global producers decide to cut output further, they may struggle to revive prices.
Ghana: Set Up Trustees To Manage Power Revenue Collection Account– Alex Mould
A financial expert and immediate past CEO of Ghana’s national oil company(GNPC), Mr. Alex Mould, has advised President Akufo-Addo administration to set up a trustee to immediately manage the power sector revenue collection account following the Power Distribution Service concession debacle.
His comments come after government detected fundamental and material breaches of the Power Distribution Service (PDS) obligations in the provision of payment securities (Demand Guarantees) for the transactions.
The status quo (current funds collection and distribution mechanism), according to Mr Mould, is flawed with deliberate delays which caused unnecessary float interest revenue for the collecting company (then ECG and now PDS).
That, he alleged, was all done in collusion with the banks which enriches them (the Banks and PDS (ECG) at the expense of the other power sector service providers who are always short of liquidity.
Additionally, he called for the urgent need for the institution of a Cash Waterfall Mechanism (CWM) to prevent the growth of the energy sector-wide indebtedness.
CWM, Mr Mould explained, is a protocol to ensure that all players in the power sector value chain that supplies electricity to our homes, offices and industry, are paid on time without the unnecessary interference by the government or any institution that collects the revenue on behalf of the service providers.
In July 2017, Cabinet approved the implementation of CWM as a new revenue distribution system to address the increasing legacy debts in the energy sector.
This mechanism is part of a wider strategy to ensure an equitable distribution of energy sector revenues to all stakeholders in the value chain.
But Mr Mould in an interview alleged, “there seems to be some reluctance by the Finance Minister to set up the Collection Account and also set up an agreed protocol for the distribution of the proceeds on a timely basis to the service providers in the power sector.”
He said there was no other reason for “this self-imposed inertia apart from the fact that this is part of the jigsaw puzzle in the grand scheme to perpetuate State Capture in the Power Sector.”
Mr Mould, who is also the immediate past Chief Executive of the Ghana National Petroleum Corporation (GNPC) claimed that, the main interest of the Power Distribution Services (PDS) was to control and profit from the liquidity generated from the sale of electricity.
“PDS plans doing this by having one or two banks handling all its cash collections and thus be able to control the liquidity generated by the power sector to the detriment of the power service providers like VRA [Volta River Authority], GRIDCo [Ghana Grid Company], the Independent Power Producers and the Fuel Suppliers i.e Ghana Gas, GNPC and NGas [Nigeria Gas Company],” he added.
He stated that the power sector revenue collection account had not been set up nor “have the procedures and protocols for payments to the service providers in the power sector value chain been set up.”
This should be managed by a Trustee comprising of the major players in the industry which seeks the interest of the viability of the players in the power sector with the goal of restoring the much needed financial credibility and creditworthiness.”
The delay, according to him, was causing further delays in payments to the main players in the value chain “which translates in higher financial costs and lack of liquidity to carry out their businesses effectively and efficiently.”
That, Mr Mould, said was a breach of one of the conditions set by the World Bank in order to assist in improving the efficiency of the Power Sector.
“One of the conditions by the World Bank to assist in improving the efficiency of the power sector was to ensure that the right tariffs were paid and that an efficient payment mechanism is set up,” he recollected.
Source: www.energynewsafrica.com
Ghana Gov’t Terminates Concession Agreement With PDS
The Government of Ghana has terminated the concession agreement the Electricity Company of Ghana (ECG) signed with Power Distribution Services (PDS) Ghana Limited, energynewsafrica.com can confirm.
According to sources within the Ministry of Energy and the seat of government, Power Distribution Services Ghana Limited, which has become the subject of discussion following the government decision to suspend its operations, will not be allowed to continue as as a power distributor.
“I can tell you that PDS is not going to continue. The contract has been terminated,” the source revealed.
“The suspension was just procedural, ” it added.
The Electricity Company of Ghana, acting on behalf of Government of Ghana, signed a concession agreement with the Power Distribution Services Ghana Limited on March 1, 2019.
The move was in line with Millennium Challenge Corporation’s Power Compact II which required private sector participation in the West Africa country’s power distribution business.
However, barely five months of operations, the Government of Ghana, through the Information Minister, Kojo Oppong Nkrumah, announced the suspension of PDS.
In a statement, government said the suspension was as a result of what it described as ‘fundamental and material breaches of PDS’ obligation in the provision of Payment Securities for the transaction’ which had been discovered upon further due diligence.
The statement said a full-scale enquiry into the power concession agreement with PDS Ghana Limited had begun and was expected to last for 30 days.
The statement also said the government had taken steps to ensure that distribution, billing and payment services were not interrupted, and assured the public that the development would in no way interfere with the distribution of electricity services to customers.
Ghana’s electricity regulator, Energy Commission, last week, withdrew EC/ESL/ 02-19-001 licence, which the commission issued to PDS following the transfer and appointed ECG as the interim operator of the electricity retail sales function in the southern zone under license number EC/ESL/02-19-001.
According to the Commission, its decision was based on the validity of the said licence becoming impaired due to the suspension of the operation of Power Distribution Services (Ghana) Limited over some breaches in the concession agreement signed with the Government of Ghana.
Energynewsafrica.com can also confirm that government plans to use the law courts to punish those who allegedly played various roles in the procurement of purported fake documents used by PDS to secure the deal.
Source: www.energynewsafrica.com
Ghana: Bui Power Authority Reacts To Terkper, Jinapor’s ‘Misleading’ Claims
Ghana’s power producer, Bui Power Authority (BPA) has rejected claims by two former ministers who served in the John Mahama administration that the Authority signed a take or pay agreement with the Electricity Company of Ghana (ECG).
Both former Minister for Finance and Deputy Minister for Power, Seth Terkper and John Jinapor had suggested that the Bui Dam and other agreement signed under the New Patriotic Party era were on “take or pay” basis.
However, the Authority in a statement clarified that contrary to what the two Ministers had suggested, the Authority signed a “take and pay” agreement and not a “take or pay” one.
“We wish to unequivocally state that the PPA between the BPA and the ECH is a ‘Take and Pay’ agreement and not a ‘Take or Pay agreement as being asserted by the two former Ministers.
“Indeed, the Section 3 of BPA’s PPA with the ECG (Scope of Agreement) states that the seller (BPA) shall within the terms of the Agreement, supply and sell energy to the Buyer (ECG), and the Buyer shall take and purchase energy from the Seller under the conditions established’…It is therefore misleading for the two former Ministers to suggest that the arrangement was a Take or Pay agreement instead of Take and Pay,” a statement signed by CEO, Fred Oware and copied to energynewsafrica.com said.
The Authority also disputed claims by the former Deputy Minister that suggested that the Bui Generation Station does not generate beyond 140MW.
“Bui dam has never supplied more than 140MW. Bui dam at best does one which is 140,” Jinapor is quoted as saying.
“This is also inaccurate. All the Units, totalling 404MW, have always been available at all times except on planned maintenance periods. The dependable capacity for the Bui GS as stated in the 2019 Electricity Supply Plan is 360MW with a projected annual energy generation of 660GWh (based on reservoir elevation at the beginning of the year and inflows during the flood season).
“However, the capacity to be dispatched at any plant is the sole prerogative of the system dispatcher, GRIDCo, taking into consideration the dependable capacity and projected generation for a particular year. It is instructive to note that in 2018, BPA generated 960GWh against the planned 660GWh.
“We wish to state categorically that on several occasions we have generated in excess of 360MW as records available at the System Control Center would confirm. We therefore find the former Deputy Minister’s statements regrettable, “the statement concluded.
Source: www.energynewsafrica.com
South Africa: Ubuntu Colliery Bags Coal Supply Deal With Eskom
ASX-listed coal miner, Universal Coal, has executed a Coal Supply Agreement with Eskom for 100% of its production from its fourth operation Ubuntu colliery.
Under the agreement, the Ubuntu colliery will deliver 1.2 Mtpa of thermal coal to Eskom with first coal delivery set for November 2019, with build-up of production over a short six-month period.
This increase in sales volume underpins the company’s confidence in reaching its annualized sales target of 9.6 Mtpa to market by FY,2021.
Commenting on the coal supply agreement, CEO Tony Weber said: “We are delighted to have this agreement concluded with Eskom. The agreement ensures the continued growth of guaranteed revenues in the face of fluctuating export thermal coal markets, and enables Universal to continue to fund further development and grow returns to shareholders.”
Ubuntu is located within 20 km of Universal Coal’s Delmas-based Kangala colliery and hosts a JORC compliant thermal coal resource of 75.8 Mt of which 31.7 Mt is measured.
Ubuntu is fully permitted and the surface rights have already been acquired. The mine plan comprises a contract opencast mining operation supported by crush and screen on-site coal beneficiation.
Once operational, Ubuntu will be Universal’s fourth operation to come on line over a six-year period.
Source: esi-africa.com/www.energynewsafrica.com
TGS Awarded Five-Year Well Data Contract Extension By BSEE
TGS-NOPEC Geophysical Company has been awarded a five-year contract for Digital Well Log Data Processing with the United States Department of the Interior, Bureau of Safety and Environmental Enforcement (BSEE).
TGS has been providing Digital Well Log Data Processing services to BSEE since 2004.
BSEE requires complete, defect-free sets of processed, high-quality open-hole digital well log data and contracts companies to serve as an agent of BSEE for the processing, storage, and delivery of this data.
TGS is the official release agent for new offshore well data and does all the digital well log processing for all four BSEE regions (Gulf of Mexico, Pacific, Alaska, and Atlantic).
Carl Neuhaus, vice president – Well Data Products at TGS said “We greatly appreciate the continued trust placed in TGS by BSEE and are proud to better serve our national oil and gas industry by further expanding our data availability. Our engagement is perfectly aligned with our mission to enable our customers to hit the ground running by accessing the largest library of high quality subsurface data in the industry.”
The TGS well data library includes more than 1.6 million immediately available LAS files, as well as over 6.2 million raster log images in the United States, in addition to a broad spectrum of other well-related data and geoscience interpretation products.
Phanes Group’s Solar Incubator Returns In Search Of Promising Sub-Saharan Africa Solar Projects
Phanes Group, an international end-to-end solar provider headquartered in Dubai, UAE, is once again on the hunt for promising solar photovoltaic (PV) projects to support in sub-Saharan Africa, as the company relaunches its Solar Incubator program.
Now in its third consecutive year, the competition continues towards its goal of electrifying more communities for a sustainable future.
With over 600 million people lacking access to electricity in sub-Saharan Africa, the need for sustainable, affordable and commercially viable energy sources – such as solar PV – is undeniable. In the sub-Saharan region, a lack of energy access also remains a key barrier to economic and social progress.
Phanes Group’s Solar Incubator was initiated in 2017 to tackle the issue head-on, fostering local innovation and investment by providing local solar PV developers with the funding and commercial and technical knowledge they otherwise couldn’t access. In 2018, that access to expertise was awarded to Senegalese engineer and innovator Mbaye Hadj.
“I had been working on my solar farm idea since July 2018, but these projects require a lot of intricate know-how, financial expertise, and funding – some of which I lacked,” noted Hadj. “The guidance of Phanes Group and its partners will allow us to finally bring our project to life, so we can feed power to Senegal’s national electricity company. By achieving this we’ll help the local economy to grow, which so far has been held back by a lack of electricity,” he added.
Hadj’s triumph came at the 2018 Unlocking Solar Capital: Africa conference, where he presented his proposal for a 30-megawatt solar farm in his hometown of Gossas, Senegal.
Evaluation panel members were inspired by his desire to electrify schools, healthcare centers, and other critical services that are today in decline due to a lack of dependable power. Bettering applications from over 20 countries, Hadj also drew interest for his passion, knowledge, and heavy involvement in the region.
With the 2019 Solar Incubator open for entries, Phanes Group and its partners hope to see similar dynamism and community-focused concepts from this year’s applicants. Shortlisted developers will be invited to present their concept at Solarplaza’s Unlocking Solar Capital: Africa 2019 conference, held in Dakar, Senegal from October 16 to 17.
“Through our work across sub-Saharan Africa, we’ve met many individuals and organizations who possess great solar PV project ideas for their community but lack access to the necessary support and expertise to realize them,” commented Martin Haupts, CEO, Phanes Group.
“We launched the Solar Incubator program in 2017 to identify the very best of these projects, and reduce the knowledge and funding gap they face in a collaborative way. We hope to once again enable participants to bring lasting positive change to the community around them,” added Haupts.
“The return of the Solar Incubator program spells great news for passionate solar PV developers who have the vision and on-ground knowledge but not necessarily the broader project-wide expertise,” commented Edwin Koot, Solarplaza.
“Financial viability is a fundamental part of any successful solar PV project, and we hope that our continued partnership will provide that all important commercial strength, alongside a breadth of technical knowledge.”
To support the vision and ambition of more innovators like Mbaye Hadj, Phanes Group is encouraging eligible solar PV developers to apply for the third annual Solar Incubator program, held under the theme, “Your Project, Our Expertise, For a Sustainable Future”.
Before the deadline of 04 September, 2019 interested candidates should submit their applications via email to [email protected].
Nigeria: DPR Seizes 500,000 Liters Of Petrol Concealed Underground In Adamawa
Nigeria’s Department of Petroleum Resource (DPR) has intercepted 500,000 liters of petrol (Premium Motor Spirit) concealed in underground bunkers by suspected smugglers.
The petroleum product was uncovered during a crackdown on smuggling by DPR officials in Monduva, a border community between Nigeria and Cameroon in Mubi area of Adamawa State.
Acting Controller of DPR in Adamawa, Liman Mohammed, reportedly led the operation in search of illegal filling stations in the local government.
During the raid, two uncompleted filling stations were found to be concealing 300,000 and 200,000 liters of PMS respectively.
Mohammed said, “We’ll not sit back and watch saboteurs take the product across the border while our government continues to pay subsidy.”
The DPR consequently ordered the evacuation of the product and hinted on not granting further approval for siting of petrol stations near the border
Source:www.energynewsafrica.com
Ghana: We Have Done Nothing Illegal — PDS
The Power Distribution Services (PDS) Ghana Limited says it has done nothing illegal in its transactions, and is thus ready to fully cooperate with the Government of Ghana (GoG) in its investigations to help find an early resolution of the dispute that has led to the suspension of the power distribution concession agreement in the interest of the country.
PDS insisted it had acted in good faith and had not engaged in any ‘fraudulent’ deal as Ghanaians had been made to believe, and was thus ready to clear its name.
Reacting to the issues for the first time since the controversy came up following a terse statement that was issued last week, the Chairman of PDS, Mr Philip Ayesu, welcomed the government’s proposed 30-day investigation into the issues, saying it would help the company clear its name of any wrongdoing.
As part of its commitment to resolve the impasse, PDS has also given an assurance that it will cooperate with all stakeholders in ensuring that power supply is not interrupted, pending the determination of the issues relating to the insurance company, AlKoot’s fraud claim made to the Electricity Company of Ghana (ECG), the Energy Commission’s alleged “unlawful acts” and restoration of normalcy as provided by the three Concession Agreements relating to the PDS Concession.
“PDS has not done anything illegal and the investigations will help us clear our name,” Mr Ayesu stressed.
He said he was optimistic that the commitment being showed by the PDS would assist the government in the early resolution of the dispute.
The PDS Board chairman further indicated that the board had held an emergency meeting to discuss its plan and what it could do to ensure that there was quick resolution of the issue.
Misleading
Mr Ayesu expressed the opinion that someone from the ECG had been trying to use AlKoot to mislead the government and was, therefore, of the belief that the truth and the facts would all be known when the investigations were completed.
“Whoever gave the government that hint or information schemed to procure a 16th July, 2019 letter from AlKoot, alleging that it had no relationship with PDS and that the Demand Guarantees presented by PDS were fake; did not exist as they were obtained by fraud, and was not signed by an authorized person,” he said.
Per Mr Ayesu’s explanation, it was strange that the said letter was not copied to PDS or the brokers of AlKoot, the reinsurance broker, Jo Australia, and Donewell Insurance.
“By an email from AlKoot dated the 30th of July 2019, AlKoot stated that it had not received premium for the Demand Guarantees so it declared its intention to cancel both Demand Guarantees,” he said.
On July 31, 2019, Mr Ayesu said, AlKoot sent its formal notice of cancellation of the demand guarantees to its broker, Jo Australia, which was not copied in the July 16, 2019 letter from AlKoot to ECG which had alleged fraud and raised forgery.
According to the PDS boss, the reason stated for the cancellation of the demand guarantees was not fraud or forgery, and stressed that until July 31, both demand guarantees were in place and were only cancelled on July 31, for “non-receipt of premium.”
“Meanwhile, PDS had paid the brokers of AlKoot (Donewell Insurance and Jo Australia) through CAL Bank for the payment of premium.
“PDS was presented with the July 16 letter of AlKoot for the first time on July 29, 2019 at the office of the Minister of Energy,” Mr Ayesu said.
He further maintained that since PDS had not procured the Demand Guarantees directly but through CAL Bank and Donewell Insurance, the company requested that representatives of the two organizations join in the meeting of July 29, 2019.
“A decision was taken at the meeting of July 29, this year that a team comprising all interested parties, ECG, CAL Bank, Donewell, PDS, Ministry for Energy, Ministry of Finance and the Millennium Development Authority (MiDA) should be despatched to Qatar on July 31, 2019 to verify the status of the Demand Guarantees from AlKoot.
“Awaiting the implementation of the plan as stated above, PDS received a letter from ECG on July 30, 2019, stating that since the Demand Guarantees were fraudulent, ECG had suspended the rights and obligations of itself and PDS under the concession,” Mr Ayesu explained.
Source:graphic.com.gh
Ghana’s Take-or-pay Obligation To Reduce Significantly-GNPC CEO
The Chief Executive Officer of Ghana’s National Oil Company (GNPC), Dr K.K. Sarpong, is optimistic that, with the corporation’s drive to increase the utilisation of domestic gas, the take-or-pay obligation of the country will be reduced significantly.
His hopes follow the successful completion of the initial phase-Takoradi scope-of the Takoradi-Tema Interconnection Project, which will allow reverse flow of gas from the Western Region of Ghana to the Tema power enclave.
“The successful execution of this scope of the project paves the way for the smooth flow of gas from the Western Region to Tema for use by the various gas off-takers in the Tema-Accra power and industrial enclave.
“This project has also doubled the capacity of Ghana Gas to transport GNPC’s gas to feed critical national power generation facilities sited in the Western enclave. Again, gas users in the Accra-Tema region are assured of relatively more reliable gas supply through the TTIP,” a statement copied to the energynewsafrica.com said.
According to the CEO of GNPC, “Ghana Gas’ ability to supply gas for a stable production of electricity means that, cost of electricity to the final consumer will now be relatively lower as compared to the use of Heavy Fuel Oil (HFO) or diesel as fuel for electricity generation.”
He further stated that the cost of production for local companies especially in the manufacturing and mining sectors, would reduce significantly to enable them become more competitive
This feat was achieved with the support and collaboration of ENI Ghana Exploration and Production Ltd., Vitol Ghana Upstream, Ghana National Gas Company (Ghana Gas) and the West Africa Gas Pipeline Company (WAPCo).
Commissioning and performance testing of the Takoradi scope of the ‘Takoradi–Tema Interconnection Project’ (TTIP) has been successfully carried out.
The Tema section of the TTIP, which includes the revamping of WAPCo Tema Regulatory and Metering Station (RMS), is ongoing and is expected to be completed by the fourth quarter of 2019.
“As the National Gas Aggregator, GNPC played an enabler role, providing the financing and necessary comforts to the partners to ensure the successful completion of the project. GNPC engineers also provided end-to-end advice in the design and scoping, as well as monitoring of the project execution,” the statement concluded.
Source: www.energynewsafrica.com
Mozambique: Construction Of LNG Project Kicks Off
Mozambique’s President, Filipe Nyusi, has laid the foundation stone of an LNG project of a consortium led by US multinational Anadarko.
The project is located in the area where Anadarko and its partners discovered approximately 75 trillion cubic feet (tcf) of recoverable natural gas in Offshore Area 1, in the Rovuma Basin.
Rovuma Basin Offshore Area 1 involves piping the gas to factories onshore (known as trains) where it will be liquefied, in preparation for export.
A total investment of around $23 billion is expected, making this LNG project by far the largest investment in Mozambican history.
It will make Mozambique the largest producer and exporter of gas in Africa. Exports should start in late 2024 or early 2025.
According to the Mozambican government, the project will make available about 400 million cubic feet of natural gas per day to the domestic market.
Anadarko Mozambique Área 1 Lda., a wholly-owned subsidiary of Anadarko Petroleum Corporation, is the Area 1 Offshore operator with a 26.5% stake.
The joint venture includes ENH Rovuma Área Ume, SA (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%t) and PTTEP Mozambique Area 1 Limited (8.5%).
Mitsui E&P Mozambique Area 1 previously said in a company statement: “The plan is to produce 12 million tons of LNG per year, starting in 2024. We plan to raise finance for the project from overseas public financial institutions and Japanese financial institutions.”
Source: Esi-Africa.com
Article: Avoiding The Gas Curse In Senegal’s Energised Renaissance
| After decades of struggles against a deficient power generation system, Senegal is now at the verge of a paradigmatic shift that could put many of its troubles to rest. With the government’s bet in recent years in new power generation facilities, power outages have greatly diminished, system reliability has improved and with it the opportunities for economic growth. To be sure, many still live without access to electricity. On average, 4 in every 10 people are not connected to the national grid. The situation is worst outside the main urban centres, where 60% of the population remains unconnected, but the chance to improve this situation has never been closer. At a production capacity of a little less than 1 gigawatt for a growing population of 15 million strong, investment in further generation capacity is paramount if Senegal is ever to develop its internal market and give its citizens a shot at a better standard of living. However, sustainability must guide decision-making as much as strategic need. The imported heavy-fuels and coal used to generate most of the country’s power comes at a heavy cost for the state’s coffers. In 2016, refined and crude oil imports cost the Senegalese state over USD$1.5 billion. Sustainable Power The alternatives are obvious. Senegal is blessed with many hours of high solar exposure and wind flows. The opportunities are also there to be seized. French power company ENGIE and investment company Meridiam won a tender in April for a 60MW solar park. This will build on the country’s previously established renewable generation projects, which now amount to 80MW. As the price of solar and wind technologies decreases, these technologies have become more and more appealing in recent years which also has a positive impact on the cost per MW for the consumer. Engie’s park will cost around 40% less than the previous endeavours in solar in Senegal. Another 158MW of wind power are planned for development by the Lekela Power company in Taiba N’Diaye These developments build on a combination of factors. Senegal’s reputation for stability and positive business environment have made the West African nation particularly luring for foreign investors in recent years. Investment has come not just from the country’s traditional partners in the West, particularly France, but from the East, with Turkey, China, the UAE, South Korea and India making sizeable investments in the country. To the growing interest of private investors adds the support from international institutions like the United States-led Power Africa programme, Overseas Private Investment Corporation (OPIC), or the International Finance Corporation (IFC), a part of the World Bank Group. These organizations have helped finance many power generation-related projects throughout the continent. In partnership with the Senegalese government, particularly through the Scaling-Solar scheme supported by the IFC, these projects, including the new 60MW solar park project won by ENGIE and its Meridiam, are progressively seeing the light of day and bringing relief to the country’s struggling power grid. Since 2016, when the first solar power project was launched in Senegal, the country has seen a extremely fast development in renewable energy projects. If all goes according to plan, almost half a gigawatt of installed capacity will be available in 2020. That would be one of the fastest increases in renewable to fossil fuel generation ratio in the world Further, these projects bring not only power stability but answer concerns of climate change mitigation. Under the Paris agreements, Senegal committed to reduce its CO2 emissions by 21% by 2020, a goal that only through a sustainable energy policy can be achieved These combination of variables give Senegal its best opportunity yet to push for the modernization of its power generation industry, which in turn should potentiate the development of industries, creation of wealth, jobs and economic growth At the same time, moving away from expensive heavy oil-based power generation needs to be a priority The gas bliss Kosmos Energy’s discoveries of large quantities of natural gas reserves in the offshore regions of Senegal has come as a game changer for the country. Over the last couple of years, successive finds have risen the estimated in-place reserves of the country to up to 50 trillion cubic feet of natural gas, propelling it to the top 5 of Africa’s biggest natural gas holders Exploration license holders Kosmos and BP have already suggested a fast-track development using a floating LNG facility that could see first gas being commercialized as early as 2021 from Greater Tortue/Ahmeyin fields. Additional discoveries in 2017 have made the companies consider two rather than one train of LNG processing capacity. This means that very soon Senegal can have access to an inexpensive source of energy it can use to power its homes and industries, not to mention a new and strong stream of income The political will also seems to be present for that to take place. February’s announcement of the agreement reached between Senegal and Mauritania for the exploitation of their shared natural gas reserves in the Greater Tortue Complex, which holds up to 25TCF of natural gas, is a symbol of the times. Quick decision-making among political leaders focused on economic development. If the cards are played well, we could be witnessing a shifting moment for the country’s economic structure. President Macky Sall, himself an educated oil man, is well aware of what to expect once the natural gas starts to flow. Already, plans are being made to convert heavy-fuel turbines to operate with natural gas. Just in April, the technology group Wärtsilä won a tender for the deployment of a 130-MW Flexicycle plant that can operate in a combination of different fuels so it can immediately be shifted to natural gas once the resource is made available. The country’s older power plants will soon follow By using natural gas as a power source, the national grid will be able to offset the intermittency of renewable power supply while saving millions in fuel costs and reduce CO2 emissions. Lessons learned That is not to say that Senegal is not also at risk of making the same mistakes as many of its neighbours. When oil was first discovered by Cairn Energy in Senegal in 2015, there were more than a few voices that expressed concern for what an oil boom could do to Senegal’s fragile economy. Nigeria’s and other’s battles with the oil curse is nothing to be envious of. Many of these concerns are well founded. A major income stream suddenly being concentrated in a specific sector of the economy can reduce competitiveness in other sectors and produce inflationary pressures. Further, expectations need to be managed carefully. The oil and gas sector is not a major employer. Most people will not find a job in it. Particularly with floating LNG solutions, there will be little place for integrating the local workforce, especially with a relatively low technical skillset. However, if Senegal can learn from the mistakes of others, its natural resources can truly help the country develop economically. There are quite a few examples to look at. Ghana has quickly established one of the most comprehensive legal frameworks for oil and gas income management the continent, even the world, has ever seen. Equatorial Guinea has managed to use its resources to invest in infrastructural develop and boost associated industries to create a thriving logistics hub in the Gulf of Guinea. European cooperation partners can also provide assistance in developing the necessary institutions to manage this income. Already, Senegalese lawmakers have partnered with the Netherlands and visited the country’s operations in the North Sea to learn from their experience. To be sure, there will be challenges to governance and some issues will need to be addressed within the specificities of the Senegalese reality. However, if the government can stick to its plan of partnering with international allies to invest in a power generation sector it can create the foundation ground for the growth of a strong economy. Balancing natural gas and renewables for power generation, maintaining a strict vigilance over the management of oil and gas income, establishing independent regulatory bodies and heritage funds to manage the revenue, can be the building blocks of a new era of economic growth in Senegal. |