Fuel Cheating: Association Of Oil Marketing Companies Apologizes To Ghanaians
Kwaku Agyemang-Duah, Chief Executive Officer for OMCs
The Association of Oil Marketing Companies (AOMCs) in the West Africa country, Ghana, has apologized to its numerous customers who are reported to have been cheated by some of its members.
“We would like to unreservedly apologise to customers who may have been affected by this unfortunate incident,” the association said in a statement signed by the Industry Coordinator, Kwaku Agyemang-Duah, and Board Chairman, Johnny Crosby Blagogee.
It would be recalled that the Ghana Standards Authority, on Monday, issued a statement which indicted about ten OMCs of cheating customers.
The stations were found to be under delivering right quantity of fuel to customers.
The finding followed an inspection of fuel measuring and dispensing instruments in parts of the country.
The 10 stations include Shell at the Motorway Extension, Total at McCarthy Hill, GOIL at Mile 11, Frimps Oil at Tetegu junction, GOIL at Galilea, Frimps Oil at Spintex Road, Glory Oil at Spintex Road, Allied Oil at Sakaman, Shell at Amanfrom West and Goodness Energy, Kasoa.
In addition, two companies-Galaxy Oil and Agapet, but at Spintex Road-were found to have broken the Ghana Standards Authority seal without permission.
“In summary, out of 65 stations visited, 55 delivered right quantities whilst 10 under-delivered,” the GSA said in a statement.
But, the association, in a statement, expressed serious concerns about what it described as wrong impression created as if its members were deliberately cheating customers.
“The credible and sustainable Oil Marketing Companies (OMCs) mentioned have since corrected the issue raised by GSA, during the audit of their retail outlets.
“It is worth noting that these companies have quality vans and personnel with excellent technical know-how, who, periodically, embark on visits to their retail outlets in order to ensure the right quality, quantity and pricing are delivered to consumers across the country.
“We continue to assure consumers of our relentless and unwavering determination to attain 100% compliance,” the statement concluded.
Below is the full statement
REPORTED DISCREPANCIES OF FUEL DELIVERY AT SOME SELECTED RETAIL OUTLETS
The AOMC’s attention has been drawn to the Ghana Standards Authority’s (GSA) usual verification audit at the various retail outlets. A review of their press release dated Monday 10th June 2019 indicate 85% compliance to the fuel delivery within the tolerance level and 15% non-compliance. It is therefore unfortunate to create the impression that OMCs are deliberately cheating consumers.
These credible and sustainable Oil Marketing Companies (OMCs) mentioned, have since corrected the issues raised by the GSA during the audit of their retail outlets.
It is worth noting that these companies have quality vans and personnel with excellent technical know-how who periodically embark on visits to their respective retail outlets in order to ensure the right quality, quantity and pricing is delivered to consumers across the country.
We employ delivery pumps which are mechanical devices, subject to under or over delivery within the six months calibration period. Be it as it may, we would like to unreservedly apologize to consumers who may have been affected by this unfortunate incident.
We would like to remind our dear consumers that in the event of any doubt of the volume of fuel being served at retail outlets, the ntease kwura (10-litre can) should be requested to verify volumes delivered. We will however continue to invoke our “mystery shopping” and put our finger on the state of the art technology which is currently under discussions with the appropriate regulators including the Ghana Standards Authority (GSA).
We continue to assure consumers of our relentless and unwavering determination to attain 100% compliance.
Thank you.
……Signed…… ………signed…………
Kwaku Agyemang-Duah Mr. Johnny Crosby Blagogee
INDUSTRY COORDINATOR BOARD CHAIRMAN, AOMC
U.S.: Video Proves Iran Was Behind Tanker Attacks
The U.S. has video proof, CENTCOM says, that Iran was behind the explosions that rocked two tankers in the Gulf of Oman yesterday.
Reuters reports that U.S. Central Command spokesman Bill Urban late on Thursday released a video saying the footage showed a patrol boat of the Iranian Revolutionary Guard approaching one of the tankers where it “was observed and recorded removing (an) unexploded limpet mine from the M/T Kokuka Courageous.”
Tehran has denied the allegations, calling them “unfounded”, with one senior government official telling the BBC that Iran had no connection to the explosions that pushed crude oil prices up by about US$3 per barrel.
In a statement released today, the Iranian UN missions said, “Iran categorically rejects the US unfounded claim with regard to 13 June oil tanker incidents, and condemns it in the strongest possible terms.”
In a column for Bloomberg, commentator Julian Lee noted hours after the explosions that Iran would be the most likely target of blame-laying, but added it was not the only party that could benefit from tanker explosions.
Lee said the benefits for Iran from the attacks would be relatively insignificant but, he said, “There is another group that will benefit from the incident: the people who want to see the U.S. step up its campaign against Iran and move from an economic war to a military one. There are plenty of those, both in the U.S. and among its allies in the Persian Gulf and wider Middle East regions.”
Meanwhile, the owner of the Japanese tanker that the U.S. said was on the footage they released today, said the crew had reported “flying objects” just before it was hit, CBC reports. This contradicts the information released by the U.S. Central Command, and while it deepens the suspense it also suggests the situation is unlikely to be resolved anytime soon, with tensions in the region likely to remain heightened.
Ghana: 10 Cheating Fuel Stations Fined GHC 5,000 Each
The Standards Authority in the West African country, Ghana, has fined each of the 10 fuel stations that were found to have been under-delivering fuel to consumers GHS5000.
The stations were found out following an inspection of fuel measuring and dispensing instruments in parts of the country.
The 10 stations include: Shell, Motorway Extension; Total, McCarthy Hill; GOIL Mile 11; Frimps Oil, Tetegu junction; GOIL, Galilea; Frimps Oil, Spintex Road; Glory Oil, Spintex Road; Allied Oil, Sakaman; Shell, Amanfrom West and Goodness Energy, Kasoa.
In addition, two companies; Galaxy Oil, Spintex Road; and Agapet, Spintex Road, had broken the Ghana Standards Authority seal without permission.
“In summary, out of 65 stations visited, 55 delivered right quantities whilst 10 under-delivered,” the GSA said in a statement.
Below is the full statement:
The Ghana Standards Authority as part of its mandate to enforce the provisions of the Weights and Measures Act 1975, NRCD 326, has been inspecting fuel measuring and dispensing instruments in parts of the country after the first phase of the GSA routine national fuel measuring devices verification exercise.
Inspectors from the Metrology Directorate carried out unannounced inspections of fuel pumps in randomly selected fuel stations in the Greater Accra, Central and Eastern Regions.
The exercise was to mainly ensure the followingGH:
To verify the accuracy of fuel dispensing pumps used by fuel dealers.
To inspect and record if the fuel stations have the 10 L visugauges
To inspect and ensure that GSA plastic seals on dispensing pumps are not tampered with
To lock the nozzles of dispensing pumps that are under-delivering
To issue out notices of failure if the pumps failed the test for a penalty
The number of stations visited are Shell (11), Total (15), GOIL (12), Fraga Oil (1), Lucky Oil (1), Engen (1), Frimps (2), Petrosol (3), Top Oil (2), Star oil (2), Goodness
(1), Semanhyia (1), Galaxy Oil ( (1), Nick Petroleum (2), Agapet (1), Puma (2), Glory Oil (1), Allied (1), Radiances (1), EVl (1), Power Fuel (1), Universal (1), Compass
Oleum (1)
The following ten (10) stations were found to be under-delivering: Shell, Motorway Extension; Total, McCarthyHill; GOIL Mile 11; Frimps Oil, Tetegu junction; GOIL, Galilea; Frimps Oil, Spintex Road; Glory Oil, Spintex Road; Allied Oil, Sakaman; Shell, Amanfrom West and Goodness Energy, Kasoa.
In addition, 2 companies Galaxy Oil, Spintex Road and Agapet, Spintex Road had broken the GSA seal without permission.
In summary, out of 65 stations visited, 55 delivered right quantities whilst 10 under-delivered.
Two companies had broken the GSA seal without permission.
The Ghana Standards Authority wishes to assure the public that it will continue to execute its legal mandate to protect consumers and promote trade by collaborating with the National Petroleum Authority and other statutory bodies as well as with the Oil Marketing Companies in the interest of consumers and the nation.
The GSA counts on the support and collaboration of the general public and all stakeholders in this national exercise.
For further information, contact the Director of Corporate Communication, Ghana Standards Authority.
Greenpeace Brings In New Team Of Activists On BP Rig After Arrests
A fresh team of Greenpeace activists have re-boarded a Transocean-owned rig in Scotland hired by BP for UK North Sea operations just hours after Police Scotland declared the occupation over.
Greenpeace activists started their protest against BP’s offshore drilling plans in the UK sector of the North Sea on Sunday by boarding Transocean’s Paul B. Loyd, Jr. just as the rig was set to leave the Cromarty Firth.
A couple of days later, in an effort to stop the protest, BP and Transocean served the activists with an injunction order. However, Greenpeace brought in fresh supplies along with new climbers.
Come Thursday and Scotland police started its attempts to remove the activists occupying the rig.
In a statement on Thursday Greenpeace said that the rig workers had informed the activist that the rig would be lowered 20 meters into the sea to allow the police access by boat. One Greenpeace activist was in a portaledge attached to the anchor chain in an attempt to thwart the removal efforts.
On Thursday night, police boats and climbers managed to remove two Greenpeace activists who had spent over 70 hours blocking the rig from leaving Cromarty Firth, north of Inverness. But just after 4am on Friday morning, two new climbers boarded the structure and climbed up to a gantry on one of the legs.
“Rig workers notified the activists of an interdict – the Scottish law equivalent of an injunction – preventing them from accessing the rig, but Greenpeace is continuing the occupation in defiance of the injunction,” Greenpeace said in a statement on Friday.
Two climbers remain in custody
The occupation started on Sunday evening and has now seen three separate climbing teams working in shifts to prevent the rig from reaching the Volrich field, where it plans to drill a well giving BP access to 30 million barrels of oil.
Greenpeace UK’s executive director, John Sauven, said: “Our climbers are back on the oil rig and determined to stay for as long as possible. BP are heading out to drill a new well giving them access to 30 million barrels of oil – something we can’t afford in the middle of a climate emergency.
“We can’t give up and let oil giants carry on with business as usual because that means giving up on a habitable planet and our kids’ future. The UK government has announced a target of net zero greenhouse emissions by 2050 – we have started to enforce it.”
According to the environmental organization, the two climbers arrested last night remain in custody and should appear in court today.
At its last AGM, BP’s shareholders voted in favour of Climate Change Action 100+ shareholders resolution on climate change disclosures, but have rejected Follow This shareholder resolution on emission targets.
“Yet BP is still planning to expand its oil and gas production at a time when it needs to be dramatically reduced. Greenpeace argues the business models of companies like BP are in direct opposition to efforts to prevent catastrophic climate change,” Greenpeace said.
Source: offshoreenergytoday.com
Global Renewables Market Employed 11m In 2018
Eleven million people were employed in renewable energy worldwide in 2018 according to the latest analysis by the International Renewable Energy Agency (IRENA).
This compares with 10.3 million in 2017
As more and more countries manufacture, trade and install renewable energy technologies, the latest Renewable Energy and Jobs Annual Review finds that renewables jobs grew to their highest level despite slower growth in key renewable energy markets including China.
The diversification of the renewable energy supply chain is changing the sector’s geographic footprint. Until now, renewable energy industries have remained relatively concentrated in a handful of major markets, such as China, the United States and the European Union.
Increasingly, however, East and Southeast Asian countries have emerged alongside China as key exporters of solar photovoltaic (PV) panels. Countries including Malaysia, Thailand and Vietnam were responsible for a greater share of growth in renewables jobs last year, which allowed Asia to maintain a 60% share of renewable energy jobs worldwide.
“Beyond climate goals, governments are prioritising renewables as a driver of low-carbon economic growth in recognition of the numerous employment opportunities created by the transition to renewables,” said Francesco La Camera, Director-General of IRENA.
La Camera added: “Renewables deliver on all main pillars of sustainable development – environmental, economic and social. As the global energy transformation gains momentum, this employment dimension reinforces the social aspect of sustainable development and provides yet another reason for countries to commit to renewables.”
Solar photovoltaic (PV) and wind remain the most dynamic of all renewable energy industries. Accounting for one-third of the total renewable energy workflow, solar PV retains the top spot in 2018, ahead of liquid biofuels, hydropower, and wind power. Geographically, Asia hosts over three million PV jobs, nearly nine-tenths of the global total.
Most of the wind industry’s activity still occurs on land and is responsible for the bulk of the sector’s 1.2 million jobs. China alone accounts for 44 per cent of global wind employment, followed by Germany and the United States. Offshore wind could be an especially attractive option for leveraging domestic capacity and exploiting synergies with the oil and gas industry.
Source: Esi-Africa.com
Global Renewables Market Employed 11m In 2018
Eleven million people were employed in renewable energy worldwide in 2018 according to the latest analysis by the International Renewable Energy Agency (IRENA).
This compares with 10.3 million in 2017[1].
As more and more countries manufacture, trade and install renewable energy technologies, the latest Renewable Energy and Jobs – Annual Review finds that renewables jobs grew to their highest level despite slower growth in key renewable energy markets including China.
The diversification of the renewable energy supply chain is changing the sector’s geographic footprint. Until now, renewable energy industries have remained relatively concentrated in a handful of major markets, such as China, the United States and the European Union.
Increasingly, however, East and Southeast Asian countries have emerged alongside China as key exporters of solar photovoltaic (PV) panels. Countries including Malaysia, Thailand and Vietnam were responsible for a greater share of growth in renewables jobs last year, which allowed Asia to maintain a 60% share of renewable energy jobs worldwide.
“Beyond climate goals, governments are prioritising renewables as a driver of low-carbon economic growth in recognition of the numerous employment opportunities created by the transition to renewables,” said Francesco La Camera, Director-General of IRENA.
La Camera added: “Renewables deliver on all main pillars of sustainable development – environmental, economic and social. As the global energy transformation gains momentum, this employment dimension reinforces the social aspect of sustainable development and provides yet another reason for countries to commit to renewables.”
Solar photovoltaic (PV) and wind remain the most dynamic of all renewable energy industries. Accounting for one-third of the total renewable energy workflow, solar PV retains the top spot in 2018, ahead of liquid biofuels, hydropower, and wind power. Geographically, Asia hosts over three million PV jobs, nearly nine-tenths of the global total.
Most of the wind industry’s activity still occurs on land and is responsible for the bulk of the sector’s 1.2 million jobs. China alone accounts for 44 per cent of global wind employment, followed by Germany and the United States. Offshore wind could be an especially attractive option for leveraging domestic capacity and exploiting synergies with the oil and gas industry.
Source: Esi-Africa.com
Ghana Makes Maiden Appearance At Global Petroleum Show In Canada
West African nation, Ghana, has made its first appearance at the North America’s leading energy event, the Global Petroleum Show (GPS) in Calgary, Canada.
The three-day event which is began on Tuesday and ended Thursday, attracted over 50,000 upstream petroleum professionals provided a platform for Petroleum Commission, Ghana’s Upstream Petroleum Regulator to pitch to prospective investors about opportunities that exist in the nation’s upstream petroleum industry.
In partnership with the Canada Ghana Chamber of Commerce, the Commission led over 20 Ghanaian companies to explore opportunities and secure the right partnerships with their international counterparts.
The Ghanaian Delegation which was led by the CEO of Petroleum Commission, Egbert Faibille Jnr included Head of Gov’t Relations at the Ministry of Energy, Patricia Asaam; Western Regional Minister, Kwabena Okyere Darko; Director, Local Content at the Commission, Kwaku Boateng; and Ghana’s High Commissioner to Canada, Joseph Ayikoi Otoo.
Egbert Faibille and the team made a strong case to participants at the GPS to consider Ghana as the ultimate destination for upstream petroleum activities.
Several investment opportunities such as farm-in, subsea inspection services, supporting government to develop Western Region as an upstream petroleum hub, revamping Tema Shipyard to support the petroleum industry among others were highlighted at the conference.
Although Canada’s industry is currently facing a downturn, the delegation is determined to present Ghana as the preferred destination for Canadian companies seeking to explore alternative regions/areas for their oil and gas activities.
The three-day GPS event which ends on Thursday 13th June 2019 is expected to provide participants with a better outlook of Ghana’s upstream petroleum industry.
The Ghanaian Delegation which was led by the CEO of Petroleum Commission, Egbert Faibille Jnr included Head of Gov’t Relations at the Ministry of Energy, Patricia Asaam; Western Regional Minister, Kwabena Okyere Darko; Director, Local Content at the Commission, Kwaku Boateng; and Ghana’s High Commissioner to Canada, Joseph Ayikoi Otoo.
Egbert Faibille and the team made a strong case to participants at the GPS to consider Ghana as the ultimate destination for upstream petroleum activities.
Several investment opportunities such as farm-in, subsea inspection services, supporting government to develop Western Region as an upstream petroleum hub, revamping Tema Shipyard to support the petroleum industry among others were highlighted at the conference.
Although Canada’s industry is currently facing a downturn, the delegation is determined to present Ghana as the preferred destination for Canadian companies seeking to explore alternative regions/areas for their oil and gas activities.
The three-day GPS event which ends on Thursday 13th June 2019 is expected to provide participants with a better outlook of Ghana’s upstream petroleum industry.
Exxon-Sabic Texas Project To Create Nearly 7,000 Jobs
Exxon Mobil Corp. and Saudi Basic Industries Corp. (SABIC) will proceed with construction of a 1.8-million-metric-ton ethane steam cracker complex near Corpus Christi, Texas, that will create more than 6,600 jobs, ExxonMobil reported Thursday.
“Building the world’s largest steam cracker, with state-of-the-art technology, on the doorstep of rapidly growing Permian production gives this project significant scale and feedstock advantages,” ExxonMobil Chairman and CEO Darren W. Woods said in a written statement copied to the media.
“It is one of several key projects that provide the foundation for significantly increasing the company’s earnings potential.”
The project won necessary permits Wednesday from the Texas Commission on Environmental Quality.
ExxonMobil and SABIC’s Gulf Coast Growth Ventures (GCGV) joint venture will build the ethane cracker in San Patricio County north of Corpus Christi.
According to the GCGV website, the ethane cracker will supply ethylene to three derivate units: a monoethylene glycol (MEG) unit and two polyethylene (PE) units. The JV expects construction to start during the third quarter of this year, with startup projected for 2022.
“SABIC is very pleased to move forward on this third joint venture with ExxonMobil – the first to be operated outside of Saudi Arabia,” Yousef Al-Benyan, SABIC vice chairman and CEO, stated. “This project will not only increase global diversification for our company, but will also continue to create value within our new home of San Patricio County, through creating jobs and supporting economic growth. With this project, we look forward to further building our business presence in the U.S. and serving the communities and customers in the North and South American markets even more effectively.”
ExxonMobil stated the project should create 6,000 jobs during the construction phase. In addition, the supermajor noted the facility will require more than 600 permanent jobs, paying $90,000 per year on average, during operations. Four primary engineering, procurement and construction firms – The Wood Group, McDermott & Turner Industries Group, Chiyoda & Kiewit and Mitsubishi Heavy Industries & Zachry Group – will lead project construction.
The San Patricio County project is part of ExxonMobil’s broader “Growing the Gulf” series of investments in Texas and Louisiana.”
Source: rigzone.com
Police To Remove Greenpeace Activists Protesting On North Sea Rig
Activists from the environmental group Greenpeace are still occupying a Transocean rig in Scotland, which was contracted by BP for drilling operations in the UK North Sea.
Scotland police are beginning attempts to remove the activists occupying the rig and a police helicopter is above the site.
Two Greenpeace activists boarded the Paul B. Loyd, Jr. rig last Sunday just as the rig was set to leave the Cromarty Firth. The action is part of the group’s efforts to stop BP’s drilling plans offshore Scotland.
A couple of days later, Greenpeace was served with an injunction order. Greenpeace UK said via its social media accounts on Tuesday that the injunction was served to stop the protest on the Transocean-owned Paul B. Lloyd, Jr. rig.
This announcement came shortly after Greenpeace stated that its activists were still on the rig and that they brought in fresh supplies along with new climbers.
In a statement on Thursday Greenpeace said that the rig workers had informed the activist that the rig would be lowered 20 meters into the sea to allow the police access by boat. One Greenpeace activist is now in a portaledge attached to the anchor chain in an attempt to thwart the removal efforts.
Greenpeace is demanding that “BP immediately end drilling new wells and switch to only investing in renewable energy.” If BP does not do that, Greenpeace says, it should wind down its operations, return cash to investors and go out of business.
Rosie Rogers, Senior Climate Campaigner at Greenpeace UK, said: “We are determined to resist removal as long as BP remains determined to drill for oil. BP’s plans are completely and unacceptably at odds with the climate emergency we are facing. If they put half as much effort into investing in renewables as they appear to be putting into removing us from their rig, the world would be looking like a much better place right now.”
Furthermore, BBC reported on Thursday that the first two climbers had appeared in court as they were charged with disorderly conduct by scaling the rig in the Cromarty Firth. BBC further reported that the activists were released on bail but under special conditions. Namely, they were ordered to leave Scotland and not attempt to enter the waters of the Cromarty Firth.
Greenpeace vowed to stay on the rig “until BP halt their dangerous plans to drill for oil off the coast of Scotland.”
At the time of writing this article, Greenpeace’s activists have been on the rig for more than 90 hours.
As a response to Greenpeace’s protest on the rig, BP on Monday said: “While we recognize the right for peaceful protest, the actions of this group are irresponsible and may put themselves and others unnecessarily at risk.
“We are working with Transocean—the rig’s owner and operator—and the authorities to assess the situation and resolve it peacefully and safely.”
In addition, BP said: “We share the protestors’ concerns about the climate. We support the Paris agreement. And we are working every day to advance the world’s transition to a low carbon future.”
Following the statement on Monday, BP has not issued any further statements regarding the protest.
Source: offshoreenergytoday.com
Ghana: Fuel Stations Caught Cheating Unsurprising – COPEC
Duncan Amoah, Executive Secretary of COPEC
The Chamber of Petroleum Consumers (COPEC), has said that the Ghana Standards Authority’s revelation that some 10 fuel stations in Accra were shortchanging motorists comes as no surprise to them.
The Executive Secretary for COPEC, Duncan Amoah in an interview said the companies must be severely sanctioned to ensure an end to the practice.
The Standards Authority on Wednesday after unannounced visits to 65 fuel stations found that 10 of them including top dealers such as Goil, Total and Shell have been allegedly cheating consumers by serving them less fuel.
“It is disappointing though but not shocking…We know that some fines had been applied but it looks like the fines have not been deterrent enough to stop these recalcitrant OMCs who decide to just adjust their pump to cheat consumers. So we are asking that the fines be made heavy and deterrent enough so that if you catch a station having adjusted their pumps and cheating consumers, maybe you should give the whole day or the whole week for the same people who bought fuel and were cheated to go back there and fill their tanks for free because this GH¢ 5,000 is woefully inadequate to stop these OMCs from this sort of practice,” he said.
The fuel stations found to be cheating by the Ghana Standards Authority are Shell station at the Motorway Extension; Total at McCarthyHill in Accra; GOIL at Mile 11; Frimps Oil at Tetegu junction; GOIL at Galilea; and Frimps Oil on Spintex Road.
The rest are Glory Oil on the Spintex Road; Allied Oil at Sakaman; Shell at Amanfrom West and Goodness Energy at Kasoa.
Two other companies, Galaxy Oil, Spintex Road and Agapet, Spintex Road were found to have broken the GSA seal without permission.
A statement issued by the GSA on Wednesday said the routine checks are part of the Authority’s mandate to enforce the provisions of the Weights and Measures Act 1975, NRCD 326.
It said the exercise was mainly to verify the accuracy of fuel dispensing pumps used by fuel dealers as well as inspect and record if the fuel stations have the 10 L visugauges.
Also, the exercise was carried out to inspect and ensure that GSA plastic seals on dispensing pumps are not tampered with and to lock the nozzles of dispensing pumps that are under-delivering, as well as to issue out notices of failure if the pumps failed the test for a penalty.
Source: citinewsroom.com
Shell Sells California Refinery For $1 Billion
Shell has struck a deal with refiner PBF Energy to sell it its refinery in Martinez, California, for up to US$1 billion, depending on the closing date, the buyer said in a press release, adding that the acquisition will boost its total throughput capacity to more than 1 million bpd.
The Martinez refinery has a capacity of 157,000 bpd. Shell has been trying to sell it for several years, Reuters notes in a report on the news. The supermajor will now fund the turnaround costs for the facility for the first quarter of 2020, estimated at US$70 million, as well as another US$40 million in downtime compensation if the deal does not get finalized by the end of the first quarter of 2020.
Shell first tried to sell the Martinez refinery in 2015, at the height of the latest oil price crisis, so it was no wonder it failed to find any buyers quickly. Now M&A conditions have improved significantly as evidenced by the pickup of mergers and acquisitions in the industry, with the highlight of course being Occidental’s acquisition of Anadarko.
For PBF Energy, the deal fits with plans for its California refining expansion. The company already has one refinery in the state, in Torrance, which has a capacity of 160,000 bpd.
“They wanted the two refinery systems, especially considering that when Torrance goes down they just have that one refinery and they don’t make anything back,” an analyst with Tudor, Pickering, Holt & Co. told Reuters.
This seems to be particularly important ahead of the entry into effect of new International Maritime Organization emissions rules. The acquisition, PBF said, will strengthen its position among producers of new-rule compliant fuels. This is an important step for the refiner as the industry is struggling to make refineries compliant with the new, lower-sulfur fuel requirements that will enter into effect next January.
Source: Oilprice.com
Alex Mould Speaks On Why Ghana Is Richer In Natural Resources Yet Poorer
The West African nation, Ghana, is one of the nations in the world endowed with natural resources which could make its citizens richer and be among the category of developed nations like Malaysia, Singapore, Turkey, Brazil among others, yet the story is differently told since the extraction of the resources started.
Ghana, for centuries, has been extracting natural resources commonly gold, diamond, bauxite and salt. The recent addition is oil and gas which others call ‘black gold’. Ghana has been extracting oil and gas for almost 12 years now, yet no significant development or improvement has been seen, while other nations have been prosperous and developed with just a single or two natural resource(s) like Malaysia and Brazil.
This phenomenon has aggravated many concerned energy experts, developmental economists and ordinary citizens to put pressure on governments and public office holders. The Institute of Economic Affairs (IEA), Ghana, recently published an article titled: ‘Why is Ghana so poor yet rich underneath the soil?’ In the article, they sought to raise very critical issues that need government’s attention and profiled solution on how to maximize our gains from the oil and gas industry.
However, Alex Mould, an Energy and Financial expert, has provided much insight into the economics of the upstream oil and gas industry and why Ghana could not fetch more of the proceeds from the oil and gas production.
The former Chief Executive of Ghana National Petroleum Corporation (GNPC) argued that, for anyone to call on the Government of Ghana, which is holding all natural resources in the country in trust on behalf of Ghanaians, to ask for more proceeds or stake from the operators and partners of the oilfields, “one needs to appreciate and understand the economics of oil and gas exploration.”
He expanded his argument on the note that, to attract any investor into the industry, Ghana and the international oil companies (IOCs) need to agree on a rate of return that commensurates with the risk and which compares to similar projects around the world, for which ‘these investor funds’ are chasing, that is, alternate investments.
“We need to be able to agree on the acceptable cost of development, how it is ammortized over a specified period and the annual Operations and Maintenance (O&M) costs. We need to, then, agree on a rate of return and how windfalls are shared, how and when these windfalls are reviewed.”
IEA’s article referenced a comment by Professor Paul Collier, the Director of the Center for the Study of African Economies at Oxford University, and at a recent lecture, he stated that, the total cost of recovering a barrel of oil from the ground is about US$10. This includes exploration and other costs.
The former Director of Research at the World Bank, former Senior Advisor to Prime Minister Tony Blair on the Africa Commission, Prof. Collier, advised that “the only way poor African countries can turn their oil reserves into prosperity and to develop first-class countries is by collecting the super profits called rents (US$65 – US$10 = US$55 per barrel), investing the rents into the future of their countries instead of allowing ‘foreign investors’ to keep it.”
Apparently, Mr Mould held a different view to the assertion by Prof. Collier. He explained that, the US$10 cost is an exaggeration and a simplification which may be related to the operational cost, but “definitely not the complete cost especially in the first 5 years of the project.
“Jubilee, which is a world class field, had a development cost of about US$12 a barrel and O&M cost of also about US$12, especially in the first 5 years (the recovery of the development cost was spread over 5 years), thus, making total cost was of about US$24/barrel for the first 5 to 6 years at least,” the Energy expert argued.
Additionally, the former GNPC boss said, each year thereafter, there is continuous drilling to sustain production. “Most production profiles fall after 5-10 years. Take, for example, the Eni-operated SGN fields. The production drops from 30,000 to 40,000barrels/day from inception to about 10,000barrels/day after 5 years.
“That is why the economics is on the gas predominantly which remains at 170mmSCF over 20 years.”
In summing his argument, Mr Mould noted that “you will need the production profile and the development /exploration costs, as well as the annual O&M costs plus the incremental annual development cost over the life of the project, to be able to know the split between government and Partners in Contractor group.
“In Ghana, over the life of the field, we approximate almost a 55/45% share respectively.”
Egypt To Launch Licensing Round In September 2019
Egypt’s Ministry of Petroleum and Mineral Resources plans to launch a new bid round in Q3 for natural gas exploration in the western Mediterranean region, according to an Al Ahram report.
The Ministry pointed out to the importance of the seismic survey projects carried out by Egypt in the western Mediterranean and the Red Sea, which opened new horizons for oil companies to explore for gas in these two regions.
Ghana: Price Of Domestic Gas Will Drop Soon – Amin Adam
Ghana’s Deputy Minister for Energy in charge of Petroleum, Dr. Mohammed Amin Adam says the price of domestic gas will soon drop on the markets.
According to him, the government is recalibrating domestic gas prices to be able to achieve the target.
The decision to recalibrate follows various complaints from businesses about the high cost of the commodity which makes it difficult for their businesses to thrive.
While delivering his keynote address at the Ghana mining and Energy Summit in Accra, Dr. Amin Adam said gas prices will be reduced soon.
“We are also recalibrating domestic gas prices. We are doing all this because we know that cheaper sources of power are essential for the growth of our economy; essential for your operation as mining companies and essential if we have to accelerate the development of our country for the benefit of our people,” he said.
He further assured that the era of the constant power outage is over with various government interventions in place.
“We are aware as a government that many business groups have expressed concern about the dumsor matter and we know that in the past, the mining sector faced difficulties mainly from the energy crisis.
I want to assure you that as partners in development, the government promises to work assiduously by ensuring that all businesses are safeguarded and not disrupted by energy challenges. We are facing the challenge head-on; Dumsor is a thing of the past,” he added.
Source: citinewsroom.com