Aker Solutions Eyes Renewable And Low Carbon Growth
Norwegian engineering company Aker Solutions aims to generate about half of its revenue from renewable or distinct low carbon solutions by 2030, according to the company’s 20/25/30 strategy.
In a statement on Wednesday, Aker Solutions said the oil and gas industry would remain Aker Solutions’ biggest market, but over the next decade the company would have a more balanced portfolio of products and technologies that either generate renewable energy or removes or substantially reduces CO2 emissions.
“The world will continue to see rising energy demand and the challenge for our industry is the need to deliver this with a significantly lower carbon emissions,” said Luis Araujo, chief executive officer of Aker Solutions.
According to the company, in all forward-looking scenarios, the industry will need to provide more energy, with a lower carbon footprint.
The pace of the energy transition will be dictated by a number of drivers, such as electrification, efficiency gains, low-emission fuels and accelerated cost reductions of renewables. Still, demand for oil and gas is expected to grow over the next decade, although not as fast as the expected growth in renewable energy, Aker Solutions said.
In its updated enterprise strategy, Aker Solutions set out its growth ambitions within the energy industry and beyond. The company aims to derive 20 percent of its revenue from renewable energy and 25 percent from distinct low-carbon solutions by the year 2030.
The renewable energy solutions will primarily come from floating wind while the low carbon segment is a set portfolio of existing Aker Solutions offerings, including: carbon capture, utilization and storage (CCUS), subsea gas compression, electrification of production assets and unmanned platforms.
Aker Solutions noted it had developed and invested in renewable energy and low carbon solutions for many years.
The company has delivered or is involved in several projects in these segments.
Renewable Energy
Namely, Aker Solutions has taken a 23 percent stake in Principle Power, which has a proven concept for floating wind and is currently installing the WindFloat Atlantic project.
The company is involved in major wind farm developments in the US and South Korea.
Low Carbon Solutions
CCUS – Aker Solutions has developed CCUS since delivering the Sleipner storage solution in 1996. Today, the company is well positioned to realize the first industry-scale carbon capture facility at a cement plant with Norcem Heidelberg in Norway.
Aker Solutions is also delivering its modular Just Catch plant to a waste-to-energy plant in the Netherlands, where the CO2 will be utilized as a fertilizer.
Finally, the company is deploying its subsea expertise in the Northern Lights CO2 storage project in the North Sea.
Subsea Gas Compression – Aker Solutions delivered the world’s first subsea gas compression system to Equinor’s Åsgard field in 2015. The company is currently involved in developing the first subsea gas compression project outside Norway, at the Jansz-Io field for Chevron in Australia.
Electrification – Low emission power from shore to Johan Sverdrup and Gina Krogh can generate CO2 emissions savings equivalent to removing 150,000 cars annually. Aker Solutions is involved in several studies for the electrification of fields.
“Growth in segments such as renewables and CCUS increases the addressable market for Aker Solutions,” said Araujo.
“Our ambition is to become the recognized leader in low carbon offerings and sustainable solutions. We will achieve this through realizing our long-term ambition of 20/25/30.”
Canada: Husky Energy Lay Off Over Hundred Workers
Canadian energy giant Husky Energy Inc. (OTCMKTS: HUSKF) has cut staff in a round of layoffs, the company announced on Tuesday.
The layoffs, thought to have affected over a hundred workers, have mostly affected workers in Calgary, where workers filed out of company headquarters to a row of cabs waiting to cart off workers who had been dismissed.
The layoffs are in line, Husky said, with its annual capital spending goals, which Husky lowered by 10% this year to $3.15 billion.
“Today we did have to say goodbye to some of our colleagues. Husky has been taking steps to better align the organization and workforce with our capital plan and strategy,” Husky Spokesperson Kim Guttormson said in an emailed statement.
Husky declined to comment on the number of those laid off.
The timing of the layoffs coincides with federal elections earlier this week, where results were not the most favorable outcome for the oil and gas industry that fears it will suffer under Trudeau’s rule now that he must enlist the help of anti-oil parties.
Husky has already felt the pinch from the oil production curtailments that it was required to implement when the price of WCS was significantly lower than that of WTI due to constrained takeaway capacity as Canada struggled to approve and build new oil pipelines—a challenge that Canada still faces today.
Husky’s share price was trading up 3.02% by Tuesday afternoon, at $7.26 per share, with just two days to go until Husky’s Q3 report is released on Thursday.
Husky Energy’s largest shareholder (69%), which is controlled by Hong Kong billionaire Li Ka-shing, has lost an estimated $20 billion from its Husky investment since 2008, and Husky’s cashflows were negative for Q2 2019.
Ghana: ECG Resumes Power Distribution Business After PDS Deal Termination
Ghana’s bulk power trading company, Electricity Company of Ghana (ECG), has assumed full operations of power distribution in the southern sector of the West African nation, following the government’s decision to terminate the concession agreement between Power Distribution Services Ghana Limited (PDS) and ECG.
A press statement issued by the ECG stated that “Consequently, all activities which were hitherto undertaken by PDS have reverted to ECG.”
“ECG has, therefore, assumed full operational and financial control of the electricity distribution business in the Southern Zone of Ghana with immediate effect,” the release said.
PRESS RELEASE
23RD OCTOBER, 2019
TERMINATION OF PRIVATE SECTOR PARTICIPATION TRANSACTION AGREEMENTS BETWEEN ELECTRICITY
COMPANY OF GHANA LTD (ECG) AND POWER DISTRIBUTION SERVICES GHANA LTD (PDS)
The Electricity Company of Ghana Limited (ECG) has today, 23rd October, 2019 terminated Private Sector
Participation Transaction Agreements with Power Distribution Services Ghana Limited (PDS).
ECG has therefore assumed full operational and financial control of the electricity distribution business in the Southern Zone of Ghana with immediate effect. Consequently, all activities which were hitherto undertaken by PDS have reverted to ECG.
All stakeholders and customers should therefore engage ECG in their normal business activities which include but are not limited to the following:
• Metering
• Billing
• Distribution of bills
• Bill reconciliation
• Revenue collection
• New Service connections
• Disconnections and reconnections
• Faulty meter replacements
• Network faults and repairs
• Network Operations, Maintenance, Expansion and Rehabilitation.
• Complaints and fault reporting to the call centres
• Any other related services
In this regard, all payments in respect of power purchases and other related activities should take place at:
• ECG Regional and District Offices
• ECG existing Customer Service Centres
• ECG licensed vending stations
• ECG operated Cash Points
• ECG authorised Banks
Accordingly, all cheques issued in respect of power purchases and other related activities should be in the sole name of Electricity Company of Ghana Limited.
All assets currently in the name of PDS revert to ECG with immediate effect and will be rebranded in
accordance with the decision over the next few weeks.
ECG will continue to provide quality electricity services to our cherished customers and stakeholders.
All enquiries should be directed to ECG Call Centre No. 0302611611 and existing social media handles.
END
ECG, THE NAME BEHIND POWER DISTRIBUTION IN GHANA
ISSUED BY: PUBLIC. RELATIONS AND COMMUNICATIONS DIVISION, ECG.
Ghana: US Gov’t Withdraws $190m Funding Towards Power Efficiency Over ‘Unwarranted’ PDS Termination
The US government has withdrawn a $190 million it granted to the West African nation, Republic of Ghana, due to what it described as the unwarranted termination of the concession agreement between the Power Distribution Services (PDS) Ghana Limited and Electricity Company of Ghana (ECG).
A statement from the US Embassy on Tuesday, October 22, 2019, said the Millennium Challenge Corporation (MCC) has confirmed that the money is no longer available after Ghana decided to terminate the concession agreement with the PDS.
The money was available upon a successfully executed concession agreement, the statement said.
“Based upon the conclusions of the independent forensic investigation, the U.S. position is that the transfer of operations, maintenance, and management of the Southern Distribution Network to the private concessionaire on March 1, 2019, was valid and, therefore, the termination is unwarranted,” the US said.
However, the Government of Ghana, decided to terminate the agreement over material and fundamental breaches from the PDS.
Al-Koot, a Qatari company which the PDS submitted as the ones who issued the demand guarantees, denied doing so, thus, raising concerns of fraud.
After an initial suspension of PDS, the government, in a letter to the MCC, said it had decided to terminate the agreement with the PDS.
Ghana’s Finance Minister, Ken Ofori Atta, however, told the MCC Ghana would want to replace the PDS by a restrictive tendering.
Statement from the Embassy of the United States of America
Regarding the Termination of the Private Sector Concession by the Government of Ghana under the Millennium Challenge Corporation Power Investment
Accra, GHANA— On October 19, 2019, the Government of Ghana (GoG) informed the Millennium Challenge Corporation (MCC) in Washington, D.C. of its decision to terminate the concession agreement between Electricity Company of Ghana (ECG) and private operator Power Distribution Services Ghana Ltd (PDS).
The United States of America notes this decision with regret. Based upon the conclusions of the independent forensic investigation, the U.S. position is that the transfer of operations, maintenance, and management of the Southern Distribution Network to the private concessionaire on March 1, 2019, was valid, and therefore the termination is unwarranted. As such, MCC has confirmed that the $190 million funds granted to Ghana at the March 1 transfer to the 20-year concession from ECG to PDS are no longer available.
The United States underscores the importance of contract sanctity as essential to a conducive investment climate and a pre-condition for inclusive economic growth. In this spirit, the United States has worked with the Government of Ghana since the latter’s July 30 suspension of the concession in the hopes of finding a mutually acceptable solution that respected contract sanctity and the Government of Ghana’s interest in restructuring the concession.
Moving forward, the U.S. Government, through MCC, will continue to implement the Tranche I funds of $308 million with the Millennium Development Authority (MiDA). This funding will continue to support important improvements to the infrastructure of Ghana’s southern distribution network, increase reliability and power access to key markets, and advance energy efficiency programs directly benefiting the people of Ghana.
The U.S. Government is a committed partner and has full confidence in MiDA to lead the joint effort to deliver the projects funded through the $308 million remaining under the MCC Ghana Power Compact. The U.S. Government looks forward to continuing to work together with MiDA and the Government of Ghana to implement the remainder of the Power Compact.
Background:
On March 1, 2019, Ghana Power Distribution Services, Ltd. (PDS) assumed operation and management of the staff and assets of the Electricity Company of Ghana (ECG) under a 20-year concession agreement. Private sector participation is a central reform under MCC’s Ghana Power Compact. This is critical to the long-term sustainability of related infrastructure investments and the financial recovery of the energy sector in Ghana.
The Compact comprised two tranches of funding: $308 million available upon the official start of the current Compact, and a second tranche of $190 million, which was available upon a successfully executed concession agreement, which the United States maintains occurred on March 1, 2019.
PDS Deal Termination: US Gov’t Still Confident In MiDA
The US government has expressed its confidence in the Millennium Development Authority (MiDA), an implementing agency for the Millennium Challenge Corporation’s (MCC) Power Compact II in the Republic of Ghana, West Africa.
MiDA has come under public scrutiny following what some say its ‘poor supervision’ of the concession agreement signed between the Electricity Company of Ghana (ECG) and Meralco-led Power Distribution Services (PDS) Ghana Limited.
Some members of the Ghanaian public including think tanks, demanded that officials of MiDA, who supervised the agreement, are made to resign.
Despite MCC’s letter on October 18, 2019, demanding that the PDS is reinstated by the end of October 30, 2019, President Akufo-Addo’s administration has gone ahead to declare its decision to terminate the agreement.
However, in a statement issued by the US Embassy in Ghana, it said: “The U.S. Government is a committed partner and has full confidence in MiDA to lead the joint effort to deliver the projects funded through the US$308 million remaining under the MCC Ghana Power Compact. The U.S. Government looks forward to continuing to work together with MiDA and the Government of Ghana to implement the remainder of the Power Compact.”
Full statement of US Embassy
Accra, GHANA— On October 19, 2019, the Government of Ghana (GoG) informed the Millennium Challenge Corporation (MCC) in Washington, D.C. of its decision to terminate the concession agreement between the Electricity Company of Ghana (ECG) and private operator Power Distribution Services Ghana Ltd (PDS).
The United States of America noted this decision with regret. Based upon the conclusions of the independent forensic investigation, the U.S. position is that the transfer of operations, maintenance, and management of the Southern Distribution Network to the private concessionaire on March 1, 2019, was valid, and, therefore, the termination is unwarranted.
As such, MCC has confirmed that the $190 million funds granted to Ghana at the March 1 transfer to the 20-year concession from ECG to PDS are no longer available.
The United States underscores the importance of contract sanctity as essential to a conducive investment climate and a pre-condition for inclusive economic growth.
In this spirit, the United States has worked with the Government of Ghana since the latter’s July 30 suspension of the concession, in the hopes of finding a mutually acceptable solution that respected contract sanctity and the Government of Ghana’s interest in restructuring the concession.
Moving forward, the U.S. Government, through MCC, will continue to implement the Tranche I funds of $308 million with the Millennium Development Authority (MiDA).
This funding will continue to support important improvements to the infrastructure of Ghana’s southern distribution network, increase reliability and power access to key markets, and advance energy efficiency programmes directly benefiting the people of Ghana.
The U.S. Government is a committed partner and has full confidence in MiDA to lead the joint effort to deliver the projects funded through the $308 million remaining under the MCC Ghana Power Compact. The U.S. Government looks forward to continuing to work together with MiDA and the Government of Ghana to implement the remainder of the Power Compact.
Background:
On March 1, 2019, Ghana Power Distribution Services, Ltd (PDS) assumed operation and management of the staff and assets of the Electricity Company of Ghana (ECG) under a 20-year concession agreement. Private sector participation is a central reform under MCC’s Ghana Power Compact. This is critical to the long-term sustainability of related infrastructure investments and the financial recovery of the energy sector in Ghana.
The Compact comprised two tranches of funding: $308 million available upon the official start of the current Compact, and a second tranche of $190 million, which was available upon a successfully executed concession agreement, which the United States maintains occurred on March 1, 2019.
Ghana: ‘Dumsor’ Could Start Soon Due To PDS Deal Termination– Former Power Minister Predicts
A former Minister of Power and Petroleum in the Republic of Ghana, Hon. Emmanuel Armah Kofi Buah is predicting of a possible power crisis in the West African country, as a result of government decision to terminate PDS deal.
“The NPP government has messed up the deal which was beautifully started by the NDC government,” he said.
“But the way things are being handled by the NPP government over this PDS deal will cause the country a great deal of mess if they do not obey and work things out properly with the authorities of the Millennium Challenge Corporation.”
He added that the country had already expended the 500 million dollars provided by the MCC for the power sector.
However, the Deputy Minister of Energy in charge of Power, William Owuraku Aidoo, has suggested that the controversial PDS deal has not been canceled.
Speaking on an Accra based Peace FM, the Deputy Minister who doubles as the Member of Parliament for Afigya Kwabre South constituency said, “it’s a letter of intent . . . you can’t just get up and cancel, you need to consult all the stakeholders.”
A letter dated 18 October 2019 signed by Finance Minister Ken Ofori-Atta indicated that the deal has been terminated “in view of the facts uncovered regarding the failure by PDS to satisfy conditions precedent under the relevant transaction documents AND, however, that every effort would be employed to ensure a suitable replacement within the relevant timelines in order to complete the Compact.”
According to the statement, “following consultations with Government, we wish to emphasize that the Government remains strongly committed to the Compact and to private sector participation in the Electricity Company of Ghana.
“We also wish to reiterate the position communicated to the CEO of the MCC by the President of Ghana during their meeting on the sidelines of the United Nations General Assembly in New York on September 23rd to the effect that, the current concession had to be terminated in view of the facts uncovered regarding the failure by PDS to satisfy conditions precedent under the relevant transaction documents and, however, that every effort would be employed to ensure a suitable replacement within the relevant timelines in order to complete the Compact.”
Ghana: 5th Africa Oil Governance Summit Opens In Accra(Photos)
The 5th edition of Africa Oil Governance Summit has opened in Accra, the capital of Ghana, West Africa.
The Deputy Minister of Energy in-charge of Petroleum Dr. Mohammed Amin Adam opened the two-day summit, being organised by the Africa Centre for Energy Policy (ACEP), and under the theme: ‘Optimising Oil and Gas Resources in Africa: The Role of New Discoveries in the continent’s Development Agenda’.
The Summit has brought together oil and gas players in Ghana and other parts of Africa.
The objectives of the Summit are to encourage alignment of Africa’s petroleum resource exploitation with the development of the continent and its people, as well as provide the platform for regional consensus building on strategies that must be adopted to promote regional planning for the utilisation of oil and gas resources.
Source:www.energynewsafrica.com
Source:www.energynewsafrica.com
Ghana: MCC Demands Reinstatement Of PDS By October 30
It has emerged that Millennium Challenge Corporation (MCC), a US agency which is providing funding for Ghana’s Power Compact II, has demanded that the President Akufo-Addo-administration reinstate the suspended Power Distribution Services (PDS) Company by October 30, 2019, energynewsafrica.com can confirm.
The MCC’s demand follows a discussion between officials of Government of Ghana and the MCC in New York in September 22-24, 2019 and Washington DC on October 15-18, 2019.
In a letter signed by the Acting Vice President of the Department of Compact Operations for the Millenium Challenge Corporation (MCC), Kyeh Kim, it said: “Government of Ghana formally announcing the reinstatement of PDS concession right under the transaction arrangements – (deadline 30th October 2019), Lift the suspension (lease and assignment agreement, the bulk supply agreement and the government support agreement) sanctions on all three, Cause the energy commission to lift the suspension of PDS retail supplier license.”
The MCC’s letter also demanded an immediate reversal of the ban placed on PDS by the Energy Commission.
The letter, which is said to be a direct response to the Finance Minister, Ken Ofori Atta’s statement on October 18, further ordered the government to authorise the resumption of PDS’ activities as stipulated by the compact agreement.
IEA Predicts Spectacular Solar Growth By 2024
The International Energy Agency expects to see “spectacular” growth in new solar power capacity additions in the period to 2024, which will highlight overall strong growth in renewable energy.
In its latest annual Renewables report, the agency said total new renewable energy additions would shoot up by 50 percent in the five-year period, or some 1,200 GW. The drivers behind this development would be falling production costs and government support.
Solar alone could reach a global capacity of more than 600 GW by 2024, according to the IEA. The number of rooftop solar systems alone is set to increase twofold to about 100 million, with Australia, Belgium, the Netherlands, Austria, and California leading the way.
“Renewables are already the world’s second-largest source of electricity, but their deployment still needs to accelerate if we are to achieve long-term climate, air quality and energy access goals,” said the IEA’s head, Fatih Birol.
As regards solar specifically, Birol noted “Distributed PV’s potential is breathtaking, but its development needs to be well managed to balance the different interests of PV system owners, other consumers and energy and distribution companies.”
According to the report, the generation costs of so-called distributed solar installations are already lower than retail electricity prices in many parts of the world. However, this does not mean that solar can survive on its own without further government reforms and continued support.
The reason for these reforms and support is that as solar power becomes cheaper, it could disrupt electricity markets and raise system costs. What’s more, this disruption could make it harder to integrate electricity from renewable sources into grids, affecting the revenues of electricity distributors.
An earlier report, by the U.S. Energy Information Administration, said renewables would generate half of the world’s electricity by 2050, rising from 28 percent last year.
Aker BP Posts Loss In 3Q
The Norwegian oil and gas company Aker BP has posted a net loss for the third quarter, and a below expected production due to delays in the Valhall field well stimulation program.
Aker BP reported revenues of $723 million for the quarter down from $966 million a year ago, and also down from 785 million in q2 2019, citing lower oil and gas prices, partly mitigated by an increase in sold volumes.
The company’s net loss for the quarter was $43 million, down from a $63 million profit in Q2 2019, and a drop compared to a net profit of $116 million in the third quarter of 2018.
Explaining the net loss, Aker BP said: “Profit before taxes amounted to USD 143 million. Taxes amounted to USD 186 million for the third quarter, representing an effective tax rate of 130 percent.
The tax rate was negatively impacted by the impairment of technical goodwill, which is not tax-deductible, in addition to currency movements during the quarter. This resulted in a net loss for the third quarter of 2019 of USD 43 million, compared to a net profit of USD 62 million in the previous quarter.”
The company’s net production in the third quarter was 146.1 (127.3) thousand barrels of oil equivalents per day (“mboepd”). Net sold volume was 143.3 (140.7) mboepd.
The production volumes, while higher than in the second quarter, were below Aker BP’s plan. The reason for this lays in delays in the stimulation program at the Valhall field in the Norwegian North Sea following the planned maintenance shutdown in June.
The average realized liquids price was $62.0 (2Q $69.3) per barrel, while the realized price for natural gas averaged $0.16 (Q2 0.16) per standard cubic meter (“scm”).
“Stimulation operations have been performed at the southern flank and the field center in order to bring new wells on stream. A second stimulation vessel was contracted in order to mitigate delays in the stimulation program. Slot recovery commenced on the field center in preparation for drilling operations and development of the lower Hod formation,” Aker BP said.
Looking ahead the company forecast full-year 2019 production would be circa 155 mboepd, around the low end of the previously communicated range of 155-160 mboepd mainly due to the delays in the stimulation of new wells at Valhall.
Further down the road, production is expected to be boosted significantly as the giant
Johan Sverdrup field was brought on stream early October, and Valhall Flank West remains on track for first oil later this year.
Ghana: Total Launches Total Quartz 9000 Future 0W-20
Total Petroleum Ghana Limited, one of the Oil Marketing Companies in the Republic of Ghana, which is noted for lubricant technologies, has introduced a new lubricant product to the Ghanaian market to help vehicles perform efficiently.
The product, TOTAL QUARTZ 9000 FUTURE 0W-20, is a fully synthetic high-performing engine oil specially tailored for optimal operation of the latest generation petrol engine, with or without emission control devices.
Speaking at the launching of the product recently, Managing Director of Total Ghana, Eric Fanchini, described the new addition to the TOTAL QUARTZ range of lubricants as “an innovative product designed to meet the modern technological trend in the automotive world and to ensure motorist comfort”.
He further explained that “the product delivers reduced maintenance cost by providing excellent engine protection and cleanliness and it ensures cost savings through reduction in fuel consumption and extended oil change interval”.
TOTAL QUARTZ 9000 FUTURE 0W-20 has gone through rigorous test and has the approvals of major international bodies such as the ‘International Lubricants Standardization and Approval Committee (ILSAC) and the American Petroleum Institute (API). It also meets the requirements of many Asian and American car manufacturers where the API SN, ILSAC GF-5 performances are compulsory.
In a closing remark, the Lubricants Manager of Total Ghana, Henry Adzewodah emphasized on “Total Ghana’s commitment to better energy through the consistent introduction of a variety of products to help vehicles perform efficiently as prescribed by vehicle manufacturers”.
He stated that “over the years, the company has constantly researched and delivered into the market top notch products like the TOTAL QUARTZ INEO, TOTAL QUARTZ 9000, TOTAL QUARTZ 7000 and TOTALQUARTZ 4×4 amongst other lubricants and it will keep innovating to bring value to the customer”.
TOTAL QUARTZ 9000 FUTURE 0W-20, which is available in 5 liters and 1-liter gallon, is available in all TOTAL service stations and distributor outlets across the country.
Ghana: IES Cautions Akufo-Addo-Administration Against Restrictive Tendering Process To Select PDS’ Replacement
The Institute for Energy Security (IES), an energy think tank in the Republic of Ghana, West Africa, has cautioned against attempts by the government to use restrictive tendering process for the selection of replacement of Power Distribution Services (PDS) Ghana Limited.
According to the IES, “any attempt to rush the process of restoration is likely to produce a worse outcome than the initial one.
“Restrictive tender promotes corruption and cronyism, kills transparency, leads to high cost of services arrangement, does not provide value for money and does not give wider alternatives to choose the best company to perform,” IES said in a statement copied to energynewsafrica.com.
Ghana’s Finance Minister Ken Ofori-Atta, on Friday, October 18, 2019, announced plans by the Akufo-Addo-administration to terminate the controversial concession agreement between the Electricity Company of Ghana (ECG) and Power Distribution Services Ghana Limited.
In a nine-page statement, the Finance Minister indicated that the government would use restrictive tendering process to select a replacement of PDS.
But, the IES believes the restrictive tendering process may give room for the selection of an entity which would be worse than the initial process.
“The IES wishes to convey to the government to begin exploring other means of getting capital injection into the operations of the ECG, and not be overly fixated on the second MCC which has the government always negotiating from a much weaker position.
“The IES wishes to remind the Energy Minister, Mr Peter Amewu, to honour his word and proceed to prosecute all those involved in the concession agreement with the PDS, as it has been established that there was a fraud.
“The Minister must follow through the initial formal complaint lodged with the Criminal Investigation Division (CID) of the Ghana Police Service now that he is satisfied that the PDS engaged in fraud.”
Below is the full statement:
A RESTRICTIVE TENDER PROCESS MAY PRODUCE A WORSE OUTCOME THAN THE INITIAL STINKING PDS DEAL
The discontinuance of the current stinking and awful Power Distribution Company (PDS) concessionaire agreement by the Government of Ghana (GoG) comes as a great relief to the Institute for Energy Security (IES), and to many Ghanaians who see the agreement as cooked from the very onset for some persons, judging from the manner in which processes were circumvented, with some key Conditions Precedents converted to Conditions Subsequent to allow the take-over.
It has become evidently clear that the Millennium Development Authority (MiDA), the supervising agency of the Millennium Challenge Compact (MCC), which embarked upon a competitive procurement process resulting in the selection of Manila Electric Co. (Meralco), and the group of Ghanaian investors to manage, operate and invest in ECG’s operations for 20 years, was negligent in the award of the concession agreement as it failed to do adequate due diligence, resulting in the botched deal.
It has also been proven that apart from Meralco, the other parties in the consortium were not known to have both technical and financial capacity to assume the business with a cash flow of close to US$4billion; failing to inject private capital into the operations of the ECG as required. And to the extent that local shareholders of PDS used proceeds of ECG to fund US$11.5 million of the US$12.5million payments it made to procure the demand guarantees, the Ghanaian was shortchanged.
And that based on all the information gathered about the purported Demand Guarantees provided by PDS as security for the transfer, the GoG is concluding that there is no valid Payment Security, and that it is unable to consider that a valid and enforceable Payment Security was furnished by PDS in fulfillment of an essential Condition Precedent for the transfer of ECG’s asset to PDS.
With these revelations, the IES concludes that the actions and inactions of MIDA has largely contributed to the gross deception and unprofessional conduct on the part of PDS through the false declaration and a misrepresentation of facts, resulting in waste of time, loss of money and damage to the reputation of the state.
In as much as the government claims to be fervently dedicated to the ECG PSP transaction and fully intends to conclude the PSP transaction within the remaining term of the Compact II Program, it must reconsider the proposal presented to the MCC/MiDA for the adoption of a restricted tender process to fast-track some of the processes to replace PDS.
Restrictive tender promotes corruption and cronyism, kills transparency, leads to high cost of services arrangement, does not provide value for money, and does not give wider alternatives to choose the best company to perform.
The “Concession Restoration and Restructuring Plan” which was agreed between the GoG and the MCC, and intended to be executed before December 31, 2019 must be reviewed; especially in the light of Government’s admission that the implementation plan sent by the MCC did not accurately reflect the outcome of their meeting in New York.
Any attempt to rush the process of restoration is likely to produce a worse outcome than the initial one. And the manner in which the country was forced to take the handing-over decision without necessarily satisfying certain preconditions in the earlier deal, in the name of deadline given by the MCC, resulted in losses for the country, and this must guide government going forward.
The desire to ensure that the country does not lose out on the Compact II must not be the ultimate goal of government, but rather “value for money” in the process of seeking to introduce a private sector participant in the management and operations of ECG.
The IES wishes to convey to government to begin exploring other means of getting capital injection into the operations of the ECG, and not be overly fixated on the second MCC which has the government always negotiating from a much weaker position.
The IES wishes to remind the Energy Minister Mr. Peter Amewu to honor his word, and proceed to prosecute all those involved in the concession agreement with the PDS, as it has been established that there was a fraud. The Minister must follow through the initial formal complaint lodged with the Criminal Investigation Division (CID) of the Ghana Police Service now that he is satisfied that the PDS engaged in fraud.
That if the country paid $50 million in services, in advice – hiring lawyers, advisors, consultants to help with the take-over process, yet the country ends up with a cancelled deal; it may be of concern to the Special Prosecutor (SP), at least for purposes of “value for money” audit. It must interest the SP to interrogate the extent to which due process was followed in the award of the botched contract.
And to the extent that the PDS failed to inject the needed financial capital as stipulated under the concession agreement, but rather depended on ECG’s existing funds (including expected payments) for their operations and to shore up their capital requirements, amounts to a clear breach of the transaction and must also interest the SP to call for the file on PDS concession agreement.
Source:www.energynewsafrica.com
Ghana: GNPC CEO Dragged To Supreme Court Over Retirement Age
Ghana’s Supreme Court is expected to hear a case challenging the capacity of the Chief Executive of Ghana’s national oil company, GNPC, Dr. Kofi Kodua Sarpong to stay in office.
According to a writ filed by Eric Edem Agbana, the apex court should to declare that the Chief Executive’s continuous stay in office breaches Article 199(1) and (4) of the 1992 constitution.
Article 199 (1) states that: “A public officer shall, except as otherwise provided in this Constitution, retire from the public service on attaining the age of sixty years”
Article 199 (4) states that: “The President may, subject to such conditions as he thinks fit delegate some of his functions under this article by directions in writing to the Police Council or to a committee or to a member of the Council”.
The plaintiff is, therefore, seeking reliefs which include an order for the GNPC boss to resign immediately from his position and also cough up all salaries allowances and benefits he obtained from the Ghana National Petroleum Corporation from the date of attaining the age of sixty – five years to date.
Dr K.K Sarpong was appointed CEO in February 2017. He is a Chartered Accountant with over thirty years’ experience at senior management level in over eight (8) companies.
He has served on the Boards of twenty-one (21) different companies and organizations.
Below is the writ
IN THE SUPERIOR COURT OF JUDICATURE IN THE SUPREME COURT ACCRA
AD 2019 WRIT INVOKING THE ORIGINAL JURISDICTION OF THE COURT SUIT NO.BETWEEN ERIC EDEM AGBANA
H/NO. 8, PAWPAW STREETEAST LEGON, ACCRA
V.DR. KOFI KODUA SARPONG
GNPC, PETROLEUM HOUSE, TEMA, ACCRA.
IN THE NAME OF THE REPUBLIC,
You are hereby commanded within fourteen days after service on you of the Plaintiff’s Statement of case, inclusive of the day of service to file or cause to be filed for you, the Defendant’s statement of case in an action at the suit of:
ERIC EDEM AGBANA
The nature of the reliefs sought are as follows:
1.A declaration that the Defendant’s continuous stay in office as Chief Executive Officer of Ghana National Petroleum Corporation after attaining the age of sixty five years is in breach of Article 199(1) and (4) of the 1992 constitution
- An order for the Defendant to pay back to the Ghana National Petroleum Corporation all salaries, allowances and benefits he obtained from the Ghana National Petroleum Corporation from the date of attaining the age of sixty five years to date.
- An order for the Defendant to resign immediately from his position as CEO of Ghana National Petroleum Corporation.
- Any other order(s) or direction(s) as the Court deems appropriate to make to give effect to the declarations made herein, pursuant to Article 2(2) of the 1992 constitution.
- KOFI KODUA SARPONG
- KOFI KODUA SARPONG
TGS Supports Sustainability Efforts In Brazil With Film Festivals
TGS, world’s leading seismic company has sponsored and participated in the recent Santa Catarina Ridge International Environmental Film Festival (FICASC in Portuguese) in the Brazilian cities of Lages, Urubici and São Joaquim.
This event, organized in conjunction with the Latin American Environmental Film Festivals, and which focuses on the causes related to sustainability, drew an audience of nearly seven thousand people.
The festival aims to promote discussion on such urgent and vital matters to the planet as food sovereignty, permaculture, environmental degradation, climate change and the preservation of indigenous cultures.
TGS’ involvement in this event is part of the company’s focus to expand its Corporate Social Responsibility initiatives and develop its global Environmental, Social and Governance (ESG) efforts.
“Our investment in sustainability efforts both within Brazil and globally is a strong commitment by us. TGS contributes directly to the oil and gas sector in a challenging period when the matter of environment preservation is taking the limelight. Support of events such as the FICASC, helps bring awareness and exposure to ESG and sustainability as we continue to be involved in the movement on environmental initiatives as we seek to transition towards a sustainable future,” João Correa, country manager for Brazil at TGS said.
This project is the latest in a list of similar CSR activities undertaken by TGS in Brazil. In 2017, TGS (then Spectrum) contributed to a cultural photographic publication showcasing Brazilian talent and in 2018 the company partnered with Project TAMAR to monitor turtle behavior in the South Atlantic in order to better understand the nesting season, migration, feeding and the possible changes arising from seismic activity.
The focus on ESG continues to strengthen among stakeholders, particularly among in the investor community. As a member of the UN Global Compact, TGS remains committed to ESG and sustainability and is currently expanding its strategy for 2020 and beyond.