Egypt And Ethiopia ‘Deadlocked’ In Nile Dam Talks

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Talks between Egypt, Sudan and Ethiopia over the operation of a $4 billion hydropower dam that Ethiopia is constructing on the Nile, have reached a deadlock. Egypt is calling for international mediation to solve the impasse. The Grand Ethiopian Renaissance Dam (GERD), announced in 2011, is designed to be the centerpiece of the Horn of Africa country’s bid to become the continent’s biggest power exporter, generating more than 6,000MW. “The negotiations on the Renaissance dam have reached a deadlock,” Egypt’s irrigation ministry said in a statement after a new round of talks ended in the Sudanese capital. Egypt fears the dam will restrict the flow of the Nile, from Ethiopia’s highlands through the deserts of Sudan and on to Egypt’s fields and reservoirs. The statement claimed the Ethiopian delegation “rejected all the proposals that take Egypt’s water interests into account” and presented one that “lacked guarantees” on how to deal with droughts that may occur in the future. Egypt depends on the Nile for about 90% of its needs for irrigation and drinking water and says it has “historic rights” to the river guaranteed by treaties from 1929 and 1959. “Egypt has called for involving an international party in the Renaissance Dam negotiations to mediate between the three countries and help…reaching a fair and balanced agreement,” it said after talks in the Sudanese capital Khartoum between the three countries’ water resources ministers. Egypt did not say who should mediate, but the presidency called on the US to play “an active role in this regard”. White House press secretary Stephanie Grisham said the US supports Egypt, Ethiopia and Sudan’s negotiations to reach a sustainable and mutually beneficial agreement. Ethiopia’s minister at the talks, Seleshi Bekele, rejected the Egyptian request for a mediator. “Why do we need new partners? Do you want to extend (the negotiations) for an indefinite time?,” he told reporters. Ethiopia has blamed failure of the talks on Egypt and analysts fear that conflict could ensue if the dispute is not resolved before the dam begins operating.  

Springfield E&P Spuds Afina-1x Deepwater Well Offshore Ghana

Springfield Exploration and Production Limited (SEP), a subsidiary of Springfield Group, has made history by becoming the first independent African Energy company to drill in deep water. Springfield has spud the Afina-1x well in the West Cape Three Points Block 2. The Afina-1x well is the first of a two-well program being undertaken by Springfield utilizing the Stena Forth drillship. The 673 sq km West Cape Three Points Block 2 (WCTP2), awarded in 2016, is located in the Tano / Western Basin. The water depth ranges from 100 meters to 1,700 meters. Springfield E&P is the operator and majority interest holder of WCTP2 with state oil firm GNPC and its exploration company (Explorco) holding a minority interest.

Nigeria Plans To End  Petroleum Products Importation

The group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Mele Kolo Kyari has vowed to reverse the trend of petroleum imports into Nigeria by improving the existing refineries and encouraging private sector investment in the refineries. “We must end the trend of fuel importation as an oil producing country,” he said “We will deliver on the rehabilitation of the four refineries within the life of this administration and support the private sector to build refineries. We will support the Dangote Refinery to come on stream on schedule and transform Nigeria into a net exporter of petroleum products by 2023,” he said in a released copied to energynewsafrica.com by APO Group. He added that the government’s target of raising crude oil production and reserves to three million barrels per day and 40 billion barrels respectively, was possible and that he would galvanise the corporation to achieve it by 2023. When it comes to rooting out the corruption that has plagued the industry in Nigeria, Mr Kyari pointed out how much NNPC had changed over the past three years from the old image of a corruption-laden organisation, stressing that he would continue to entrench the culture of accountability in the affairs of the corporation. “We are going to work to remove every element of discretion from our processes because discretion is one of the greatest enablers of corruption,” he said. “NNPC will not be opaque; we’ll be transparent to all so that at the end of the day, everyone will be in a position to assess us and say what we have done right or wrong,” Mele Kolo Kyari added. Support from OPEC The Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), Mohammed Sanusi Barkindo has commended the NNPC for its ongoing reforms aimed at changing the fortunes of the corporation for the better. “I am glad that you continue to march on with your projects despite the downturn in the industry. “We have seen the industry globally suffer in terms of contraction in investment which affected capacity. You have not only been able to stay on course but you also continue with these projects which are critical for the development of the corporation and the industry in Nigeria. “To lead such a sensitive and capital-intensive industry like oil and gas, you must have transparency and accountability as one of your core principles in order to drive change. I am glad I have known Mele Kyari for a very long time. “He is a very capable and straightforward individual with a high level of integrity even as a very junior officer. So, he has a track record. I remain confident that together with his team, and with the support of government, he will accomplish the task,” Mohammed Sanusi Barkindo eulogised. Building A Nigerian Giant Key to this strategy of reducing imports is the Dangote Refinery that is under construction near Lagos. The 650,000 barrels per day (bpd) integrated refinery and petrochemical project will be Africa’s biggest oil refinery and the world’s biggest single-train facility upon completion in 2020. The facility will be able to process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel, as well as jet fuel and polypropylene. Nigeria In Focus At Africa Oil Week Relations between South Africa and Nigeria have been strained in recent months after several days of riots in South Africa in September that mainly targeted foreign-owned, including Nigerian businesses. But, following a visit to South Africa by Nigeria’s President Muhammadu Buhari, tensions have eased. A further sign of the improving relationship is the visit of Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, to Africa Oil Week (Africa-OilWeek.com). The Minister expressed his excitement to be travelling to South Africa. As the largest upstream event on the continent, Africa Oil Week has enjoyed attendance from the industry’s highest-level decision makers for over 25 years. This year is no different, with Nigeria’s brand new NPCC GMD making his international debut at the 2019 conference in Cape Town this November (4-8). Mallam Melee Kyari will be setting out the future vision of the NNPC under his leadership and participating in a session titled: ‘Atlantic Transform Margin (Liberia to Nigeria)’, where he will provide a deep insight into the current operating landscape in some of the most highly sought-after regions      

SBM Offshore Closes Brazil Legacy Case

Dutch FPSO operator SBM Offshore has confirmed a formal closure of its Brazil legacy case related to legacy bribery issues in Brazil. A statement issued on Wednesday explained that the company has received notification that the Federal Court has formally closed the Improbity Lawsuit filed by the Brazilian Federal Prosecutors Office (Ministério Público Federal, MPF) in 2017. This approval makes the Leniency Agreement between the MPF and SBM Offshore effective, which comprises a final settlement of BRL 200 million ($48.8M), which will be paid to Petrobras. SMB Offshore reached a deal with the Brazilian prosecutor under which the prosecutor would refrain from initiating new legal proceedings against the company related to legacy bribery issues in Brazil in September 2018. The agreement meant that the company had also reached a final settlement with the MPF over alleged improper sales practices before 2012, in addition to that with the Brazilian Authorities and Petrobras. As with all such agreements signed by the MPF, the agreement was subject to approval by the Fifth Chamber of the MPF. Under the agreement, the MPF committed to refrain from initiating new legal proceedings against the company under the Improbity Law, Anti-Corruption Law and Public-Procurement Law in relation to the legacy issues in Brazil. The MPF and the company jointly requested the court to formally close the Improbity Lawsuit filed by the MPF in 2017, including the associated provisional measure to secure payment of potential damages. The agreement provided – in addition to the amounts agreed in the leniency agreement – for the payment of an additional fine by SBM Offshore of BRL 200 million. The additional fine was to be paid to Petrobras in installments: an upfront payment of BRL 60 million, with seven BRL 20 million installments thereafter. This additional agreement brought the total amount of the provision established by the company in respect of legacy issues in Brazil from $299 million to $347 million.

Ecuador Shuts In Production At Three Oil Fields Amid Protests

Ecuador’s state-owned energy company Petroamazonas has suspended production at three fields amid protests against rising fuel prices that have forced the government to move from the capital Quito to the coastal city of Guayaquil. Reuters reports the Ecuadorian energy ministry as saying the field was “taken” by “individuals not affiliated with the operation.” The ministry added it had deployed the army at key locations in a bid to “safeguard the Ecuadoran state’s resources.”  Ecuador increased fuel prices by up to 120 percent earlier this month and this sparked protests among farmers and indigenous peoples, France 24 reports. Hundreds have taken to the streets and roads, blocking them and burning tires and barricades. Removing fuel subsidies was the reason for the price spike as the government of Lenin Moreno seeks to shrink Ecuador’s fiscal deficit. As the protests enter their fifth day, President Moreno has accused his former compatriots of staging a coup with the help of Venezuela’s Nicolas Maduro. “What has happened is not a manifestation of social discontent in protest of a government decision. The lootings, vandalism and violence show there is an organized political motive to destabilize the government,” Moreno said. Several thousand people are marching towards the capital Quito, according to a local organization of indigenous people, CONAIE. France 24 recalls that almost 20 years ago CONAIE was instrumental in the ousting of then-president Jamil Mahuad from office during another economic crisis. Troubled by its economic woes, Ecuador recently announced it would leave OPEC from January next year as it seeks to increase its oil revenues, which cannot happen if it complies with a production cap. The Andean country has crude oil reserves estimated at 8.27 billion barrels and produces a little over half a million barrels daily, according to OPEC data. Of this, close to 400,000 bpd are exported.    

Ghana: Six Second-cycle Schools Showcase Renewable Energy Projects At 5th Ghana Renewable Energy Fair(Photos)

Some second-cycle schools in the Republic of Ghana, West Africa, which have developed renewable energy projects in their respective schools have participated in the Energy Commission’s maiden ‘High School Renewable Energy Challenge’, introduced this year alongside the 5th Ghana Renewable Energy Fair and National Energy Symposium. The schools are Ebenezer Senior High School, Presbyterian Senior High School, Osu, Forces Senior High Technical School, Tema Technical Institute, Achimota Senior High School and Manhean Senior High Technical School. Each of the schools was given 10 minutes to present their renewable energy project. The High School Renewable Energy Challenge is aimed at instilling a passion for solving renewable energy, energy efficiency and climate change challenges in students through research and innovation, develop research skills of senior high school students and promote technological innovation in renewable energy and energy efficiency, develop presentation skills of senior high school students and promote self -confidence and encourage hard work through public recognition and rewards. Below are picture of some of the projects being showcased at the 5th Ghana Renewable Energy and National Energy Symposium Below are pictures of some of the students and participants at the fair
Mr. Wisdom Ahiataku-Togobo, Director of Renewable and Alternative Energies
                                   

Ghana: VRA Completes First Rooftop Solar Power Project At Head Office

Ghana’s power generation company, Volta River Authority (VRA), has completed its first rooftop solar project at its Accra Headquarters. This is part of its commitment to project the culture of working in a green and smart environment in the West African nation. It is expected that the 80-kWp capacity facility will contribute about 25 percent of the total energy used by the Authority at its Headquarters. According to Ing. Emmanuel Antwi-Darkwa, who is the CEO of VRA, the project is evident that rooftop solar can be deployed in many public offices with significant success.
Ing. Emmanuel Antwi-Darkwa, CEO of VRA addressing students of West Africa Senior High School recently
He encouraged other public and private agencies to consider similar projects. The VRA boss also disclosed that they intend to replicate the project in all VRA’s operational areas as a way of showing leadership to ensure energy development in a sustainable manner in the country. ‘’More significantly, we intend to deploy rooftop solar systems in our residential facilities at Akosombo, Akuse and Aboadze as part of our programmes to green our enclaves,” Ing. Emmanuel Antwi-Darkwa said in his opening address at the 5th Ghana Energy Fair and National Energy Symposium in Accra. The VRA, he revealed, looks forward to developing Ghana’s first wind power project and that they anticipate to successfully complete the 150MW wind power project to be located in the Keta and Ada Municipalities respectively in the short to medium terms. Mr Antwi Darkwa announced that his outfits will, in 2020, develop a pilot floating solar project on the Kpong Hydroelectric Dam Headpond at Akuse in the Eastern Region, to test the feasibility and adequacy of the technology in the country. The Authority’s commitment to utility scale renewable energy started in 2013 through the development of Ghana’s first scale power plant at Navrongo. He added that not only has the plant improved power supply in that part of the nation, but it has granted Ghana sufficient operational knowledge to effectively manage large scale solar power plants. The VRA, in collaboration with the German Government, has also commenced the construction of a total 17MW solar plant in Lawra and Kaleo, both in the Upper West Region. “While obviously modest, it is the main building block of our strategy to develop and operate about 60 percent of the nation’s renewable utility scale power plants in the short to medium terms. We expect the other 40 percent to be taken up by the private sector,” he indicated. From the perspective of VRA, renewable energy development is and will continue to be a game-changer in the energy sector. Its corporate strategy, therefore, places significant focus on ensuring development in a sustainable manner, which, according to Mr Antwi-Darkwa, includes the development and introduction of clean and environmentally friendly forms of energy into Ghana’s generation portfolio.  Source:www.energynewsafrica.com

South Africa: High Electricity Prices Contributed To Decline In GDP-Gwede Mantashe

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South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has noted that the country’s economy contracted by 3.2% in Q1 of 2019, with the energy sector making a negative contribution to the GDP. According to the minister, the key factors behind the decline in the economy were the load shedding and the high electricity price. He was delivering a keynote address at the WINDABA Conference in Cape Town, which is under the theme: Unleashing renewable power for African economic development.’ “There has been a gradual decline in electricity demand. This, together with low economic activity and increasing electricity tariffs close the supply-demand gap. Faced with an old generation infrastructure and an Eskom in crisis, we must invest in new generation capacity. We must begin an infrastructure build programme to meet the energy demands required for our industrialisation,” urged Mantashe. Electricity is too expensive for households. We should have a solution. The wind energy market is part of the solution. Working together, we can have solutions to problems. Low energy access links to economic decline The minister also noted that a lack of access to energy correlates directly to poverty and lack of economic growth. He said: “Development is possible in an environment of a universally accessible sustainable, affordable energy supply. Through the electrification and universal access programme, and the clean development framework, South Africa shows progress in the indices for energy equity and environmental sustainability. “Provision of a reliable, cost effective and continuous supply of electricity is essential to our economy. “ Minister Mantashe said electrification through grid connections has been effective in providing lighting and small power, but it is inappropriate for providing thermal energy for cooking and space heating. He stated that a significant thermal energy load still needs to be provided for, “by providing solutions side by side by with off-grid technologies, particularly in those areas that are too remote to build grid-based infrastructure.” Mantashe further underscored that the energy sector alone, contributes close to 80% towards total emissions, of which 50% are from electricity generation and liquid fuel production alone. “We must ensure emission reduction targets are met. At the same time, we must ensure a just energy transition to avoid plunging the majority in destitution. Transition to a low carbon economy must be sensitive to the potential impacts on jobs and local economies,” he said. South Africa’s energy supply is dominated by coal followed by renewables and other energy sources. Minister Mantashe said: “Our energy policy is premised on an energy mix as diverse as coal and wind, amongst others. Coal, imported hydro, nuclear, wind, solar, biomass, storage and energy efficiency are the technology options that have been weighed on their respective merits.” He continued: “WINDABA 2019 convenes when the promulgation of the updated Integrated Resource Plan is imminent. Our energy mix is aimed at improved energy security, the diversification of our energy sources, increasing access to modern energy carriers, improving energy efficiency, lowering the cost of energy, regional integration and skills development.” The minister further noted that earlier this year his department launched the wind atlas of South Africa (WASA), which includes a database with a large-scale high-resolution wind resource map covering all our nine provinces. “WASA will be our repository of knowledge about the scale and location of our wind resources. Through the WASA project, South Africa has developed an excellent wind resource assessment capability hosted at SANEDI and the CSIR. The measurement results of WASA cover an estimated 75% of South Africa’s mainland and will be used to extrapolate the prevailing wind conditions for the rest of South Africa,” he said.

CEO of Africa Finance Corporation Appointed Vice Chairman Of Aker Energy’s Board Of Directors

Norwegian oil and gas firm, Aker Energy has appointed the President and Chief Executive Officer of Africa Finance Corporation (AFC), Mr. Samaila Zubairu as the Vice Chairman of Aker Energy’s Board of Directors. A statement from Aker Energy and AFC, explained that Mr. Zubairu had previously served as CEO of AfriCapital Management Limited and as CFO of Dangote Cement Plc. Mr. Zubairu is an Eisenhower Fellow and sits on the Eisenhower Fellowship’s Global Network Council. He holds several non-executive board positions including the Advisory board member for KSE Africa a leading operations and management provider of captive power plants in the mining sectors in Botswana and Nigeria. Mr. Zubairu is a Fellow of the Institute of Chartered Accountants, Nigeria (FCA) and holds a BSc in Accounting from Ahmadu Bello University, Nigeria. He is an Ex-Boy of the Nigerian Military School, Zaria. Commenting on the appointment of Mr Zubairu, Mr. Sverre Skogen who is Chair of the Board of Directors of Aker Energy, said: “AFC is an important partner to Aker Energy. We are honoured to welcome Mr. Samaila Zubairu to the Board, as he brings extensive experience with innovative infrastructure development and financing across the African continent, as well as geopolitical and industrial insight.” “AFC’s investment in Aker Energy is an exciting milestone – we have partnered with the subsidiary of one of the most highly respected international oil, gas and industrials companies to support its first project in the African market as an operator. This is an opportunity for AFC to invest alongside a technically and financially strong sponsor that requires project development expertise and public sector advice in Africa, both of which AFC is ideally placed to offer. It is therefore a great honour to now also being joining the Board of Aker Energy as Vice Chairman,” Mr. Samaila Zubairu commented. In July 2019, AFC became an investor in Aker Energy following the issue of subordinated convertible bonds of USD 100 million with a mandatory conversion to equity in the event of an Initial Public Offering (“IPO”) of Aker Energy. AFC intends to take part in other capital market activities initiated by Aker Energy in the future. Aker Energy is part of the Norwegian Aker group of companies and is, through its subsidiary Aker Energy Ghana Ltd., the operator of the Deepwater Tano / Cape Three Points (DWT/CTP) block offshore Ghana. Aker Energy has its sole focus in Ghana and has submitted a Plan of Development and Operations (PDO) for the block.          

U.S. Energy Secretary Perry Dismisses Report He’s Resigning

U.S. Secretary of Energy Rick Perry has denied media reports suggesting that he was preparing to resign next month, saying that he doesn’t plan to go anywhere. Secretary Perry is planning to hand in his resignation in November, Politico reported last week, citing three unnamed sources in the know. According to Politico’s sources, Secretary Perry has been considering resigning for several months now, and his indirect involvement in the impeachment proceedings against U.S. President Donald Trump may have helped him make his mind. The sources themselves told Politico that the Ukraine scandal that led to the impeachment probe had no role in Perry’s decision to leave. Perry’s name got mixed up in the scandal because of a U.S. delegation the Energy Secretary led to Ukraine for the inauguration of President Volodymyr Zelensky. The delegation was initially supposed to be led by Vice President Mike Pence, but Perry was named instead of him in the last minute.   “They’ve been writing the story for at least nine months now. One of these days they will probably get it right, but it’s not today, it’s not tomorrow, it’s not next month,” Perry said at a press conference in Lithuania  

Ghana: Consumers Can Now Buy Prepaid Credit – PDS

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Power Distribution Services Ghana Limited has announced that it has fixed the challenges that made it impossible for some consumers in the West African nation, Ghana, to purchase power during the weekend. “Affected customers can now visit their District Office or the closest prepaid vendor shop to buy,” a communiqué from PDS said.
Electricity consumers queuing to buy prepaid credit
A cross section of consumers over the weekend took to social media to complain about the difficulty in purchasing power. PDS did not state the cause of the challenge but apologised “for the inconvenience caused to affected customers.”

Mozambique: ExxonMobil To Approve Africa’s Largest LNG Project

Mozambique’s government has said that ExxonMobil will sign off on an initial investment decision for a liquefied natural gas project that could cost as much as $33 billion to build — the biggest ever in Africa. A ceremony marking the decision will take place Oct. 8 in Maputo, the capital of the southeast African nation, the Ministry of Mineral Resources and Energy said in a statement Saturday. Exxon’s project in the northern Cabo Delgado province will cost between $27 billion and $33 billion, according to a report that Johannesburg-based Standard Bank Group Ltd. published in March. The 15.2-million ton per year gas liquefaction and export project is even bigger than the one that Total is building nearby, and both will transform Mozambique’s $15 billion economy. “We look forward to progressing the Rovuma LNG project and working with the government to maximize the long-term benefits that this project will bring,” a spokesman for ExxonMobil said in an emailed response to questions, according to worldoil.com. The investment decision could boost President Filipe Nyusi’s chances in general elections scheduled a week later. A promise to develop the country’s natural gas industry has formed a big part of Nyusi’s campaign

China: 200MW Supply Contract Secured For Siemens Gamesa 4.X Platform

Siemens Gamesa Renewable Energy (SGRE) has secured the first contract to supply the Siemens Gamesa 4.X platform in China. The 200MW wind farm is located in the city of Changji, in the region of Xinjiang, northwest China. In a company statement, SGRE noted that they will install 42 units with unit rating reaching 4.8MW, as well as provide operation and maintenance services for five years at a 200MW project developed by local independent power producer Xinjiang TBEA Group. This is the second order that SGRE has received from TBEA, strengthening the partnership between both companies. The Siemens Gamesa 4.X platform, with its 145-metre rotor variant, is a good fit for the project site conditions featuring medium wind, sandy and dusty weather, and low temperatures during wintertime. Commissioning is expected before the end of 2020.  “We’re delighted to see our first project landing in Xinjiang and strengthen our partnership with TBEA to support its expansion in the renewable energy sector,” stated Richard Paul Luijendijk, CEO of SGRE Onshore APAC. He added: “Following a previous Siemens Gamesa 3.X platform order with TBEA earlier this year, this new order reflects the customer’s trust in Siemens Gamesa products, technology and our capability of undertaking complex logistics and project execution.”  

Why Ghana Remain Worried Over Volatile Oil Price: Part 1

By: Paa Kwasi Anamua Sakyi, IES Oil has become the world’s most important source of energy since the mid-1950s, with nearly one third of global energy consumption. Its use is a necessary part of the modern world, and prices have a big impact on prices of petroleum products, oil exploration and exploitation activities; and on global markets and economies. The high volatility of oil prices exist because many different players like world leaders, cartels, speculators and global investors seek to influence price on daily basis. Through commodities and financial market happenings, geopolitical events, infrastructure constraints, speculation, regulations, policies, alternative fuel sources, arm conflicts, natural and man-made disasters, and technologies; supply and demand of crude oil is influenced. The dynamic and complexed movements between these factors ends in the strange performance of the crude oil price movement. For instance, between 2000 and 2008, oil witnessed an unprecedented surge in price, from around US$25 per barrel to nearly US$150 per barrel due to increasing demand in emerging economies like China and India, with production cuts by the Organization of Petroleum Exporting Countries (OPEC) driving price to its record heights. The great oil bust of 2014 where in a matter of six months, Brent oil price dropped over 40 percent from US$115 per barrel to US$70 per barrel, and tumbled to mid-$20s of a barrel in first month 2016, is yet another typical example. Recent Supply Concerns Crude oil prices were volatile after an attack on Saudi Arabia’s oil infrastructure facilities on September 14th 2019, shutting 5 percent of global crude output and spiking the most since the 1991 Gulf war. Global benchmark Brent crude oil rose 19 percent to almost US$72 per barrel after the market opened for the first time after the drone strike at the heart of Saudi Arabia’s oil industry. In spite of the assurances given by Saudi Arabia to swiftly repair the damaged facilities and recover from the recent attack on its oil infrastructure, the market was doubtful given that the Houthi/Iran alliance has demonstrated that it can hit the Saudi’s oil and gas industry at will. With Military assessments also suggesting that similar attacks are fundamentally difficult to protect against, the market very much appreciates the long term effect of the attacks. The record surge in Brent crude futures on Monday only tells part of the story of how the oil market reacted to the attack that removed about 5 percent of global supplies. Brent futures soared as much as US$11.73 a barrel in intraday trading, the biggest increase since the contract launched in 1988. The global benchmark surged as much as 19.48 percent, the biggest jump since the first Gulf War in 1991. The market expected the price surge in crude to filter through to gas stations, which it did. It was reported that the average U.S. retail Gasoline rose in price, even as futures on the New York Mercantile Exchange jumped as much as 20 cents on the back of the drone strikes. In Ghana, concerns of fuel price hikes were largely discussed for days, following the huge crude price hike. The concerns were that following the attacks on critical oil facilities in Saudi Arabia, there would likely be a shortage of oil on the world market leading to further hike in crude prices, and automatic increase in the price of Gasoline and other refined products on both the world and local market. Other concerns were that an extended period of high oil prices is likely to lift the country’s annualized import bill, knowing quite well that the country imports almost all of the refined products it consumes; in spite of the fact that the country produces crude oil. These concerns were expressed largely on the back of a 10 percent increase in transport fares, following hikes in prices of petroleum products from increased taxes a week earlier. The Road Transport Operators had announced the increment to cover intra-city transportation and inter-city or long distance travels, to accommodate predominantly the increase in local fuel prices. Weathering Storms Following the attack on Saudi Arabia’s oil facilities, there were concerns about how well China as the world’s top oil importer was positioned to weather higher oil prices and how will it affect its position in the ongoing trade war with the United States. To begin with, China’s level of oil imports has been steadily growing, from an already very high base, with last year seeing the country import 462 million metric tons of crude; a 10 percent increase over the previous year. At the same time as its basic economic demand for oil has increased, China has also sought to dramatically build up its strategic petroleum reserves through an increasing number of different channels, regardless of any – as it sees it – ‘short-term considerations’, such as U.S. sanctions on various countries. India is another major oil consumer (importing over 80 percent of its oil requirement) that has positioned itself to manage any oil supply shocks; learning from the 1990–91 Gulf crisis that triggered a balance of payments crisis and left the country with oil reserves for just three days at one point. Today, India can survive for more than two months without importing oil. While India’s financial situation (with forex reserves of $430 billion) puts it in a much better position to deal with price spikes, it is the improved oil storage infrastructure that’s behind the limited insurance the country have in case of a supply crunch. India’s refineries usually keep a stock to last for around 60 days. And to keep the flow of crude to refineries going in case of a supply disruption, India also has built a massive underground storage capacity for crude oil they called strategic petroleum reserves (SPRs). The oil in the three facilities already built can help meet 10 days of crude requirement and the two planned ones can hold supply of about 12 more days. The plan is to have crude oil storage capacity to last for 82 days. Strategic Petroleum Reserves Because the oil trading market is frost with uncertainty, price volatility, and sudden supply disruptions, many countries like United States, Japan, China, the United Kingdom (UK) and the European Union (EU) have found oil emergency stocks as a strategic mechanism to managing oil supply disturbances and price shocks. It is on record that “it is the release of US’ oil stockpile as sanctioned by President Trump, that led to oil prices retreating after the Monday of the attack on Saudi’s oil facilities” and offering some level of stability in global oil supply. Oil emergency stocks have been found as a strategic mechanism to managing oil supply disturbances and price shocks. In relation to oil supply, the threat may be defined as either a physical shortfall or a major change in prices. The two aspects are patently related, because a physical shortfall will inevitably lead to an increase in prices. It is in this light that members of the International Energy Agency (IEA) which has “energy security” as its core mandate, keep oil emergency stock for the purposes of reducing supply shortfalls and the attending economic harm. The US Strategic Petroleum Reserve (SPR) established after the 1973/74 oil embargo, is the largest stockpile of government-owned emergency crude oil in the world, according to US Department of Energy (DoE). The intention is to provide the U.S. with a response option should a global supply disruption threaten the U.S. economy. It also allows the country to meet part of its IEA obligation to maintain emergency oil reserves. The Missing Piece in Ghana Fuel Consumers in Ghana have persistently been worried about global oil price volatility and paying more for Gasoline, Gasoil and liquefied petroleum gas (LPG) especially. They acknowledge that prices at the pump fluctuates depending largely on what’s happening globally and to some extent, happenings at home. Following the Saudi attack, the concerns were that the country would automatically experience an increase in the price of Gasoline, Gasoil and LPG et cetera at the pump, and that should there be an extended period of high oil prices, the country’s annualized import bill will rise since almost every oil fuel consumed is imported, even though the country produces crude oil. In spite of the many advantages in keeping Strategic Petroleum Reserve (SPR), Ghana has struggled to maintain the mechanism which have been given to the Bulk Oil Storage and Transportation Company Limited (BOST) as a mandate. Incorporated in 1993 as a private limited liability company with the government as the sole shareholder, BOST has the mandate to develop a network of storage tanks, pipelines and other bulk transportation infrastructure throughout the country, and to keep Strategic Reserve Stocks of fuel for Ghana. For many years, the SPR role of BOST seem to have been shelved. Although the Ghanaian tax payer invests heavily into the operations of the entity in developing storage facilities, the storage tanks are left dry. BOST have failed over the past years to store the mandatory fuel stock, seen as one of the key mechanisms to manage any oil supply disturbances and price shocks from the global market. Written by Paa Kwasi Anamua Sakyi, Institute for Energy Security (IES) ©2019 The writer has over 22 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media and the CNBC Africa. Top of Form