Ghana: Electricity Tariff Up By 11.17%
Consumers of electricity in the West African country, Ghana, will be paying higher for electricity from July 2019.
This follows 11.17% electricity tariff increment approved by the regulator, Public Utilities Regulatory Commission(PURC).
The decision follows extensive consultations with all stakeholders.
“In taking the above decision, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC), ” a statement signed by Executive Secretary of PURC and copied to energynewsafrica.com said.
PRESS RELEASE
APPROVED ELECTRICITY TARIFFS EFFECTIVE JULY 01, 2019
The Public Utilities Regulatory Commission (PURC) has approved an 11.17% tariff increase for recovery of total electricity revenue requirement for the regulated electricity market, effective July 01, 2019.
In taking the above decisions, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).
In line with the Commission’s regulatory oversight mandate, extensive technical and financial analyses of the proposals were undertaken. The key objective of the tariff review was to sustain the financial viability of utility service providers as well as ensuring delivery of quality service to consumers.
As a major policy shift aimed at enhancing the competitiveness of Ghanaian industries, the Commission has eliminated the Maximum Demand Charge on industrial customers (Special Load Tariff-SLT Customers). It is expected that this policy will result in some SLT customers experiencing savings in their overall electricity bills.
This 2019-2020 Major Tariff Review Decision is the outcome of prudent cost review and effective monitoring undertaken by the Commission. Details of the approved electricity tariffs and the rationale for the decision will be published on the Commission’s website.
The Commission also received a tariff proposal from the Ghana Water Company Limited (GWCL) and the decision on this will be announced in due course.
The Commission wishes to reiterate its unwavering commitment to ensuring the sustainability and growth of quality electricity and water service provision for socio-economic development.
Signed
MAMI DUFIE OFORI (MRS)
EXECUTIVE SECRETARY
Anadarko Dishes Out Contract Awards For Mozambique LNG Development
U.S. oil company Anadarko has awarded a number of contracts for its Mozambique Golfinho/Atum development following a final investment decision for the project.
The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 Mtpa to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.
Anadarko sanctioned the development of Mozambique Offshore Area 1 via the Area 1 Mozambique LNG project. The project, estimated at $20 billion, can now move ahead to the construction phase.
Anadarko said that, following the FID, the project expects to soon issue notices to proceed under the terms of the previously executed engineering, construction, procurement and installation contracts and finalize financing.
Following the FID move, Anadarko has awarded contracts for the Company Provided Items (CPI) for the subsea gathering system to TechnipFMC, Oceaneering, Advanced Technology Valve, and Cameron Italy, S.R.L.
Over $1 billion for TechnipFMC & Van Oord
Furthermore, Van Oord in consortium with TechnipFMC has been awarded a contract for the engineering, procurement, construction and installation (EPCI) for the offshore subsea system.
Van Oord said in a statement on Wednesday that the company will execute the shallow offshore installation scope while its consortium partner TechnipFMC is responsible for the deep water scope.
The total contract value for the consortium TechnipFMC and Van Oord is over $1 billion.
In a separate statement on Wednesday, TechnipFMC said it was awarded a major contract by Anadarko for the EPCI of the subsea hardware system for its Mozambique Golfinho/Atum development.
TechnipFMC will execute the offshore installation scope with its consortium partner Van Oord and in cooperation with strategic subcontractor, Allseas.
Van Oord said that the upcoming months will be dedicated to project preparation and execution will start in 2021.
In addition, TechnipFMC has been awarded separate contracts under its wholly owned US incorporated subsidiary FMCTI (FMC Technologies Inc.), to provide subsea hardware in support of well construction and the EPCI scope.
Arnaud Pieton, President Subsea at TechnipFMC, stated: “TechnipFMC will execute its scope utilizing our integrated model (iEPCITM) and will highlight our industry leading subsea capabilities to help maximize Anadarko’s overall project value.”
Further to these awards, TechnipFMC and Allseas have entered into a strategic collaboration agreement aimed at jointly pursuing specific deepwater projects where the assets, products and capabilities of both companies are complementary.
In support of these awards, TechnipFMC is increasing its footprint in Mozambique and opened a new office in Maputo, Mozambique, in February 2019.
Oceaneering’s umbilicals
Oceaneering has been awarded a contract by Anadarko to supply umbilicals, distribution hardware, and aftermarket services.
According to Oceaneering, the multiple lengths of onshore and subsea steel tube control umbilicals total approximately 115 miles (185 kilometers) in length. The distribution hardware to be provided includes umbilical termination assemblies, hydraulic and chemical distribution units, electrical distribution units, flying leads, junction plates, ROV flyable large-bore connectors, and aftermarket services in support of installation.
Oceaneering said that the manufacture of the umbilicals and distribution hardware is scheduled to occur at its facilities in Panama City, Florida and Houston, Texas; and is expected to start in the third quarter of 2019 and be completed in the third quarter of 2021.
CCS JV
In addition, as reported earlier in June, Anadarko hired a joint venture between McDermott, Saipem, and Chiyoda – named CCS JV – for the onshore part of its Mozambique Area 1 LNG Development in Mozambique.
The joint venture’s scope of work covers the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure. Previously, CCS JV provided front-end engineering design (FEED) services for this LNG development.
Saipem, as the leader of the JV, said that its part of the project would bring it $6 billion. McDermott said its initial portion of the EPC contract award was approximately $2 billion.
Source: offshoreenergytoday.com
Oil Price Shoots Up As Iran Says ‘’It’s Ready For War’’
Oil price was woken out of its slumber by yet another round of escalation between the U.S. and Iran, although the matter took on greater importance to oil markets only because of a more upbeat economic outlook.
In the early hours on Thursday, Iran shot down a U.S. drone, with both sides reporting conflicting accounts. The U.S. says the drone was in international waters, while Iran says that the drone had entered Iranian air space. The incident adds to the boiling cauldron of tension between the two countries.
“This was an unprovoked attack on a U.S. surveillance asset in international airspace,” said Navy Capt. Bill Urban, spokesman for U.S. Central Command.
“Borders are our red lines. Any enemy that invades these borders will not return [home],” Hossein Salami, the commander-in-chief of the Islamic Revolutionary Guard Corps said. “We don’t have any intention to go [to] war with any country, but we are completely ready for war.”
In early trading on Thursday, WTI was up more than 4 percent and Brent was up more than 3 percent, surging to the highest level since late May.
The Trump administration has a confused strategy on Iran, with the ultra-hawks John Bolton and Mike Pompeo in the driver’s seat and the slightly more skeptical President Trump yielding to his advisers.
As such, it’s difficult to figure out who is calling the shots, and even trickier to predict what happens next. While Trump has been more circumspect, the Washington Post reported that Pompeo sent a private warning to Iran that a single attack on a single American anywhere would lead to a military
But it’s important to remember how we got here. Last year, the U.S. unilaterally exited the 2015 nuclear deal and imposed crippling sanctions on Iran even though Iran was in compliance with the terms of the agreement. Then, the U.S. imposed a list of a dozen conditions that everyone understands as impossible for Iran to meet, essentially closing off any possibility of a negotiated settlement. Earlier this year, even as Iran remained in compliance with the nuclear deal, the U.S. sent warships and more troops to the region and attempted to take Iran’s oil exports down to zero.
The Trump administration calls it the “maximum pressure” campaign, and indeed, it has led to quite a bit of pressure. Iran has lashed out, at times through proxies, and also through its recent decision to resume stockpiling low-enriched uranium. These incidents are then used to justify the next cycle of escalation. With no off ramp, it’s completely unsurprising that the two nations are on the brink of war. The scary thing is that there still isn’t really an off ramp. Both sides seem locked into, at best, a lengthy simmering standoff, perhaps similar to what’s unfolding in Venezuela. Or they will go to war.
Surprisingly, the rapid spike in tension has only moved crude oil prices in fits and starts over the last few weeks. The prospect of a major war, and the potential disruption to maritime trade in the Persian Gulf, was largely shrugged off by oil traders.
But on Thursday, oil prices showed some signs of life, with WTI moving back into the mid-$50s and Brent in the mid-$60s, the highest price in weeks. The difference this time around is that financial and commodity traders have reasons to hope that a serious economic downturn may be avoided.
The U.S. Federal Reserve laid out a dovish position in comments on Wednesday. The central bank acknowledged low inflation and soft business activity, and while it noted that the economy remained strong, it conceded that “uncertainties about this outlook have increased.” The bank left interest rates unchanged but loosened some of its language. Financial markets took this as a shift in strategy, and are betting that rate hikes are in the offing, perhaps as soon as next month. Equity markets surged on the news.
Meanwhile, the other jolt of positive news came on the trade front. The U.S. and China confirmed a meeting between Trump and Xi Jingping next week in Japan, and trade talks will resume ahead of the meeting. Trump said on twitter that he had a “very good” call with Xi, and while the sticking points and in the trade war are still significant, and the chasm between the two sides remains wide, there is at least a glimmer of hope for a resolution.
Of course, the situation is dynamic – Fed rate cuts hinge on the outcome of the trade talks. But with some semblance of optimism on the economy for the first time in weeks, the bearish forces on oil lessened. Ultimately, that allowed the U.S.-Iran tension to move back to forefront, driving up oil prices, at least for now.
Source:Oilprice.com
Yinson Gets Final Payment For Ghana FPSO Stake Sale
Malaysian Floating Production and Storage vessel provider Yinson has received a $13 million payment from a Japanese consortium regarding the proposed sale of stake in a Yinson subsidiary which owns and operates the John Agyekum Kufuor FPSO in the West African country, Ghana.
To remind, four Japanese entities in 2017 teamed up to buy a 26 percent stake in Yinson Production (West Africa) from Yinson. Yinson at the time said that the Japanese consortium would pay between $104 million $117 million for the transaction.
Yinson on Thursday said that Japan Sankofa Offshore Production Pte. Ltd. “had on 20 June 2019 made the payment for the remaining consideration amounting to a total sum of $13.0 million” for the proposed sale of a 26 percent stake in Yinson Production (West Africa) Pte. Ltd.
A little over a year ago, the Malaysian FPSO company said that the proposed disposal had been completed on June 6, 2018, but the final $13 million payment was subject to the passing of the first year anniversary of the transaction completion date.
Yinson on Thursday said that following the $13 million payment, the total final consideration for the disposal was $117 million “which is the maximum Consideration receivable for the Proposed Disposal.”
With the acquisition, the Japanese consortium acquired a 26 percent stake in Yinson Production (West Africa) Pte. Ltd., which owns and operates the John Agyekum Kufuor FPSO, last year arrived in Ghana and started oil production from Eni’s giant Sankofa offshore oil and gas field.
The vessel, to remain on contract with Eni for 15 years, started oil production formally started oil production in July, 2017.
Built by Singapore’s Keppel, the FPSO is 333 meters in length and is 60 meters wide. It has a storage capacity of 1.7 million barrels, a double hull to reduce environmental risks, and a treatment capacity of 58,000 oil barrels per day.
It has a design life of 20 years without dry docking and can be moored in an average water depth of 1,000m with a total topside weight of almost 15,000 tonnes.
The FPSO’s gas injection capacity is 150 mmscfd while the maximum future gas export capacity is 210 mmscfd.
Source: offshoreenergytoday.com
Greenpeace Ends North Sea Protest Against BP After 12 Days
Environmental group Greenpeace has ended its protest in Scotland targeting BP-chartered drilling rig for its UK North Sea drilling operations after twelve days.
Twelve days, three rig occupations and subsequent arrests of eleven activists, and three rig U-turns later Greenpeace has decided to bring its protest against BP’s drilling plans for the Vorlich field in the UK North Sea to a close with a series of protests targeting the company in Europe and the U.S.
In a statement on Thursday, Greenpeace said that its activists had served a ‘People’s Climate Injunctions’ to BP Headquarters in London and Aberdeen calling on BP and the industry to “immediately end the search for new fossil fuels and start a rapid and just transition to become 100% renewable energy companies”.
At the same time the Greenpeace ship the Arctic Sunrise read the injunction directly to the BP-chartered rig over radio.
Greenpeace hands in ‘People’s Climate Injunctions’ to BP in London HQ © Greenpeace
In Germany, activists protested outside BP’s European headquarters displaying a banner reading “BP Destroys The Climate”. The activists also presented the company with a copy of the injunction. In the U.S., Austria and all over the UK, activists picketed BP petrol stations. The U.S. activists displayed a banner with the message “Climate Emergency”.
The coordinated protests bring to an end 12 days in which Greenpeace thwarted BP’s attempts to use the Transocean-owned Paul B. Loyd, Jr. rig in the North Sea. A series of legal injunction were brought against Greenpeace, the climbers, and the Arctic Sunrise by BP and its rig contractor Transocean in an attempt to end the protest.
Despite this, three sets of Greenpeace UK climbers prevented BP’s rig from leaving the Cromarty Firth in Scotland for a period of five days. This was followed by a further standoff in the North Sea between the rig and the Greenpeace International ship, the Artic Sunrise, which prevented the rig from reaching the drill site, including through a Greenpeace International swimmer blocking the rigs path.
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.
Source: offshoreenergytoday.com
Greenpeace hands in ‘People’s Climate Injunctions’ to BP in London HQ © Greenpeace
In Germany, activists protested outside BP’s European headquarters displaying a banner reading “BP Destroys The Climate”. The activists also presented the company with a copy of the injunction. In the U.S., Austria and all over the UK, activists picketed BP petrol stations. The U.S. activists displayed a banner with the message “Climate Emergency”.
The coordinated protests bring to an end 12 days in which Greenpeace thwarted BP’s attempts to use the Transocean-owned Paul B. Loyd, Jr. rig in the North Sea. A series of legal injunction were brought against Greenpeace, the climbers, and the Arctic Sunrise by BP and its rig contractor Transocean in an attempt to end the protest.
Despite this, three sets of Greenpeace UK climbers prevented BP’s rig from leaving the Cromarty Firth in Scotland for a period of five days. This was followed by a further standoff in the North Sea between the rig and the Greenpeace International ship, the Artic Sunrise, which prevented the rig from reaching the drill site, including through a Greenpeace International swimmer blocking the rigs path.
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.
Source: offshoreenergytoday.com Oil & Gas CEOs Identify Cybersecurity As A Threat To Business
According to the 2019 Global CEO Outlook, published by KPMG International, business leaders in the oil and gas sector are optimistic about the future, however, cybersecurity remains a real threat.
91% of responders expressed confidence about their organization’s growth prospects, while 86% also recorded confidence in the growth prospects of their industry.
The survey found that over half (55%) of CEOs in the oil and gas sector projected top-line revenue growth of up to 2% over the next three years. While an optimistic 39% projected their revenue will grow between two to five per cent.
However, the report also revealed business leaders have growing anxieties about existential threats.
According to KPMG, the 2019 study revealed that oil and gas CEOs ranked cybersecurity as the biggest threat to organizational growth.
This threat is followed by the risks caused by environmental and climate change, disruptive technology, territorialism, and operations.
With only a small margin between each of the risks identified, it can be deduced that CEOs are focused on building the organizational resilience needed to master disruption and maintain growth momentum.
The risk posed by cyber threats is real, with slightly over half (51%) of CEOs in the sector believing that becoming a victim of a cyberattack is now a case of ‘when’, not ‘if’.
In the same vein, 66% believe that a strong cyber strategy is critical to engender trust with their key stakeholders. Interestingly, KPMG’s study found that over two-third (63%) of oil and gas CEOs believe their organizations are prepared for a future cyberattack.
According to Datuk Johan Idris, managing partner of KPMG in Malaysia, the gravity attached to the cybersecurity agenda is a positive indication that CEOs in the sector are serious about ensuring business resilience.
He added: “Business leaders must remain vigilant and avoid complacency when it comes to governance in cyberspace. We operate in a digital world today where breaches can happen anytime.
“Complacency will only increase the risks across the business, with lasting impacts not just to the company’s financial performance but also to their reputation. Ultimately, smart leaders are those who are making cyber preparedness a board priority, stress-testing the resilience of their systems and people to withstand an attack.”
CEOs in the oil and gas sector appear to take a proactive approach on the technology agenda with 73% claiming they are personally leading the technology strategy for their organisation.
Furthermore, a majority (69%) are increasing capital investments in buying more new technology to improve their organization’s resilience.
These business leaders have also revealed that modernizing their workforce is the strategy they rely on the most to ensure their organisation is future-ready. On a similarly positive note, 67% of CEOs anticipate to increase their headcount by up to 5% over the next three years.
Source: Esi-Africa.com
Ghana: Vivo Energy Celebrates Hardworking Shell Retailers
Vivo Energy Ghana, is sponsoring two hardworking Shell retailers, together with their spouses and a service champion for a sterling business performance and demonstrating a customer centric approach to their business.
Mr. Augustine Osei-Bonsu, the Country Retailer of the Year, Mr. Yiadom Boakye Boateng, Gold Retailer and Richmond Amegah, Service Champion of the Year will enjoy an all-expense paid trip to Sydney, Australia to participate in the Shell Global Smiling Stars Programme.
Elizabeth Sampson of Vivo Energy Ghana was also adjudged the Territory Manager of the Year at the 2018 Vivo Energy Ghana Retail Conference and Awards Dinner. A total of forty-one (41) awards were presented to deserving retailers and support staff across the country for exceptional business performance in 2018.
The Country Retailer of the Year, Mr. Augustine Osei-Bonsu expressed his gratitude to the management and staff of Vivo Energy Ghana for the support to retailers over the years through capacity building programmes and operational excellence.
“I want to thank Vivo Energy Ghana for recognizing our efforts and contributions to the growth of the retail business. Shell products are the most advanced and quality brand in the industry and I want to reassure our customers of the best experience at our service stations.
Delivering the keynote address, the Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara indicated that Vivo Energy is rapidly modernizing its retail business to meet world–class standards to deliver and exceed the expectations of customers.
“Shell scientists are passionate in their goal of finding ways to make fuel more efficient, while delivering improved performance.
Vivo Energy Ghana as part of its modernization plan will continue to invest in its business to meet world-class standards and ensure that our service stations are accessible, clean, efficient, and customer-friendly”, he said.
Mr. Ouattara also used the occasion to remind all retailers to abide by Vivo Energy’s high operational standards and demonstrate the company’s values of honesty, integrity, and respect for people at all times.
“Our customers are the prime focus of our business and we will continue to provide them with quality and the right quantity of fuels at our over 230 Shell service stations strategically located across the country”, he said.
The Retail Manager of Vivo Energy Ghana, Mr. Emil Jackson Adanuvor reiterated Vivo Energy Ghana’s commitment to building the capacity of its retailers and forecourt staff to continue to be the best in their roles.
Cote D’Ivoire Pilot To Reduce Energy Losses Globally
The US Trade and Development Agency (USTDA) has selected EnerNex as a partner for grid modernization project in Cote d’Ivoire.
EnerNex will provide its services for the implementation of a smart grid study project.
The study will help Cote d’Ivoire Energies (CI-ENERGIES) to identify measures to reduce its energy losses.
The results of the pilot will be used to develop a full “Loss Reduction Strategy” and implementation plan to reduce energy losses globally.
The project will also help Cote d’Ivoire to expand its energy generation capacity by integrating more renewable energy resources.
The West African country is confident modernizing its grid will help it to achieve its goal of becoming an emerging country by 2020.
The goal is to improve, ultimately, the standard of living by adopting measures and reforms to accelerate people’s access to basic goods and services.
“We commend CI-ENERGIES for their solid operational and technical advancements among the different segments of the Ivorian electricity system which will enable overall efficiency to be higher than 87% by 2020,” said Aaron Snyder, EnerNex director of technology consulting.
“We thank USTDA and CI-ENERGIES for giving us the opportunity to build upon and learn from the Ivorian experts and we look forward to strengthening the grid to achieve the goal of this study,” Snyder added.
Thomas R. Hardy, USTDA’s acting director, said: “Our Agency’s study will help modernize the country’s grid by utilizing American engineering expertise and create new opportunities for US smart grid firms to enter this dynamic market.”
Ghana: Independent Power Producers Demand 30% Hike In Utility Tariff
Kwame Pianim
Independent Power Producers in the West African nation, Ghana, have called on government to increase utility tariffs by 30 percent.
Chairman of the Chamber of Independent Power Producers, Distributors and Bulk Power Consumers, Kwame Pianim made the call on behalf of the power producers.
According to him, this would aid in efforts to make citizens pay realistic tariffs, suggesting that Ghana’s economic growth will suffer if the government continues to subsidize electricity.
Speaking to an Accra based Star FM, he said “if we can do a 30% increase. Some people advocate gradually maybe over a 5-year period. We should all close our eyes and do it once and for all and get rid of it. So that we don’t have these legacy debts being there in the energy sector.”
He noted, “it goes back years and we need our money for better things. For educating our people, for providing healthcare when we are sick, for creating jobs for the youth. If we don’t use the monies to train our youths, they will be on the streets destabilizing our economic and political system.”
Delay In Utility Tariff Announcement Causing Anxiety Amongst Businesses-ACEP
The Africa Centre for Energy Policy (ACEP) has described as worrying delay by the Public Utilities Regulatory Commission (PURC) in communicating its decision on new tariff, which is expected to take effect from 1st July, 2019, following the mandatory major tariff review consultations in January this year.
“ACEP’s interactions with key consumers of electricity show that anxiety is already high within the business community and expect the Commission to be fully sensitive to the realities on the ground in order not to inject unnecessary shock into plans of consumers and, by extension, the economy,” a statement signed by Benjamin Boakye, Executive Director of ACEP and copied to energynewsafrica.com noted.
The Commission, earlier this year, postponed its decision to announce a new tariff for utilities to the end of June 2019, for it to take effect from July 1.
This was as a result of some critical emerging issues in the sector, which were expected to affect the final tariff setting.
The shift in the effective date of the major tariff was, therefore, to allow the Commission to accommodate the important variables it expected would influence the tariff.
The practice, according to ACEP, has been that new tariffs are
announced, at least, two weeks prior to the effective date.
This is necessary to allow stakeholders to adjust their systems and budget to accommodate the new tariff.
ACEP, by this, called on the Commission to communicate to consumers what its intentions are, as to whether it would extend the effective date of the tariff, or immediately announce the new tariff to allow consumers time to absorb and adjust to the changes.
Below is the full statement
PURC MUST COMMUNICATE ITS ELECTRICITY TARIFF NOW, IF THE 1ST JULY EFFECTIVE
DATE IS STILL RELEVANT.
Press release,
Accra, 19th June, 2019.
The Africa Centre for Energy Policy (ACEP) is worried about the delay by the Public Utilities Regulatory Commission (PURC) to communicate the tariff which the Commission announced in February would take effect from 1st July 2019, following the mandatory major tariff review consultations in January this year.
In a press statement issued on 27th February 2019, the Commission stated that its decision to postpone the announcement of the tariff to July was “… due to critical emerging issues in the sector which are expected to affect the final tariff setting.
Amongst others, the emerging issues are related to the planned relocation of the Karpowership Plant resulting in fuel switch savings from Heavy Fuel Oil (HFO) to Natural Gas. Secondly, reductions in the price of natural gas are anticipated due to ongoing negotiations by government. These matters are outside the purview of PURC but their outcomes are likely to have measurable impact on the Commission’s decision.”
The shift in effective date of the major tariff was therefore to allow the Commission to
accommodate the important variables it expected would influence the tariff.
The practice has been that new tariffs are announced at least two weeks prior to effective date. This is necessary to allow stakeholders to adjust their systems and budget to accommodate the new tariff.However, today is the 19th of June (11 days shy of the proposed 1st July tariff effective date), yet the tariff has not been announced.
ACEP does not expect the Commission to, within few days to the effective date, ambush electricity consumers with the new tariff which holds about 90% chance of upward adjustment. This is because doing so potentially distorts the plans of consumers significantly, particularly the business community whose investment decisions have been held hostage by the uncertainty in the expected tariff adjustment level.
ACEP’s interactions with key consumers of electricity show that anxiety is already high within the business community and the Commission to be fully sensitive to the realities on the ground in order not to inject unnecessary shock into plans of consumers and, by extension, the economy.
ACEP therefore calls on the Commission to communicate to consumers what its intentions are, as to whether it will extend the effective date of the tariff or immediately announce the tariff, to allow consumers time to absorb and adjust to the changes, whatever that may be.
Revealed: Man Who Attempted Suicide Onboard FPSO Nkrumah Is A Sub-contractor
It has emerged that the South African who allegedly attempted suicide by jumping from the FPSO Kwame Nkrumah into the sea on Tuesday in the Republic of Ghana, is a sub-contractor.
This was confirmed in a statement issued by Tullow Ghana Limited, the operator of the Jubilee Field, Ghana.
“Tullow Ghana Limited (TGL), ‘operator’ of the Jubilee Field, is aware of a man overboard incident offshore at the FPSO Kwame Nkrumah at 14:25 hours on Tuesday, 18 June, 2019.
“The individual involved is a sub-contractor,” the statement said.
Tullow says full emergency response procedures were activated, and the contractor was rescued at about 14:33 hours.
“The individual received emergency treatment and is currently being managed by a medical team in Accra. There was no injury following medical assessment,” the statement noted.
It added that “Tullow and MODEC Ghana have contacted all relevant authorities.”
Tullow explained that safety and security of all workers offshore and onshore are of utmost priority to them, adding that the company would continue to observe key safety measures.
It stated that “Jubilee operations were not impacted and continue.”
Offshore Technology Conference: How Did It Benefit Ghana?
Dr. Mohammed Amin Adam (left) speaking to Michael Creg Afful(right)
I had the opportunity to visit Houston, Texas, USA, to cover the Offshore Technology Conference which began on Monday, 6th May and ended on Thursday, 9th May, 2019. It was my first time of visiting one of the most powerful nations in the world, USA, and I had wonderful experience.
Houston is the oil and gas hub of the US and so as a journalist who reports on energy, the visit gave me the opportunity to meet with some players in the sector who one would hardly come by. Except the closed door meetings, I participated in most of the events planned by the Ghanaian delegation led by the Energy Minister John Peter Amewu.
My most cherishing moment was our visit to Halliburton and TGS, the world’s leading seismic data gathering company. I left these two places excited because I learnt a lot from there. It was the visits that got me to know that the two have offices in Ghana. TGS has been working for Ghana’s National Oil Company (GNPC) to acquire seismic data on Ghana’s oil fields, and I learnt this on the visit.
Ghana empaneled speakers like Hassan Tampuli of NPA, Dr Ben KD Asante of Ghana Gas, Patrick Akpe Kwame Akorli of GOIL, Senyo Hosi of Chamber of Bulk Distribution Companies (CBOD), Egbert Faibille of Petroleum Commission, Jan Arve Haugan of Aker Energy, Ms Randi Cruiz of ExxonMobil, Joe Mensah of Kosmos Energy, Kweku Andoh Awotwi of Tullow Ghana Limited and James Yamoah of GNPC for the ‘Ghana Day’, a forum that had Ghana’s Upstream, Middle and Downstream sectors discussed.
The event brought together Ghanaians in diaspora and investors who were looking for new areas to explore oil business. The ‘Ghana Day’ forum was opened with a speech by the Minister for Energy, John Peter Amewu, who made a strong case for Ghana’s nascent oil and gas sector, citing stable political and friendly regulatory environment as key attractive elements to woo investors. In view of this, he extended an invitation to investors to consider Ghana as their most preferred place to invest in the oil and gas sector, assuring them that their investments would be secured, given the level of political stability Ghana has enjoyed over the years.
Interestingly, as it is said that everything that has a beginning has an end, the programme ended successfully. But one would ask: How did Ghana benefit from the conference? I caught up with the Deputy Minister for Energy in-charge of Petroleum, Dr Mohammed Amin Adam, who shared his perspective as to how Ghana from the conference.
Prospects of OTC
“OTC has offered us opportunity to network, learn from peer countries about how they are developing their energy industry so that we can also apply the best practices that we come across in our industry as well. And countries that have developed their industries faster have certainly linked on to others that have done it well. And so like us, we are looking at countries that have advanced in the development of their energy industries that have benefited much from the exploitation of their resources, and I can assure you that we are going to move our industry forward,” Dr Amin Adam said.
This year’s OTC, Dr Amin Adam said, was exemplary for Ghanaian leadership “because we had, for the first time, the ‘Ghana Day’ and the Ghanaian leadership marketing the potential of Ghana, the prospects and opportunities that investors are looking for. We received a massive endorsement for our strategy, and given the attendance at the ‘Ghana Day’ forum, the level of interest investors have in Ghana is high.”
In his view, investors are always looking at places where the security of their investments would be assured, before they invest their monies. Additionally, he said investors look for availability of labour force. These, key influencers, Dr. Amin Adam noted, are what Ghana can boast of.
“We have a stable democracy…It is proven that we have significant amount of untapped resources and, then, also, our people are hardworking, well-designed Ghanaians and, therefore, these are the ingredients every investor is looking for. To the effect that Ghana can boast of these to get this, positions us to get the level of partnership that will inure to the benefit of the people of Ghana and also, our partners, the investors.”
Aggressive Strategy
“Our strategy, as you may know for the oil and gas industry, is what we call the ‘aggressive exploration strategy’, because we believe that if we do not make new commercial discoveries, our oil industry will not exist six to ten years to come, because we are depleting and not replacing. The rate of depletion is higher than the rate of replacement, and you need a high replacement ratio to sustain production. This is why we are embarking on aggressive exploration and so, you know that we are doing the bidding round to attract the type of companies that will come and invest in Ghana, that will come and explore for oil,” he explained.
Dr Amin Adam, John-Peter Amewu, Patricia Asaam, Kwame Jantuah and TGS officials in a group photograph at TGS’s Headquarters in Houston, Texas, USA.
Apart from plans to attract new investors, Dr Amin Adam indicated that the Ministry is also discussing with the existing producers to tap into the resources within their contract areas that have not formed part of the current production.
He said, “We are also trying to look for secondary techniques of oil recovery to maximize production from the existing producing fields. And so, yesterday, we had another Ghana Forum here, talking to investors to come and invest with the view to supporting our strategy. When we do this, we are able to increase our resources, and through that increase and sustain production, we will have more revenue coming over sustained period of time, and that should support our economy in terms of financing the development needs of our people, and also supporting the industrial agenda of our President, Nana Addo. And so, the OTC, for me, is an enormous opportunity for us, and we are hoping that we will get the best.”
Positive signs
According to Dr Amin, the interest shown in Ghana’s oil and gas sector by major oil companies such as ExxonMobil, BP, Aker Energy as well as Qatar Petroleum, is an indication that Ghana’s oil and gas has a brighter future. Responding to a question on the 57 applications the Energy Ministry received for the ongoing licensing bid round, Dr Amin Adam posited that “yes, the interest is very high, and the interesting thing is that, some of the companies that have invested are those that are showing interest in Ghana, and Exxon Mobil is already in Ghana. We are negotiating with CNOOC, BP, Aker Energy is in Ghana, Qatar Petroleum applied to participate in the bid, and we are holding bilateral discussions with them. And so, the level of interest is very high and very interesting, because of the number and quality of companies that are showing up, and the future is bright for Ghana’s oil and gas industry.”
Capacity building for CSOs
Touching on the recent controversy that greeted the 450-550m barrels of oil discovery by Aker Energy, Dr Amin argued that the argument some of the civil society group postulated clearly demonstrated their lack of understanding about petroleum agreement.
He, therefore, stressed the need for civil society groups and think tanks that speak about energy issues, to be empowered through capacity building programmes to enable them have grasp on petroleum agreement.
“Well, I think that we need to provide more education to our think thanks and the NGOs that are interested in debating oil and gas issues, because you know that some of the views that are expressed are not well-informed.
“For example, if you want to assess the physical benefits that a country will thrive from an oil and gas project, you don’t do that by just adding the percentages of just the physical terms. You add royalty to carried interest to additional interest. You don’t do that. What you do is to run modules…cost benefit analysis, and that will determine…because just as you want to benefit, there is also cost you pay because there is risk. And so, for example, if you have Explorco having a commercial interest, they are going to pay for it. It is not free. So, the question you ask is: if you use that money to invest in agriculture, what will be the rate of return to the economy versus using it to invest in an oil project that is not likely to succeed, especially if there is no discovery in the contract area yet?” he quizzed.
“So, the risk is very high compared with the risk of investing the money in another area. And given that we are a developing country and we don’t have so much money, we will want to invest in areas that have lesser risks than areas that have higher risks. And so, what you will want to do is to transfer the risk to the investor or investors that are risk takers so that when they make the discovery, then, you can get your rent, you can get your free interest and you can also get your taxes.
“And so, that is the most important thing. But, if you just add the percentages…and I tell you, there are many petroleum agreements signed in Ghana with higher percentages but they have not led to any discovery. And this is why I keep saying that 100 percent of zero is zero. But, if you are getting investors that are asking for incentives and also for them to be given a little more of the interest in order to bring the area into discovery and eventually, into production, I think that, that is the sensible thing you have to do.
“What we are failing to understand is that, Ghana is still a frontier country, and only less than twenty percent of our hydrocarbon basins are licensed. And so, if you have only twenty percent of your basins licensed, it means that you are not yet a mature province.
“And the level of production in Ghana is just 200,000 barrels a day compared to two million to 2.4 million barrels a day. So, what any serious government will do will be how to attract investments. As a policy, there are two competing policies countries should be looking up to. One is how to attract investments if you are a frontier nation, and the second one is how do I maximize revenue.
“You may not be able to have all the two at the same time because you are a frontier nation, and so, your focus, as a frontier nation, should be how to attract investments, because it is when you attract the investments that you will mature your profit and then you graduate to maximization. ”And so, that is the policy every serious government that understands the dynamics of the industry will do, and that is exactly what this government is doing,” he explained.
Unlike the other sectors of the economy which is easy to understand, Dr Amin pointed out that the energy sector is more technical, stressing that there was the need for continuous education for Ghanaians to have better understanding.
“I think we should understand that we are dealing with an industry that is so technical and so it is too simplistic for propagandists, who want to mislead the people, to just add percentages. They don’t tell the people that the additional interest is not exercised until the oil discovery and so at the time there is no oil discovery, you have twenty percent, not thirty-five. But, if they tell the people that the government is reducing our interest share from thirty-five to twenty percent, they falsely carry the people away.”
Assurance
Dr Amin assured Ghanaians that the Akufo-Addo administration would make sure that it does what is better for Ghanaians in the oil and gas industry for the development of the good people of Ghana.
Michael Creg Afful is the Editor of energynewsafrica.com. He was adjudged the 2018 Best Energy Reporter
Dr Amin Adam, John-Peter Amewu, Patricia Asaam, Kwame Jantuah and TGS officials in a group photograph at TGS’s Headquarters in Houston, Texas, USA.
Apart from plans to attract new investors, Dr Amin Adam indicated that the Ministry is also discussing with the existing producers to tap into the resources within their contract areas that have not formed part of the current production.
He said, “We are also trying to look for secondary techniques of oil recovery to maximize production from the existing producing fields. And so, yesterday, we had another Ghana Forum here, talking to investors to come and invest with the view to supporting our strategy. When we do this, we are able to increase our resources, and through that increase and sustain production, we will have more revenue coming over sustained period of time, and that should support our economy in terms of financing the development needs of our people, and also supporting the industrial agenda of our President, Nana Addo. And so, the OTC, for me, is an enormous opportunity for us, and we are hoping that we will get the best.”
Positive signs
According to Dr Amin, the interest shown in Ghana’s oil and gas sector by major oil companies such as ExxonMobil, BP, Aker Energy as well as Qatar Petroleum, is an indication that Ghana’s oil and gas has a brighter future. Responding to a question on the 57 applications the Energy Ministry received for the ongoing licensing bid round, Dr Amin Adam posited that “yes, the interest is very high, and the interesting thing is that, some of the companies that have invested are those that are showing interest in Ghana, and Exxon Mobil is already in Ghana. We are negotiating with CNOOC, BP, Aker Energy is in Ghana, Qatar Petroleum applied to participate in the bid, and we are holding bilateral discussions with them. And so, the level of interest is very high and very interesting, because of the number and quality of companies that are showing up, and the future is bright for Ghana’s oil and gas industry.”
Capacity building for CSOs
Touching on the recent controversy that greeted the 450-550m barrels of oil discovery by Aker Energy, Dr Amin argued that the argument some of the civil society group postulated clearly demonstrated their lack of understanding about petroleum agreement.
He, therefore, stressed the need for civil society groups and think tanks that speak about energy issues, to be empowered through capacity building programmes to enable them have grasp on petroleum agreement.
“Well, I think that we need to provide more education to our think thanks and the NGOs that are interested in debating oil and gas issues, because you know that some of the views that are expressed are not well-informed.
“For example, if you want to assess the physical benefits that a country will thrive from an oil and gas project, you don’t do that by just adding the percentages of just the physical terms. You add royalty to carried interest to additional interest. You don’t do that. What you do is to run modules…cost benefit analysis, and that will determine…because just as you want to benefit, there is also cost you pay because there is risk. And so, for example, if you have Explorco having a commercial interest, they are going to pay for it. It is not free. So, the question you ask is: if you use that money to invest in agriculture, what will be the rate of return to the economy versus using it to invest in an oil project that is not likely to succeed, especially if there is no discovery in the contract area yet?” he quizzed.
“So, the risk is very high compared with the risk of investing the money in another area. And given that we are a developing country and we don’t have so much money, we will want to invest in areas that have lesser risks than areas that have higher risks. And so, what you will want to do is to transfer the risk to the investor or investors that are risk takers so that when they make the discovery, then, you can get your rent, you can get your free interest and you can also get your taxes.
“And so, that is the most important thing. But, if you just add the percentages…and I tell you, there are many petroleum agreements signed in Ghana with higher percentages but they have not led to any discovery. And this is why I keep saying that 100 percent of zero is zero. But, if you are getting investors that are asking for incentives and also for them to be given a little more of the interest in order to bring the area into discovery and eventually, into production, I think that, that is the sensible thing you have to do.
“What we are failing to understand is that, Ghana is still a frontier country, and only less than twenty percent of our hydrocarbon basins are licensed. And so, if you have only twenty percent of your basins licensed, it means that you are not yet a mature province.
“And the level of production in Ghana is just 200,000 barrels a day compared to two million to 2.4 million barrels a day. So, what any serious government will do will be how to attract investments. As a policy, there are two competing policies countries should be looking up to. One is how to attract investments if you are a frontier nation, and the second one is how do I maximize revenue.
“You may not be able to have all the two at the same time because you are a frontier nation, and so, your focus, as a frontier nation, should be how to attract investments, because it is when you attract the investments that you will mature your profit and then you graduate to maximization. ”And so, that is the policy every serious government that understands the dynamics of the industry will do, and that is exactly what this government is doing,” he explained.
Unlike the other sectors of the economy which is easy to understand, Dr Amin pointed out that the energy sector is more technical, stressing that there was the need for continuous education for Ghanaians to have better understanding.
“I think we should understand that we are dealing with an industry that is so technical and so it is too simplistic for propagandists, who want to mislead the people, to just add percentages. They don’t tell the people that the additional interest is not exercised until the oil discovery and so at the time there is no oil discovery, you have twenty percent, not thirty-five. But, if they tell the people that the government is reducing our interest share from thirty-five to twenty percent, they falsely carry the people away.”
Assurance
Dr Amin assured Ghanaians that the Akufo-Addo administration would make sure that it does what is better for Ghanaians in the oil and gas industry for the development of the good people of Ghana.
Michael Creg Afful is the Editor of energynewsafrica.com. He was adjudged the 2018 Best Energy Reporter Baker Hughes Commended For Supporting Accelerated Oil And Gas Capacity Programme
The Petroleum Commission has commended Baker Hughes/GE on its decision to train five Ghanaians to become internationally accredited and certified welders.
The training which is estimated at a cost of $250,000 is part of efforts to support the Accelerated Oil and Gas Capacity programme.
The programme is aimed at building the capacity of the Ghanaian youth by equipping them with the relevant skills set required for the upstream petroleum industry.
The 8-month to a year course in stainless steel welding, at the Northern Alberta Institute of Technology, will equip the beneficiaries on their return, with the capacity to train many more Ghanaians to support the industry.
The students are drawn from KIKAM, Takoradi Technical University and the Regional Maritime University.
They will benefit from a package, that caters for their tuition, visa, accommodation and transportation.
This effort is in response to a call made by the CEO of the Petroleum Commission, Mr Egbert Faibille Jnr. for Baker Hughes to support Ghana’s local content development efforts and the AOGCP; when a delegation led by the Vice
President responsible for Africa Operations, Ado Oseragbaje paid a courtesy call on the Commission, September last year.
This effort according to Egbert, will help reduce the Expatriate-Ghanaian ratio in the upstream petroleum industry.
In that meeting, the company assured the PC of its commitment to support the AOGC programme by hinting of an already existing training of about 100 Ghanaian students at an online digital academy at a cost of $6,000 each.
Mr Faibille Jnr. while commending also urged them to comply with the relevant laws which include L.I 2204 among others.
He also assured that with the path taken to invest in training Ghanaian welders, Baker Hughes will register its name in the annals of the Ghanaian upstream petroleum local content and localization efforts.
Source: petroleum commission
Ghana: Vice President Bawumia, MCC Delegation Discuss Regional Compact
Vice President Bawumia (fourth from right) with Ambassador Sullivan (fourth from left), Ms. Kim Kyeh (Centre), Charles Adu Boahene (Right) Deputy Minister of Finance and other Officials from MiDA and MCC.
Ghana’s Vice President, Alhaji Dr. Mahamudu Bawumia, has met with a five-member US Delegation, led by H.E. Stephanie Sullivan, the US Ambassador to Ghana.
The delegation comprised Madam Kyeh Kim, the Millennium Challenge Corporation (MCC) Principal Deputy Vice President in charge of Compact Operations, Mr. Bryan Mabry, Deputy Vice President for Finance and Administration, Madam Alicia Robinson-Morgan, Managing Director for the Department of Compact Operations and Mrs. Elizabeth Feleke, Acting Resident Country Director for the Millennium Challenge Corporation (MCC), in the Jubilee House, Accra.
The visit was to discuss the Government of Ghana’s potential participation in a Regional Compact and to seek government’s assurance of support.
Ghana has been selected as a potential beneficiary of a Regional Compact Programme, on the back of the progress made in the implementation of the Power Compact, and the need to facilitate the effective distribution of excess power, available in Ghana, to needy neighbours, by strengthening and improving on existing transmission infrastructure.
The Vice President expressed appreciation to the US Government and the MCC for their consistency in supporting Ghana’s energy sector and overall development agenda.
He assured the delegation of government’s commitment to facilitating the processes that would ensure the success of MCC’s investments in energy, and, in particular, the potential Regional Compact that encompasses a new Ghana-Burkina Faso Transmission Line.