Nigeria: Oil Flows Hit 2.32 Million BPD
Melo Kolo Kyari is the newly appointed Nigeria National Petroleum Corporation (NNPC) GMD,
Nigeria’s daily oil production has hit 2.32 million bpd, the country’s National Petroleum Company has revealed.
The former Group Managing Director of NNPC, Maikanti Baru, revealed this recently to a delegation of the Nigerian Union of Journalists (NUJ) in Abuja.
“Since we came in July 2016, we are focused on increasing production of oil and gas and condensates. At some point, our national combined production was about a million barrels; I am happy that as at the end of 2018, we have moved on averaging last year, about 2.1 million barrels. As I am speaking, this morning, I look at our production figures, combined oil and condensates we are pushing 2.32 million bpd,” he said.
According to Baru, the stability and ability to push production has come as a consequence of several factors, both internally and externally.
Baru was relieved of his post last Thursday.
Nigeria: Buhari Sacks Baru, Appoints Kyari As New NNPC GMD
New NNPC GMD, Mele Kolo Kyari.
Nigerian President Muhammadu Buhari has appointed Mele Kolo Kyari as the new Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC).
The leader of the most populous West Africa country also appointed seven Chief Operating Officers alongside Kyari. The newly appointed officers are to work with current officeholders till July 7, 2019, for a smooth transition to take place.
This was disclosed in a statement signed on Thursday by the NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu.
“President Buhari has directed that the New GMD and the newly appointed COOs work with the current occupiers of the various offices till 7th July 2019 towards a smooth transition on 8th July 2019 when their appointments would take effect to ensure a smooth transition.
“However, the appointment of Farouk Garba Said (North West), who is replacing a retiring Chief Operating Officer, is effective from 28th June 2019,” the statement read in part.
The newly appointed Chief Operating Officers are:
- Roland Onoriode Ewubare (S/South) – COO Upstream
- Mustapha Yinusa Yakubu (N/ Central) – COO Refining & Petrochemicals
- Yusuf Usman (N/East) – COO, Gas & Power
- Lawrencia Nwadiabuwa Ndupu (S/East), COO Ventures
- Umar Isa Ajiya (N/West) – Chief Financial Officer
- Adeyemi Adetunji (S/West) – COO, Downstream and
- Farouk Garba Said (N/West) – COO, Corporate Services.
Centurion Law Group Acquires German Energy Group
Centurion Law Group, a leading pan-African legal and energy advisory group has acquired Africa Counsel GMBH, an Africa-focused energy firm specializing in acquisitions, divestitures for German companies in the energy sector.
The group announced this in a statement they issued on Friday, 21 June, 2019, and copied to energynewsafrica.com on its behalf by APO Group.
“Acquiring Africa Counsel complements our Energy activities in Europe and sets us on a path of doing great deals for clients expanding into the African energy space,” said NJ Ayuk, CEO of Centurion Law Group.
“Africa Counsel’s core team of skilled specialists is supported by a wide network of independent subject-matter experts, whom we believe will help in safeguarding the investments of many German companies in Africa”, he added.
Centurion recently announced it will be pursuing a public listing this year with one of Europe’s leading stock exchange.
The group provides outsourced legal representation and covers a full suite of practice areas for its clients, including arbitration and commercial litigation, corporate law, tax and anti-corruption advisory and contract negotiation.
Aker BP Cleared To Use Rigs On Two North Sea Projects
Norwegian E&P player Aker BP has received consents from the Petroleum Safety Authority (PSA) for the use of the Deepsea Stavanger and Maersk Invincible rigs for exploration drilling in the North Sea and development of Valhall Flank West, respectively.
The first consent is for the exploration drilling of the Liatårnet well, designated 25/2-20. It is located in the Aker BP-operated production license 442 in the North Sea.
The well will be drilled at a water depth of 110 meters in the so-called Noaka area. Noaka stands for “North of Alvheim, Krafla, and Askja,” a collection of discoveries east of Frigg in the central North Sea.
The PSA said on Friday that the drilling was scheduled to begin on June 26 and expected to last at least 12 days.
It will be drilled by the Deepsea Stavanger drilling rig after completing the drilling of wildcat well 15/6-16 S for Aker BP in production license 777.
According to the safety watchdog, the well will be drilled by the Deepsea Stavanger mobile drilling rig. The Deepsea Stavanger is a semi-submersible drilling rig of the GVA 7500 type, owned and operated by Odfjell Drilling.
It is worth reminding that the Norwegian Petroleum Directorate already granted a drilling permit for this well on Monday, June 17.
The second consent relates to the use of the Maersk Invincible jack-up drilling rig on the Valhall field and applies to the drilling of production wells on the Valhall Flank West development.
Valhall is a field in the southern part of the Norwegian sector in the North Sea. It was discovered in 1975, and the initial plan for development and operation (PDO) was approved in 1977, and production started in 1982.
A PDO for Valhall Flank West was approved in 2018. Valhall Flank West will be developed from a new Normally Unmanned Installation, tied back to the Valhall field center for processing and export.
The platform will be remotely operated from the Valhall field center. First oil is expected in the fourth quarter of 2019.
Source: Offshoreenergytoday.com
Senegal’s President Launches Investigation On Oil Corruption Claims
His Excellency Macky Sall, President of Senegal
An inquiry into how Senegal’s energy contracts were allocated has been launched by the country’s Ministry of Justice. The inquiry follows a report by the BBC alleging that the president’s brother was implicated in a suspicious energy deal linked to gas fields off the country’s coast.
President Macky Sall has said that he’s keen for the truth to be ‘re-established’ suggesting that the reports are an attempt to ‘destabilize’ the country and oust the incumbent government.
The allegations have energized Sall’s administration, especially as the president originally came to power vowing to root out corruption. With the scandal landing so close to home, it will be a watershed moment for the Senegalese government’s efforts to boost the powers of the judiciary.
The accusations of corruption date back to the early 2010s, when a company with no track record in the industry was awarded a license to explore two blocks by then-president Abdoulaye Wade. The decision sparked protests, prompting newly elected president Macky Sall to approve an urgent investigation.
However, cancelling the contract would have been illegal and could have seen Senegal dragged before international tribunals. As a result, the contract was subsequently ratified, and the exploration rights passed to the Timis Corporation operated by Frank Timis, who has been in the spotlight in the mining industry for his business practices.
BBC Panorama and Africa Eye are claiming to have evidence showing that Aliou Sall was employed by the Timis Corp. from 2012 and that he received a ‘secret bonus’ of £250,000 via his company, Agritrans, in 2014. Aliou Sall has denied receiving any such payment and has labelled the BBC’s report ‘totally false’.
The BBC investigation also showed that a schedule of ‘royalty payments’ worth between $9 billion and $12 billion is due to be funneled to the Timis Corp. over the next four decades, which brought BP into the investigative mix.
Geraud Moussarie, head of BP in Senegal, has downplayed the reported royalty figure as ‘so fake and exaggerated that it is complete fantasy’ and has dismissed the suggestion that Senegal is being cheated out of its revenues. Experts have also agreed with this statement, arguing that it’s unlikely for oil companies to pay royalties to other companies.
President Sall’s anti-corruption record so far has been promising with a substantial amount of progress being made in the years since he first came into office.
Since Sall came into office the country was featured this year by Transparency International as among the top improvers. Overall, the country has jumped 27 slots in the global ranking, to 67th in 2018 from 94th in 2012, the year Sall was elected.
Ghana: Shutdown Of Bui Power Plant Won’t Lead To Power Outages – Fred Oware
Chief Executive Officer of Bui Power Authority (BPA) in the West African country, Mr Fred Oware has allayed the fears of the public of a possible power crisis due to a planned maintenance work on one of the hydro dam’s power generating plants.
The engineers have shut down and dismantled one of the three units to fix some recurrent faults.
The authority requires $4.6 million to complete maintenance works that will return the hydro power dam to its full power generation capacity of 400 megawatts.
This has raised fears that a further delay of the $4.6 million will lead to a possible power crisis in the country.
But speaking on Accra based classfm, Mr Oware said there will not be any power crisis in the country.
He said: “Now, because of this arrangement, one might suspect that because we’ve shut down one plant we cannot generate what is expected of us. As a matter of fact, we are just about mid-year but we’ve already done more than 60 per cent of our annual requirement, so, we are actually in surplus.
“My personal conviction is that we’ll be able to do more than the 60 which has been allocated for us for this year in spite of the plant shutdown at each point in time throughout the rest of the year. We’ll also be able to generate our annual demand that has been placed on us so there shouldn’t be any fear of power crisis.”
Source: ClassFMonline.com
Massive Fire And Series Of Explosions Rock South Philadelphia Refinery
A massive fire and series of explosions has rocked a South Philadelphia refinery complex, the largest on the East Coast, early Friday morning. The blast jolted people from their sleep miles from the scene, but no injuries were reported.
The blaze at the Philadelphia Energy Solutions refinery erupted shortly after 4 a.m. Some residents in Philadelphia said the explosions knocked art off their walls. The blasts were felt as far as South Jersey.
“We’ve just had an explosion with heavy fire; [the commander] is requesting a third alarm for this location,” a fire official relayed to dispatchers shortly after the largest blast.
One resident who lives next to the complex said “I thought it was a meteor or something” after seeing a mushroom-shaped cloud rising from the facility.
The fire is contained on the property of the refinery off Passyunk Avenue, fire officials said shortly before 6 a.m. The blaze is still burning.
Deputy Fire Commissioner Craig Murphy said a vat of butane had ignited and eventually exploded. A series of smaller explosions happened as the fire worked its way through the tangle of pipes carrying fuel across the complex.
Workers were on site when the explosion happened, but were far enough away to avoid serious harm, Murphy said.
Large pieces of debris were thrown blocks away and rained down onto streets and traffic lights. A plume of thick, black smoke billowed east from the large complex near Philadelphia International Airport and over portions of South Philadelphia, the Delaware River and into South Jersey.
The smoke could be dangerous, said Peter DeCarlo, a Drexel professor and air-quality expert. “Immediate exposure can trigger asthma and other issues,” he said.
The refinery is the largest single source of pollution in the Philadelphia area even when there isn’t an emergency. “If it were me, what I would do is leave the area for as much of the day as possible,” DeCarlo said.
City emergency management sounded early warning sirens at 5:30 a.m. and issued a shelter-in-place for the area immediately around the complex. Though the area is heavily populated, no evacuation orders were issued.
The shelter-in-place was lifted shortly after 7 a.m.
Roads in the area of the fire were closed to allow first responders space to work and protect drivers. The Platt Bridge and portions of Interstate 76 were closed temporarily as fire crews worked to contain the blaze.
One person said on Twitter that they were on I-95 when the explosion happened. “Could feel the heat right through the car,” the person tweeted.
The fire could be seen for miles. Some neighbors in South Philadelphia said debris rained from the sky into their neighborhoods after the explosions.
The complex is the largest refinery on the East Coast and employs about 1,000 people. Many Philadelphians still call it the Sunoco refinery, though it is now owned by Philadelphia Energy Solutions, a partnership that includes Sunoco.
The refinery processes 335,000 barrels of crude oil every day at two plants in the complex — Girard Point and Point Breeze. The fire broke out at the Girard Point portion. Natural gas is also processed at the facility.
The refinery dates back to the 19th Century, opening a year after the Civil War ended. “The PES Philadelphia Refining Complex has been “part of the neighborhood” in South Philadelphia for over 150 years and is closely tied to the growth of the American oil industry in the 19th century,” PES says on its website.
Source:CNN
The blaze at the Philadelphia Energy Solutions refinery erupted shortly after 4 a.m. Some residents in Philadelphia said the explosions knocked art off their walls. The blasts were felt as far as South Jersey.
“We’ve just had an explosion with heavy fire; [the commander] is requesting a third alarm for this location,” a fire official relayed to dispatchers shortly after the largest blast.
One resident who lives next to the complex said “I thought it was a meteor or something” after seeing a mushroom-shaped cloud rising from the facility.
The fire is contained on the property of the refinery off Passyunk Avenue, fire officials said shortly before 6 a.m. The blaze is still burning.
Deputy Fire Commissioner Craig Murphy said a vat of butane had ignited and eventually exploded. A series of smaller explosions happened as the fire worked its way through the tangle of pipes carrying fuel across the complex.
Workers were on site when the explosion happened, but were far enough away to avoid serious harm, Murphy said.
Large pieces of debris were thrown blocks away and rained down onto streets and traffic lights. A plume of thick, black smoke billowed east from the large complex near Philadelphia International Airport and over portions of South Philadelphia, the Delaware River and into South Jersey.
The smoke could be dangerous, said Peter DeCarlo, a Drexel professor and air-quality expert. “Immediate exposure can trigger asthma and other issues,” he said.
The refinery is the largest single source of pollution in the Philadelphia area even when there isn’t an emergency. “If it were me, what I would do is leave the area for as much of the day as possible,” DeCarlo said.
City emergency management sounded early warning sirens at 5:30 a.m. and issued a shelter-in-place for the area immediately around the complex. Though the area is heavily populated, no evacuation orders were issued.
The shelter-in-place was lifted shortly after 7 a.m.
Roads in the area of the fire were closed to allow first responders space to work and protect drivers. The Platt Bridge and portions of Interstate 76 were closed temporarily as fire crews worked to contain the blaze.
One person said on Twitter that they were on I-95 when the explosion happened. “Could feel the heat right through the car,” the person tweeted.
The fire could be seen for miles. Some neighbors in South Philadelphia said debris rained from the sky into their neighborhoods after the explosions.
The complex is the largest refinery on the East Coast and employs about 1,000 people. Many Philadelphians still call it the Sunoco refinery, though it is now owned by Philadelphia Energy Solutions, a partnership that includes Sunoco.
The refinery processes 335,000 barrels of crude oil every day at two plants in the complex — Girard Point and Point Breeze. The fire broke out at the Girard Point portion. Natural gas is also processed at the facility.
The refinery dates back to the 19th Century, opening a year after the Civil War ended. “The PES Philadelphia Refining Complex has been “part of the neighborhood” in South Philadelphia for over 150 years and is closely tied to the growth of the American oil industry in the 19th century,” PES says on its website.
Source:CNN
Nigerian Genset Market To Record 4.1% Growth
The Nigerian diesel genset market will record a 4.1% growth between 2019 and 2024, according to a new study conducted by research firm Prescient & Strategic Intelligence.
Revenue generation within the market is expected to reach $527.4 million during the forecast period.
Factors driving the genset market growth include the need to address substantial energy transmission losses, deficiency of high base power, and increasing demand for electricity for commercial, residential, and industrial applications.
Consumers are increasingly relying on diesel generators to meet their energy needs.
Nigeria is facing a huge gap in energy demand and supply due to:
- Aging energy transmission and distribution systems unable to efficiently supply the required capacity
- Energy demand outrunning local generation
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