Ghana: Your Support Is Key To Success Of Cylinder Recirculation Model- Deputy Minister Tells Residents Of Tamale

Ghana’s Deputy Minister for Energy in charge of Petroleum, Dr. Mohammed Amin Adam, has appealed to consumers of LPG products in the northern part of the country to support the Cylinder Recirculation Model (CRM) policy, being implemented by petroleum downstream regulator, NPA, to address the issue of petroleum fires in the industry. The National Petroleum Authority (NPA) had a stakeholder’s meeting with residents in the Tamale metropolis to interact with them about the policy and also take their questions, suggestions and feedback, as part of a long period to roll out the policy. The Authority is expected to undertake a pilot exercise in Obuasi, Kweibibirem and Kade in the Eastern Region, before the entire programme is rolled out across the country. So far, LPG consumers in the Greater Accra, Ashanti, Western and Central regions of the West African country have been engaged on the policy. Those in the Upper East Region also had their turn on Tuesday, August 13, 2019. Interacting with residents in the Tamale Metropolis in the Northern Region, Dr. Amin Adam indicated that the policy is not necessarily new, since it has been done some years ago, stating that “this is why Ghanaians must embrace it, despite the fears being expressed by a section of the public.”“This policy will not succeed without you (consumers), the citizens of Ghana, who are primary users of LPG products,” he said. The NPA, he said, is well positioned to carry the policy acknowledging that the contributions at such forums, means we would “succeed as a country.” Dr. Amin assured industry players that the policy would not result in any job losses, as it is being speculated. “There are many people who say we are going to create unemployment through this policy…I want to assure you that this government will be the last to kick people out of their jobs,” he said. The Northern Regional Minister Salifu Sa-eed, who was also at the programme, admonished the residents to embrace the policy, since it would help address the health challenges associated with the use of wood fuels in the region. On his part, Chief Executive of the NPA, Hassan Tampuli, reiterated his outfit’s commitment to continue soliciting the views of consumers in the country, before the policy is fully implemented. Gabriel Kumi of the LPG Marketers Association, who indicated his outfit’s preparedness to work with the NPA, appealed to the government to have a look at the tax components on LPG products, as it would help open up the market and boost consumption.   Source: energynewsafrica.com                  

Guyana Oil Discovery Means More Opportunities For Ghanaians – Kweku Awotwi

Executive Vice President of Tullow Oil PLC, Kweku Andoh Awotwi, has said that the latest oil discovery in Guyana will be beneficial to Ghanaians.  According to him, the discovery does not only extend the radar of Tullow PLC but broadens the employment horizon of citizens as most of the people on the Stena Forth drillship in Guyana are Ghanaians. “We already have some of our own Ghanaian geo-scientists that were in London last week who are going to be part of that exercise, doing the exploration, doing the engineering… The company moved the rig of Ghana to Guyana but kept the workforce from Ghana.” Tullow, on Monday, announced a large discovery in South America’s Guyana which shot the shared London-based oil company to 20% moments after the discovery. This made them the top gainer in the FTSE 250 mid-cap index. Kweku Awotwi who was speaking at a media capacity training organized for the media by Tullow Oil PLC and Rigworld revealed that the initial discovery from the Jethro-1 well, shows commercial quantities. “We’ve seen a minimum of a hundred million (100,000,000) barrels… we have to drill more wells to really see what’s there but the initial discovery suggests that it’s commercial so that means that we’ll be doing more work,” he noted. According to Tullow, “the Jethro-1 was drilled by the Stena Forth drillship to a Total Depth of 4,400m metres in approximately 1,350 metres of water. Evaluation of logging data confirms that Jethro-1 is the first discovery on the Orinduik license and comprises high-quality oil-bearing sandstone reservoirs of Lower Tertiary age.  The well encountered 55m of net oil pay which supports a recoverable oil resource estimate which exceeds Tullow’s pre-drill forecast. Tullow will now evaluate the data from the Jethro discovery and determine appropriate appraisal activity”.    

Dispute Payments From Petrobras Lift Vantage Back To Profit

Offshore drilling contractor Vantage Drilling returned to quarterly profit on the back of drilling contract termination revenue received from Petrobras. Vantage Drilling on Wednesday reported net income attributable to controlling interest of approximately $590.7 million for the second quarter of 2019 compared to a net loss attributable to controlling interest of $31.1 million for the second quarter of 2018. The company said that the net income stems from the recent payments by Petrobras Venezuela of approximately $690.8million to Vantage Deepwater Company, one of Vantage’s subsidiaries (VDEEP), and by Petrobras America, Inc. of approximately $10.1 million to Vantage Deepwater Drilling, Inc., also one of Vantage’s subsidiaries (VDDI). The payments were made pursuant to an agreement between the parties and in satisfaction of the previously rendered arbitration award and related U.S. judgment confirming the award. The dispute arose following the Petrobras’s parties’ termination of the agreement for the provision of drilling services for the Titanium Explorer dated February 4, 2009 between PVIS and VDEEP and which had been novated to PAI and VDDI. The Petrobras parties claimed the Vantage parties had breached their obligations under the drilling contract. The Vantage parties immediately filed the international arbitration claim against PAI, PVIS, and Petrobras, claiming wrongful termination of the drilling contract. In July 2018, the international arbitration panel ruled in favor of the Vantage entities, rendering an arbitration award of $622 million plus interest against PVIS, PAI and Petrobras. In May 2019, the U.S. District Court for the Southern District of Texas confirmed the arbitration award and denied the Petrobras parties’ petition to vacate the award. The Petrobras parties filed their notice of appeal to the U.S. Court of Appeals for the Fifth Circuit seeking the reversal of the U.S. judgment. The Vantage parties believe there is no basis for reversal and intend to vigorously contest the appeal. The second quarter of 2019 includes drilling contract termination revenue of approximately $594 million and interest income of approximately $106.9 million associated with the payments, together with related legal contingency fee and income taxes. Adjusting for these items, pro-forma net loss for the three months ended June 30, 2019 was approximately $37.4 million or $7.41 per share. The company recorded revenues of $636.4 million in 2Q 2019 compared to $60.5 million in the same period last year. When it comes to Vantage’s drilling rigs utilization, deepwater rigs saw a decrease in utilization from 63.2% in 2Q 2018 to 49.2% in 2Q 2019 while the jack-up rigs’ utilization increased from 88.5% in 2Q 2018 to 93.7% in 2Q 2019.   Source: offshoreenergytoday.com

PDS Saga: Don’t Destroy Energy Commission’s Hard-won Image-Dr Ampofo Advises

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A former Board Chairman of Ghana’s Energy Commission Dr Kwame Ampofo, has criticised the role the Commission played in appointing Electricity Company of Ghana as the interim operator to take charge of the management of electricity sales in the West African country. On July 31, this year, the country’s energy regulator withdrew EC/ESL/ 02-19-001 license, which it issued to PDS following the transfer. According to the Commission, its decision was based on the validity of the said license becoming impaired due to the suspension of the operation of Power Distribution Services (Ghana) Limited over what government described as ‘fundamental and material breaches’ in the concession agreement signed with the Electricity Company of Ghana on behalf of government. However, a statement issued by Dr Kwame Ampofo, who is also a former Managing Director of Tema Oil Refinery, raised objection to the Commission’s decision to hand over the electricity retail business to ECG. He argued that the Commission did not have the power to do so, stressing that it should have advised the sector Minister to use the powers of his good office to have appointed ECG as interim operator of the suspended PDS concession. “As the immediate past chairman of the Energy Commission, I find it difficult to accept the recent announcement by the Commission that it (the Energy Commission) had ‘appointed’ ECG as the interim operator to take charge of the management and operation of electricity sales in the country, ostensibly, to ensure continuity of power supplies to consumers. This is a strange and undesirable development, as the Energy Commission has no mandate or powers to make any such appointment,” he argued. According to him, “The functions of the Energy Commission is only to regulate and manage the utilisation of energy resources of the country. In the performance of these functions assigned to it by the Energy Commission Act of 1997 (Act 541), the Commission is enjoined to “advise the Minister for Energy on national policies for the efficient, economical and safe supply of electricity, having due regard to the national economy” (Article 2(b)). So, at best, the Energy Commission should have advised the sector Minister to use the powers of his good office to appoint ECG as the interim operator of the suspended PDS concession. “Over the years, we have worked so hard (since its inception if 1997) to establish the Energy Commission of Ghana as one of the very best regulators in Africa and we must all be proud of this feat and the many enviable achievements and successes it continues to chalk as one of the best regulators on the continent. “It is in this regard that I wish to entreat the government to strive to protect the sanctity of the Commission (as a regulator) by resisting the temptation to parry its problems onto the Commission and, thereby, place that respectable institution in a conflict of interest situation,” he stated. Meanwhile, energynewafrica.com has contacted the Commission and would keep readers updated if they respond to Dr Ampofo’s statement.     Source: energynewsafrica.com

Ghana: We Won’t Allow Lives To Be Lost At The Expense Of Financial Gains–NPA CEO

Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA) says it is not perturbed by the attempts by some industry players in kicking against the implementation of the Cylinder Recirculation Model aimed at the safe handling of LPG in the country. According to the regulator, government is committed to ensuring that the Cylinder Recirculation Model (CRM) is fully implemented. The Authority, led by the CEO Alhassan Tampuli, had had held series of engagements with stakeholders and interested parties and he expressed confident consumers could no longer tolerate any fires relating to petroleum. Speaking at a regional stakeholder engagement in Bolgatanga, in the Upper East Region, Tuesday, Mr Tampuli urged those opposing the new model to take a second look at their stance. “We have had a number of consultations with members of the Council of State, members of the National House of Chiefs, the Asantehene, Parliament Select Committee on Mines and Energy, Regional House of Chiefs, residents of Nima, Kotobaabi, Greater Accra, Ashanti, Central, Western region respectively, as well as the media in Volta, Eastern, Northern and Brong-Ahafo,” he said.Mr Tampuli said too many lives have been lost in gas explosions and the situation has to change for the better. “Indeed we cannot forget the unfortunate incident of June 3, 2015, in which a number of lives were lost. Neither can we forget the infamous Atomic Junction gas explosion which shook the country in the last quarter of 2017. “Another avoidable gas explosion occurred at the Trinity Gas Station in Krofrom, in the Ashanti Region, killing two people, injuring several others and properties worth millions of cedis destroyed,” he said. He said lives cannot be lost at the expense of financial gains. Some participants encouraged NPA not to give in to persons deliberately frustrating its efforts to address challenges regarding customers’ safety. The participants said the Authority needs to step up its public education because not many people are aware of the issues articulated at the engagement. “There are too many lives that have already been lost…we cannot wait for another disaster to befall others,” a participant with the Police Wives’ Association said. Source: energynewsafrica.com  

Auditor General’s Report: Telenergy Has Not Defaulted In Tax Payment-Management

Telenergy, one of the companies in the Republic of Ghana cited in the Auditor General’s report to have defaulted in tax payment has refuted the claims made against it. The report claimed that Telenergy defaulted in the payment of taxes and other levies, after lifting fuel from Tema Oil Refinery, to the tune of GHc1, 303,540.00. But the company claimed that every tax amount has been paid hence it is tax compliant. The company explained that the tax amount of GHc1, 303,540 cited by the Auditor-General in relation to Residual Fuel Oil (RFO), which was loaded from TOR between the said period have been duly paid.

Niger Redraws Preserve Borders To Allow Exploration

The government of Niger is shrinking the borders on one of its nature preserves to allow oil and gas exploration. The government will partially declassify its Termit and Tin-Toumma Nature Reserve to allow China’s CNPC to operate three oil blocks in the area. The blocks were awarded to the company in June 2008, four years prior to the 100,000 sq km preserve being created. The CNPC expansion project in this area is part of Niger’s policy to increase national oil production to 110,000 bpd in the coming years. The Termit and Tin-Toumma Nature Reserve is considered by UNESCO as one of the last bastions of the Saharan fauna because of its low human presence.  

Halliburton Wins Drilling And Completion Job On Woodside’s Senegal Project

Australian energy giant Woodside has awarded US oil services provider, Halliburton nine conditional contracts for drilling and completion services for SNE Field Development Phase 1 offshore Senegal. The drilling campaign, which is due to start in late 2020 or early 2021, is for drilling and completing 18 wells with up to eight optional wells over an estimated 3-4 year term, Halliburton said on Monday. The contracts awarded include drilling, logging, cementing, lower completions, e-line/slick line, coiled tubing and well testing services. “We are excited to win this work and to provide services from our multiple product service lines on what is likely to be the first deepwater oil development in Senegal,” Shannon Slocum, senior vice president of the Eurasia, Europe and Sub-Sahara Africa region for Halliburton said. “In addition to our services, Halliburton will invest in Senegal through constructing facilities, hiring local staff and potentially utilizing local vendors/suppliers.” Initial engineering work will begin in Perth, Australia, later this year, and then will transfer to Dakar, Senegal in 2020. This multi-contract award follows an earlier conditional award to Halliburton in December 2018 for drilling and completion fluids services. Woodside is the operator of the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture, which contains the SNE field. The Phase 1 development concept for the SNE field is a stand-alone FPSO facility with subsea infrastructure. It will be designed to allow subsequent SNE development phases, including options for potential gas export to shore and for future subsea tiebacks from other reservoirs and fields. The contract for front-end engineering design (FEED) for the SNE field development Phase 1 FPSO vessel was awarded last February to Japan’s MODEC. The FPSO will be designed to produce around 100,000 barrels of crude oil per day, with the first oil production targeted in 2022. The FPSO will be moored in water depth of approximately 800 meters.

U.S. Exempts Oil Majors From Venezuela Sanctions

After the U.S. president signed an Executive Order on August 5 blocking all Venezuelan government property in the United States, the sanctions were interpreted as having put Venezuela into the same category as North Korea, Iran, or Cuba. “While this is not an embargo, this significant action is in response to the continuing usurpation of power by Maduro and persons affiliated with him,” the U.S. State Department said in a statement on August 6. As a result of the sanctions, U.S. citizens or permanent residents will generally be prohibited from entering into transactions with the Venezuelan government and its subsidiaries, while U.S. banks will be required to block all payments related to the Venezuelan government in U.S. dollars. However, international law firm Watson Farley & Williams argued that the new sanctions do not equate to an embargo. WFW noted that U.S. oil and gas company Citgo was broadly exempted from the sanctions and was unlikely to ever become subject to these sanctions. “Interestingly, Citgo is permanently exempted from the sanctions targeting the GoV, whereas its exemption from the sanctions targeting PdVSA expires after 18 months,” the firm said. The order also permits oil and gas companies Chevron, Halliburton, Schlumberger Limited, Baker Hughes and Weatherford International to continue transacting with PdVSA in Venezuela. The license only covers transactions with PdVSA and its subsidiaries, not other Venezuelan government entities. The license applies only to contracts in effect prior to July 26, 2019, and is set to expire on October 25, 2019. “In a literal sense, the sanctioning of the Venezuelan government should not be thought of as an “embargo” of Venezuela,” WFW said. “Trade between U.S. persons and non-government-owned Venezuelan parties generally remains permitted, unlike in the case of embargoed countries.” “Even if the sanctions technically are not an embargo, they succeed in shutting down much trade with Venezuela, which has a similar economic effect to an embargo.” U.S. attorneys Freehill Hogan & Mahar advised shipowners that it was unclear whether ocean transportation of cargoes (other than shipments of food, medicine and clothing which continue to be exempt) would be construed as being “material assistance” to the Venezuelan Government and thus expose shipowners to sanctions for doing so. “However, with the intent behind the whole sanctions regime to be as forceful as possible and when read in conjunction with warnings issued by leading figures in the U.S. administration, there is clear scope for the sanctions to be aggressively interpreted and expose any shipowner carrying cargoes for the benefit of the Venezuelan Government – including PdVSA – to the full force of U.S. sanctions, potentially including designation,” Freehill noted. The Venezuelan Foreign Affairs Ministry said the new sanctions imposed by the U.S. part of a series of “arbitrary measures of economic terrorism against the Venezuelan people.” Venezuelans supporting President Nicolas Maduro staged protests against the new sanctions on August 7.           

Ghana: GRIDCo Allays Fears Of Power Outages As Karpowership Goes Off National Grid

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Power transmission company in the Republic of Ghana, GRIDCo, has assured the general public that the relocation of 470MW Karpower Barge currently in Tema to Secondi, in the Western part of the country, will not have adverse impact on electricity supply to consumers. According to GRIDCo, there is adequate generation capacity to meet power demand during the period that the barge would be temporarily disconnected from the national grid. “GRIDCo will keep stakeholders updated on the power supply situation as and when it is necessary,” a statement issued by the public relations department of GRIDCo said. Karpowership Ghana Company Limited, announced yesterday that it would, on Tuesday, 13th August, 2019, decommission the 470MW power badge. This, the company explained, is in preparation for the relocation of the powership to the Western Region. A statement issued by the Communication Department of the company said: “The Powership will depart from the Tema Fishing Harbour on Thursday, August 15 and would berth at its new location within the Sekondi Naval Base on Friday, August 16. “In the light of the relocation, the Powership would be off the national grid for a maximum period of 17 days to enable us carry out various pre-commissioning works to successfully connect to the 330kV transmission lines in Sekondi,” the statement said. The relocation is in line with government’s strategic policy for the Powership to utilize natural gas from the Western Enclave.  This would save the government millions of dollars annually. “Karpowership would keep all its stakeholders informed on further updates about the project,” the statement concluded.   Source: energynewsafrica.com

Ghana: CBOD Urges BDCS To Revise Trade Credit To Reduce Fuel Prices

The Chamber of Bulk Oil Distributor(CBOD) in the Republic of Ghana has advised Bulk Oil Distribution Companies (BDCs) to revise their trade credit tenor from the current forward foreign exchange rate from the average 60-day to 30-day forward rate. It stated that the adoption of a 30-day forward rate instead of a 60-day forward rate can reduce pump prices by about 2%. This, the chamber said would help reduce consumer prices at the pump. These are contained in the CBOD Petroleum Price Outlook, which is the price indicator for the first selling window of August 1 to 15, 2019. The forward forex rate used is the average of the quoted indicative forward forex rate from major oil financing banks adjusted by the covered-interest parity pricing model. The 60-day forward rate is computed as the average of selected major oil financing banks. It is to be applied for the first selling window of August 2019 is GHS5.60 for $1.   Source: myjoyonline.com  

Nigeria: Dangote Refinery To Be Operationalised In 4Q 2020

The Dangote refinery is not expected to come onstream until the end of 2020 due to issues with the importation of steel and other equipment, according to executives at the company in a Reuters report. The 650,000 bpd Dangote refinery will make a significant contribution to aiding Nigeria in addressing its refined petroleum products problem and the need to spend a big piece of its budget on importing fuel. A Dangote executive said the company could start using the refinery’s tank farms as a depot to warm up operations. “We will be able to complete the (refinery) project by the end of next year – mechanical completion,” Devakumar Edwin, Group Executive Director of Dangote said.    

Ghana: KARPOWERSHIP Shuts Down In Preparation For Relocation

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Karpowership Ghana Company Limited, one of the independent power producers in the West African nation, Ghana, has announced that its 470MW Karadeniz Powership Osman Khan in Tema will be off the grid on Tuesday, August 13, 2019. This is in preparation for the relocation of the powership to the Western Region. A statement issued by the Communication Department of the company said: “The Powership will depart from the Tema Fishing Harbour on Thursday, August 15 and would berth at its new location within the Sekondi Naval Base on Friday, August 16. “In the light of the relocation, the Powership would be off the national grid for a maximum period of 17 days to enable us carry out various pre-commissioning works to successfully connect to the 330kV transmission lines in Sekondi,” the statement said. The relocation is in line with government’s strategic policy for the Powership to utilise natural gas from the Western Enclave. This would save the government millions of dollars annually. “Karpowership would keep all its stakeholders informed on further updates about the project,” the statement concluded. It is not clear whether the shutdown would lead to power outages. Meanwhile, power transmission company, Ghana Grid Company (GRIDCo), is expected to issue a statement to this effect. Source: energynewsafrica.com

Guyana: Tullow Makes First Oil Discovery On Orinduik License Offshore

Tullow Oil has made an oil discovery at its Jethro-1 exploration well, drilled on the Orinduik license offshore Guyana. The Jethro-1 was spud in early July, using the Stena Forth drillship. It was drilled to a Total Depth of 4,400 meters in approximately 1,350 meters of water. Tullow said on Monday that evaluation of logging data confirms that Jethro-1 is the first discovery on the Orinduik license and comprises high quality oil bearing sandstone reservoirs of Lower Tertiary age. The well encountered 55m of net oil pay which supports a recoverable oil resource estimate which exceeds Tullow’s pre-drill forecast. Tullow will now evaluate the data from the Jethro discovery and determine appropriate appraisal activity. According to Tullow, this discovery significantly de-risks other Tertiary age prospects on the Orinduik license, including the shallower Upper Tertiary Joe prospect which will start drilling later this month following the conclusion of operations at the Jethro-1 well. The non-operated Carapa 1 well will be drilled, later this year, on the adjacent Kanuku license to test the Cretaceous oil play. Tullow is the operator of the Orinduik block with a 60% stake. Total holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc. Commenting on the discovery, Chief Executive Office of Tullow Oil, Paul McDade said: “This substantial and high value oil discovery in Guyana is an outcome of the significant technical and commercial focus which has underpinned the reset of our exploration portfolio. It is an excellent start to our drilling campaign in the highly prolific Guyana oil province. We look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign and the material follow-up exploration potential in both the Orinduik and Kanuku licenses.” In a separate statement on Monday Eco Atlantic said that Jethro-1 is a significant oil discovery. Colin Kinley, COO and Co-Founder of Eco Atlantic, said:  “Jethro is a fantastic find for us. This discovery was made due to our team at Eco and Kinley Exploration stepping out beyond the conventional exploration plays and seeking new resources through old-fashioned exploration science. “The Jethro-1 well confirms the continuance of the petroleum system onto the Orinduik Block, up dip from the prolific discoveries on the Exxon-operated Stabroek Block. The well has resulted in a mitigation of risk of the presence of quality reservoir sands, seal and trap parameters. We have multiple drilling targets on the block with similar geophysical characteristics and we are moving the Stena Forth drillship immediately to its next target, Joe-1. The Joe-1 location is just a short move to a shallower target, and is expected to spud mid-August. “The Orinduik Block, and the corner of the block where Jethro is located, were selected and pinned for drilling long before the first Exxon discovery.” Gil Holzman, CEO and Co-Founder of Eco Atlantic stated: “This is a transformational event for the Company, and we now need to strategically plan for an even brighter future.  With multiple targets to consider, and Joe as the next prospect to be drilled, we will now pursue our evaluation of the timing for wells to develop the Jethro field and to expediently bring it on production. We are funded for at least six additional wells.