After decades of struggles against a deficient power generation system, Senegal is now at the verge of a paradigmatic shift that could put many of its troubles to rest. With the government’s bet in recent years in new power generation facilities, power outages have greatly diminished, system reliability has improved and with it the opportunities for economic growth. To be sure, many still live without access to electricity. On average, 4 in every 10 people are not connected to the national grid. The situation is worst outside the main urban centres, where 60% of the population remains unconnected, but the chance to improve this situation has never been closer.
At a production capacity of a little less than 1 gigawatt for a growing population of 15 million strong, investment in further generation capacity is paramount if Senegal is ever to develop its internal market and give its citizens a shot at a better standard of living. However, sustainability must guide decision-making as much as strategic need.
The imported heavy-fuels and coal used to generate most of the country’s power comes at a heavy cost for the state’s coffers. In 2016, refined and crude oil imports cost the Senegalese state over USD$1.5 billion.
Sustainable Power
The alternatives are obvious. Senegal is blessed with many hours of high solar exposure and wind flows. The opportunities are also there to be seized. French power company ENGIE and investment company Meridiam won a tender in April for a 60MW solar park. This will build on the country’s previously established renewable generation projects, which now amount to 80MW. As the price of solar and wind technologies decreases, these technologies have become more and more appealing in recent years which also has a positive impact on the cost per MW for the consumer. Engie’s park will cost around 40% less than the previous endeavours in solar in Senegal. Another 158MW of wind power are planned for development by the Lekela Power company in Taiba N’Diaye
These developments build on a combination of factors. Senegal’s reputation for stability and positive business environment have made the West African nation particularly luring for foreign investors in recent years. Investment has come not just from the country’s traditional partners in the West, particularly France, but from the East, with Turkey, China, the UAE, South Korea and India making sizeable investments in the country. To the growing interest of private investors adds the support from international institutions like the United States-led Power Africa programme, Overseas Private Investment Corporation (OPIC), or the International Finance Corporation (IFC), a part of the World Bank Group. These organizations have helped finance many power generation-related projects throughout the continent. In partnership with the Senegalese government, particularly through the Scaling-Solar scheme supported by the IFC, these projects, including the new 60MW solar park project won by ENGIE and its Meridiam, are progressively seeing the light of day and bringing relief to the country’s struggling power grid.
Since 2016, when the first solar power project was launched in Senegal, the country has seen a extremely fast development in renewable energy projects. If all goes according to plan, almost half a gigawatt of installed capacity will be available in 2020. That would be one of the fastest increases in renewable to fossil fuel generation ratio in the world
Further, these projects bring not only power stability but answer concerns of climate change mitigation. Under the Paris agreements, Senegal committed to reduce its CO2 emissions by 21% by 2020, a goal that only through a sustainable energy policy can be achieved
These combination of variables give Senegal its best opportunity yet to push for the modernization of its power generation industry, which in turn should potentiate the development of industries, creation of wealth, jobs and economic growth
At the same time, moving away from expensive heavy oil-based power generation needs to be a priority
The gas bliss
Kosmos Energy’s discoveries of large quantities of natural gas reserves in the offshore regions of Senegal has come as a game changer for the country. Over the last couple of years, successive finds have risen the estimated in-place reserves of the country to up to 50 trillion cubic feet of natural gas, propelling it to the top 5 of Africa’s biggest natural gas holders
Exploration license holders Kosmos and BP have already suggested a fast-track development using a floating LNG facility that could see first gas being commercialized as early as 2021 from Greater Tortue/Ahmeyin fields. Additional discoveries in 2017 have made the companies consider two rather than one train of LNG processing capacity. This means that very soon Senegal can have access to an inexpensive source of energy it can use to power its homes and industries, not to mention a new and strong stream of income
The political will also seems to be present for that to take place. February’s announcement of the agreement reached between Senegal and Mauritania for the exploitation of their shared natural gas reserves in the Greater Tortue Complex, which holds up to 25TCF of natural gas, is a symbol of the times. Quick decision-making among political leaders focused on economic development.
If the cards are played well, we could be witnessing a shifting moment for the country’s economic structure. President Macky Sall, himself an educated oil man, is well aware of what to expect once the natural gas starts to flow. Already, plans are being made to convert heavy-fuel turbines to operate with natural gas. Just in April, the technology group Wärtsilä won a tender for the deployment of a 130-MW Flexicycle plant that can operate in a combination of different fuels so it can immediately be shifted to natural gas once the resource is made available. The country’s older power plants will soon follow
By using natural gas as a power source, the national grid will be able to offset the intermittency of renewable power supply while saving millions in fuel costs and reduce CO2 emissions.
Lessons learned
That is not to say that Senegal is not also at risk of making the same mistakes as many of its neighbours. When oil was first discovered by Cairn Energy in Senegal in 2015, there were more than a few voices that expressed concern for what an oil boom could do to Senegal’s fragile economy. Nigeria’s and other’s battles with the oil curse is nothing to be envious of. Many of these concerns are well founded. A major income stream suddenly being concentrated in a specific sector of the economy can reduce competitiveness in other sectors and produce inflationary pressures.
Further, expectations need to be managed carefully. The oil and gas sector is not a major employer. Most people will not find a job in it. Particularly with floating LNG solutions, there will be little place for integrating the local workforce, especially with a relatively low technical skillset.
However, if Senegal can learn from the mistakes of others, its natural resources can truly help the country develop economically.
There are quite a few examples to look at. Ghana has quickly established one of the most comprehensive legal frameworks for oil and gas income management the continent, even the world, has ever seen. Equatorial Guinea has managed to use its resources to invest in infrastructural develop and boost associated industries to create a thriving logistics hub in the Gulf of Guinea. European cooperation partners can also provide assistance in developing the necessary institutions to manage this income. Already, Senegalese lawmakers have partnered with the Netherlands and visited the country’s operations in the North Sea to learn from their experience.
To be sure, there will be challenges to governance and some issues will need to be addressed within the specificities of the Senegalese reality. However, if the government can stick to its plan of partnering with international allies to invest in a power generation sector it can create the foundation ground for the growth of a strong economy.
Balancing natural gas and renewables for power generation, maintaining a strict vigilance over the management of oil and gas income, establishing independent regulatory bodies and heritage funds to manage the revenue, can be the building blocks of a new era of economic growth in Senegal.
A procurement expert, Kobina Ata-Bedu has faulted government for seeking to transfer shares owned by Ghanaians in Power Distribution Service to a new company without due process.
According to him, resistance from Ghanaian shareholders in PDS of the government’s move is part of the reasons which have led to the suspension of the contract of PDS.
Three Ghanaian businesses own 51% majority shares in the PDS. GTS Power Limited has 10%, Santa power limited has 13% while TG energy solutions limited has 28%.
In a letter addressed to Chairman of the Negotiation Committee of ECG-PSP, Mr. Akoto Ampaw, the Minister for Finance and Economic Planning wrote;
“Following the conclusion of ECG’s transfer of its power distribution business to PDS, it is of paramount importance to ensure the security of the PDS business and its ownership by Ghanaian shareholders.
“In other to safeguard the Ghanaian ownership of PDS and to ensure that control of PDS is secured with Ghanaians in a unified manner, the Ministry requires that the Ghanaian Shareholding is consolidated and held by a single newly incorporated Ghanaian entity (SPV),” Ken Ofori –Atta wrote.
Kobina Ata-Bedu faults this intervention from the Finance Ministry on several fronts.
Speaking on Accra based Joy FM, he questioned the remit of the Minister of Finance to dictate to a private company on which entity to hold its shares.
“PDS as a consortium is a private entity that government cannot interfere with.”
Mr. Ata-Bedu also pointed out that the new company the Finance Minister is proposing has not gone through any procurement process to be given 51% shares in the management of power distribution in Ghana.
He described the approach as a “back door one.”
“The new vendor the finance minister is introducing must go through tender because once you give a contract out you don’t have any control over it again,” he added.
The Ghana Energy Awards (GEA) has opened nominations for the third edition of the National Energy Awards under the theme “Energy, the Key to a Sustainable Economy for Industrialization,” in Accra.
The Awards Scheme broadly aims to recognize the accomplishments of various entities and individuals within the country’s energy sector, while also acknowledging the values and morals that these corporations and personalities possess to meet their targets.
The Ghana Energy Awards is endorsed by the Ministry of Energy and its agencies as well as the World Energy Council (Ghana).
Nominations
Nominations for this year’s awards can be filed on the awards website www.ghanaenergywards.com or via the email [email protected]. Nominations will be closed on 25 October 2019 and will be published one month prior to the awards ceremony via the awards website and press release. Validation of results will be done by MAZARS. Meanwhile, recipients of the awards won’t be declared or notified before the awards night.
Jury
Award winners will be selected by an independent panel of judges through a judging process that is solely based on the expertise of an impartial panel of international energy experts whose background and experience include regulation, policymaking, corporate leadership, trading and strategic consulting.
Nominees will be evaluated according to specific criteria established for the categories. All relevant information on the nominees is submitted, considered and evaluated by the panel. Awarding Panel members include Dr Kwame Ampofo, former Chairman of the Energy Commission and currently the Chairman of the panel, Lawyer Kwame Jantuah, an Energy Consultant, Dr Jemima Nunoo, Board Member of the Petroleum Commission, Prof Felix Asante, Board Chairman of COPEC-Ghana and former Director of ISSER, and Dr Lawrence Tetteh, world-renowned Evangelist.
Categories
The GEA 2019 will feature several awards, prominent of which are the apex awards, that is the Energy Personality of the Year (male and female categories), CEO of the Year, Industry Leadership Awards, Energy Business Leadership Award, Energy Company of the Year, Emerging Energy Company of the Year, Energy Institution of the Year and the Rising Star Award as well as the Best Energy Reporter of the Year.
The launch
Dr Ampofo, the Awarding panel Chairman, noted that it was the continuous support and involvement of stakeholders to make the awards realize its objective that had brought the scheme thus far, adding that it has been the policy of the Ghana Energy Awards panel team that every year must be better than the previous year, especially in terms of the quality of what people bring out which leads to more competition for national growth and development.
Ghana Energy Awards 2019 is slated for Friday the 29 November 2019 at the Labadi Beach Hotel, Accra.
A former Chairman of Ghana’s Energy Commission, Dr Kwame Ampofo, has cautioned the Akufo-Addo-led administration to be mindful of the repercussions attempt to cancel power purchasing agreement signed with independent power producers might bring.
The energy expert and former Managing Director of the West African nation’s only refinery, TOR, intimated that Ghana requires a quantum of energy to spur industrialisation and economic growth, warning that “the move can send wrong signals to would-be investors.
“We need to be friendly with the IPPs. When an IPP comes into a country, the way we cancel or abrogate contract can send wrong signals to would-be investors and it can delay or prevent others from coming in,” he stated.
His comment follows announcement by the Finance Minister, Ken Ofori-Atta that government would, from August, pay IPPs for power the country consumes and bring an end to the ‘Take or Pay’ policy contracts entered by the previous administration.
Speaking to energynewsafrica.com, Dr Kwame Ampofo said, even though he is not against any decision by government to cancel any power purchasing agreement, he argued that government would have to make sure that it is a necessary evil before doing so in order not create an unfriendly environment for the IPPs.
Presenting the recent mid-year budget in Parliament, Ghana’s Finance Minister Ken Ofori-Atta noted that the country’s current installed capacity of 5,083 MW is almost double the country’s peak demand of around 2,700 MW.
He said 2,300 MW of the installed capacity has been contracted on a take-or-pay basis, explaining that “this means that we are contractually obliged to throw away money for this excess capacity which we do not consume.”
Net power exporter
While government is taking steps to ensure that some of the contracts are terminated or reviewed because of excess, Dr Kwame Ampofo believes government should also take bold steps to ensure that the excess power is exported for foreign exchange.
Making an argument about why Ghana should consider itself as fortunate by having excess power, Dr Ampofo said there is an existing policy since 1980, which states categorically that Ghana must become a net exporter of power.
“One policy is that Ghana must become a net exporter of power. And how can you export power if you don’t have it in excess?
“If we have been able to achieve that, then it is a good thing. All we need to do is to look at how that excess power can be used to satisfy the national policy of export.
“When we export power, we can earn foreign exchange. It is precisely because of this that we invested in the West Africa Power Pool,” he explained.
U.S.-based oil and gas company, Kosmos Energy returned to profit in the second quarter of 2019 on the back of higher revenues driven by record production.
Kosmos expects to announce the deal for the sale of its interest in projects off the coast of Mauritania and Senegal by the end of the year.
For the second quarter of 2019, the company generated net income of $17 million. When adjusted for certain items that impact the comparability of results, the company generated adjusted net income of $22 million for the second quarter of 2019.
In the same period last year, the company reported a net loss of $103.3 million.
The company’s revenues increased to $396 million in the second quarter of 2019 from $215.2 million in the corresponding period in 2018.
Total net production was a record in the second quarter of 2019 averaging approximately 71,100 barrels of oil equivalent per day (boepd)
Exploration expenses were $30 million, and capital expenditures were $101 million.
In its 2Q 2019 report, Kosmos also said that its previously announced process to sell down its interest in the broader Mauritania/Senegal region to 10 percent is ongoing and is targeting a transaction announcement by year end.
Andrew G. Inglis, chairman, and chief executive officer, said: “At current oil prices we are forecasting to exceed the 2019 free cash flow we set out at our capital markets day.
“Kosmos has an active second half of the year with multiple catalysts across the portfolio including five exploration wells in Mauritania, Equatorial Guinea and the Gulf of Mexico, and the planned sell down of our position in Mauritania and Senegal which remains on track.”
Source:offshoreenergytoday.com/www.energynewsafrica.com
The Norwegian Petroleum Directorate (NPD) has granted Aker BP a drilling permit for well 30/12-2, which is located in the North Sea offshore Norway.
The NPD said on Monday that the well 30/12-2 would be drilled from the Deepsea Stavanger semi-submersible drilling rig.
The drilling program for well 30/12-2 relates to the drilling of a wildcat well in production license 986 where Aker BP is the operator with an ownership interest of 30 percent.
Other licensees are Petoro (30 percent), Wellesley Petroleum (20 percent) and DNO Norge (20 percent).
The area in this permit consist of parts of blocks 25/2, 25/3, 30/11 and 30/12. The well will be drilled about 43 kilometers northeast of the Frigg field.
Production license 986 was awarded on March 1, 2019, in APA 2018. This is the first well to be drilled in the license.
Source: www.energynewsafrica.com
Brazil’s state- owned energy firm, Petrobras, has launched the binding phase of the sale of offshore upstream oil and gas assets in the Espírito Santo Basin.
At the beginning of July, Petrobras said it was putting up for sale two operating shallow-water offshore gas fields and a deepwater oil exploration concession in the Espírito Santo Basin, as part of efforts to optimize its portfolio and improve capital allocation.
Petrobras launched last month the opportunity disclosure stage—the so-called teaser—for the sale of its 100-percent stakes in the gas fields Peroá and Cangoá, and its 88.9-percent interest in the deepwater Malombe oil field, where oil was discovered in 2011.
The Brazilian state-held firm now enters the binding stage of the sale process, saying that it will send details of the sales process, as well as guidelines for due diligence and binding proposals, to the potential interested buyers who have qualified to take part in the binding phase.
At the beginning of this year, reports emerged that Brazil was pushing for major state-owned companies, including Petrobras, to privatize some subsidiaries as the Brazilian government of new far-right President Jair Bolsonaro looks to raise US$20 billion in state asset sales in 2019.
“The privatization of the company is not in question. I do not have a mandate to think about it,” Petrobras’ new chief executive Roberto Castello Branco—who was tapped by Bolsonaro to lead the company—said in November.
Yet, the sale of non-core assets at Petrobras was expected to continue under Castello Branco, whose strategic vision for the company includes “portfolio management, capital cost reduction, and relentless pursuit of cost reduction.”
In late April, Petrobras approved the sale of several refineries as part of its divestment plan, and last month, it struck a deal with the Brazilian antitrust regulator that will allow it to sell those downstream assets in a bid, the company said, to encourage greater competition in the industry.
In early July, Petrobras announced the start of the non-binding phase for the sale of its total equity interest in 14 onshore exploration and production concessions in Bahia state, jointly designated as the Recôncavo Cluster.
Source:Oilprice.com/www.energynewsafrica.com
Nigeria’s Vice President, Yemi Osinbajo, has commissioned the country’s first 2.8MW solar hybrid power project at Alex Ekwueme Federal University, Ndufu-Alike Ikwo in Ebonyi State.
The project falls under the Energising Education Programme (EEP) of the Federal Government, which was implemented by the Rural Electrification Agency (REA).
The clean-generated power will provide uninterrupted power for 7,700 students and 1,819 staff members of the university, the REA said in a statement.
Caption: Commissioning of the solar hybrid project at Alex Ekwueme Federal University Dufu –Alike Ikwo, Ebonyi State by his excellency Prof. Yemi Osinbajo, Vice President Federal Republic of Nigeria
The managing director and CEO of the Rural Electrification Agency, Damilola Ogunbiyi, commented: “This programme will undoubtedly improve the quality of education, research and health care services at our federal universities and teaching hospitals.
“I’m proud of the role that women have played in the successful implementation of this project from the head of the project being a woman to the female STEM students that all worked on the project.”
Permanent Secretary, Federal Ministry of Environment, Odusote Abimbola, noted: “This programme signifies the commitment of the Federal Government to protecting the environment and reversing the harmful effects of climate change, which is already having devastating effects on our environment. This achievement occurred because government agencies worked collaboratively towards a shared goal of mainstreaming renewable clean energy.’’
On the impact of the FUNAI solar hybrid installations thus far, the EPC contractor and CEO of Sterling & Wilson, Deepak Thakur, said: “The installed 2.8MW solar hybrid power plant will decommission petrol and diesel generators with a capacity of 1.54MW, creating a cleaner and environmentally friendly atmosphere for the university community.”
Source: This Day and The Rural Electrification Agency of Nigeria
The government of Ghana has signed a $5.7 million agreement with Germany to construct a 400kW waste -to-energy plant in the Ashanti Regional capital, Kumasi to improve waste management in the country.
According to the Minister of Environment, Science, Technology and Innovation, Professor Kwabena Frimpong-Boateng, the completion of the 48 months project will help to ensure the conversion of waste to energy commences in Kumasi this year and later extended to other parts of the country.
The pilot plant will use a hybrid solar PV, biogas and a pyrolysis plant to generate electricity from domestic waste.
The minister further commented that, once completed, the project will deepen the bilateral relationship between the two countries.
“The project will create opportunity for German Small Medium Enterprises to take advantage and extend their products and services in the area of waste to Ghana. Therefore, the project’s success will not only help Ghana to address her energy and sanitation challenges but also encourage replication of the project nationwide,” he stated.
Apart from creating more than 50 jobs for Ghanaians, Professor Boateng also said that the project will also include the training of two post-doctorates, three doctorates, ten masters’ students and 20 academics professionals on hybrid bio-gas pyrolysis systems.
Federal Minister of Education and Research of the Federal Republic of Germany, Madam Karliczek underlined that the 12,000 tonnes of waste generated daily in Ghana would be put to good use and provide employment.
According to Karliczek, German researchers have innovated solutions and are willing to collaborate with their counterparts in Ghana to ensure the success of the project and the potential of building ten more plants by 2040 on a large scale to generate between 1-5MW.
The initiative is in line with Ghana’s quest to attain the Sustainable Development Goals (SDGs) agenda.
Source: esi-africa.com/www.energynewsafrica.com
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said it has backed down on its planned industrial action to protest against its disagreement with Chevron Nigeria Limited.
NUPENG’s President, Williams Akporeha and its General Secretary, Afolabi Olawale, confirmed the development in a statement, following a series of peace meeting brokered by the Nigerian National Petroleum Corporation (NNPC) on Friday in Lagos.NUPENG had accused Chevron of violating terms of agreement reached between both parties which bordered on the sack of workers.The agreement to which the NNPC and the Federal Ministry of Labour were a party, and therefore, put the nation on alert for a possible strike that would have resulted in fuel scarcity nationwide.The union leaders in the statement said that the negotiation was being made between the parties to resolve their disagreement.“The fact that appreciable progress is being made as discussions continue, the union hereby suspends with immediate effect the planned industrial action slated for next week,” they said.
They said that talks were still ongoing between NUPENG and all affected stakeholders to amicably resolve the matter putting into consideration the collateral economic damage the industrial unrest could possibly have on the country if not immediately nipped in the bud.
The statement said that the union took cognizance of the intervention of Mele Kyari, the GMD of NNPC, and his management team to avert the proposed strike over breach of agreement reached with the union by Chevron and its contractor.
“It should be put on records that this abrupt suspension became inevitable due to the timely intervention of NNPC having engaged NUPENG and all stakeholders at two separate meetings on Aug. 1 and 2 to correct the anomalies and ensure that the agreement is respected,” it said.The union in the statement directed all members to step down the “Red Alert message and continue rendering their normal and lawful services while members of the general public are also urged to avoid any panic measure.” Source: shipsandports.ng/energynewsafrica.com
Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), one of the West African country’s main oil and gas workers unions, has threatened Chevron with an industrial action over a staffing dispute
In a statement, NUPENG said it was prepared to launch a strike against Chevron if the company did not comply with its demands within seven days over a reduction of the company’s workforce.
Source: energynewsafrica.com
The Embassy of the United States of America (USA) in the Republic of Ghana has urged the government of the West African country to conduct a thorough forensic audit into claims of fraud regarding its contract with Power Distribution Services (PDS) Ghana Limited.
The move, the US believes, will help establish the full facts surrounding the contract.
“The U.S. Government strongly encourages the Government of Ghana to conduct a thorough forensic audit into claims of fraud in order to fully establish the facts of the matter.
“Only then can all relevant parties make a transparent and evidence-based decision in the best interests of the citizens of Ghana,” Ms Naomi Mattos, who is the Press Attache of the US Embassy in Accra said in an emailed to state owned Daily Graphic.
Ms Mattos added that the United States’ interest was in a transparent, well-run transaction that met international standards for private sector participation, investment and operations.
“The U.S. Government expects that the Millennium Development Authority (MiDA), PDS and the Government of Ghana will continue to work together to implement the bold solutions and partnership of the MCC compact that have been fostered to enhance the reliability of the country’s power network and improve the lives of millions of Ghanaians,” Ms Mattos stated.
Compact II
Ms Mattos recalled the background to the contract which has been the subject of controversy since the beginning of the week, saying; “The Millennium Challenge Corporation (MCC) Ghana Power Compact was signed in 2014 and is a $498 million investment in the transformation of the country’s energy sector through private sector participation and key policy and institutional reforms that will provide more reliable and affordable power to the Ghanaian people.
The MCC Ghana Power Compact is expected to benefit an estimated 9.7 million Ghanaians over the next 20 years”.
She explained further that the Electricity Company of Ghana Ltd (ECG) concession was about improving performance at Ghana’s leading power distribution utility without changing the fact that ECG was a strategic asset to the Ghanaian people.
“Ghanaians will continue to own ECG and its assets and Ghanaian shareholders will hold a controlling interest in the concession programme throughout its lifespan,” Ms Mattos stated.
On July 30, 2019, the government, through the Ministry of Information, suspended the 20-year concession of the ECG.
Ms Mattos said: “We believe, and our partners in the Government of Ghana agree, that private sector participation is essential to restoring the financial health of Ghana’s energy sector. The Government of Ghana cited “material breaches” of its agreement with the Power Distribution Services (PDS) Ghana Limited Company as the reason for the suspension.”
Source:graphic.com.gh/energynewsafrica.com
Oil major Chevron Corporation has seen an increase in its quarterly earnings boosted by record production volumes driven by growth in the Permian Basin and at Wheatstone in Australia.
Chevron on Friday reported earnings of $4.3 billion for second quarter 2019, compared with $3.4 billion in the second quarter of 2018.
Included in the current quarter were earnings of $740 million associated with the Anadarko merger termination fees and a non-cash tax benefit of $180 million related to a reduction in the Alberta, Canada corporate income tax rate. Foreign currency effects increased earnings in the 2019 second quarter by $15 million.
Sales and other operating revenues in second quarter 2019 were $36 billion, compared to $40 billion in the year-ago period.
Michael Wirth, Chevron’s chairman of the board and chief executive officer, said: “Second quarter earnings and cash flow benefited from record quarterly production volumes and the receipt of the Anadarko merger termination fee, partially offset by the impact of lower oil and gas prices.
“Net oil-equivalent production was the highest in the company’s history, driven by continued growth in the Permian Basin and at Wheatstone in Australia.”
“We continue to high-grade our portfolio and made progress on our three-year target of $5-10 billion of asset sale proceeds. During the quarter, we executed a sales agreement for our U.K. Central North Sea upstream assets, which we expect to close later this year. We also completed the acquisition of the Pasadena refinery in Texas, which will enable us to supply more of our retail market with Chevron-produced products and process more domestic light crude oil,” he added.
Chevron’s worldwide net oil-equivalent production was 3.08 million barrels per day in second quarter 2019, an increase of 9 percent from 2.83 million barrels per day from a year ago.
U.S. upstream operations earned $896 million in second quarter 2019, compared with $838 million a year earlier. The increase was primarily due to higher crude oil production, partially offset by lower crude oil and natural gas realizations, higher operating and depreciation expenses primarily related to increased Permian activity, and higher tax items.
The company’s average sales price per barrel of crude oil and natural gas liquids was $52 in second quarter 2019, down from $59a year earlier. The average sales price of natural gas was $0.68 per thousand cubic feet in second quarter 2019, down from $1.61in last year’s second quarter.
International upstream operations earned $2.59 billion in second quarter 2019, compared with $2.46 billion a year ago. The increase in earnings was mostly due to higher natural gas sales volumes, tax benefits mostly associated with a reduction in the Alberta, Canada corporate income tax rate, lower operating expenses, and higher gains on asset sales. Partially offsetting these effects were lower crude oil and natural gas realizations. Foreign currency effects had an unfavorable impact on earnings of $195 million between periods.
The average sales price for crude oil and natural gas liquids in second quarter 2019 was $62 per barrel, down from $68 a year earlier. The average sales price of natural gas was $5.43 per thousand cubic feet in the quarter, compared with $5.64 in last year’s second quarter.
Capital and exploratory expenditures in the first six months of 2019 were $10 billion, compared with $9.2 billion in the corresponding 2018 period.
Source:offshoreenergytoday.com
U.S. oil and gas major, ExxonMobil booked a smaller profit in the second quarter of 2019 compared to the prior-year quarter, but the company’s production increased by 7 percent.
The company posted second quarter 2019 earnings of $3.1 billion, compared with $4 billion a year earlier.
Earnings included a favorable identified item of about $500 million, reflecting the impact of a tax rate change in Alberta, Canada.
The company’s revenues dropped to $69.1 billion in 2Q 2019 from $73.5 billion in the same period last year.
Capital and exploration expenditures were $8.1 billion, up 22 percent from the prior year, reflecting key investments in the Permian Basin.
Oil-equivalent production was 3.9 million barrels per day, up 7 percent from the second quarter of 2018.
Liquids production increased 8 percent driven by Permian Basin growth and reduced downtime, with limited impact from entitlement effects and divestments. Natural gas volumes increased 5 percent, excluding entitlement effects and divestments.
ExxonMobil said that average crude prices were stronger than first quarter, while natural gas prices declined with supply length and crude-linked LNG lag effects.
It is also worth noting that the company increased its estimated gross recoverable resource for the Stabroek block in Guyana from 5.5 billion to over 6 billion oil-equivalent barrels. During the quarter, the company made its 13th discovery on the block with the Yellowtail-1 well.
Source. offshoreenergytoday.com/energynewsafrica.com
Jury
Award winners will be selected by an independent panel of judges through a judging process that is solely based on the expertise of an impartial panel of international energy experts whose background and experience include regulation, policymaking, corporate leadership, trading and strategic consulting.
Nominees will be evaluated according to specific criteria established for the categories. All relevant information on the nominees is submitted, considered and evaluated by the panel. Awarding Panel members include Dr Kwame Ampofo, former Chairman of the Energy Commission and currently the Chairman of the panel, Lawyer Kwame Jantuah, an Energy Consultant, Dr Jemima Nunoo, Board Member of the Petroleum Commission, Prof Felix Asante, Board Chairman of COPEC-Ghana and former Director of ISSER, and Dr Lawrence Tetteh, world-renowned Evangelist.
Categories
The GEA 2019 will feature several awards, prominent of which are the apex awards, that is the Energy Personality of the Year (male and female categories), CEO of the Year, Industry Leadership Awards, Energy Business Leadership Award, Energy Company of the Year, Emerging Energy Company of the Year, Energy Institution of the Year and the Rising Star Award as well as the Best Energy Reporter of the Year.
The launch
Dr Ampofo, the Awarding panel Chairman, noted that it was the continuous support and involvement of stakeholders to make the awards realize its objective that had brought the scheme thus far, adding that it has been the policy of the Ghana Energy Awards panel team that every year must be better than the previous year, especially in terms of the quality of what people bring out which leads to more competition for national growth and development.
Ghana Energy Awards 2019 is slated for Friday the 29 November 2019 at the Labadi Beach Hotel, Accra.
