TGS Releases EIQ TGS Data Loader
TGS, world’s leading seismic company has released EIQ TGS Data Loader, developed in collaboration with EnergyIQ. Now, companies can automatically blend industry leading data with proprietary customer data in an enterprise well master data management platform for advanced analysis and decision making.
The EIQ TGS Loader processes the most up-to-date and complete data by automatically accessing and processing TGS web services.
This data is matched, validated and blended with other proprietary and third-party sources within a PPDM gold compliant data model to create the most trusted version all available data in a single repository. The data is then provided in a 10/12/14 digit format for consumption by enterprise, interpretation, and analytics applications.
Users can schedule the loading of daily, incremental data from TGS Validated Well Header and TGS Well Performance data sources directly to the EnergyIQ TDM database.
Once the data from TGS automatically flows into TDM, it can then be scheduled to be loaded into a user’s preferred GG&E platform, including Petra™, Kingdom™, Geographix®, Openworks®, Petrel™, Aries™, Wellview™, and more.
In addition, blended data can be delivered directly to business intelligence platforms such as Spotfire®, Tableau®, Power BI® and map (GIS) applications, ensuring that businesses have the best data available, in the most effective format for confident and quick decision-making.
Israel To Start Exporting Natural Gas To Egypt In November
Israel has announced plans to export natural gas to Egypt in November, this year with volumes eventually set to reach seven billion cubic metres per year, Israeli Energy Minister Yuval Steinitz told reporters in Cairo.
The supplies will mark the start of a $15 billion export agreement between Israel’s Delek Drilling and U.S.-based partner Noble Energy with an Egyptian counterpart in what Israeli officials called the most significant deal to emerge since the neighbours made peace in 1979.
The deal signed early last year will bring natural gas from Israeli offshore fields Tamar and Leviathan into the Egyptian gas grid.
Testing of the gas pipeline from Israel to Egypt has been completed, Steinitz told reporters on the sidelines of a regional gas forum in Cairo.
Egypt hopes to leverage its strategic location and well-developed infrastructure to become a key international trading and distribution centre for gas.
Steinitz said in January Israeli exports to Egypt were expected to reach 7 billion cubic meters a year over 10 years, and about half the exports were expected to be used for Egypt’s domestic market and half to be liquefied for re-export.
Separately, a plan to develop the Aphrodite gas field in Cyprus will be finalized within the next few weeks, Cypriot energy minister Giorgos Lakkotrypis told reporters in Cairo.
This plan will include extending a gas pipeline to Egypt, he added.
Cyprus expects initial natural gas production from the Aphrodite field will begin between 2024 and 2025.
Cyprus’ Aphrodite was first discovered in 2011, but production has been delayed since, as stakeholders Noble Energy, Israel’s Delek Drilling and Royal Dutch Shell renegotiate a production-sharing agreement with the government.
There have been a flurry of successful exploration efforts in recent years that identified natural gas reserves in the eastern Mediterranean, where gas output has begun to soar.
Eastern Mediterranean countries including Cyprus, Israel, Egypt and Italy have formed a partnership to deliver more natural gas to Europe and transform the region into a major energy hub.
Ghana: Extend Gas To Areas With Mineral Deposits – Akufo-Addo Charges Gas Company
Ghana’s president, His Excellency Nana Akufo-Addo has urged the country’s National Gas Company (Ghana Gas) to ensure that gas transmission is extended to parts of the country with significant mineral deposits.
He said when that was done, it would help develop the country’s mining sector and enhance its transformational agenda through industrialization.
Speaking at the inauguration of an operational building for Ghana Gas at Esiama in the Ellembelle District in the Western Region, the President expressed delight that the company had connected industrial customers operating within the Free Zones enclave in the Sekondi/Takoradi metropolis to gas supply.
Ghana Gas, he noted, was strategically positioned in the West African nation’s development process and promised that its potential would further be harnessed for growth in the sector.
Gas exportation
President Akufo-Addo said efforts were being made to enhance the capacity of Ghana Gas to be able to export gas to neighbouring countries.
He said the Ministry of Energy and its counterpart in Cote d’Ivoire would soon sign an agreement for the supply of gas to Cote d’Ivoire.
The President said such an agreement would not only help in job creation in Ghana but also accelerate its development.
He further stated that Ghana Gas was exploring more areas of expansion, as it was currently working to develop requisite infrastructure for the production of compressed natural gas (CNG) in the country.
The Western Regional Minister, Dr Kwabena Okyere Darko-Mensah, commended Ghana Gas for its interest in the development of the region.
The Chief Executive of Ghana Gas, Dr Ben Asante, reiterated the company’s resolve to focus on harnessing Ghana’s natural gas resource to its full potential.
Source: graphic.com.gh
Ghana Gas, he noted, was strategically positioned in the West African nation’s development process and promised that its potential would further be harnessed for growth in the sector.
Gas exportation
President Akufo-Addo said efforts were being made to enhance the capacity of Ghana Gas to be able to export gas to neighbouring countries.
He said the Ministry of Energy and its counterpart in Cote d’Ivoire would soon sign an agreement for the supply of gas to Cote d’Ivoire.
The President said such an agreement would not only help in job creation in Ghana but also accelerate its development.
He further stated that Ghana Gas was exploring more areas of expansion, as it was currently working to develop requisite infrastructure for the production of compressed natural gas (CNG) in the country.
The Western Regional Minister, Dr Kwabena Okyere Darko-Mensah, commended Ghana Gas for its interest in the development of the region.
The Chief Executive of Ghana Gas, Dr Ben Asante, reiterated the company’s resolve to focus on harnessing Ghana’s natural gas resource to its full potential.
Source: graphic.com.gh Eni Sees Profit Drop In 2Q
Italian oil and gas company, Eni saw its profit drop by 66% in the second quarter 2019 when compared to the same period last year.
Eni reported on Friday that its adjusted operating profit for 2Q 2019 was €2.28 billion, down by 11% q-o-q and adjusted operating profit of €2.56 billion. Excluding the impact of the loss of control over Eni Norge on the 2018 results to allow a-like-for-like comparison, the group adjusted operating profit increased by 9% in the quarter.
Eni’s net profit for 2Q 2019 was €424 million ($472M), down 66% from the company’s profit of €1.25 billion ($1.4B) in 2Q 2018.
In the second quarter of 2019, Eni’s oil and natural gas production averaged 1,825 kboe/d, down by 2% from the second quarter 2018.
Production was affected by the termination of the Intisar production contract in Libya from the third quarter of 2018.
Excluding that event, production performance was robust, leveraging on the ramp-up of the Zohr field and of projects started in 2018, mainly in Libya, Angola and Ghana (with an overall contribution of 218 kboe/d), as well as on growth in Nigeria, Australia and the United Arab Emirates.
These positives were partly offset by planned shutdowns in Kazakhstan and Norway, lower production in Venezuela due to the current situation in the Country and in Indonesia, due to unsteady production volumes reflecting a slowdown in end-markets in Asia, as well as mature fields decline, mainly in Italy.
When it comes to its hydrocarbon production outlook, Eni reaffirmed the target of a production growth rate in the range of 2%-2.5% y-o-y, assuming a Brent price forecast of 62 $/bbl and net of portfolio transactions.
According to the company, the growth will be fueled by continuing production ramp-up at fields started in 2018, particularly the Libyan projects Wafa compression and Bahr Essalam phase 2, by organic growth in Egypt (Zohr ramp-up), Ghana and Angola, as well as the start-up of the Area 1 oil project offshore Mexico, North Berkine in Algeria and the Trestakk project in Norway and the planned start-ups in Egypt and Algeria.
New field start-ups and ramp-ups are projected to add approximately 250 kboe/d. following the bulk of plant maintenance executed in the second quarter, production growth will resume at a faster rate in the third quarter still affected by residual maintenance activity and will further accelerate in the fourth quarter.
Eni revised its capex guidance for 2019 to a slight decrease from the previous guidance of €8 billion at the budget exchange rate of 1€=1.15 USD.
Source:Offshoreenergytoday.com
Job: ECOWAS Requests An Expression Of Interest For Consulting Services
Deadline date: 19 August 2019
The Economic Community of West African States (ECOWAS) is in search of consultancy services for the distribution network component of the ECOWAS Regional Electricity Access Project.
The consultant is expected to be available in the ECOWAS office in Abuja full time.
Further information can be obtained at the address below during office hours Monday to Friday from 9.00am to 5.00pm (GMT + 1) Local Time.
The scope of consultancy services will include:
Preparation
- Thorough stocktaking of existing studies, specifications, designs of the project and ongoing distribution projects in three countries (Mali, Guinea Bissau and The Gambia), prepare detailed design, specifications, drawings and bidding documents using the best engineering practice.
- Conduct site visits and topographic surveys if necessary to validate the MV lines detailed route and angle poles locations and the MV/LV substations sites.
- If necessary, use the land survey information to minimize environmental impacts and avoid resettlement for the final locations of substations and transmission line routes, which may require updates to the ESMP and RAP
- Render technical expertise to the executing agencies during the procurement process for the distribution line (MV and LV) and 33KV/400V substations (on issuing of bid documents, receipt of additional inquires and questions from bidders, analyse and reply to those inquiries and questions in consultation with the executing agencies)
- Assist each executing agency in the contract award process with successful bidders, and including conditions of contract effectiveness and signatures on the contracts.
- Supervision of the implementation of the contracts for the project and establishment of a project Site Organisation for each contract;
- Examination and approval of the contractor’s/suppliers detailed design documents and drawings for compliance with the specifications in accordance with sound engineering practice;
- Supervision of all types of site construction activities and ensure that the works are done in compliance with the contract plans and specifications with regards to both quality and timing;
- Monitoring and supervision to ensure that the contractors fully implement all relevant mitigation measures and procedures specified in the ESMP;
- Monitoring and supervision to ensure that the local consultant (where required) overseeing the implementation of the RAP fully implements all relevant mitigation measures and procedures specified in the RAP;
- Inspecting and witnessing with each executing agency’s representatives the factory acceptance tests (FAT) during the manufacture of major items of equipment and at the manufacturers’ premises;
- Monitor procurement, delivery and management of materials and equipment at field sites;
- Supervise and approve the testing and commissioning of works for the entire scope of works;
- Check and approve the complete set of “As-Built” drawings, and documentation, and hand over formalities to each e works;
- Participate in site progress meetings and prepare minutes that shall be shared between the project executing agency representatives, contractors for review and approval
- Ensure all coordination and harmonisation of all technical differences between the three executing agencies
- Acting for the implementing agencies for all contract notices, instructions, orders, certificates, approvals and all communications under the contract (generally referred to as contract administration) for all contracts and liaison with all contractors, and the Owner’s Engineer of OMVG transmission line such that the various works/contracts be completed within the time set in each construction schedule and ensure the OMVG transmission lines and substations are completed before the completion of the Distribution lines in Guinea Bissau and The Gambia.
- Impartially advise on any dispute or differences that may arise between executing agencies and the contractors, and potentially extend to advising the executing agencies on issues beyond adjudication, which would include assistance related to arbitration or litigation in connection with the contractors.
- In case of change (variation) orders, completion time extension and/or financial claims arising from the contractors, make in-depth assessment and recommendations to the executing agencies based on the day-to-day records and applicable conditions of the contract.
- Establishment of contract billing procedures, verification and certification of all contractor/suppliers billing before submission to executing agency for the issue of authorisation of payment,
- In consultation with the executing agencies, issue completion certificates and final acceptance certificates to the contractor as per the terms and conditions of the contracts,
- Preparation of monthly and quarterly project progress reports as required by the executing agencies, and to address issues identified by other stakeholders.
- Provide on-the-job training and technology transfer to the staffs of the executing agencies in contractor’s design approval, procurement management, project management and supervision of construction works;
- Attend to the regional project technical committee (PTC) and Project Steering Committee (PSC) meetings and present the project status and challenges (when such committees are established);
- Monitor and supervise the implementation of the Occupational Health and Safety Management Plan proposed by the contractors
- Monitor and supervise the implementation of the Environmental and Social Management Plan outlined in the Environmental and Social Impact Assessment Study, make proposals for amendments as deemed necessary by the consultant due to his professional experience and/or evidence of need during project implementation
- Monitor compliance by contractors during construction and commissioning for applicable legal requirements of Mali, Guinea Bissau and The Gambia.
- Prepare and submit the project completion report, that outline, inter-alia, achievements in meeting the objectives and target set out for the implementing agencies under the World Bank’s requirements.
Eyes On Tortue Ahmeyim FLNG Project In Mauritania And Senegal
With its long and illustrious record dating back over half a century, Africa remains one of the world’s largest liquefied natural gas (LNG) exporters. While few have floundered in recent times, new final investment decisions (FIDs) are occurring for major LNG export projects across the continent and the near term should see more LNG projects being developed in Africa.
Cameroun has already joined the list of 20 countries around the world which exports LNG, with the first export taking place in May 2018.
The project is the first-of-a-kind, involving the conversion of the Hilli Episeyo, a 1975-built Moss LNG carrier with a storage capacity of 125,000 cubic meter (m³) into a floating liquefied plant. In Mozambique, Eni’s Coral South floating LNG project achieved FID in 2017 and LNG production is expected to occur by 2022.
Anadarko Petroleum Corporation announced a FID on its onshore LNG plant in June 2018, and is well positioned to complete the project financing process. ExxonMobil is also moving forward with its onshore Rovuma LNG project after obtaining approval from government on its plan of development (PoD), marking another significant step towards a FID in later this year.
Another LNG project that industry players are keeping close eye on after gaining FID for its first phase; is the Greater Tortue Ahmeyim, a cross border project located offshore Senegal and Mauritania. The cross-border development, a first for the two West African nations and Africa’s deepest offshore project at 2,000 meters below the sea’s surface, is on track to deliver first gas in the first half of 2022.
Obstacles
In the past few years, floating LNG (FLNG) projects gained favour in the LNG supply market because they were designed to lower capital investment and quickly monetize the development of gas resources in remote and sensitive offshore or near-shore locations. However, myriad of issues have made it difficult for several proposed projects to fare well; struggling to attract investors, buyers and financing, and sending a wrong signal to prospective projects.
On the global scale for example, a drastic reduction in exploration and development (E&P) over the last few years because of the oil price crash has yielded few significant gas discoveries. The consequences of major cost overruns at FLNG projects, such as Shell’s Prelude and Petronas’ PFLNG have also been felt by management and shareholders alike, casting a shadow over even projects which have taken FIDs, and currently under construction. Furthermore, the upcoming investment story in large capacity projects in the U.S. could see FLNG struggling to obtain partners, buyers and financing, despite establishing itself as a credible development option.
On the domestic front, Nigeria’s 10 million tpy Brass LNG project, and Olokola (OK) LNG project, are typical examples of LNG projects struggling to gain FID. One of the major setback to the development of these projects, is Nigeria’s gas reserves being entirely associated with oil fields, thus requiring extensive processing and infrastructure to produce LNG; adding to the already costly projects. Again, government’s inertia, risky business environment, and unfavorable fiscal agreements have added barriers to making FID in Nigeria. And there is no such good news for Ophir Energy who finally pulled the plug on its Fortuna FLNG project offshore Equatorial Guinea. The project failed to attract funding, given that FLNG is still a new technology, and that the banks were unwilling to back an Ophir-led project as opposed to established oil firms like Eni or BP’s projects.
In spite of these and other challenges, the International Energy Agency (IEA) estimates that Africa could overtake Russia as a global gas supplier by 2040, demonstrating the scale of opportunity should these obstacles be overcome.
The Greater Tortue Ahmeyim Project
Greater Tortue Ahmeyim is an offshore liquefied natural gas (LNG) project based on upstream gas production from the 2km-deep Tortue field which was discovered by Kosmos Energy in 2015 on the maritime border of Mauritania and Senegal.
An agreement between the Mauritanian and Senegalese governments and partners BP, Kosmos Energy, and national oil companies; Societe des Petroles du Senegal (Petrosen), and Societe Mauritanienne des Hydrocarbures (SMHPM) gave birth to the Greater Tortue Ahmeyim LNG project which is planned to provide LNG for global export as well as making gas available for domestic use.
Paa Kwasi Anamua Sakyi, IES Boss
The Greater Tortue project planned in three phases, is expected to produce gas from an ultra-deep-water subsea system and mid-water floating production, storage, and offloading (FPSO) vessel, which will process the gas, removing heavier hydrocarbon components. The gas will then be transferred to an FLNG facility at an innovative nearshore hub located on the maritime boundary.
The FLNG facility is designed to provide circa 2.5 million tonnes of LNG per annum on average, with the total gas resources in the field estimated to be around 20 trillion cubic feet. The initial subsea infrastructure, part of the first phase, connects the first four wells consolidated through production pipelines leading to this FPSO. Phases 2 and 3 will involve the further development of Tortue Ahmeyim field beyond Phase 1 of the development located in the C-8 block off the shore of Mauritania and the Saint-Louis Profond block offshore Senegal.
The two phases is expected to significantly expand capacity to deliver additional gas from an ultra-deep-water subsea system, tied back to mid-water gas processing platforms. The gas will then be transferred to pre-treatment and offshore LNG facilities located at the established Phase 1 hub.
BP holds a majority interest and operatorship among the four partners in the project, while BP Gas Marketing has been selected as the sole buyer for the investor partners’ LNG offtake for Tortue Ahmeyim Phase 1.
Milestones
October 2018: KBR was awarded a front end engineering and design (FEED) by BP for Phase 1 of the field hub/terminal development. The agreement contains a mechanism to allow the transition of the contract to an engineering, procurement and construction management (EPCM) contract at a later date. KBR is expected to provide management of the quarters and utilities (QU) including telecoms systems FEED and provision of supplemental services (system engineering, interface oversight, technology planning, support and verification) of the hub/terminal for the project.
December 2018: Kosmos Energy and its partners announced an agreement on a FID for Phase 1 of the project. The decision was made by Kosmos, BP, Petrosen and SMHPM following a meeting between President Mohamed Ould Abdel Aziz of Mauritania and President Macky Sall of Senegal to agree final elements.
February 2019: Golar LNG Ltd.’s newly incorporated subsidiary, Gimi MS Corporation, signed a 20-year lease and operating agreement (LOA) with BP to provide an FLNG unit on charter basis to service the Greater Tortue Ahmeyim project. The unit is expected to liquefy gas as part of the first phase of the project when it begins production in 2022.
February 2019: Keppel Shipyard Ltd received the final notice to proceed (FNTP) from Gimi MS Corporation to commence full conversion for the Gimi floating LNG (FLNG) project.
The LNG carrier Gimi has since been relocated from layup to Keppel Shipyard in Singapore where conversion works are expected to start soon. The unit’s construction is estimated to cost roughly $1.3 billion, excluding financing costs.
April 2019: BP awarded KBR Inc.’s UK operating subsidiary the Pre-FEED Services contract for Phases 2 and 3 of the project, for the further development of the field beyond Phase 1. The agreement is to design offshore platforms and underwater pipelines to expand natural gas production that will be delivered to pre-treatment and offshore LNG facilities located at the established Phase 1 hub.
April 2019: TechnipFMC was contracted by BP for the development of the FPSO FEED for the LNG project. The contract for the Tortue Ahmeyim field development floating production storage and offloading unit includes a mechanism allowing it to transition into an engineering, procurement, construction and installation (EPCI) deal at a later stage. TechnipFMC is expected to work on defining the technology and equipment scope of the project.
May 2019: Baker Hughes, a GE company (BHGE), was awarded the contract to supply turbomachinery equipment for the first phase of the project, by Golar’s topsides contractor Black & Veatch (B&V) in the first quarter of the year. BHGE will provide the technology for four compressor trains for offshore gas liquefaction on board the LNG carrier Gimi.
July 2019: Kosmos Energy announced that the Greater Tortue Ahmeyim-1 well (GTA-1), drilled on the eastern anticline within the unit development area of Greater Tortue, has encountered approximately 30 meters of net gas pay in high-quality Albian reservoir, confirming the expectation that the gas resource at Greater Tortue Ahmeyim will continue to grow over time and could lead to further expansion of this world-scale project. While significant progress have been made since the Greater Tortue Ahmeyim project achieved FID for Phase 1 towards delivering first gas in the first half of 2022, it remains to be seen when the project’s financing process would be completed, and whether the project would not experience any delays and cost overrun.
Written by Paa Kwasi Anamua Sakyi, Institute for Energy Security (IES) ©2019
The writer has over 22 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media.
Paa Kwasi Anamua Sakyi, IES Boss
The Greater Tortue project planned in three phases, is expected to produce gas from an ultra-deep-water subsea system and mid-water floating production, storage, and offloading (FPSO) vessel, which will process the gas, removing heavier hydrocarbon components. The gas will then be transferred to an FLNG facility at an innovative nearshore hub located on the maritime boundary.
The FLNG facility is designed to provide circa 2.5 million tonnes of LNG per annum on average, with the total gas resources in the field estimated to be around 20 trillion cubic feet. The initial subsea infrastructure, part of the first phase, connects the first four wells consolidated through production pipelines leading to this FPSO. Phases 2 and 3 will involve the further development of Tortue Ahmeyim field beyond Phase 1 of the development located in the C-8 block off the shore of Mauritania and the Saint-Louis Profond block offshore Senegal.
The two phases is expected to significantly expand capacity to deliver additional gas from an ultra-deep-water subsea system, tied back to mid-water gas processing platforms. The gas will then be transferred to pre-treatment and offshore LNG facilities located at the established Phase 1 hub.
BP holds a majority interest and operatorship among the four partners in the project, while BP Gas Marketing has been selected as the sole buyer for the investor partners’ LNG offtake for Tortue Ahmeyim Phase 1.
Milestones
October 2018: KBR was awarded a front end engineering and design (FEED) by BP for Phase 1 of the field hub/terminal development. The agreement contains a mechanism to allow the transition of the contract to an engineering, procurement and construction management (EPCM) contract at a later date. KBR is expected to provide management of the quarters and utilities (QU) including telecoms systems FEED and provision of supplemental services (system engineering, interface oversight, technology planning, support and verification) of the hub/terminal for the project.
December 2018: Kosmos Energy and its partners announced an agreement on a FID for Phase 1 of the project. The decision was made by Kosmos, BP, Petrosen and SMHPM following a meeting between President Mohamed Ould Abdel Aziz of Mauritania and President Macky Sall of Senegal to agree final elements.
February 2019: Golar LNG Ltd.’s newly incorporated subsidiary, Gimi MS Corporation, signed a 20-year lease and operating agreement (LOA) with BP to provide an FLNG unit on charter basis to service the Greater Tortue Ahmeyim project. The unit is expected to liquefy gas as part of the first phase of the project when it begins production in 2022.
February 2019: Keppel Shipyard Ltd received the final notice to proceed (FNTP) from Gimi MS Corporation to commence full conversion for the Gimi floating LNG (FLNG) project.
The LNG carrier Gimi has since been relocated from layup to Keppel Shipyard in Singapore where conversion works are expected to start soon. The unit’s construction is estimated to cost roughly $1.3 billion, excluding financing costs.
April 2019: BP awarded KBR Inc.’s UK operating subsidiary the Pre-FEED Services contract for Phases 2 and 3 of the project, for the further development of the field beyond Phase 1. The agreement is to design offshore platforms and underwater pipelines to expand natural gas production that will be delivered to pre-treatment and offshore LNG facilities located at the established Phase 1 hub.
April 2019: TechnipFMC was contracted by BP for the development of the FPSO FEED for the LNG project. The contract for the Tortue Ahmeyim field development floating production storage and offloading unit includes a mechanism allowing it to transition into an engineering, procurement, construction and installation (EPCI) deal at a later stage. TechnipFMC is expected to work on defining the technology and equipment scope of the project.
May 2019: Baker Hughes, a GE company (BHGE), was awarded the contract to supply turbomachinery equipment for the first phase of the project, by Golar’s topsides contractor Black & Veatch (B&V) in the first quarter of the year. BHGE will provide the technology for four compressor trains for offshore gas liquefaction on board the LNG carrier Gimi.
July 2019: Kosmos Energy announced that the Greater Tortue Ahmeyim-1 well (GTA-1), drilled on the eastern anticline within the unit development area of Greater Tortue, has encountered approximately 30 meters of net gas pay in high-quality Albian reservoir, confirming the expectation that the gas resource at Greater Tortue Ahmeyim will continue to grow over time and could lead to further expansion of this world-scale project. While significant progress have been made since the Greater Tortue Ahmeyim project achieved FID for Phase 1 towards delivering first gas in the first half of 2022, it remains to be seen when the project’s financing process would be completed, and whether the project would not experience any delays and cost overrun.
Written by Paa Kwasi Anamua Sakyi, Institute for Energy Security (IES) ©2019
The writer has over 22 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media.
Ghana: LPG Marketing Association Wants 23 Percent Tax Abolished
The LPG Marketing Association in the Republic of Ghana is calling on the Akufo-Addo led administration to abolish the 23 percent tax levied on the fuel product.
Finance Minister of the West African country, Ken Ofori Atta, is expected to present a mid-year budget review in Parliament on Monday, 29th July, 2019.
The association, is therefore urging the minister to take advantage of the mid-year budget review, to bring some form relief to Ghanaians.
“We note with grave concern that the product which used to be subsidized, has its price build-up being constituted of more than 23% taxes now.
“For example, in 2015 a typical 14.5kg LPG cylinder cost about ¢48 and a bag of charcoal then was also ¢40 whilst a bag of charcoal is now ¢45 the same 14.5kg LPG cost ¢80,” Secretary of the Association, Justice Adu Mante, said in a statement issued Thursday.
Below is a copy of the full statement:
Finance Minister Ken Ofori Atta is due to present the Mid-year budget review to Parliament on Monday with millions of Ghanaians hopeful government will present a programme that brings relief to them.
Government now has a unique opportunity to demonstrate it is sensitive to the plight of Ghanaians by scrapping the 23 percent tax imposed on LPG.
We note with grave concern that the product which used to be subsidized has its price build-up being constituted of more than 23% taxes now.
For example, in 2015 a typical 14.5kg LPG cylinder cost about ¢48 and a bag of charcoal then was also ¢40 whilst a bag of charcoal is now 45 cedis the same 14.5kg LPG cost 80 cedis.
This is clearly in breach of the policy decision that influenced the introduction of and the push for the utilization of LPG: to replace wood and other unhealthy fuel alternatives.
Currently, it is logical to conclude that the low-income homes have been priced-out of the LPG market resulting in the massive decline in the use of the product.
Now, according to the Cylinder Recirculation Model (CRM), which is the implementation model for the National LPG Policy, government envisages that at less 50% of Ghanaians should have access to safe, clean and environmentally-friendly LPG for domestic, commercial and industrial usage by 2030.
We state unequivocally that the vision to increase consumption and get more people to use LPG gas is noble and government has our unalloyed support to implement this great quest.
However, we are afraid this move no matter how wonderful it sounds will not be realized anytime soon. This is because, in the existing saturated market of the product, the only way to increase use is by creating access for new users.
Unfortunately, these same new consumers have no monetary incentive to abandon their cheaper options and jump on the LPG bandwagon because it does not make economic sense to do so. It is our contention that the removal of taxes will significantly bring down the cost of the LPG and make it possible for the ordinary Ghanaian to afford it.
That is why we are calling upon the government to act immediately in the interest of the Ghanaian people it swore to protect and help progress.
Yours, for God and Country.
Signed
Justice Adu Mante
Secretary
Ghana: Tullow Reduces 2019 Oil Production Outlook Again Due To Challenges
Tullow Oil has reduced its 2019 production forecast for the second time in three months as technical glitches in Ghana continued to cast a shadow, energynewsafrica.com can report.
Full-year output is now seen at 89,000 to 93,000 bpd, reflecting delays in well completion at the African country’s TEN project, Tullow said Wednesday.
It’s a further setback for a company that relies on the continent for more than 90% of its revenue.
“The main issue is down to these last couple of wells at Enyenra, which have been quite complex from a completion point of view,” Chief Executive Officer Paul McDade said.
“We’re a bit disappointed this year because of these wells, but we’ve got a lot of wells to contribute next year.”
The problems include mechanical issues in completing the Enyenra-14 production well, which has not been brought on stream as planned and is currently suspended as the company continues a drilling program started last year. The troubles in Ghana triggered an earlier guidance downgrade in April, when Tullow cut its 2019 forecast to as little as 90,000 bpd from as much as 101,000 bpd.
The shares dropped as much as 2.8% to 202.4 pence in London on Wednesday, and traded at 203 pence as of 9:49 a.m. local time.
In East Africa, Tullow has also faced obstacles in getting several projects off the ground. A final investment decision in Kenya isn’t expected until the second half of 2020, a deadline McDade said is “sensible and achievable.”
Efforts to offload a stake in its Ugandan venture are only making limited progress, according to the company. “We’ll keep pushing that forward,” McDade said.
Financial results have strengthened, with first-half net income jumping about 90% from a year earlier to $103 million, on revenue of $872 million. Oil production averaged 88,700 bpd in the period.
The company is also plowing resources into several ventures in South America. A three-well exploration campaign off Guyana started earlier this month and results from the initial prospect are expected in the first half of August. In Suriname, Tullow and its joint-venture partners will drill the Goliathberg-Voltzberg North prospect in 2020.
“Tullow’s guidance downgrade underscores its asset concentration risk in Ghana,” said Will Hares, senior industry analyst for Bloomberg Intelligence. Due to the adjusted forecast and slow progress in East Africa, “a heightened expectation of positive results” in Guyana is developing, he said.
Over the longer term, the company’s production will probably be between 90,000bpd and 100,000 bpd until East Africa is brought online, McDade said, adding that he hesitates to set future targets “because we don’t want to lock ourselves in,” in terms of capital allocation.
Tullow may want to divert more capital to Guyana “depending on how things go,” McDade said.
Source: Worldoil.com
Kenya: Raila Wants Cost Of Energy Slashed To Woo Investors
A former Prime Minister of Kenya and leader of Orange Democratic Movement, Raila Odinga has said the current price of energy in the country does not inspire investors.
Raila who was speaking at the launch of Bidco plant in Kiambu, officiated by President Uhuru and his deputy said energy abundance attracts more investors.
“Energy is very important in attracting investors in the field of industry. Investors will come where there is abundance of energy,” he said.
Raila said the current cost of power in the country does not inspire confidence to investors.
He said Bidco will create more jobs to youths.
ODM leader also said SGR project has improved importation due to easier transportation of imported goods.
He said the country has united and things have changed since handshake with the President.
Raila recalled the time when him and his party asked Kenyans to resist Bidco products during political period before handshake.
He said he is committed to work towards uniting the country.
Spanish Ferry Revamped To Use LNG
Spanish Ferry Company, Balearia announced on July 25 that its second LNG-retrofitted passenger ship would shortly begin operations.
The Abel Matutes vessel completed a five-month overhaul in early July, during which time it was fitted with dual-gas engines and two 178-m³ LNG storage tanks.
According to Balearia, the ship will start operating along a route between Huelva in southwest Spain and two ports in the Canary Islands on July 28.
Abel Matutes is 190 metres long and can transport up to 900 people. It is the second of Balearia’s vessels to undergo LNG retrofitting, with similar work on its sister ship Napoles completed earlier this year.
The European Commission has helped fund these upgrades with grants. In April, Balearia CEO Adolfo Utor warned that these environmental benefits would carry a financial cost.
Balearia now has four LNG-powered vessels in service, and aims to expand this to a fleet of nine by 2021, including six retrofits and three newbuilds.
Source: naturalgasworld.com
Rotterdam Sees Surge In H1 Lng Imports
The Dutch port of Rotterdam registered a 93.9% increase in LNG imports in the first half of 2019, thanks to a surge in supplies arriving from the US, the port authority said on July 25.
Rotterdam’s Gate terminal took ashore 3.8mn mt of LNG in the six months, up from 1.98mn mt a year earlier.
In its half-year report, the port authority attributed the growth to a smaller price differential between European and Asia LNG markets, which has caused US and other Atlantic Basin supplies to the former to soar.
“Given the transport costs, exports of LNG to Asia are therefore less appealing than exports to Europe, particularly for market players in the Atlantic basin,” it said.
Gate terminal is owned by Dutch gas operators Gasunie and Vopak, and is one of the largest inlets for LNG supplies into Europe.
It is equipped with three 180,000-m³ storage tanks and can regasify up to 9mn mt/yr of LNG.
Source: naturalgasworld.com
Total Plans $5 Billion In Asset Sales As 2Q Profit Slips On Lower Oil Prices
French oil and gas company Total posted a 26% drop in 2Q net profit as a result of lower oil and gas prices.
Total has said it plans to sell about $5 billion worth of assets, mostly from its Exploration & Production business.
The company on Thursday posted adjusted net profit of $2.9 billion, a 19% decrease from the adjusted net profit of $3.6 billion in the same period last year.
Total’s net income was $2.8 billion in 2Q 2019, a 26% decrease compared to 2Q 2018 and net income of $3.7 billion.
Hydrocarbon production was 2,957 kboe/d in 2Q 2019, an increase of 9% compared to 2Q 2018 due to start-up and ramp-up of new projects, offset by natural decline and maintenance.
Commenting on the results, Chairman and CEO, Patrick Pouyanné, said: “Markets remained volatile with Brent averaging $69/b in the second quarter, an increase of 9% compared to the previous quarter, but natural gas prices were down 36% in Europe and 26% in Asia. In this context, with a slight increase in production to 2.96 Mboe/d, adjusted net income increased by 5% compared to the previous quarter to 2.9 B$, and the return on equity remained above 11%.”
“Exploration & Production benefited from the higher Brent with a 15% increase in operating cash flow before working capital changes.”
He added: “In signing an agreement with Occidental to acquire Anadarko’s assets in Africa, the Group is preparing for its future and capitalizing on its strengths. In Mozambique, it leverages its expertise in LNG, in Ghana, the deep offshore and, in Algeria, its historic presence. The Group continues to grow in LNG with the signing of a sales contract with the Chinese company Guanghui, the takeover of Toshiba’s LNG portfolio and the start-up of Cameron LNG in the United States.
“This strategy is complemented by the divestment of high-breakeven assets, such as the recent sale of mature assets in the UK North Sea. This active portfolio management policy will continue with the sale of 5 B$ of assets over the 2019-20 period, the majority coming from Exploration & Production.”
Since the start of the third quarter 2019, Brent has traded above $60/b in a context of renewed OPEC+ quotas and uncertainties about the evolution of production in Libya, Venezuela and Iran. According to Total, the environment remains volatile, with uncertainty about hydrocarbon demand growth related to the outlook for global economic growth.
The Group maintains its spending discipline in 2019 with an organic investment target of around $14 billion and an average production cost of $5.5/boe. The organic pre-dividend cash flow breakeven will remain below $30/b.
Production growth should exceed 9% in 2019, thanks to the ramp-up of projects started in 2018 and the start-ups in the first half 2019 of Kaombo Sul in Angola and Culzean in the UK North Sea, as well as the upcoming Johan Sverdrup in Norway and lara 1 in Brazil.
Source: Offshoreenergytoday.com
Germany Africa Business Forum Announces Multi-Million Euro Funding Commitment To Invest In German-African Energy Startups
The Germany Africa Business Forum (GABF) whose goal is to strengthen investment ties between Germany and Africa, has announced that it has, in collaboration with private partners from the energy industry, launched a multi-million Euro funding commitment to invest in German energy startups that focus on Africa.
The funding commitment, which pledges funds to German startups with exposure to African energy projects, will be the first of such intra-regional initiative.
“Our initial goal is to support the investment in German companies and to start with funding allocations by the end of this year”, Mr Sebastian Wagner, co-founder of the GABF said in a statement copied to energynewsafrica.com.
“Through our partners, we will immediately get involved in investing in solutions-driven German startups with pragmatic business models to solve Africa’s energy challenges through the provision of German technology and innovation”, he added.
“The future of Africa’s energy industry will depend on technology and innovation. When German start-ups and Africans work together, we can build something unique for both our peoples. I applaud the GABF for this well-thought-out initiative. I believe it is in line with the goals of theG20 Compact with Africa, driven by Germany”, stated NJ Ayuk, a pan-African energy dealmaker, CEO of Centurion Law Group and Executive Chairman of the African Energy Chamber, a supporter of the initiative.
Anchored in the private sector, the GABF brings together Africa’s foremost executives with German companies, investors and innovators with the aim of driving change.
Founded in 2017 as a “private for privates”, the GABF encourages German investors to consider the African continent as a profitable and important investment destination. Through a series of initiatives, the GABF draws together African business and political leaders with Germany’s preeminent innovators to develop fresh investment concepts that shape German and African business ties, as well as economic thought.
Ghana: Gov’t Should Consider Privatizing TOR To Ensure Profitability-Alex Mould
A former Chief Executive of the Ghana National Petroleum Corporation (GNPC) Mr Alex Mould is proposing the privatization of the West African state oil refinery, TOR.
This, he said, is to make the refinery very efficient and profitable.
According to Mr Mould, privatizing TOR could be one of the surest ways to deal with the challenges that have prevented the refinery from making good profits over the years.
His proposal follows revelations in an internal management report which suggested that the state refinery was facing some serious liquidity challenges that threatened its operations.
It would be recalled that energynewsafrica.com reported last week that Tema Oil Refinery (TOR) had incurred GHS 186million loss in the first four months of 2019 due to a number of factors.
The 2019 TOR’s Variance Report revealed that the company was not in a good financial position to even pay its debts.
However, in a statement TOR explained that the amount was as a result of financial interest charges and exchange rates differences on TOR’s outstanding legacy debts yet to be paid from the Energy Sector Levies Act (ESLA) proceeds.
“TOR made a gross profit in the first quarter of this year, “indicating that TOR is a potentially profitable company,” a statement signed by Daniel Appiah, General Manager in –charge of Finance said.
The statement admitted that TOR has been facing liquidity challenges culminating in the company’s inability to implement its annual budgets.
“TOR’s revenue targets are not being achieved due to lack of working capital to procure crude oil for processing on a continuous basis. However, fixed costs continue to be incurred,” the statement added.
Commenting on the issue on an Accra based Joy FM, Mr Alex Mould charged the Akufo-Addo led government to improve the current state of infrastructure at the refinery.
“I would advise the government to fix Tema Oil Refinery if it believes that the rate of return that they put into Tema Oil Refinery is good for them,” he said.
He also argued that government must look at TOR’s model again – that is whether it should still be a refinery or use it as a tank farm or bring on board a strategic investor to turn around the operations of the facility.
The former GNPC boss has also advised that the government should engage Bulk Distribution Companies (BDCs) to invest in the refinery.