Ghana: Former Petroleum Commission Boss, Theophilus Ahwireng appointed MD of MODEC
A former Acting Chief Executive Officer for Petroleum Commission Mr Theophilus Ahwireng has been appointed as the new Managing Director of MODEC Production Services Ghana JV Limited (MPSG).
His appointment is effective today,April 23, 2019.
Theophilus Ahwireng is a seasoned technical and business leader with three decades of experience in the Upstream Oil and Gas industry as well as the extractive industry.
Until his recent appointment, Theophilus was Technical Advisor to the Ministry of Energy on issues relating to the Upstream Petroleum sub-sector under the Ghana Oil and Gas Inclusive Growth (GOGIG), a DFID funded programme.
Prior to that, he was the acting CEO of Petroleum Commission, Ghana between 2013 and 2017.
He also worked for Ghana National Petroleum Corporation (GNPC) in a variety of roles for over twenty years.
Theophilus Ahwireng was also the Leader of the Interim Management Committee credited with the successful turnaround of Prestea Sankofa Gold Limited into a profitable company between 2006 and 2008.
“Having a leader of Theophilus Ahwireng’s calibre will propel our business aspirations and we are very pleased to welcome him to the organisation,” said Koji Kawabe, Vice President of MPSG.
Commenting on his appointment Theophilus Ahwireng said, “MODEC is contributing effectively to Ghana’s petroleum production and power supply and its contribution is significant. As I join the company, I look forward to working with the team to deliver even better results for the company and all its stakeholders.”
About MODEC Production Services Ghana JV Limited
MODEC Production Services Ghana JV Limited is the operator of two FPSOs on behalf of Tullow Ghana Limited namely, FPSO Kwame Nkrumah for Jubilee fields and FPSO Prof. John Evans Atta Mills, for TEN fields.
The company is a subsidiary of MODEC Inc., a leading specialist and provider of competitive floating solutions for the offshore oil and gas industry such as Floating Production, Storage and Offloading (FPSO) vessels and Tension Leg Platforms (TLPs). MODEC also has an excellent track record of EPCI (Engineering, Procurement, Construction and Installation) as well as charter and operations projects.
NPA hints of amending Act to clampdown on petroleum smugglers
Ghana’s Petroleum Downstream Regulator,NPA, has hinted that it will seek for the amendment of the ACT establishing the Authority, in order to apply tougher sanctions on persons or individuals caught to be dealing in petroleum theft.
The NPA in February this year confiscated petroleum products smuggled into the country estimated to be about GHC1 million.
The regulator said a total number of 28BRV, 6 canoes, 4 mobile pumps and 5 outboard motors carrying 709,250 liters of illegally smuggled petroleum products with taxes and levies value of GHC1, 150,186 have been confiscated.
The arrest, made in collaboration with the security agencies, is part of ongoing plans by the NPA to deal with fraudsters in the industry.
Speaking at the OIL and FUEL Supply Chain Security Conference on how to prevent fuel fraud in London, Mr. Hassan Tampuli, who is the CEO of NPA, said after more than ten years of its establishment, it is only appropriate the law is reviewed to enable the NPA to apply heavy sanctions on those caught to be engaging in fuel smuggling activities.
But while the NPA awaits that to happen, Mr. Tampuli said his outfit will continue to deploy technology to help block smuggling channels, while other channels are explored to combat fuel theft.
“We intend going forward to use more technology like the use of flow meters at the depots and fuel receiving facilities,” he said, adding; “we insist that if they don’t get the flow meters at those facilities, we will procure for them and ensure that they are working.”
U.S. Won’t Release SPR Barrels To Calm Oil Markets
The United States will not be dipping into its Strategic Petroleum Reserves (SPR) to calm unsettled markets today, according to S&P Global Platts sources who were commenting about rising oil prices as WTI surpassed $65 per barrel in the late afternoon.
The US may, however, consider tapping into the SPR if oil prices are too high over the summer months, according to the same sources, although President Donald Trump confidently proclaimed on Monday that Saudi Arabia and other OPEC players have the ability to turn on the taps to make up for any oil supply shortfalls left by Iran now that waivers are behind us, marking the true beginning of the US sanctions on Iran.
WTI was trading up $1.62 (+2.53%) at 3:45pm EST, reaching $65.69. Brent was trading up $2.14 (+2.97%) at $74.11—the highest price in five months.
The purpose of the 700+million-barrel SPR is to insulate the United States in the event of a supply emergency, although the fact that it exists also sends the message to other oil producers that the United States has the ability to flood the market with oil should it choose to do so. It is the largest supply of emergency crude oil in the world, according to the energy.gov website.
The United States has tapped its SPR to weather global supply disruptions three times, although it has released barrels at other times as well as part of planned drawdowns. In August last year, the United States moved up a planned 2019 SPR release to soften the blow of US sanctions on Iran. The United States, however, granted eight purchases of Iranian oil waivers, sending the price of oil downward on the news.
Those waivers will officially end on May 1, the White House announced on Monday.
Source: Oilprice.com
Nuisance charges and fees suffocating OMCs-Agyemang- Duah
Mr Kwaku Agyemang- Duah, Chairman of AOMCs signing a Safety Declaration Form
The Association of Oil Marketing Companies (AOMCs) has expressed concern over the numerous operating charges and fees imposed on Oil Marketing Companies (OMCs) thereby suffocating the operators in the sector.
“These unprecedented charges, have the tendency of becoming a cost component, which would eventually increase the overhead cost of operation, hence the fuel price hikes in this era of already high cost of petroleum products,” the AOMC, stated in a statement signed by Mr Kwaku Agyemang-Duah, Industry Coordinator.
The statement addressed to some Metropolitan, Municipal and District Assemblies (MMDAs) and obtained by the Ghana News Agency said the OMCs were over burdened with the numerous charges and fees.
The AOMC Chief Executive Officer noted that the business signage fees, and other materials displayed at Filling Stations which were part of mandatory requirements for the granting and issuance of a permit to construct a Filling Station by the National Petroleum Authority attracted fees also from the MMDAs.
“These charges and fees being collected within the MMDAs jurisdiction appear to be duplicating the fees and other charges paid to statutory and regulatory bodies,” the AOMC reminded the MMDAs.
Some of the fees and charges suffocating the OMCs are; Environmental Protection Agency Processing and Permit Fees; MMDAs Business Operating Permit Fees; MMDAs Signage and Advert Fees; Fire Permit Fees; Ghana Standards Authority Verification Fees charged per each pump.
Other charges are; Vehicle Branding Fees; Ground Rent and Stool Lands Fees;; Royalty Fees; Ghana Music Association Fees; Business Operational Fees and Ghana Highway Authority entry and exit fees.
The OMCs also paid Ghana Revenue Authority, National Petroleum Authority, Factories Inspectorate and other mandatory taxes and levies.
Scores of OMC operators stated that these fees and charges were chargeable per each filling stations per year, “the net effect is too huge which accounts for the fuel prices hikes.
“Most institutions including; statutory bodies, MMDAs and private sector actors see the OMCs as financial reservoirs to siphon money from. We are into business, so we will invariable transfer the huge overhead cost to the consumer”.
The OMC Operators therefore appealed for a regulated mechanism to ensure that the MMDAs and other regulated authorities synchronised their charges and levies to eliminate double taxation.
The OMCs said those operating in traditional areas also paid additional dues and fees to the traditional rulers.
Halliburton Expects Offshore Oil Spending To Jump In 2019
Halliburton Company expects total global offshore spending to jump 14 percent this year, one of the world’s largest oilfield service providers said on Monday as it announced its Q1 2019 results.
Iran Threatens To Block Key Oil Chokepoint If It Can No Longer Export Crude
Iran will block the world’s most important chokepoint for global oil trade, the Strait of Hormuz, if Tehran is barred from using it to export its oil, Navy Rear Admiral Alireza Tangsiri, Commander of the Islamic Revolution Guards Corps (IRGC), said on Monday, just as the U.S. announced that it would not be extending any waivers to Iranian oil customers.
“According to international law, the Strait of Hormuz is a marine passageway and if we are barred from using it, we will shut it down. In case of any threat, we will have not even an iota of doubt to protect and defend the Iranian waters. We will defend our prestige and embark on reciprocal acts when it comes to defending Iran’s right,” Iranian Fars news agency quoted Tangsiri as saying in an interview with Arabic-language al-Alam news channel on Monday.
U.S. Secretary of State Mike Pompeo tweeted early on Monday, confirming earlier reports that the U.S. planned to end all waivers when they expire in early May:
“Maximum pressure on the Iranian regime means maximum pressure. That’s why the U.S. will not issue any exceptions to Iranian oil importers. The global oil market remains well-supplied. We’re confident it will remain stable as jurisdictions transition away from Iranian crude.”
The Department of State confirmed:
“Today we are announcing the United States will not issue any additional Significant Reduction Exceptions to existing importers of Iranian oil. The Trump Administration has taken Iran’s oil exports to historic lows, and we are dramatically accelerating our pressure campaign in a calibrated way that meets our national security objectives while maintaining well supplied global oil markets.”
Brent crude rallied 2.83 percent at 11:47 a.m. EDT on Monday on the news.
Over the past year, Iran has threatened several times to close the Strait of Hormuz for all tanker traffic if the U.S. drives Iranian oil exports to zero.
The Strait of Hormuz is the world’s most important chokepoint, with an oil flow of 18.5 million bpd in 2016, the EIA estimates. Some 80 percent of the crude oil shipped through the Strait of Hormuz goes to Asian markets, the EIA has estimated using data from Lloyd’s List Intelligence tanker tracking service. China, Japan, India, South Korea, and Singapore are the largest destinations for oil moving through the Strait of Hormuz.
Source:Oilprice.com
Key Nigerian Oil Export Pipeline Under Force Majeure After Fire Breaks Out
The operator of the Nembe Creek Trunk Line—one of the two key pipelines of Nigeria’s Bonny Light crude grade capable of transporting 150,000 bpd to the export terminal—declared on Sunday force majeure, due to a fire suspected to have been the result of an illegal third-party breach.
“Our Operations Emergency Response team was immediately activated and following its urgent intervention and containment action, we are constrained to shut in injection as well as other related operations into the NCTL. In accordance with standard procedure, we requested the other injectors to do same,” Nigerian operator Aiteo said in a statement, as carried by Sahara Reporters.
Before the fire broke out, the Nembe Creek Trunk Line was operating smoothly, which raises suspicion that the fire was the result of an “illegitimate, third-party breach of the functionality of the pipeline,” the statement by Aiteo spokesman Ndiana Matthew said.
Investigations into the cause of the fire continue and the stakeholders will be briefed in details in due course, said the company.
Two months ago, a fire erupted in an area around the Nembe Creek Trunk Line, but then Aiteo said that the pipeline was not impacted by the fire. At that time in early March, Shell, whose Nigerian unit operates exports from the Bonny Light terminal, said that there was no force majeure declared on Nigeria’s Bonny Light exports.
Bonny Light is a popular grade among refiners globally and its production is 200,000 bpd-250,000 bpd. The Bonny Light terminal or the pipelines feeding crude to the export facility were subject to many disruptions and declarations of force majeure in 2016 and 2017, when militant activity across the Niger Delta was frequently shutting oil exports from Nigeria.
Now, any potential disruption of the Bonny Light crude oil exports in the coming days or weeks could further tighten an already tightening market with the U.S. reportedly aiming at zero Iranian oil exports and tightening the sanctions on Venezuela, plus unrest in Libya, and continued cuts by OPEC and allies.
Source: Oilprice.com
Ghana: KNUST students develop gas leakage detector that operates via SMS alert
Three Ghanaian students from the Kwame Nkrumah University of Science and Technology (KNUST) in West Africa have developed a gas leakage detector that operates via SMS alert.
The technology aims at facilitating early detection of gas leakage and avert the destruction that comes with such a leakage.
A Level 100 Chemical Engineering student, Comfort Benewaa Osei Owusu, led the initiative.
Together with her friends, Safianu Inunnarm and Barikisu Nasiru, both Geological Engineering students, she set to work after losing a friend in a gas explosion.
“There are a lot of fire outbreaks in Ghana resulting from a gas explosion. Recently one of our friends died as a result of that and we thought there should be a formidable solution,” noted Comfort Benewaa Osei Owusu.
The gadget is equipped with a sensor which detects gas concentration and triggers a buzzer to alert neighbours.
It has a GPS and GSM with the capacity to contain, at least, three phone numbers.
These automatically send messages whenever there is gas leakage.
“The GPS and GSM model will send a message that there’s gas leakage. And you can add fire service numbers to it which is important,” the leader of the team explained.
Ghana has, since 2014, recorded, at least, nine major incidents of gas explosion nationwide.
Six of them occurred in the Greater Accra Region and one each in Takoradi in Western, Kasoa in Central and Kumasi Ashanti Regions.
Reports indicate 35% of the over 300 burns cases reported at the Korle Bu Teaching Hospital in 2017 were from gas explosions.
Fuel stations installing rooftop solar gains traction
Solar photovoltaic (PV) installations are achieving significant electricity cost savings for fuel service stations across Namibia and South Africa.
With electricity costs up by 350% over the last decade and the regional grid under enormous pressure due to generation issues at Eskom, leading fuel retailers are grabbing the opportunity to adopt solar solutions – both to save costs and in an effort to go green.
For example, the system at Puma Energy’s Bach Street Service Station in Windhoek has generated 207,273kWh since its commissioning in October 2016. The solar output has to date covered 25 to 30% of the site’s total monthly electricity consumption, resulting in material electricity cost savings and a significantly reduced carbon footprint.
According to Tim Frankish, the managing director of SolarSaver – a solar energy group backed by Stimulus Investments and the Pembani-Remgro Infrastructure Fund – service stations are ideal candidates for solar PV solutions as they generally have canopy space that sits in full sun. “These stations also consume a lot of electricity, especially as many sites now include 24-hour retail stores as part of their service offerings,” says Frankish. “We have completed numerous solar installations for service stations and have found that we can considerably cut their monthly electricity costs.”
The company has so far completed eight solar installations for service stations in Namibia. That list includes Engen sites in Windhoek, Outapi and Oshikuku, two Puma Energy sites in Windhoek, a Shell station in Rehoboth and a Total station in Otavi. Numerous other installations are planned across the country in the coming months.
Frankish sees great potential for solar adoption across the fuel retail sector, as all of the major fuel retail groups are actively encouraging their franchisees to adopt solar solutions. The company offers customised solar solutions on a rent-to-own basis. That means franchisees can benefit from the systems without the need for any upfront capital investment. Instead, SolarSaver installs the systems free-of-charge against a variable monthly rental charge.
“The effective cost of rented solar power is significantly cheaper than the equivalent cost of grid power, so our clients get to start saving on their electricity bills from day one,” says Frankish. “Our solar rental charges then only increase in line with CPI inflation, so clients’ savings grow each year as grid electricity costs increase significantly beyond that.” The company also remains responsible for all ongoing monitoring, maintenance and insurance. “We like to think of our offering as a ‘capex-free, hassle-free’ way to take advantage of solar power,” he adds.
While initial solutions focus on daytime power generation through grid-tied solar, SolarSaver is already starting to update existing systems to include batteries as that technology becomes more cost-effective. Solar technology is rapidly evolving and decreasing in cost. Solar panel prices have decreased by 80% since 2008 and the lithium-ion batteries used in solar applications have already halved in cost over the last two years.
Source:Esi-Africa.com
Ghana: NPA to use technology in fighting petroleum fraud-Tampuli
Hassan Tampuli, CEO of NPA
The Chief Executive of the National Petroleum Authority (NPA), Hassan Tampuli, says the NPA is exploring various options especially in the area of technology, to curtail the operations of petroleum fraudsters in the country.
The NPA in February this year confiscated petroleum products smuggled into the country estimated to be about Gh¢1 million.
The regulator said a total number of 28BRV, 6 canoes, 4 mobile pumps and 5 outboard motors carrying 709,250 litres of illegally smuggled petroleum products with taxes and levies value of Gh¢1, 150,186 have been confiscated.
The arrest, made in collaboration with the security agencies, is part of ongoing plans by the NPA to deal with fraudsters in the industry.
Speaking at the Oil and Fuel Supply Chain Security Conference on how to prevent fuel fraud in London, Mr. Tampuli was optimistic the plans for further deployment of technology would help block smuggling channels, especially when existing tools have so far been helpful in addressing the issue of fuel theft.
“We intend going forward to use more technology like the use of flow meters at the depots and fuel receiving facilities,” he said, adding; “we insist that if they don’t get the flow meters at those facilities, we will procure for them and ensure that they are working.”
The conference which brought together petroleum experts and security agencies from Africa, Europe, North and South America, to find ways of collaborating to deal with smuggle, as well as cross border petroleum theft.
Mr. Tampuli, who was speaking at the event, said Ghana has enjoyed effective collaboration with neighboring countries such as Nigeria, but said a lot more needed to be done to ensure the operations of the fuel cabal are dealt with.
He added that “Ghana has taken a position to deal ruthlessly with the problem as it impacts on tax revenue. We are confident that the measures rolled out, and others to be rolled out shortly, will help minimize if not eradicate the menace.”
Mr. Tampuli said ongoing partnership with the security agencies means patrols at the both the Eastern and Western coastlines to and facilitate arrests of smugglers, would continue to go on.
“GRA Customs monitors movement at the borders and facilitates asset confiscation and disposal of products.”
He also said there is enough political would from government to combat the activities of petroleum smuggling gangs, and warned everything would be done to ensure the businesses of those working within the rules, are protected.
Iran Waivers Halt Set to Reverberate Across Globe
Six months after the U.S. rocked oil markets by letting Iranian exports continue, its decision to end sanctions waivers that allowed shipments is also set to reverberate across the globe.
The U.S. is said to announce Monday morning in Washington that it won’t renew exemptions from its sanctions to buyers of Iranian crude after they expire on May 2. It marks a change in direction from November last year, when the Donald Trump administration granted waivers to eight importers as it sought to temper fuel prices ahead of American mid-term elections.
The move threatens to squeeze supplies further in a market that’s already facing supply disruptions from Venezuela to Libya and Nigeria, and extend this year’s rally in global benchmark Brent crude above $70 a barrel. Prices are still below the four-year highs of over $86 they hit in October before the U.S. issued its waivers.
What the waivers allowed:
China — oil imports of as much as 360,000 barrels a day
India — as much as 300,000 b/d of crude purchases
South Korea — 200,000 b/d of condensate, an ultra-light oil
Japan — exempted volume unknown; shipping data shows it bought 108,000 b/d that loaded in March
Turkey — about 60,000 b/d
Taiwan — volume unknown; nation’s refiners said previously they don’t plan to buy anything even with waivers
Here are some of the potential implications of the Trump administration’s latest decision, which is aimed at piling economic pressure on Iran over the Persian Gulf state’s nuclear program by cutting off a key source of the OPEC member’s revenue.
Fate of OPEC+ Deal
The U.S. government will also announce that it got commitments from suppliers such as Saudi Arabia and the United Arab Emirates to offset the loss of Iranian crude, according to people with knowledge of the matter.
That could jeopardize the output deal between the Organization of Petroleum Exporting Countries and its allies, which have been curbing supplies since the start of the year to avert a glut. Russia, one of the partners in the pact, has already signaled that the cuts may not need to be extended. A decision is expected when the producer group known as OPEC+ meets in June.
The pact was driven by Saudi Arabia after it was blindsided last year by the U.S. decision to grant waivers, which sparked a collapse in crude into a bear market in the fourth quarter. Now, the American pledge to eliminate oil exports from Iran may provide an incentive for Crown Prince Mohammed Bin Salman — a Trump ally — to ease the kingdom’s policy.
Price Relief?
While crude has jumped more than 3 percent on the news that the U.S. won’t renew exemptions, the future direction of prices may be determined by how much the likes of Saudi Arabia and the U.A.E. are able to cushion the blow amid other supply disruptions.
Last year, prices jumped to over $86 a barrel even though Saudi Arabia was pumping at record levels. Now, it’s not just Iranian shipments that are disrupted. Separate U.S. sanctions on Venezuela have squeezed supplies from that OPEC producer too, while fellow group member Libya is roiled by violence. Just on Sunday, a key oil pipeline in Nigeria was halted after a fire.
Iran’s exports in March totaled about 1.3 million barrels a day, tanker-tracking data compiled by Bloomberg show. Shipments were as high as 2.5 million barrels daily in April last year, before the U.S. announced plans to reimpose sanctions on the Islamic Republic.
Pain for Buyers
The current set of waivers expiring on May 2 allowed China, India, Japan, South Korea, Italy, Greece, Turkey and Taiwan to continue importing Iranian crude without being subjected to retaliatory U.S. sanctions. With the end of the waivers, the buyers face being cut off from the American financial system if they continue purchases.
Of the buyers, Asian nations India, South Korea, China and Japan are likely to be the hardest hit. If crude prices go higher, currencies in import-dependent nations may weaken and inflation could accelerate. The biggest importers had already put purchases from the Persian Gulf state on hold as they waited for the U.S. decision.
South Korea’s Hanwha Total Petrochemical Co. has already been buying and testing alternative cargoes from areas such as Africa and Australia. While it’s not impossible to find other options, that would raise costs and could affect the company’s profits, according to a spokesman.
Even if the Trump administration secures commitments by Saudi Arabia and U.A.E. to make up for lost volumes, South Korean buyers will be hit because the Middle East nations export only limited supplies of condensate — a form of ultra-light oil used to produce petrochemicals — according to traders who participate in the market.
Source:rigzone.com
Samsung Heavy clinches FPSO order worth nearly $970 million
South Korean shipbuilder Samsung Heavy Industries has received an order to build a floating production storage and offloading (FPSO) vessel for an unnamed Asian client.
In a regulatory filing on Monday, April 22, 2019, Samsung Heavy said it had signed a contract to deliver the FPSO by March 2022.
The value of the contract is 1.104 trillion won or about $967 million.
The FPSO will be built at Samsung Heavy’s Geoje shipyard in South Korea.
No further details have been released about the contract.
Researcher scoops award for advancing solar efficiency
Image credit: Arizona State University
The Institute of Electrical and Electronics Engineers (IEEE) has recognised Zachary Holman from Arizona State University for his significant contributions in advancing solar efficiency.
Holman was awarded the 2019 IEEE Stuart R. Wenham Young Professional Award, reports Compound Semiconductor.
The Young Professional Award was recently renamed in honour of the late Stuart Wenham, a photovoltaics research leader who made profound contributions to the field.
Holman commented: “My team has mapped out the technological and economic landscapes for these types of solar cells in publications that have served as guides to the community.”
Holman’s notable achievements include making new scientific developments and advancing performance to record efficiencies in solar cells based on silicon, CdTe, perovskites and III-V materials.
His most significant contributions have been to silicon-based tandem solar cells.
He has also invented a new type of four-terminal tandem solar module that uses a ‘PVMirror’ to avoid materials compatibility challenges of typical tandem solar cell structures.
Source: Esi-Africa.com
The Oil Giant Focusing Only On Africa
The state oil company of OPEC member Angola, Sonangol, plans to sell off stakes in dozens of joint ventures and cut jobs in order to focus on its core exploration and production business in Africa, Sonangol’s chairman Carlos Saturnino has said.