British firms have acquired more land in Africa for controversial biofuel plantations than companies from any other country, a Guardian investigation has revealed.
Half of the 3.2m hectares (ha) of biofuel land identified – in countries from Mozambique to Senegal – is linked to 11 British companies, more than any other country.
Liquid fuels made from plants – such as bioethanol – are hailed by some as environmentally-friendly replacements for fossil fuels. Because they compete for land with crop plants, biofuels have also been linked to record food prices and rising hunger. There are also fears they can increase greenhouse gas emissions.
A market has been created by British and EU laws requiring the blending of rising amounts of biofuels into petrol and diesel, but the rules were condemned as unethical and "backfiring badly" in April by a Nuffield Council on Bioethics commission. In the UK, only 31% of biofuels used meet voluntary environmental standards intended to protect water supplies, soil quality and carbon stocks in the source country.
There are no central records of land acquisitions in Africa, but research by the Guardian revealed the scale of the biofuels rush in sub-Saharan Africa – 100 projects and 50 companies in more than 20 countries.
Crest Global Green Energy has the largest recorded landholding, 900,000ha in Mali, Guinea and Senegal. Tom Stuart, the chief executive, said: "It is true in some cases [that biofuels displace food], but in our projects we 'inter-crop', planting as much food as biofuel on the marginal land we have brought into agricultural use. There is a large social element to our projects, with all the local people needing to be in agreement, and that's normally written into contracts at government level."
Another UK company, Sun Biofuels, leased 8,000ha in Tanzania where it grows Jatropha curcas, a non-edible plant whose oil-rich seeds can be processed into biodiesel. "We'll start harvesting and producing in two years," said Peter Auge, office manager in Tanzania. "The main attraction for us is exporting to Europe."
Claims that J curcas use prevents biofuels competing with food because it grows easily on marginal and arid land unsuitable for other agriculture have been challenged even within the industry. "Growing jatropha in a profitable way on dry lands is a myth. It needs water, fertilisers and pesticides to provide high yields," Auge said. Jamidu Katima, at the University of Dar es Salaam, is critical of biofuels guidelines adopted by Tanzania's government in 2010. "There are no plans to build refineries, nor obligations for foreign investors to reserve part of their output for the domestic market," he said.
Another risk is that biofuel use could increase carbon emissions by increasing destruction of forests when displaced local farmers clear land. The Institute of European Environmental Policy recently said carbon released from deforestation linked to biofuels could exceed carbon savings by 35% in 2011 rising to 60% in 2018. Currently, this indirect impact is not considered in European sustainability guidelines.
James Smith, professor of African and Development Studies at Edinburgh University, said: "Private investment is running far ahead of our knowledge of the impacts of biofuels, such as land dispossession. This action is eroding the UK's position of enlightenment on development issues."
Unpublished research by the charity ActionAid, seen by the Guardian, confirms the picture of scores of projects amassing millions of hectares on the east and west coasts of Africa. "I suspect the estimates are actually quite conservative," said Smith.
Norman Baker, the Liberal Democrat junior transport minister, said: "I consider the sustainability of biofuels to be paramount. No biofuel will count towards our targets unless it meets certain sustainability requirements. But we are pushing [Europe] to go further, to reduce the risk of knock-on effects, including deforestation in new areas."
He added: "Only a tiny proportion – less that 0.1% - of UK biofuel has come from Africa."
As oil prices rise, said Jeremy Woods, a lecturer in bioenergy at Imperial College London, biofuels could boom. "Once oil is over $70 a barrel, conventional and new generation biofuels become cost competitive. When oil and biofuels are competitive, we are into a different world."
Expansion of the biofuels industry has been fuelled by capital raised on the Alternative Investment Market of the London Stock Exchange. In the Guardian survey Italy is the next biggest player with seven companies, followed by Germany (six), France (six) and the US (four). Brazil and China have been acquiring land in Africa for biofuels and food but the investigation identified only a handful of established biofuels projects. The database of biofuels projects in Africa was compiled with the help of the University of California Berkeley's Africa Reporting Project.
Some projects provide local benefits through investment, employment and local use of the produce, but many do not, says Lorenzo Cotula at the International Institute for Environment and Development, who recently analysed 12 contracts from African land deals. "Some of the contracts we analysed only contain vague and unenforceable promises." Some have 100-year leases, at very low or free rent and priority access to water, he added. "Extensive commercial plantations dislocate rural communities from their land", said Cotula. "Instead, self-managed biofuels production can offer cheaper energy and complementary sources of income".
The chief executive of Sun Biofuels, Richard Morgans said: "Our company produces sustainable and ethical biofuels – categorically yes. We would welcome higher sustainability standards, but you do have to balance this with economic development. If you are a local [in Tanzania or Mozambique] and need a job, you probably aren't worried about whether the orangutans sleep at night. It's also insulting to say African governments can't run their own affairs."
A community-based approach is embraced by a few investors. "Our farmers in Mozambique are given seedlings to grow jatropha on their own land with the option to sell the seeds back to us," says Chris Hunter, of UK-based Viridesco. "We help smaller plantations that cater to the developing world markets, as opposed to big monocultures that service the developed world's energy needs".
UK companies were the first into Africa in 2005, but this has not been without problems. D1 Oils froze its export plans and started supplying locally in Malawi and Zambia, following the failure in 2009 of its joint-venture with BP, which doubted jatropha's market potential. Last year GEM Biofuels, operating in Madagascar, suspended its LSE quotation for four months.
The revelation of the central role of UK companies in biofuels coincides with a report from Oxfam forecasting that the price of staple foods will more than double in the next 20 years. The report identifies biofuels as a factor and demands that western governments end biofuel policies that divert food to fuel for cars. "We are sleepwalking towards an age of avoidable crisis," said Oxfam's chief executive, Barbara Stocking. "One in seven people on the planet go hungry every day despite the fact that the world is capable of feeding everyone. The food system must be overhauled."
Damian Carrington and Stefano Valentino
guardian.co.uk,
Tuesday, May 31, 2011
Is the government colluding with GNPC to steal Ghana crude oil?
With the current happenings at the Jubilee Oil fields, the NPP UK and Ireland would like to take this opportunity to express our deepest concern about the reports on the dysfunctional ultrasonic export flow meters on the FPSO vessel which are meant to record the amount of oil exported and the seeming intransigence of GNPC, on behalf of the Government of Ghana and its oil lifting allies Vitol and Woodfields Energy Resources (formerly Cirrus Energy Services) to continue lifting crude oil irrespective of these defective flow meters.
The purport of our deepest concern has come from the fact that the Ghana News Agency has just announced that the Ghana National Petroleum Corporation (GNPC), has lifted a total of 994,691 barrels of Jubilee crude oil from the FPSO Kwame Nkrumah using a Belgian flagged vessel MT “FELICITY”.
According to the report the GNPC lifted the crude oil on behalf of the Ghana Group, comprising Government of Ghana (GoG) and GNPC. The 994,691 barrels of oil lifted is made up of accumulated government royalty of 275,346 barrels and accumulated GNPC’s 13.75 per cent revenue share entitlement of the remained 719,345 barrels. A statement issued in Accra, on Thursday 26th May 2011, said the vessel had since set sail to deliver the cargo to a Total Refinery, in the port of Fos, France.
GNPC with the assistance of Vitol and Woodfields Energy Resources (formerly Cirrus Energy Services) successfully marketed the cargo on the best available commercial terms. The GNPC report continued to reassure Ghanaians that the measurement/metering system onboard the FPSO Kwame Nkrumah was electronic, comprehensive, effective and accurate. “The system has been designed to automatically detect and compensate for any defects that occur in any of its parts.” We can only assume this statement to be accurate when the flow meters were not dysfunctional.
However, this is not what we have been told. We have been told by the Energy Minister that there are faults with the flow meters on FPSO Kwame Nkrumah, and that they have been removed for calibration. This has been confirmed by the Director of Exploration and Production of the GNPC, Mr. Thomas Manu. The question we would like to ask the Govt of Ghana and GNPC is - where are these figures coming from and how was our oil being measured in light of the export flow meters reported not working for more than a month now?
In a publication by Daily Graphic on 17th May 2011, “asking how much oil do we get”, it stated that “Ghana risks losing millions of dollars in oil revenue following the revelation that the Floating Production, Storage and Offloading (MV FPSO Kwame Nkrumah) platform at the Jubilee Field is operating without its exporting flow meter. It has also emerged that the Ghana National Petroleum Corporation (GNPC) and the Ministry of Energy, the two regulators in the industry, have been using a system called ullaging, in which a dip stick or ruler is used to manually calculate the amount of oil meant for export. Interestingly, officials from the two regulatory bodies have confirmed to the Daily Graphic that they were aware that the flow meter on the FPSO had not been functioning. Oil industry experts, however, say that there is nowhere in the world where the quantity of the bulky liquid commodity is determined or measured manually. Not only this unaccepted anywhere, it’s also a total breach of the very contract signed between Ghana govt and Kosmos in 2004, which agreed on the use of Ultrasonic Flow Meters as the only means to measure the quantity of oil flow at the jubilee oil field (both flow into the FPSO vessel and the quantity exported).
The Daily Graphic reported that “anytime a vessel arrived to lift oil for the world market, the issue always ended in a heated argument between officials of the Ghana Revenue Authority (GRA) and the buyers. The report further stated that, “officials of the GRA and other officials are not allowed on board the tankers and, therefore, the quantity of oil exported / off loaded are determined by officers representing the buyers.” [Source: Daily Graphic]
We have been reliably informed by the Director of Exploration and Production of the GNPC, Mr. Thomas Manu that the meters would not be refitted until the end of July 2011 when the calibration would have been completed.
On 16th May 2011 myjoyonline, carried the following news with the banner headline “Defective flow meters on FPSO could shortchange Ghana; Oil expert”. It’s stated; “The devices used to independently monitor how much crude oil is produced from the Jubilee Field are said to have become defective. The Coordinator of the Civil Society Platform on Oil and Gas announced this at an Editor’s workshop organized by Penplusbytes and the Ghana Journalists Association (GJA) at Koforidua in the Eastern Region.
Mohammed Amin Adam explained to Joy Business that the Ghana Revenue Authority (GRA) has cited the defective flow metres as one of the challenges it is facing in its mandate to ensure the country gets the revenue due it from crude oil. He added that the Ghana Standards Board (GBS) has also cited its own challenges.
“Since the measuring instruments were installed on the FPSO, they (GBS) have not been able to examine the calibration to see whether they are up to standards. The only reasons they have given is logistical constraints,” he stated. He said the difficulties being faced by such institutions clearly indicate that Ghana is not ready to wholly commence the sale of the crude oil.
The report added that, Mr Amin Adam therefore called on the institutions to ensure that these meters function properly before the country is shortchanged. The Ministry of Energy in a response said it is aware that the flow metres are not working and that the Minister has directed that the problems be solved as soon as possible.” Source: Joy News/Myjoyonline.com/Ghana.16th May 2011.
The breaking of this story prompted Hon. K.T Hammond to argue that oil lifting should be suspended since crude is not a perishable commodity until such time as we have a credible and accurate metering and measuring systems in place.
Now, the GNPC, which under Article 11 of the agreement between Ghana Government and Kosmos signed in 2004, was to be the watch dog on the measurement and pricing of petroleum, have resorted to lying on behalf of the oil buying companies and the contractors (Kosmos/Tullow) that the measurement/metering system onboard the FPSO Kwame Nkrumah was electronic, comprehensive, effective and accurate as if the meters are still in place. “The system has been designed to automatically detect and compensate for any defects that occur in any of its parts,” according to GNPC.
We do not believe that those figures which we are being given by the GNPC and its allies are accurate and we suspect that there is some collusion going on to short change Ghana as a nation as has also been expressed by oil experts have suggested. Moreover we have been told that the officials of the Ghana Revenue Authority and customs officials are not allowed to accompany the tankers to take records of the quantity of oil exported. It is a legal requirement under Article 11 of the contract that a calibration and test of the flow meters on the FPSO shall be carried out at internationally recognized standards and also the measurement of any oil leaving the shores of Ghana shall be done at presence of GNPC or its authorised agent to observe it.
ARTICLE 11
MEASUREMENT AND PRICING OF PETROLEUM
11.1 Crude Oil shall be delivered by Contractor to storage tanks or other suitable holding facility constructed, maintained and operated in accordance with applicable laws and good international petroleum industry oilfield practice (e.g. American Petroleum Institute) under the same or similar circumstances. Crude Oil shall be metered or otherwise measured for quantity and tested for quality in such storage tanks or other facility for all purposes of this Agreement. Any Party may request that measurements and tests be done by an internationally recognized inspection company. Contractor shall arrange and pay for the conduct of any measurement, or test so requested, provided however, that in the case of (I) a test requested for quality purposes and (2) a test requested on metering (or measurement) devices where the test demonstrates that such devices are accurate within acceptable tolerances, the Party requesting the test shall reimburse Contractor for the costs associated with the test or tests.
11.2 GNPC or its authorized agent shall have the right:
a) To be present at and to observe such measurement of Crude Oil; and
b) To examine and test whatever appliances are used by Contractor.
11.3 In the event that GNPC considers Contractor’s methods of measurement to be inaccurate, GNPC shall notify Contractor to this effect and the Parties shall meet within ten (10) days of such notification to discuss the matter. If after thirty (30) days, the Parties cannot agree over the issue they shall refer for resolution under Article 24, the sole question of whether Contractor’s method of measuring Crude Oil is accurate. Retrospective adjustments to measurements shall be made where necessary to give effect to the decision rendered under Article 24.
11.4 If, upon the examination or testing of appliances provided for in Article 11.2, any such appliances shall be discovered to be defective:
a) Contractor shall take immediate steps to repair or replace such appliance; and
b) Subject to the establishment of the contrary, such error shall be deemed to have existed for three (3) months or since the date of the last examination and testing, whichever occurred more recently.
11.5 In the event that Contractor desires to adjust, repair or replace any measuring appliance, it shall give GNPC reasonable notice to enable GNPC or its authorized agent to be present.
11.6 Contractor shall keep full and accurate accounts concerning all Petroleum measured as aforesaid and provide GNPC with copies thereof on a monthly basis, not later than ten (10) days after the end of each month.
We also feel scandalized and shocked to learn that the officials of the Ghana Revenue Authority and customs officials are not allowed to accompany the tankers to take records of the quantity of oil exported” in light of the flow meters reported not working. It’s unacceptable for the representatives of the buyers to rather furnish the revenue agencies in Ghana with figures on the amount of oil exported. These lapses will never be tolerated in any disciplined and competent administration and the Energy Minister Dr Oteng Adjei and his Deputy Mr Emmanuel Buah must bow their heads in shame for their silence and refusal to even respond to this serious issue appropriately!
We therefore urge President Mills to instruct the GNPC and its agents or operators to suspend all oil exports from the Jubilee Field till the meters are calibrated and replaced by July 2011 as confirmed by the Director of Exploration and Production of the GNPC, Mr. Thomas Manu.
Hayford Atta-Krufi
Chairman - NPP UK and NPP UK & Ireland
“P.P.” – Communication and Research Committee
The purport of our deepest concern has come from the fact that the Ghana News Agency has just announced that the Ghana National Petroleum Corporation (GNPC), has lifted a total of 994,691 barrels of Jubilee crude oil from the FPSO Kwame Nkrumah using a Belgian flagged vessel MT “FELICITY”.
According to the report the GNPC lifted the crude oil on behalf of the Ghana Group, comprising Government of Ghana (GoG) and GNPC. The 994,691 barrels of oil lifted is made up of accumulated government royalty of 275,346 barrels and accumulated GNPC’s 13.75 per cent revenue share entitlement of the remained 719,345 barrels. A statement issued in Accra, on Thursday 26th May 2011, said the vessel had since set sail to deliver the cargo to a Total Refinery, in the port of Fos, France.
GNPC with the assistance of Vitol and Woodfields Energy Resources (formerly Cirrus Energy Services) successfully marketed the cargo on the best available commercial terms. The GNPC report continued to reassure Ghanaians that the measurement/metering system onboard the FPSO Kwame Nkrumah was electronic, comprehensive, effective and accurate. “The system has been designed to automatically detect and compensate for any defects that occur in any of its parts.” We can only assume this statement to be accurate when the flow meters were not dysfunctional.
However, this is not what we have been told. We have been told by the Energy Minister that there are faults with the flow meters on FPSO Kwame Nkrumah, and that they have been removed for calibration. This has been confirmed by the Director of Exploration and Production of the GNPC, Mr. Thomas Manu. The question we would like to ask the Govt of Ghana and GNPC is - where are these figures coming from and how was our oil being measured in light of the export flow meters reported not working for more than a month now?
In a publication by Daily Graphic on 17th May 2011, “asking how much oil do we get”, it stated that “Ghana risks losing millions of dollars in oil revenue following the revelation that the Floating Production, Storage and Offloading (MV FPSO Kwame Nkrumah) platform at the Jubilee Field is operating without its exporting flow meter. It has also emerged that the Ghana National Petroleum Corporation (GNPC) and the Ministry of Energy, the two regulators in the industry, have been using a system called ullaging, in which a dip stick or ruler is used to manually calculate the amount of oil meant for export. Interestingly, officials from the two regulatory bodies have confirmed to the Daily Graphic that they were aware that the flow meter on the FPSO had not been functioning. Oil industry experts, however, say that there is nowhere in the world where the quantity of the bulky liquid commodity is determined or measured manually. Not only this unaccepted anywhere, it’s also a total breach of the very contract signed between Ghana govt and Kosmos in 2004, which agreed on the use of Ultrasonic Flow Meters as the only means to measure the quantity of oil flow at the jubilee oil field (both flow into the FPSO vessel and the quantity exported).
The Daily Graphic reported that “anytime a vessel arrived to lift oil for the world market, the issue always ended in a heated argument between officials of the Ghana Revenue Authority (GRA) and the buyers. The report further stated that, “officials of the GRA and other officials are not allowed on board the tankers and, therefore, the quantity of oil exported / off loaded are determined by officers representing the buyers.” [Source: Daily Graphic]
We have been reliably informed by the Director of Exploration and Production of the GNPC, Mr. Thomas Manu that the meters would not be refitted until the end of July 2011 when the calibration would have been completed.
On 16th May 2011 myjoyonline, carried the following news with the banner headline “Defective flow meters on FPSO could shortchange Ghana; Oil expert”. It’s stated; “The devices used to independently monitor how much crude oil is produced from the Jubilee Field are said to have become defective. The Coordinator of the Civil Society Platform on Oil and Gas announced this at an Editor’s workshop organized by Penplusbytes and the Ghana Journalists Association (GJA) at Koforidua in the Eastern Region.
Mohammed Amin Adam explained to Joy Business that the Ghana Revenue Authority (GRA) has cited the defective flow metres as one of the challenges it is facing in its mandate to ensure the country gets the revenue due it from crude oil. He added that the Ghana Standards Board (GBS) has also cited its own challenges.
“Since the measuring instruments were installed on the FPSO, they (GBS) have not been able to examine the calibration to see whether they are up to standards. The only reasons they have given is logistical constraints,” he stated. He said the difficulties being faced by such institutions clearly indicate that Ghana is not ready to wholly commence the sale of the crude oil.
The report added that, Mr Amin Adam therefore called on the institutions to ensure that these meters function properly before the country is shortchanged. The Ministry of Energy in a response said it is aware that the flow metres are not working and that the Minister has directed that the problems be solved as soon as possible.” Source: Joy News/Myjoyonline.com/Ghana.16th May 2011.
The breaking of this story prompted Hon. K.T Hammond to argue that oil lifting should be suspended since crude is not a perishable commodity until such time as we have a credible and accurate metering and measuring systems in place.
Now, the GNPC, which under Article 11 of the agreement between Ghana Government and Kosmos signed in 2004, was to be the watch dog on the measurement and pricing of petroleum, have resorted to lying on behalf of the oil buying companies and the contractors (Kosmos/Tullow) that the measurement/metering system onboard the FPSO Kwame Nkrumah was electronic, comprehensive, effective and accurate as if the meters are still in place. “The system has been designed to automatically detect and compensate for any defects that occur in any of its parts,” according to GNPC.
We do not believe that those figures which we are being given by the GNPC and its allies are accurate and we suspect that there is some collusion going on to short change Ghana as a nation as has also been expressed by oil experts have suggested. Moreover we have been told that the officials of the Ghana Revenue Authority and customs officials are not allowed to accompany the tankers to take records of the quantity of oil exported. It is a legal requirement under Article 11 of the contract that a calibration and test of the flow meters on the FPSO shall be carried out at internationally recognized standards and also the measurement of any oil leaving the shores of Ghana shall be done at presence of GNPC or its authorised agent to observe it.
ARTICLE 11
MEASUREMENT AND PRICING OF PETROLEUM
11.1 Crude Oil shall be delivered by Contractor to storage tanks or other suitable holding facility constructed, maintained and operated in accordance with applicable laws and good international petroleum industry oilfield practice (e.g. American Petroleum Institute) under the same or similar circumstances. Crude Oil shall be metered or otherwise measured for quantity and tested for quality in such storage tanks or other facility for all purposes of this Agreement. Any Party may request that measurements and tests be done by an internationally recognized inspection company. Contractor shall arrange and pay for the conduct of any measurement, or test so requested, provided however, that in the case of (I) a test requested for quality purposes and (2) a test requested on metering (or measurement) devices where the test demonstrates that such devices are accurate within acceptable tolerances, the Party requesting the test shall reimburse Contractor for the costs associated with the test or tests.
11.2 GNPC or its authorized agent shall have the right:
a) To be present at and to observe such measurement of Crude Oil; and
b) To examine and test whatever appliances are used by Contractor.
11.3 In the event that GNPC considers Contractor’s methods of measurement to be inaccurate, GNPC shall notify Contractor to this effect and the Parties shall meet within ten (10) days of such notification to discuss the matter. If after thirty (30) days, the Parties cannot agree over the issue they shall refer for resolution under Article 24, the sole question of whether Contractor’s method of measuring Crude Oil is accurate. Retrospective adjustments to measurements shall be made where necessary to give effect to the decision rendered under Article 24.
11.4 If, upon the examination or testing of appliances provided for in Article 11.2, any such appliances shall be discovered to be defective:
a) Contractor shall take immediate steps to repair or replace such appliance; and
b) Subject to the establishment of the contrary, such error shall be deemed to have existed for three (3) months or since the date of the last examination and testing, whichever occurred more recently.
11.5 In the event that Contractor desires to adjust, repair or replace any measuring appliance, it shall give GNPC reasonable notice to enable GNPC or its authorized agent to be present.
11.6 Contractor shall keep full and accurate accounts concerning all Petroleum measured as aforesaid and provide GNPC with copies thereof on a monthly basis, not later than ten (10) days after the end of each month.
We also feel scandalized and shocked to learn that the officials of the Ghana Revenue Authority and customs officials are not allowed to accompany the tankers to take records of the quantity of oil exported” in light of the flow meters reported not working. It’s unacceptable for the representatives of the buyers to rather furnish the revenue agencies in Ghana with figures on the amount of oil exported. These lapses will never be tolerated in any disciplined and competent administration and the Energy Minister Dr Oteng Adjei and his Deputy Mr Emmanuel Buah must bow their heads in shame for their silence and refusal to even respond to this serious issue appropriately!
We therefore urge President Mills to instruct the GNPC and its agents or operators to suspend all oil exports from the Jubilee Field till the meters are calibrated and replaced by July 2011 as confirmed by the Director of Exploration and Production of the GNPC, Mr. Thomas Manu.
Hayford Atta-Krufi
Chairman - NPP UK and NPP UK & Ireland
“P.P.” – Communication and Research Committee
Tullow Oil plans to sell shares at Ghana Stock Exchange
Tullow Oil says its decision to sell shares to investors in Ghana, through a listing on the stock exchange in Accra, will underline its commitment to the country.
The Anglo-Irish energy company also claims the float of shares in Accra, due to launch on 13 June, will make it easier for investors in Ghana to buy its shares, as the country's oil industry develops.Tullow's chief financial officer, Ian Springett, told the BBC that the company hopes it will get a good reception.
"Tullow wants to be in Ghana very much for the long term. I think a listing on the Ghana Stock Exchange is an excellent way to demonstrate that commitment and it really gives Ghanains an opportunity to invest in our company and share in our future," he said.
"The secondary listing and issue through Ghanaian institutions will help cement the group's local relationships," added energy analyst Job Langbroek at Davy Stockbrokers in Dublin.
Jubilee prospect Tullow is helping to develop the Jubilee oil field in Ghana, a prospect that promises to transform the fortunes of the country's economy.
Jubilee, which was discovered in 2007, is one of the biggest oil finds in west Africa over the last decade and it is believed to hold more than a billion barrels of crude.
The company is heavily focused on exploring for gas and oil across Africa, with operations stretching from Ghana to Tanzania and notably in Uganda.
Tullow expects its project in the Lake Albert Rift Basin region of Uganda to yield more than 2.5bn barrels of crude oil.
Profits outside Ghana From its roots in the Republic of Ireland, with a listing at the stock exchange in Dublin, in little more than a decade Tullow has been transformed from a minnow of the industry to become a much bigger player in the energy sector, with significant shareholders at the London Stock Exchange.
Continue reading the main story
“Start Quote
End Quote Aidan Heavey Founder, Tullow OilI knew nothing about the oil and gas industry... which made it more challenging”
Mr Springett reminds investors in Ghana that if they buy Tullow's shares when they start trading, they will also benefit from profits made elsewhere.
"Not just Africa of course, which is still where most of our business lies, but we're also investing in South America and we still have substantial assets in the UK North Sea," he says.Tullow has come a long way since its tentative start in 1985, when the founder and current chief executive, Aidan Heavey, overheard a friend talking about small oil fields in Africa which had been left behind by the majors and had no-one to work them.
"I contacted another friend of mine in the World Bank who told me about a project in Senegal," Mr Heavey says.
"They had some small gas fields that they were trying to get people to develop, so I set up Tullow Oil to re-work those old fields.
"I knew nothing about the oil and gas industry at the time, which made it more challenging," he candidly admits.
During the 1990s the Irish company made steady progress, but the turn of the new century saw a major leap forward for Tullow.
In 2000 its pace of growth accelerated markedly with the acquisition of gas fields and related infrastructure in the North Sea from BP.
This acquisition was the catalyst for the group to move its registration to the UK.
Avoiding disputes Tales of big oil companies trampling over the rights of local people and falling out with governments in the developing world are common in the industry.
Tullow Oil's Ian Springett believes Ghana will prove lucrative for the company Tullow has overcome several problems in Ghana and Uganda but, according to finance chief Mr Springett, being a smaller company always seeking good relations can help.
"I think there are certain advantages, but above all it's down to the company and its leadership. Our view is that we're there for the long term," he says.
"Our object is to create long-term value for the shareholders, for the governments in the countries in which we operate and at the end of the day remembering it is their oil that we're developing.
"At the same time we also work with local communities to develop local resources, local service industries to employ local people. I think over 80% of our staff in Ghana are Ghanaian."
Positive spin Mr Springett seems very good at talking up the business, but the figures show that he is not exaggerating its prospects, even if he makes light of its challenges.
It has operations in 22 countries and last year its revenues were more than $1bn (£607m).
In 2010 it found hydrocarbons in 24 out of the 29 wells it drilled, but that kind of success is a long way from actually pumping crude oil.
As the price of crude oil hovers around $100 a barrel the future looks profitable for Tullow and that might tempt investors in Ghana to bet on its future, especially if the major economies of Europe and the US get back on track and demand for oil rises.
Equatorial Guinea's dictator bolstered by American allies
The New York Times has an important piece checking in on the business dealings of retired general Bantz Craddock, a former senior aide to Donald Rumsfeld and former supreme allied commander in Europe. Craddock's military contracting company, Military Professional Resources Inc., has been working a lucrative job that appears to involve propping up one of the worst dictators in Africa -- President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea:
And despite a specific promise by Davis that political prisoners would be freed, that did not happen. (That pledge came at a high-profile June 2010 news conference featuring Obiang and Davis that was intended to burnish the dictator's international image.)
This past March, Davis filed a form with the government saying his work with Equatorial Guinea had come to an end.
By Justin Elliott
The contractor, Military Professional Resources Inc., or M.P.R.I., led by a top aide to former Defense Secretary Donald H. Rumsfeld, works on maritime security and human rights training for Mr. Obiang’s police forces. But even with the training, the United Nations, human rights groups and local dissidents say torture by the nation’s authorities remains systematic. And maritime security touches on the most sensitive aspects of personal defense for Mr. Obiang, especially in an island capital where coup attempts have come from the sea.That human rights training has apparently been less than effective:
Despite M.P.R.I.’s work with the country’s police, Mr. Nowak, the former United Nations torture investigator, found that guards and soldiers took turns administering electric shocks to political prisoners at the Playa Negra, or Black Beach, prison adjacent to the presidential palace in downtown Malabo.Earlier this year I explored in depth the role of another former U.S. government official -- ex-Clinton aide Lanny Davis -- in helping Obiang. Declaring himself Obiang's "reform counsel," Davis signed a $1 million-per-year contract with the dictator's government in April 2010. When I checked in with human rights advocates in January, they said nothing had changed.
Mr. Nowak discovered these practices in November 2008, at least a year after M.P.R.I. had begun its human rights training here, according to the government’s chronology.
And despite a specific promise by Davis that political prisoners would be freed, that did not happen. (That pledge came at a high-profile June 2010 news conference featuring Obiang and Davis that was intended to burnish the dictator's international image.)
This past March, Davis filed a form with the government saying his work with Equatorial Guinea had come to an end.
By Justin Elliott
Monday, May 30, 2011
Libya Rebels Run Out Of Crude Oil,
DOW JONES NEWSWIRES
Western-backed rebels in Libya have used up their stocks of crude oil, and it's unclear when production might resume at the country's southeastern oil fields, which are vulnerable to attack, the Financial Times reported online Monday, citing the main exporting company under opposition control.
The small refinery at Tobruk, a maritime export terminal near Libya's border with Egypt, shut down late last week after using up the last oil in storage, according to Abdel Jalil Mayouf, spokesman for Arabian Gulf Oil Co., or Agoco.
The new authorities in eastern Libya have held major fields about 500 kilometers to the south since the February uprising, including the country's biggest, Sarir, with potential output of more than 200,000 barrels a day under normal circumstances.
But forces loyal to Col. Moammar Gadhafi, Libya's ruler for nearly 42 years, hold nearby towns to the west, keeping the rebel fields exposed to surprise attacks across the open desert, the FT noted. Lightly armed mercenaries in small four-wheel-drive vehicles have slipped through despite NATO air cover for anti- Gadhafi forces.
Full story at
-Dow Jones Newswires;
Western-backed rebels in Libya have used up their stocks of crude oil, and it's unclear when production might resume at the country's southeastern oil fields, which are vulnerable to attack, the Financial Times reported online Monday, citing the main exporting company under opposition control.
The small refinery at Tobruk, a maritime export terminal near Libya's border with Egypt, shut down late last week after using up the last oil in storage, according to Abdel Jalil Mayouf, spokesman for Arabian Gulf Oil Co., or Agoco.
The new authorities in eastern Libya have held major fields about 500 kilometers to the south since the February uprising, including the country's biggest, Sarir, with potential output of more than 200,000 barrels a day under normal circumstances.
But forces loyal to Col. Moammar Gadhafi, Libya's ruler for nearly 42 years, hold nearby towns to the west, keeping the rebel fields exposed to surprise attacks across the open desert, the FT noted. Lightly armed mercenaries in small four-wheel-drive vehicles have slipped through despite NATO air cover for anti- Gadhafi forces.
Full story at
-Dow Jones Newswires;
Angola Earned $48.6 Billion in Oil Exports, Central Bank Says
May 30 (Bloomberg) -- Angola earned $48.6 billion from oil exports last year, with about $20 billion of crude exported to China, the southern African nation’s central bank said.
By Candido Mendes
Sales to China increased from $15 billion in 2009, while U.S. bought $8.8 billion worth of oil in 2010 compared with $7.4 billion a year earlier, the Luanda-based Banco Nacional de Angola said in a statement on its website today.
To contact the reporter on this story: Candido Mendes in Luanda at cmendes6@bloomberg.netBy Candido Mendes
Sunday, May 29, 2011
Right Time for Ghana to Develop and Promote Solar Energy
Even when there is, at present, no problem with the water level of Ghana's Akosombo Dam, power failure still exists in the country. A week never passes without a cut in power from the national grid. Everything comes to a standstill when power fails. The break is so sudden and powerful that electrical appliances in many homes are broken. The government must begin to think seriously on how to make energy sufficient in a more efficient way. With the discovery of oil, the government must direct more resources towards investing in solar energy systems. It is expensive for an individual to install the systems that provide solar energy. A self-contained house of between three to six bed-rooms will cost around 15,000 dollars to have solar energy as initial outlay, according to DANIDA whose efforts are directed towards providing solar energy in many houses in the North where sunshine is an abundant gift from God.
Our government needs to take a more serious look at solar energy. Once the solar project begins, organisations like USAID, SHELL, SIDA, DANIDA and FINIDA can be called in to help. The Nordic countries have a record of pursuing positive development in the developing countries even when it comes to promoting and developing solar energy as DANIDA is doing in northern Ghana. Shell has also produced solar energy for fifteen thousand homes in South Africa. What we need in Ghana is a radical change in power policy. There is the need to privatise energy production and distribution so that the responsibility of importing solar panels and accessories will not be the sole duty of the Government. Towards that end, government can establish an autonomous body closely linked to National Utility, (the organisation responsible for the nation's power control, water supply and sanitation). The government must appoint knowledgeable people who understand the benefits of solar and other forms of energy on this body.
Sun power is an abundant and renewable form of energy that produces zero carbon emissions. Its impact on the environment is minimal. Solar Energy uses solar panels to provide electricity for homes and industries. Modern solar panels are a combination of magnifying glass and fluid-filled pipes. These are specially made to focus the power of the sun on the pipes behind the panels. The pipes carry a special fluid that heats up rapidly. They are painted black to absorb the heat. A roof is built to protect the reflective surface which, in turn, protects anything behind the solar panels.
The solar panels have photovoltaic (PV) cells which transform sunlight into electricity. PV cells come in many sizes and a variety of technologies. They can be mounted on a surface like wood. PV cells are fragile and therefore must be protected against physical damage. The PV cells must be wired together to create a solar array which will move on a single array.
Hydro-power dams are becoming a thing of the past. Some countries are breaking down their hydropower dams. In Ethiopia, for example, a campaign was launched which caused a break in the construction of a massive dam on the Omo river. Western countries have few months of sunshine, but they are even putting up and promoting solar energy. Sadly enough, all the governments that have come and gone in Ghana have closed their eyes to solar energy and still continue to build another dam at Bui. We live in a country where birds and lizards playing on electrical wires can join the wires together and cause power failure! What is worse, Bui Dam is being built on a national park which is home to many endangered species of animals. Many people will be forced to leave their farms and homes. Where will they go? There is no gainsaying the fact that hydro-electric power is still very important, especially for a poor country, despite its environmental problems. We still need dams in Africa as long as we don't build them haphazardly without any extensive cost-benefit analysis. We need not destroy any dam in Ghana and so much must have already been sunk in the Bui Dam that a cessation may not be advisable. But we must move from one stage of progress to another one which is more stable and environmentally harmless. Solar energy may be costly to build but it provides clean and cheap energy. There must be a smooth transition to other energy sources like solar and wind energy.
This is now the right time for any caring and serious government to capitalise on the oil wealth to explore other sources of energy which are more sustainable and more environmentally friendly. The money coming from the oil production may not be much but if the government will put its priorities right it will be able to dare an investment into the research, production and development of solar energy which will give a lasting hope for homes and industries. Ghana is geographically well positioned to receive sunshine throughout the year. If the sun's energy, which we have in abundance, is fully tapped, it can provide Ghana a very reliable and permanent source of electricity supply.
Ghana depends a lot on hydro-energy but this has never been sufficient for our needs. That is why, in recent times, additional energy is being created by means of thermal plants at Aboadze. When the Bui Dam is fully functional, we will not have the capacity to build more dams. There will simply be no more rivers to be dammed even if we want to. But the energy needs of the country, inadequate as they are now, will only increase with the increased growth in the population and the increasing need to industrialise and provide the people with their basic needs. The need for sources of energy other than hydro and thermal cannot be greater than now.
If Prof. Mills makes solar energy one of his major ambitions and formally launches a solar project before his term ends, he will win the hearts of many. What Ghana needs is concentrating solar power (CSP) technologies for the market. This will permit the construction of solar plants of up to 160MW generating capacity in the near future. This can provide electricity for the entire cities of Accra and Tema and even beyond.
Those who will be directly responsible for the solar project in Ghana are ministry of energy, National Energy Foundation, Public Utilities Regulatory Commission (PURC), Environmental Protection Agency (EPA) and other public and the private enterprises which will be responsible for importing solar panels and accessories.
The present level of solar technology in Ghana is nothing to write home about. The increase in interest throughout the world spilt over to Ghana. When crude oil importation took a great chunk of the country's foreign exchange, 700 solar systems were installed around the '80s. But they became white elephants and no government in power took the promotion of solar energy seriously because none of them had any defined policy. Since Ghana cannot use nuclear technology for its electricity needs, efforts should be made to promote and develop solar energy. Indeed, the very survival of the country's industrial future, depends on it.
Written by: Stephen Atta Owusu
Author: DARK FACES AT CROSSROADS
Email:stephen.owusu@email.com
Our government needs to take a more serious look at solar energy. Once the solar project begins, organisations like USAID, SHELL, SIDA, DANIDA and FINIDA can be called in to help. The Nordic countries have a record of pursuing positive development in the developing countries even when it comes to promoting and developing solar energy as DANIDA is doing in northern Ghana. Shell has also produced solar energy for fifteen thousand homes in South Africa. What we need in Ghana is a radical change in power policy. There is the need to privatise energy production and distribution so that the responsibility of importing solar panels and accessories will not be the sole duty of the Government. Towards that end, government can establish an autonomous body closely linked to National Utility, (the organisation responsible for the nation's power control, water supply and sanitation). The government must appoint knowledgeable people who understand the benefits of solar and other forms of energy on this body.
Sun power is an abundant and renewable form of energy that produces zero carbon emissions. Its impact on the environment is minimal. Solar Energy uses solar panels to provide electricity for homes and industries. Modern solar panels are a combination of magnifying glass and fluid-filled pipes. These are specially made to focus the power of the sun on the pipes behind the panels. The pipes carry a special fluid that heats up rapidly. They are painted black to absorb the heat. A roof is built to protect the reflective surface which, in turn, protects anything behind the solar panels.
The solar panels have photovoltaic (PV) cells which transform sunlight into electricity. PV cells come in many sizes and a variety of technologies. They can be mounted on a surface like wood. PV cells are fragile and therefore must be protected against physical damage. The PV cells must be wired together to create a solar array which will move on a single array.
Hydro-power dams are becoming a thing of the past. Some countries are breaking down their hydropower dams. In Ethiopia, for example, a campaign was launched which caused a break in the construction of a massive dam on the Omo river. Western countries have few months of sunshine, but they are even putting up and promoting solar energy. Sadly enough, all the governments that have come and gone in Ghana have closed their eyes to solar energy and still continue to build another dam at Bui. We live in a country where birds and lizards playing on electrical wires can join the wires together and cause power failure! What is worse, Bui Dam is being built on a national park which is home to many endangered species of animals. Many people will be forced to leave their farms and homes. Where will they go? There is no gainsaying the fact that hydro-electric power is still very important, especially for a poor country, despite its environmental problems. We still need dams in Africa as long as we don't build them haphazardly without any extensive cost-benefit analysis. We need not destroy any dam in Ghana and so much must have already been sunk in the Bui Dam that a cessation may not be advisable. But we must move from one stage of progress to another one which is more stable and environmentally harmless. Solar energy may be costly to build but it provides clean and cheap energy. There must be a smooth transition to other energy sources like solar and wind energy.
This is now the right time for any caring and serious government to capitalise on the oil wealth to explore other sources of energy which are more sustainable and more environmentally friendly. The money coming from the oil production may not be much but if the government will put its priorities right it will be able to dare an investment into the research, production and development of solar energy which will give a lasting hope for homes and industries. Ghana is geographically well positioned to receive sunshine throughout the year. If the sun's energy, which we have in abundance, is fully tapped, it can provide Ghana a very reliable and permanent source of electricity supply.
Ghana depends a lot on hydro-energy but this has never been sufficient for our needs. That is why, in recent times, additional energy is being created by means of thermal plants at Aboadze. When the Bui Dam is fully functional, we will not have the capacity to build more dams. There will simply be no more rivers to be dammed even if we want to. But the energy needs of the country, inadequate as they are now, will only increase with the increased growth in the population and the increasing need to industrialise and provide the people with their basic needs. The need for sources of energy other than hydro and thermal cannot be greater than now.
If Prof. Mills makes solar energy one of his major ambitions and formally launches a solar project before his term ends, he will win the hearts of many. What Ghana needs is concentrating solar power (CSP) technologies for the market. This will permit the construction of solar plants of up to 160MW generating capacity in the near future. This can provide electricity for the entire cities of Accra and Tema and even beyond.
Those who will be directly responsible for the solar project in Ghana are ministry of energy, National Energy Foundation, Public Utilities Regulatory Commission (PURC), Environmental Protection Agency (EPA) and other public and the private enterprises which will be responsible for importing solar panels and accessories.
The present level of solar technology in Ghana is nothing to write home about. The increase in interest throughout the world spilt over to Ghana. When crude oil importation took a great chunk of the country's foreign exchange, 700 solar systems were installed around the '80s. But they became white elephants and no government in power took the promotion of solar energy seriously because none of them had any defined policy. Since Ghana cannot use nuclear technology for its electricity needs, efforts should be made to promote and develop solar energy. Indeed, the very survival of the country's industrial future, depends on it.
Written by: Stephen Atta Owusu
Author: DARK FACES AT CROSSROADS
Email:stephen.owusu@email.com
Right Time for Ghana to Develop and Promote Solar Energy
Even when there is, at present, no problem with the water level of Ghana's Akosombo Dam, power failure still exists in the country. A week never passes without a cut in power from the national grid. Everything comes to a standstill when power fails. The break is so sudden and powerful that electrical appliances in many homes are broken. The government must begin to think seriously on how to make energy sufficient in a more efficient way. With the discovery of oil, the government must direct more resources towards investing in solar energy systems. It is expensive for an individual to install the systems that provide solar energy. A self-contained house of between three to six bed-rooms will cost around 15,000 dollars to have solar energy as initial outlay, according to DANIDA whose efforts are directed towards providing solar energy in many houses in the North where sunshine is an abundant gift from God.
Our government needs to take a more serious look at solar energy. Once the solar project begins, organisations like USAID, SHELL, SIDA, DANIDA and FINIDA can be called in to help. The Nordic countries have a record of pursuing positive development in the developing countries even when it comes to promoting and developing solar energy as DANIDA is doing in northern Ghana. Shell has also produced solar energy for fifteen thousand homes in South Africa. What we need in Ghana is a radical change in power policy. There is the need to privatise energy production and distribution so that the responsibility of importing solar panels and accessories will not be the sole duty of the Government. Towards that end, government can establish an autonomous body closely linked to National Utility, (the organisation responsible for the nation's power control, water supply and sanitation). The government must appoint knowledgeable people who understand the benefits of solar and other forms of energy on this body.
Sun power is an abundant and renewable form of energy that produces zero carbon emissions. Its impact on the environment is minimal. Solar Energy uses solar panels to provide electricity for homes and industries. Modern solar panels are a combination of magnifying glass and fluid-filled pipes. These are specially made to focus the power of the sun on the pipes behind the panels. The pipes carry a special fluid that heats up rapidly. They are painted black to absorb the heat. A roof is built to protect the reflective surface which, in turn, protects anything behind the solar panels.
The solar panels have photovoltaic (PV) cells which transform sunlight into electricity. PV cells come in many sizes and a variety of technologies. They can be mounted on a surface like wood. PV cells are fragile and therefore must be protected against physical damage. The PV cells must be wired together to create a solar array which will move on a single array.
Hydro-power dams are becoming a thing of the past. Some countries are breaking down their hydropower dams. In Ethiopia, for example, a campaign was launched which caused a break in the construction of a massive dam on the Omo river. Western countries have few months of sunshine, but they are even putting up and promoting solar energy. Sadly enough, all the governments that have come and gone in Ghana have closed their eyes to solar energy and still continue to build another dam at Bui. We live in a country where birds and lizards playing on electrical wires can join the wires together and cause power failure! What is worse, Bui Dam is being built on a national park which is home to many endangered species of animals. Many people will be forced to leave their farms and homes. Where will they go? There is no gainsaying the fact that hydro-electric power is still very important, especially for a poor country, despite its environmental problems. We still need dams in Africa as long as we don't build them haphazardly without any extensive cost-benefit analysis. We need not destroy any dam in Ghana and so much must have already been sunk in the Bui Dam that a cessation may not be advisable. But we must move from one stage of progress to another one which is more stable and environmentally harmless. Solar energy may be costly to build but it provides clean and cheap energy. There must be a smooth transition to other energy sources like solar and wind energy.
This is now the right time for any caring and serious government to capitalise on the oil wealth to explore other sources of energy which are more sustainable and more environmentally friendly. The money coming from the oil production may not be much but if the government will put its priorities right it will be able to dare an investment into the research, production and development of solar energy which will give a lasting hope for homes and industries. Ghana is geographically well positioned to receive sunshine throughout the year. If the sun's energy, which we have in abundance, is fully tapped, it can provide Ghana a very reliable and permanent source of electricity supply.
Ghana depends a lot on hydro-energy but this has never been sufficient for our needs. That is why, in recent times, additional energy is being created by means of thermal plants at Aboadze. When the Bui Dam is fully functional, we will not have the capacity to build more dams. There will simply be no more rivers to be dammed even if we want to. But the energy needs of the country, inadequate as they are now, will only increase with the increased growth in the population and the increasing need to industrialise and provide the people with their basic needs. The need for sources of energy other than hydro and thermal cannot be greater than now.
If Prof. Mills makes solar energy one of his major ambitions and formally launches a solar project before his term ends, he will win the hearts of many. What Ghana needs is concentrating solar power (CSP) technologies for the market. This will permit the construction of solar plants of up to 160MW generating capacity in the near future. This can provide electricity for the entire cities of Accra and Tema and even beyond.
Those who will be directly responsible for the solar project in Ghana are ministry of energy, National Energy Foundation, Public Utilities Regulatory Commission (PURC), Environmental Protection Agency (EPA) and other public and the private enterprises which will be responsible for importing solar panels and accessories.
The present level of solar technology in Ghana is nothing to write home about. The increase in interest throughout the world spilt over to Ghana. When crude oil importation took a great chunk of the country's foreign exchange, 700 solar systems were installed around the '80s. But they became white elephants and no government in power took the promotion of solar energy seriously because none of them had any defined policy. Since Ghana cannot use nuclear technology for its electricity needs, efforts should be made to promote and develop solar energy. Indeed, the very survival of the country's industrial future, depends on it.
Written by: Stephen Atta Owusu
Author: DARK FACES AT CROSSROADS
Email:stephen.owusu@email.com
Our government needs to take a more serious look at solar energy. Once the solar project begins, organisations like USAID, SHELL, SIDA, DANIDA and FINIDA can be called in to help. The Nordic countries have a record of pursuing positive development in the developing countries even when it comes to promoting and developing solar energy as DANIDA is doing in northern Ghana. Shell has also produced solar energy for fifteen thousand homes in South Africa. What we need in Ghana is a radical change in power policy. There is the need to privatise energy production and distribution so that the responsibility of importing solar panels and accessories will not be the sole duty of the Government. Towards that end, government can establish an autonomous body closely linked to National Utility, (the organisation responsible for the nation's power control, water supply and sanitation). The government must appoint knowledgeable people who understand the benefits of solar and other forms of energy on this body.
Sun power is an abundant and renewable form of energy that produces zero carbon emissions. Its impact on the environment is minimal. Solar Energy uses solar panels to provide electricity for homes and industries. Modern solar panels are a combination of magnifying glass and fluid-filled pipes. These are specially made to focus the power of the sun on the pipes behind the panels. The pipes carry a special fluid that heats up rapidly. They are painted black to absorb the heat. A roof is built to protect the reflective surface which, in turn, protects anything behind the solar panels.
The solar panels have photovoltaic (PV) cells which transform sunlight into electricity. PV cells come in many sizes and a variety of technologies. They can be mounted on a surface like wood. PV cells are fragile and therefore must be protected against physical damage. The PV cells must be wired together to create a solar array which will move on a single array.
Hydro-power dams are becoming a thing of the past. Some countries are breaking down their hydropower dams. In Ethiopia, for example, a campaign was launched which caused a break in the construction of a massive dam on the Omo river. Western countries have few months of sunshine, but they are even putting up and promoting solar energy. Sadly enough, all the governments that have come and gone in Ghana have closed their eyes to solar energy and still continue to build another dam at Bui. We live in a country where birds and lizards playing on electrical wires can join the wires together and cause power failure! What is worse, Bui Dam is being built on a national park which is home to many endangered species of animals. Many people will be forced to leave their farms and homes. Where will they go? There is no gainsaying the fact that hydro-electric power is still very important, especially for a poor country, despite its environmental problems. We still need dams in Africa as long as we don't build them haphazardly without any extensive cost-benefit analysis. We need not destroy any dam in Ghana and so much must have already been sunk in the Bui Dam that a cessation may not be advisable. But we must move from one stage of progress to another one which is more stable and environmentally harmless. Solar energy may be costly to build but it provides clean and cheap energy. There must be a smooth transition to other energy sources like solar and wind energy.
This is now the right time for any caring and serious government to capitalise on the oil wealth to explore other sources of energy which are more sustainable and more environmentally friendly. The money coming from the oil production may not be much but if the government will put its priorities right it will be able to dare an investment into the research, production and development of solar energy which will give a lasting hope for homes and industries. Ghana is geographically well positioned to receive sunshine throughout the year. If the sun's energy, which we have in abundance, is fully tapped, it can provide Ghana a very reliable and permanent source of electricity supply.
Ghana depends a lot on hydro-energy but this has never been sufficient for our needs. That is why, in recent times, additional energy is being created by means of thermal plants at Aboadze. When the Bui Dam is fully functional, we will not have the capacity to build more dams. There will simply be no more rivers to be dammed even if we want to. But the energy needs of the country, inadequate as they are now, will only increase with the increased growth in the population and the increasing need to industrialise and provide the people with their basic needs. The need for sources of energy other than hydro and thermal cannot be greater than now.
If Prof. Mills makes solar energy one of his major ambitions and formally launches a solar project before his term ends, he will win the hearts of many. What Ghana needs is concentrating solar power (CSP) technologies for the market. This will permit the construction of solar plants of up to 160MW generating capacity in the near future. This can provide electricity for the entire cities of Accra and Tema and even beyond.
Those who will be directly responsible for the solar project in Ghana are ministry of energy, National Energy Foundation, Public Utilities Regulatory Commission (PURC), Environmental Protection Agency (EPA) and other public and the private enterprises which will be responsible for importing solar panels and accessories.
The present level of solar technology in Ghana is nothing to write home about. The increase in interest throughout the world spilt over to Ghana. When crude oil importation took a great chunk of the country's foreign exchange, 700 solar systems were installed around the '80s. But they became white elephants and no government in power took the promotion of solar energy seriously because none of them had any defined policy. Since Ghana cannot use nuclear technology for its electricity needs, efforts should be made to promote and develop solar energy. Indeed, the very survival of the country's industrial future, depends on it.
Written by: Stephen Atta Owusu
Author: DARK FACES AT CROSSROADS
Email:stephen.owusu@email.com
Nigerian Youth Employed to Guard Oil Pipelines
The Nigerian government has employed an estimated 12,000 young people to protect oil and gas pipelines in the Niger Delta.
Nigerian petroleum minister Diezani Alison-Madueke announced that the youth would patrol some 5000 km (3000 miles) of pipeline to stop it from being vandalized.She stated it was part of the government amnesty program offered to the region's militias who were fighting for a greater share of oil revenues.Criminal gangs and locals often try to pierce the pipes to extract oil.Alison-Madueke's announcement comes after the death of two people last week in Sapele, Delta state, during an explosion at a pipeline damaged by villagers trying to steal the oil.Local residents of the Niger Delta, home to Nigeria's oil industry, have benefited from the area's oil wealth.According to BBC News, "Nigeria is Africa's largest oil producers, but attacks by militants on oil installations led to a sharp fall in output during the last decade."The thousands of fighters who surrendered their weapons in a government amnesty in 2009 were promised training and jobs.
Read more: http://www.digitaljournal.com/article/307296#ixzz1NoMXnOlU
By Hazel Lorraine
Oil and gas explorers turn to Cameroon
Oil and gas exploration in Africa has set the stage for several success stories, but while countries such as Nigeria and Angola fly the flag for the continent's activities, it is the other, less explored countries which are setting investor pulses racing.
Cameroon, nestled deep on the western coast between Nigeria and Gabon has hit headlines of late, as a host of companies look to exploit new and underdeveloped territory.
Indeed Cameroon's oil production tumbled further in the first quarter of the year to 5.26 million barrels from 5.58 million barrels in the last quarter of 2010, as a result of maturing oilfields and lack of new wells.
Chairman of Cameroon-focused Victoria Oil and Gas (VOG), Kevin Foo, told Interactive Investor that Cameroon remains an unexplored gem: "Cameroon has been massively overlooked and has traditionally been seen as a dropping off point for other parts of Central and Western Africa."
However, the improvement in technology ranging from deepwater drilling to 3D seismic, coupled with a surge in interest for new plays, has led some of the smaller, more nimble players with a higher risk appetite to enter the region.
While state oil company National Hydrocarbons Corporation sees production falling for the rest of this year, a rebound is expected in 2012 when new wells are expected to go into production and it is this opportunity for exploration that could pave the way for significant upside for those companies which lay claim to secure acreage positions.
Potential instability
But upside through exploration is somewhat offset by the potential fiscal and political stability the region faces.
Cameroon arguably carries with it the risk of violent protests and just earlier this month, US Secretary of State Hilary Clinton urged the country to hold a free and fair presidential election, expected this October.
President Paul Biya has ruled the small West African nation since 1982 and is one of Africa's longest-serving presidents. It is thought he will seek another term in the election after altering the constitution in 2008 to remove term limits.
The country's major port of Douala has also suffered recent attacks by gunmen on ships, highlighting the expanding hunting ground of pirates. Indeed, the country blamed piracy as one of the factors culminating in a 13% drop in oil output in 2009, with production expected to tumble even further to 2011, amid the insecurity in the main operation zone of Rio del Rey basin which accounts for 95% of oil exports.
But despite this, Kevin Foo says Cameroon has proved a "dream place to operate in".
"The people are very laid-back and well educated. All but one of our employees are locals and we've found it to be a very stable environment in which to operate," he said.
Indeed, analyst Melanie Savage at UBS, said that while Cameroon ranks very low on the Transparency International corruption index for upholding contracts, the country has a history of making contract terms more generous to attract oil industry participants, believing that the authorities are aware of the impact that a reversal of this could have.
Victoria Oil & Gas makes strides
Victoria Oil & Gas has certainly found favour with the government, with the announcement earlier this month that it received a decree signed by the President granting it a 25-year exploitation licence with an option to extend for an additional 10 years.
The milestone came ahead of first gas sales to industrial users from its Logbaba gas project by the beginning of the fourth quarter of this year.
Having lain dormant for over half a century, the return of Victoria to the area has reinvigorated onshore oil and gas exploration and production activity in the area.
Several wells were drilled in Logbaba in the 1950s, with gas encountered in each case, but the discovery of gas meant these wells were abandoned as local markets were not in existence. However, development in the country and growing energy needs have altered this dynamic, creating the opportunity for commercial development.
"The government of Cameroon intends to triple power generation in the next 10 years and much of that will be generated by gas. We intend to prove ourselves as a reliable energy supplier," Foo said.
The company has already signed 12 gas sales agreements and executed a further 10, with its eye firmly on attracting new customers.
Victoria Oil, which has a market capitalisation of £122 million, said it was fully funded through to first gas at the end of this year.
Admitting that it's been a company that has suffered too much dilution in the past in order to raise much-need capital, today the company is confident of its future prospects.
Since it acquired its interest in the concession two years ago, it has increased proved reserves five-fold and more than doubled proved and probable reserves and the company anticipates drilling more wells in the Logbaba gas field to meet future demand, although this remains one to two years off.
"Ultimately, gas supply to a large independent power producer or a third-party LNG facility, such as that being considered by GDF SUEZ, is most likely required for Victoria to capitalise on the full productive potential of Logbaba. However, contracts with industrial consumers, where higher sales prices are achievable, will continue to provide significant value," said oil and gas analyst David Hart at Westhouse Securities.
Looking further down the line, the company said it was eyeing up other opportunities in the region, noting that it couldn't afford to be "stagnant" as it anticipates an influx of company interest following its first gas sales.
Boon for Bowleven
Fellow UK-listed explorer Bowleven (BLVN) is another making a name for itself in the country. The company, whose shares have shot up 182% over the past year, recently thrilled investors with further progress in its drilling campaign.
Earlier this month, the AIM-listed group released encouraging drilling results from its Sapele-2 well in the Douala basin, which encountered 35 metres of net hydrocarbon-bearing pay in the Omicron objectives.
Bowleven, it would seem, is at the beginning of an exciting exploration stage in a basin that was historically written off by majors in the belief it was gas-prone.
Melanie Savage, analyst at UBS, said the Sapele discovery has significantly "extended the Cretaceous play fairway offshore and hints at further upside elsewhere in Bowleven's acreage and in other parts on the Douala basin."
Michael Alsford, analyst at Citigroup, hailed the results - which still require testing to confirm the potential - as "clearly encouraging" and said there remains significant potential in the Tertiary and Cretaceous plays.
"We have included 110p per share risked for the Lower and Deep Omicron at Sapele-1 in the base net asset value of 500p per share and 33p per share risked for the Sapele-2 well. However, further upside could be delivered from positive test results from Sapele-1 and Sapele-2. We believe Sapele-2 could be worth up to 13 1p per share if the discovery is up to 70 million barrels of oil equivalent," said Alsford.
While Bowleven refrained from giving further details on the forward programme following the testing of Sapele-2, Alsford believes the company could drill up to a further two wells this year to target the upside potential, believing there to be significant potential in the Tertiary and Cretaceous plays across licences MLHP 5,6 and 7.
At the close of the 2010, Bowleven had $189 million of cash and should receive proceeds of $35 million this year from the sale of its EOV asset in Gabon. These funds should be sufficient to cover an 18 month exploration campaign, the cost of which is estimated at $180-220 million, according to analysts.
"We remain positive on Bowleven's Cameroon drilling programme. With the pullback in the shares following the disappointing Sapele-1 results, we believe the pullback offers a good entry point into one of the highest impact drilling campaigns in 2011 in our coverage universe," Alsford added.
Moreover, the Cretaceous well planned for the third quarter of this year will allow the company to gain a broader understanding of the Cretaceous horizon and target follow-on prospects.
Based on a similar prospect size to the pre-drill P10 expectation in the Cretaceous of 3.7 billion barrels, UBS adopts a risked NAV of 620p, with 373% upside.
"We believe that while the basin had been written off as gas-prone by many of the majors exploring in the shallower waters, the play-opening Sapele well drilled by Bowleven has demonstrated the oil potential of the Cretaceous. Although little is known about the source rock at depth, we believe that the company has made what will be the first of some significant oil discoveries," said Melanie Savage, analyst at UBS.
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Soludo: Nigeria must plan to survive without oil
Former governor of Central Bank, Professor Chukuemeka Charles Soludo, says the only way out of the economic quagmire in Nigeria is for government to stop depending solely on oil and focus on other economic ventures especially agriculture.
He noted that the oil and other mineral resources the country is endowed with, rather than be a blessing have turned the people to a bunch of lazy people who mostly depend on the oil revenue for development rather than exploiting other avenues.
Soludo, who was the guest lecturer at the Niger State inauguration lecture with the theme, “Towards the economic transformation and fiscal viability of Nigerian states” to usher in the second term of Governor Mua’zu Babangida Aliyu, said: “oil money, rather than being a blessing, has been a product for laziness where governors and the people of their respective states expect free money to execute their programmes.”
“We have depended on oil for fifty years, i.e since independence, and this has not taken us anywhere and it is not likely to take us anywhere as long as we rely solely on this and this is why we have to plan for the next fifty years outside oil if we want to survive as a nation”, the former CBN governor declared.
He called on all state governors to exploit the resources in their states by tapping them and utilizing them for rapid transformation rather than wait patiently for the federal allocation to carry out their projects.
He called on all state governors to exploit the resources in their states by tapping them and utilizing them for rapid transformation rather than wait patiently for the federal allocation to carry out their projects.
Rev. Matthew Hassan Kuka, who was one of the discussants, noted that the country is in its precarious situation because most of our leaders cannot correct the wrong doings in the society because they are also involved in them.
Hamman Tukur, in his own contribution, noted that the ultimate of any government is on now to get money to impact on the lives of the electorate, pointing out that out of insufficiency, it may be difficult for such leader to save for the future as advised by Soludo.
The last discussant, Alhaji Suleyman Ndanusa, emphasised on values in the society which, he said, the present leaders should use in governing the country.
The last discussant, Alhaji Suleyman Ndanusa, emphasised on values in the society which, he said, the present leaders should use in governing the country.
BY WOLE MOSADOMI, MINNA
Soludo: Nigeria must plan to survive without oil
Former governor of Central Bank, Professor Chukuemeka Charles Soludo, says the only way out of the economic quagmire in Nigeria is for government to stop depending solely on oil and focus on other economic ventures especially agriculture.
He noted that the oil and other mineral resources the country is endowed with, rather than be a blessing have turned the people to a bunch of lazy people who mostly depend on the oil revenue for development rather than exploiting other avenues.
Soludo, who was the guest lecturer at the Niger State inauguration lecture with the theme, “Towards the economic transformation and fiscal viability of Nigerian states” to usher in the second term of Governor Mua’zu Babangida Aliyu, said: “oil money, rather than being a blessing, has been a product for laziness where governors and the people of their respective states expect free money to execute their programmes.”
“We have depended on oil for fifty years, i.e since independence, and this has not taken us anywhere and it is not likely to take us anywhere as long as we rely solely on this and this is why we have to plan for the next fifty years outside oil if we want to survive as a nation”, the former CBN governor declared.
He called on all state governors to exploit the resources in their states by tapping them and utilizing them for rapid transformation rather than wait patiently for the federal allocation to carry out their projects.
He called on all state governors to exploit the resources in their states by tapping them and utilizing them for rapid transformation rather than wait patiently for the federal allocation to carry out their projects.
Rev. Matthew Hassan Kuka, who was one of the discussants, noted that the country is in its precarious situation because most of our leaders cannot correct the wrong doings in the society because they are also involved in them.
Hamman Tukur, in his own contribution, noted that the ultimate of any government is on now to get money to impact on the lives of the electorate, pointing out that out of insufficiency, it may be difficult for such leader to save for the future as advised by Soludo.
The last discussant, Alhaji Suleyman Ndanusa, emphasised on values in the society which, he said, the present leaders should use in governing the country.
The last discussant, Alhaji Suleyman Ndanusa, emphasised on values in the society which, he said, the present leaders should use in governing the country.
BY WOLE MOSADOMI, MINNA
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