November 22, 2021
Welcome to this edition of the Industry Newsletter from BELA’s Energy and Infrastructure Practice Group. We hope you enjoy reading a selection of some recent topical business news concerning the energy and infrastructure sectors in Ghana.
This edition includes news items on the exercise of Tullow’s pre-emption right in relation to the Kosmos Energy/ Occidental Petroleum Ghana transaction, the arrival of the first Ghanaian-owned and flagged marine vessel, progress in the fight against fuel adulteration and many more.
Tullow to acquire 7.7% stake in DWT Component of Kosmos Energy/Occidental Petroleum Ghana transaction
Tullow Oil plc, has announced that it has exercised its right of pre-emption related to the sale of Occidental Petroleum’s interests in the Jubilee and TEN fields in Ghana to Kosmos Energy. According to Tullow, when the acquisition process is completed, its equity interests will increase to 38.9% in the Jubilee field and to 54.8% in the TEN fields. The transaction is expected to cost Tullow about USD150 million. Read More...
First Ghanaian-owned and flagged marine vessel arrives
Tullow Ghana has taken delivery of the MV Flat Confidence, the first Ghanaian-owned, Ghanaian-flagged marine vessel, to support offshore activities in the oil and gas industry. In a statement issued by its External Affairs officer, David Jones Amoah, Tullow Ghana noted that the MV Flat Confidence was acquired by Flat C Marine Offshore Limited, following a long-term contract granted by Tullow Ghana to the company that enabled them raise finances to procure the vessel. The 71-meter long and 19-meter wide vessel will be operational in the Western Region and will support the work of Tullow Ghana’s two FPSOs – Kwame Nkrumah and John Evans Atta Mills. Read More...
GRIDCo hints of load shedding after two towers collapse
A communication mast has collapsed on a transmission line belonging to the Ghana Grid Company (GRIDCo) near Bogoso in the Western Region. According to GRIDCo, the mast which fell on its 330kV Aboadze–Kumasi transmission line on November 9, 2021, resulted in the collapse of two of its towers adjacent the mast. This has affected the national power system and may result in some load management. Read More...
Asante Gold to restart past-producing Bibiani next year
The past-producing Bibiani gold mine in Ghana, will be restarted next year and is set to produce gold by the third quarter, new owner Asante Gold has said. Outlining plans for the gold mine acquired from Australia’s Resolute Mining earlier this year, Asante Gold noted that tenders have been invited for the selection of a mining contractor and that a contractor will be mobilised before the end of March 2022. Asante Gold is preparing a plan to deliver a mine producing 190 000 oz/y in its first 12 months of operations and about 240 000 oz/y thereafter for at least six years. Read More...
Ghana winning fight against fuel adulteration-NPA
Ghana’s efforts in curbing adulterated fuel is yielding fruits, as the country’s petroleum downstream regulator has revealed a drastic reduction in fuel adulteration in the country. According to the Chief Executive Officer of the National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid, fuel adulteration at retail outlets has reduced drastically from 32% in 2013 to 2.51% as of August 2021. Addressing stakeholders at this year’s Consumer Week Celebration in Ho, Dr Abdul-Hamid noted that fuel adulteration increases the emission of harmful compounds that affect air quality and the environment, harms the reputation of a fuel retailer’s brand and costs the government millions of cedis in revenue annually. Read more…
Ghana losing revenue through illicit fuel trade
The rise in illicit fuel trade along some entry and exit points of the country, notably the Aflao border, has become a major concern and a threat to the revenue mobilization efforts of the government. The Chief Executive Officer of the NPA, Dr Mustapha Abdul-Hamid, made these comments when he led the management of the NPA to tour the Aflao border. He noted that no entity had been licensed to import fuel through the Aflao border and urged the border officers to stop the importation of petroleum products by road. Read More...
We’re spending $17m to boost capacity of transmission lines between Tema, Accra – GRIDCo
GRIDCo has received a $17 million loan from the French Development Agency, Agence Française de Développement (AFD), to boost infrastructure works on some major transmission lines between Accra and Tema. Addressing the media at a Ministry of Information press briefing, Director of System Operations for GRIDCo, Mark Baah, indicated that the high demand for power within the Accra-Tema area has made it necessary to undertake the reconstruction exercise. Mr Baah revealed that the reconstruction works will be completed by March 2022. Read more…
Formulate policies to shape Ghana’s shipping and maritime industry – GSC charges government
The Ghana Chamber of Shipping has urged the government to formulate shipping and maritime policies that will move Ghana forward. Mr Stanley Ahorlu, an executive council member of the Chamber, interacting with the media said there was the need for Ghana to have concrete policies that would put Ghana in a better position to benefit more from the shipping and maritime sector. He noted that, while there had been significant improvement in port infrastructure and supporting automation at the ports, there was still a glaring gap for intermodal transport connectivity within Ghana and across the subcontinent. Read more…
Shippers’ Authority hints of regional standardization of port charges
The Ghana Shippers’ Authority (GSA) has hinted of moves to standardize ports charges in the sub-region. The move according to the GSA is part of efforts to streamline port charges for the benefit of shippers in the wake of the African Continental Free Trade Area agreement. The Chief Executive Officer of the GSA, Benonita Bismarck, made the revelation when a 15-member delegation from the Nigeria Customs Command and Staff College paid a courtesy call on the GSA to familiarize itself with the operations of the Authority and pick up lessons to improve upon customs services in Nigeria. Read more…
More than 30 construction industry leaders to explore opportunities at Dubai Expo
More than 30 selected leaders in the construction industry will attend an investment summit at the World Trade Dubai Expo 2021 at the invitation of the investor communities, to discuss funding for housing and construction opportunities in Ghana. The summit would also allow the delegation to explore new business and growth opportunities for the real estate and construction sector of the economy. A statement from the Ghana Chamber of Construction Industry noted that the summit, which would run from November 7 to 12, 2021 was initiated by the leadership of the Ghana Chamber of Construction Industry in collaboration with the Ministry of Roads and Highways under the auspices of the Ghana Investment Promotion Centre with support from the Colombian Government. Read more…
Government cautioned against kicking out foreigners from downstream petroleum sector
A former Chairman of the Association of Oil Marketing Companies, Henry Akwaboah, has cautioned that any move by Ghana to aggressively implement a local content law in the downstream sector could dwindle investor confidence in the country. The NPA has indicated a policy to exclusively reserve the importation, distribution and sale of refined petroleum products in Ghana for indigenous companies. Even though no specific time has been stated for its implementation, the NPA says the policy would be implemented progressively to allow foreign-owned Bulk Distribution Companies and Oil Marketing Companies to recover the full value of their assets. Read More...
Golden Star Takeover: Management assures of protection for employees
Golden Star Resources Ltd, a gold mining company, has entered into an agreement for the company to be sold to Chifeng Jilong Gold Mining Co. for about USD 470 million. In a statement, the company noted that Chifeng Jilong Gold Mining Co has agreed to acquire all of the issued and outstanding common shares of Golden Star by way of a statutory plan of arrangement. It further noted that negotiations are ongoing to ensure that employees of Golden Star are protected during and after the acquisition exercise. Read More...
Bui Power embarks on major CSR initiative
The Bui Power Authority (BPA) has supplied 39 fishing ponds to 117 people whose livelihoods were affected due to construction of the Bui Hydroelectric Project. Chief Executive Officer of BPA, Samuel Kofi Dzamesi, acknowledged the sacrifice of Resettlement Communities – who through a series of engagements, agreed to be resettled from their previous settlements to pave the way for the Bui Generation station, which is producing electricity to the benefit of all Ghanaians. He charged beneficiaries of the raised fishponds to run with the initiative to improve on their livelihoods which, he said, is part of government’s agenda of job creation. Read More...
Africa must hasten slowly in discarding hydrocarbons – Dr. Amin Adam
A deputy Energy Minister, Dr. Mohammed Amin Adam, has stated that African countries ought to exercise some patience in adopting cleaner sources of energy. During an interview granted to Citibusiness news, he noted that Africa should be allowed to continue the production of hydrocarbons with the introduction of carbon capture techniques that reduce the impact on climate change. The West, backed by some international bodies, is advocating a transition from hydrocarbons to cleaner sources of energy in order to manage the phenomenon of climate change and global warming. Read more…
