Equatorial Guinea has mandated all E&P operators in the country to cancel all contracts with Subsea 7, the London headquartered marine services firm, due to noncompliance of Equatorial Guinea’s local content regulations.
Operators in the country include Noble Energy, ExxonMobil, Kosmos Energy, Trident, Marathon Oil Corporation and several others.
“As Minister, I have an obligation to ensure the laws of the country governing the hydrocarbon sector are complied with,” said Gabriel Mbaga Obiang Lima, the Minister of Mines and Hydrocarbons. “Companies operating in the oil sector have an obligation to work within the confines of our very flexible and pragmatic local content regulations that are market driven and ensure that both investors and our citizen benefit. I commend the leadership of Schlumberger and Technip FMC in taking proactive steps to engage with the oil companies and government to ensure local content concerns are resolved.”
Obiang Lima added that the Ministry will continue to work with Oil companies operating in Equatorial Guinea to unwind contracts and find new suppliers for companies that have refused to comply with local content regulations. “The notice will be expanded to all service companies who are non-compliant as the review continues. Similar measures will be taken”, he declared.
“A compliance review of the entire sector is ongoing led by the Director of National Content and outside legal advisors of the Ministry. Under the National Content Regulation of 2014, all agreements must have local content clauses and provisions for capacity building, with preference given to local or regional companies in the award of service contracts. Local shareholders must be part of every contract as prescribed by law. The operators have an obligation to ensure compliance of their subcontractors”.
By Mohammed Jetutu, North Africa Correspondent, in Cairo
Egypt is working on tripling its renewable energy generating capacity in just four years. “By the year 2022 we hope that the capacity will be about 20%, which means that we have to have about 9,000MW of renewables after the said year”, Mohammed Shaker, the country’s Minister of Eectricity and Renewable, discloses.
“Here is an opportunity for anyone looking to invest. We generate about 3,655MW in renewable energy plus a fair amount of about 120MW this is actually for everything (hydro and solar) which is in operation and under construction. We have permission for some allocated areas in Egypt to generate up to 90,000MW from renewables”.
Speaking to a group of businessmen in Cairo, in a meeting sponsored by the American Chamber of Commerce, Shaker says that “the thing to fix” with the procurement of renewables in Egypt is the method of feed-in tariffs. “We are going to stop it, we are resorting to what we call an auction system because with auctions we will be able to get the far better prices. The feed-in tariffs was structured approximately at about $7.1 in peculiar hours but with auctions we can go down to $3.8 or even less because the pricing of the photovoltaic panel is going down very sharply and because of that we not going through auction with large quantity versus small ones one after one to match the reduction happening in the cost of the PV panel”.
Shaker says that his ministry has devised a system called net metering. “If you generate electricity from solar panels on the roof and you are injecting it in the network we will be measuring both from your photo voltaic and the ones supplied from the network and subtracting this from each other. So once your consumption is more than one thousand kilowatt hour per month you’ll be making money out of this because the price is now for over one thousand megawatt is currently 155piastres (1.55 Egyptian Pounds) but it is going to be increasing for the next three years and I will actually publish this but not now”.
Full text of the speech is available here