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Ghana Maintains, South Africa Increases, Pump Prices for Petroleum Products

Ghana has opted to maintain pump prices of petroleum products for April 2015, while South Africa has chosen to increase same for the period.

The latest petroleum products price build-up schedule released by the Ghana Petroleum Authority sets the ex- pump price of a litre of Premium Motor Spirit (or gasoline,  or petrol) at 3Cedis 5pesewas (or $0.91) while kerosene is going for GHC2.92Pesewas ($0.76)

The South African Department of Energy declares that the cheapest type of gasoline, the unleaded 93 Octane will be R12.28 in the local currency (rand) or $1.038 per litre, in the coastal region. In the inland region, where petroleum products cost more, South Africans will pay R12.61 (or $1.066) for a litre of unleaded 93 Octane gasoline. The increases are about R1.62 ($0.136) all round. Diesel will cost R11.227 (or $0.946) in South Africa’s coastal region for the month.

Ghanaians will buy a kilogramme of Liquefied Petroleum Gas at 2 Cedis 64 Pesewas (or $0.68).

Ghana and South Africa always say that they “regulate” pump prices within the dictates of market forces, notably crude oil prices and exchange rates. Still, Ghana Petroleum Authority is always under pressure to reduce the pump prices. Conversely, South Africans do not protest petroleum product prices.

Uganda: The Waiting Has Ended

East Africa Will Get a Brand New Crude Oil Refinery before the End of the Decade

28 months after it sent out invitations to tender, the Ugandan government now has a private investor willing to lead the funding and construction of a two phase 60,000BOPD crude oil refinery, crude oil and product storage facilities on site, as well as a 205-kilometre product pipeline to a terminal near the capital city, Kampala.

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JEMMTEK Resources to Commission Chemicals Factory in October

Jemmtek Resources has concluded arrangement to commission a chemical production plant in Port-Harcourt, Rivers State, Nigeria.

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Petrol Prices Stay Up In South Africa, Ghana


Prices of gasoline (petrol), diesel, LPG and other fuels will remain high for some time in South Africa and Ghana, two key African countries where deregulation has kicked in, because of the weakening currencies of the two economies and marginal reduction in crude oil prices in the month of March 2013. Gasoline will cost as much as $1.42 (or R13.20) per litre in the inland parts of South Africa and $1.38(or R12.83) in the country’s inland region throughout April 2013. The costs are adjusted monthly by the Department of Energy, and they are reflective of international prices of Brent crude and the exchange rate.

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Subsidies Deepen Egypt’s Budget Deficit

By Jennifer Lewis

In Egypt, subsidies on natural gas and petroleum products have become one of the most controversial topics. With the declining economy of the country, the extensive subsidies on oil and gas products are expanding the deficit in the budget. It was revealed by Egypt’s Minister of Petroleum that the total cost of subsidies on petroleum products is around $7.4 billion a year; however the total revenue generated from the exports of petroleum products amounts to around $10 billion a year. Therefore, the excessively high costs of subsidies render the exports less profitable for the country. Bloomberg reported that Egypt’s exports of natural gas to Jordan or Spain have shrunk due to the increase in country’s local consumption, as well.

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Uganda Seeks Transaction Advisor For Refinery

Uganda Seeks Transaction Advisor For Refinery

The Ugandan Government has received expressions of interests from companies bidding to be its Transaction Advisor for the development of an oil refinery. The government will send out invitations to tender or to participate to selected candidates on Monday 22nd October 2012.

When selected the Transaction Advisor shall advise Government on structuring the refinery project, developing a feasible project financing structure, planning and securing appropriate investment partners, development plans for the Refining Company including, but not limited to, preparation of the necessary legal documents for formation of the Refining Company and further detailed agreements and contracts with crude suppliers and petroleum products offtakers.

This is the first formal step that Uganda has taken on its own, to go forward with talks with upstream operators in the country to set up a refinery has stalled several times. But the Ugandan government has been keen on getting a refinery on ground from the get-go of crude oil production.

Tullow Oil, the country’s leading operator, has argued that construction of export pipeline is a more bankable project. The government disagrees. “One of the key findings from a feasibility study (conducted by Forser Wheeler) was that development of a refinery presented better benefits to the country compared to the crude export pipeline”, the government said in the invitation for expression of interest for the role of transaction advisor.

Government’s plan is to develop a 60,000 BOPD refinery that will later be expanded to 120,000 BOPD and then 180,000 BOPD. The strategy is to develop the 60,000 BOPD refinery in a modular manner starting with 20,000 BOPD delivered within 3 years. The Government of Uganda has received a grant from the Norwegian Ministry of Foreign Affairs to contract services of a Transaction Advisor.

The Transaction Advisory Services, which are estimated to last one year,  are expected to be provided by a firm with extensive experience with a minimum of 10 years’ experience in providing similar services. The company should include most important projects of similar type executed during the last 3years including their value, execution period and client. Detailed description of relevant projects executed by the company involving development/planning/evaluation of Transaction activities related to complex petroleum projects in general and particularly in Africa should also be included.

The project team is expected to provide the following key expertise for the assignment:

  1. Experience in oil supply & refining contracts and agreements e.g. Joint venture/cooperation/ participation agreements, Crude oil supply contracts, Oil logistics (supply, transportation, trading and storage)
  2. Project management experience/competence in oil and gas
  3. Legal expertise and experience from international oil and gas
  4. Experience in valuation, incorporation and setting up manufacturing companies
  5. Experience/competence in financing of large investment projects

The ideal consultants should be qualified in their respective fields with a minimum of graduate qualification and with not less than 10 years of experience in the oil and gas sector.

Joint proposals are acceptable, but one company must undertake responsibility as Main Consultant and the others as sub-Consultants to the Main Consultant.

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