All posts tagged africainbusiness


Siemens appoints Dalia Shoukry as CFO in Egypt, its Biggest African Market

Siemens has appointed Dalia Shoukry as CFO in Egypt, effective immediately.

Shoukry has more than two decades of experience in financial roles covering the Middle East, Europe, and Africa.

Egypt is Siemens’ largest market in Africa and one of its biggest in the world. Between 2016 and 2019, under contract by the government, the German engineering firm built three combined cycle gas to power plants with total capacity of 14,400MW in Egypt. In December 2020, Siemens was awarded, by the Egyptian Electricity Transmission Company (EETC), the contract to build the new national energy control centre, in the country’s New Administrative Capital (NAC), still under construction, in the middle of the desert, some 45 kilometres east of Cairo.

Siemens is currently in discussions, with the Egyptian Ministry of Power nd Renewable Energy,  for a 500MW capacity Wind Farm in the country, under a Build, Operate and Transfer system.

All of which means that Ms. Shoukry has her job cut out.

Prior to Siemens, she was the international finance director AstraZeneca, the pharmaceutical giant.

She earned a degree in accounting from Ain Shams University. “We are very happy to welcome Dalia to our team in Egypt. Financing is a crucial component of our business, as it not only defines, manages, and oversees all budgets, but it also monitors the performance and ensures the financial health and stability of Siemens Egypt,” said Mostafa El-Bagoury, CEOof  Siemens Egypt.

Siemens has been active in Egypt ever since its founder, Werner von Siemens, laid a communications cable through the Red Sea in 1859 to link Suez and Aden..


Glencore Takes Carroll on Board

Glencore plc has appointed Cynthia Carroll, the British geologist and businesswoman, as an Independent Non-Executive Director of the Company with immediate effect.

Cynthia Carroll was the Chief Executive Officer of Anglo American, the world’s largest platinum producer, from 2007 to 2013. She was the first non-South African to hold the position. She was a non-executive director of the board of BP between 2007 and 2017.

Mrs. Carroll has over 30 years’ experience in the resources sector. She began her career as an exploration geologist at Amoco before joining Alcan. She held various executive roles there culminating in being CEO of the Primary Metal Group, Alcan’s core business

Cynthia Carroll is currently a non-executive director of Hitachi, Ltd (TYO: 6501), Baker Hughes Company (NYSE: BKR) and Pembina Pipeline Corporation (TSE: PPL). Previous non-executive appointments have included BP and the Sara Lee Corporation.

Glencore’s Chairman, Tony Hayward says the board is very pleased to welcome Cynthia Carroll, who has extensive knowledge of the resources industry as well as strong non-executive director experience.

 


Cameroon’s 25MW Solar Plants to Be Commissioned in Early 2022

The 10MW Guider and 15MW Maroua solar power plants, about to commence construction, will cost $31Million (XAF17Billion), and should be up and running before mid-2022. Guidder is located in Cameroon‘s North Province, close to the border with Chad, whereas Maroua is the capital of the country’s Far North Region.

The power utility ENEO (Energy of Cameroon), has received guarantees from the country’s Investment Promotion Agency (API), that the construction project will benefit from the tax and customs exemptions provided by the 2013 private investments incentives law (revised in 2017).  The related agreement was signed on January 20, 2021, in Yaoundé,

MGSC (a joint venture formed by Norwegian company Scatec, Israeli-American group Izuba Energy and Sphinx Energy, run by a Cameroonian economic operator based in the USA) was chosen by ENEO, in 2018, to develop the project.

Scatec, the leader of the consortium, has one of the largest solar energy capacities in Africa (400 MW in Egypt, over 300 MW in South Africa, 40MW in Mozambique, 300 MW under construction in Tunisia …).

The 25MW of solar energy expected from the Guider and Maroua plants will be sold to ENEO, according to the contract binding the involved parties. The power output should help diversify Cameroon’s energy mix, which is still largely dominated by thermal and hydroelectric energy. It should also reduce energy production cost.

 

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Energean to Top Up Egypt’s Gas Output with 90MMscf/d

By Toyin Akinosho

Energean’s Final Investment Decision on the NEA/NI project in Egypt, calls for a $235Million spend to deliver natural gas at 90Million standard cubic feet per day at peak.

TechnipFMC has been awarded the EPIC contract to deliver the project.

Energean Plc is a London listed firm with focus on the Mediterranean.

NEA/NI refers to North El Amriya and North Idku concessions, which are, though not contiguous, being jointly developed.  The project is a shallow offshore subsea tieback.

The NEA concession contains two discovered and appraised gas fields (Yazzi and Python) while the NI concession contains four discovered gas fields, one of which is readied for development.

NEA/NI, with 49Million Barrels of Oil Equivalent (BOE) of 2P reserves, 87% of which is gas, is due to deliver first gas in the second half of 2022. Some 1,000Barrels per day of condensate will also be produced.

“When Brent prices are above $40/bbl, gas will be sold at $4.6/MMBTU, which is the highest achieved to date for shallow water gas production, offshore Egypt”, Energean says in a statement.

 


ENI Increases Its Ghanaian Oil Production by 34%, to 52,000BOPD

Italian major ENI increased the gross output in Ghana’s Sankofa Gye Nyamme (SGN) field by 34% in the first half of 2020, relative to the output in the first half of 2019.

The company produced 9,562,821.97 Barrels during the period, representing an increase of 2,408, 486.97 Barrels over H1 2019 production of 7,154,335 Barrels, according to the country’s Public Interest Accountability Committee (PIAC), Ghana’s equivalent of an EITI agency.

As a result, average daily production increased to 52,543BOPD from 39,534BOPD  for the same period in 2019, the PIAC rreports.

ENI operates the Offshore Cape Three Points (OCTP) acreage, which contains the SGN field, with a 44.44% share. Other partners are Vitol with 35.56% and Ghana National Petroleum Corporation with 20%.

First oil flowed from the acreage in May 2017.

The year-on-year increase “was attributed to stable production operations, resulting from the FPSO John Agyekum Kuffuor’s (JAK) excellent plant uptime of about 99.95%, and the coming on stream of the OP-9 and OP-10 producer wells”, PIAC explains.

This piece was earlier published in the December 2020 edition of the monthly journal: Africa Oil+Gas Report.


Ghana Installs a Floating Solar Power Plant in a Hydroelectric Dam

Ghanaian authorities have inaugurated a floating solar power plant built in the reservoir of the hydroelectric dam in Bui, in north-eastern Ghana. The 5 MW plant is the first phase of a project to support the hydropower installation with a 250 MW solar system.

The second phase of the solar plant is under construction.

The Bui Hydroelectric dam has the capacity to produce 400MW of electricity. When the solar hybridization is completed, it will be able to output 650MW.

The Bui Power Authority (BPA) is the body responsible for managing this facility.

In times of drought, the solar power plant should complement the production of the dam, which drops as the flow of the Volta Noire river drops. According to Afare Apeadu Donkor, the chairman of the board of directors (PCA) of BPA, construction work on the second phase of the project, in addition to the new floating solar power plant, is “progressing”.

 


Africa’s Electricity Unlikely to Go Green This Decade

PARTNER CONTENT

New research from the University of Oxford predicts that total electricity generation across the African continent will double by 2030, with fossil fuels continuing to dominate the energy mix – posing potential risk to global climate change commitments.

The study, published by Nature Energy, uses a state-of-the art machine-learning technique to analyse the pipeline of more than 2,500 currently-planned power plants and their chances of being successfully commissioned. It shows the share of non-hydro renewables in African electricity generation is likely to remain below 10% in 2030, although this varies by region.

“Africa’s electricity demand is set to increase significantly as the continent strives to industrialise and improve the wellbeing of its people, which offers an opportunity to power this economic development through renewables” says Galina Alova, study lead author and researcher at the Oxford Smith School of Enterprise and the Environment

“There is a prominent narrative in the energy planning community that the continent will be able to take advantage of its vast renewable energy resources and rapidly decreasing clean technology prices to leapfrog to renewables by 2030 – but our analysis shows that overall, it is not currently positioned to do so.”

The study predicts that in 2030, fossil fuels will account for two-thirds of all generated electricity across Africa. While an additional 18% of generation is set to come from hydro-energy projects. These have their own challenges, such as being vulnerable to an increasing number of droughts caused by climate change.

The research also highlights regional differences in the pace of the transition to renewables, with southern Africa leading the way. South Africa alone is forecast to add almost 40% of Africa’s total predicted new solar capacity by 2030.

“Namibia is committed to generate 70% of its electricity needs from renewable sources, including all the major alternative sources such as hydropower, wind and solar generation, by 2030, as specified in the National Energy Policy and in Intended Nationally Determined Contributions under Paris Climate Change Accord,’ says Calle Schlettwein, Namibia Minister of Water (former Minister of Finance and Minister of Industrialisation). “We welcome this study and believe that it will support the refinement of strategies for increasing generation capacity from renewable sources in Africa and facilitate both successful and more effective public and private sector investments in the renewable energy sector.”

“The more data-driven and advanced analytics-based research is available for understanding the risks associated with power generation projects, the better”, Mr. Schlettwein argues. “Some of the risks that could be useful to explore in the future are the uncertainties in hydrological conditions and wind regimes linked to climate change, and economic downturns such as that caused by the COVID-19 pandemic.”

The study suggests that a decisive move towards renewable energy in Africa would require a significant shock to the current system. This includes large-scale cancellation of fossil fuel plants currently being planned. The study also identifies ways in which planned renewable energy projects can be designed to improve their success chances – for example, smaller size, fitting ownership structure, and availability of development finance.

“The development community and African decision makers need to act quickly if the continent wants to avoid being locked into a carbon-intense energy future’ says Philipp Trotter, study author and researcher at the Smith School. ‘Immediate re-directions of development finance from fossil fuels to renewables are an important lever to increase experience with solar and wind energy projects across the continent in the short term, creating critical learning curve effects.”

 

 

 


Ghana Backs Down on Objection to Wissam Al Monthiry as Tullow’s Head

Ghanaian authorities have quietly dropped objections to having Wissam Al Monthiry as Managing Director of Tullow Oil Ghana.

The Government initially demonstrated fidelity to its local content requirements when it objected to British company’s appointment of a non-Ghanaian as the Company’s Chief Executive in Ghana, insisting that Tullow Oil’s action defeats the Government’s localisation agenda.

Tullow had initially picked Kweku Awotwi, a Ghanaian electrical engineer and businessman, in February 2020, after the retirement of Charles Darku, the first Ghanaian managing director who had served the company for five years

But in the middle of May 2020, after an extensive review of its operations in the country, which is also its heartland, Tullow appointed Wissam Al Monthiry to replace Awotwi, who was due for retirement on June 30, 2020.

“Government did not pursue this objection further as the new MD remained Tullow’s MD as at June 30, and into the second half of 2020”, says the country’s Public Interest Accountability Committee, in its latest report.


Michael Ajukwu Takes the Chairmanship of LEKOIL 

Michael Onochie Ajukwu, a Nigerian businessman, has been named Chairman of LEKOIL Limited, after Metallon Corporation succeeded in getting the three directors it nominated into the company’s board of directors, at the Extraordinary General Meeting (EGM) of the company on January 8 2021.

He takes over from Mark Simmonds, the British diplomat and politician, who had been in the position for just about a year.

Mr. Simmonds is as high profile as they come. He was Britain’s Foreign & Commonwealth Office Minister with responsibilities for Africa, the Caribbean, UK Overseas Territories, International Energy and Conflict Prevention. He served as a Member of the UK Parliament for fourteen (14) years and was also a senior advisor to the then Prime Minister, David Cameron.

Simmonds took over the Chairmanship at a time of huge reputational challenges for LEKOIL: the company’s shares were in a headlong crash in January 2020, after the AIM listed firm discovered that a $184 Million loan it had announced was fraudulent.

But LEKOIL had not been able to live down the smear. And it was one of the issues that Metallon Corporation raised, two months after it bought 15% share of the company and moved in for board changes.

“I am honoured to assume the position of Chairman of LEKOIL and would like to thank my predecessor, Mark Simmonds, for his contributions to the Company”, Ajukwu, known in Lagos  business circles for his closeness to South African brands and Nigerian banking interests, said. “I look forward to working with my colleagues on the Board and the management of LEKOIL to deliver a high performing company anchored on strong governance structures that produces value for all shareholders.”

The path to Mr. Ajukwu’s chairmanship was cleared when Mr. Simmonds chose to step down as Chairman at the EGM and all resolutions that Metallon put to the meeting were duly passed, with Metallon’s nominated directors, including Michael Ajukwu, Thomas Richardson and George Maxwell invited to join the Board with immediate effect.

Mr. Simmonds noted his intention to stand down from board Chairmanship role with immediate effect with a new Chairman to be appointed by the enlarged board of directors.

 


FAR May Not Yet Ride into the Sunset, Afterall

Australian junior FAR Limited has cautioned that the proposed acquisition of all of its shares by Remus Horizons PCC has a dim chance of happening.

“The Remus Proposal terms are uncertain at this stage”, the company declares in a statement early on Friday, January 8, 2021.

The most significant lie in the release goes thus: “The Remus Proposal is conditional on the Woodside Sale not occurring”. Meaning: If FAR’s shareholders agree to sell the company’s 15% stake in Senegal’s Sangomar oilfield development to Woodside, then Remus will not move ahead.

“FAR cautions that the Remus Proposal is not a legally binding offer, there is no certainty that the Remus Proposal will necessarily eventuate, and the Remus Proposal terms are uncertain at this stage”, FAR explains.

“Accordingly, care needs to be used in assessing the Remus Proposal at this time. The Remus Proposal is conditional on the Woodside Sale not occurring”.

FAR says it has obtained further information from Remus in relation to the Remus Proposal as follows:

  • Remus is presently finalising the funding arrangements in advance of making the proposed offer.
  • The only internal and regulatory approval required to proceed with the offer is the final approval of the Remus Board and final review and confirmation of documentation.
  • Remus is presently satisfied that it will not need to undertake any further due diligence on FAR.
  • FIRB approval is not required and any offer made will not be conditional on FIRB approval.
  • Any proposed offer is expected to be subject to a requirement that Remus achieves a controlling interest in FAR together with other customary conditions.

“In these circumstances, FAR has determined to further postpone the shareholder meeting to consider approving the Woodside Sale currently scheduled for 21 January 2021 to 10.00 am on 18 February 2021. This will enable further time for FAR shareholders to see if the Remus Proposal eventuates, if so assess its merits, and consider the Woodside Sale on the basis of more detailed information. FAR will in due course distribute updated meeting information in this regard. FAR is not presently inclined to further postpone the shareholder meeting to consider updates in relation to the Remus Proposal. In the meantime, FAR is continuing to advance negotiations with Woodside in relation to the form of the Woodside Sale proposed contractual documentation following Woodside’s pre-emptive rights exercise. FAR advises that it is in the process of paying the RSSD project November 2020 cash call ($8.96Million plus interest) and the December 2020 cash call

 

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