Page 16 - AfrOil Week 01 2021

AfrOil INVESTMENT AfrOil

Paulino Jerónimo, the chairman of the agency, ANPG has encouraged local companies to
was quoted as saying in the statement that bid for the blocks. Last year, the concessionaire
ANPG hoped to stage roadshows or techni- said that domestic firms that won the upcom-
cal presentations for the assets included in the ing auctions would pay a petroleum income tax
round later this year. The concessionaire has of 30% instead of the usual rate of 50%. It also
not yet scheduled these events but will make an stated that Luanda would not obligate Angolan
announcement “in due time,” he said. firms that submit winning bids to pay signature
He also stated that the auctions were bonuses or provide funding for social welfare
expected to benefit Angola’s oil and gas industry. initiatives. ™
“This 2020 bid aims to re-launch the exploration
and production of hydrocarbons in the onshore
areas of the aforementioned basins, to diminish
the decline in production by stepping up the
exploration and discovery of new resources,
to stimulate the creation of small and medi-
um-sized domestic companies in the petro-
leum sector [and] to promote the incorporation
of qualified Angolan labour, as well as fostering
technological innovation and good governance
practices,” he commented.
The upcoming licensing round will cover
three blocks in the Lower Congo Basin (CON-
1, CON-5 and CON-6) and six blocks in the
Kwanza Basin (KON-5, KON-6, KON-8, KON-
9, KON-17 and KON 20). The auctions cover blocks in the Lower Congo and Kwanza basins (Image: PGS)

Ethiopia preparing to scrap

GTL contract following probe

ETHIOPIA ETHIOPIA’S Ministry of Mines and Petro- and registered it in the state of Virginia in 2011.
leum has announced plans to exit the contract However, the company had been delisted from
it signed with US-based GreenComm Tech- Virginia’s corporate database by the time it final-
nologies last April for the construction of a new ised its agreement with the Ethiopian govern-
gas-to-liquids (GTL) plant in the Somali region. ment last year, Quartz Africa noted.
Koang Tutlam, State Minister for Petroleum Koang indicated that a number of officials
and Natural Gas, revealed earlier this week that in the Ministry of Mines and Petroleum had
the deal, which is worth an estimated $3.6bn, expressed opposition to the GTL deal, which had
was being scrapped. “We are in the process of been under negotiation since 2015. “Although
cancelling our agreement with the company,” he the so-called GreenComm Technologies project
said in a statement sent to Quartz Africa. (The preceded most of us at the ministry, some of us
news portal has been investigating the project were sceptical about their genuineness from the
and describes it as an oil refinery construc- beginning,” he said in the statement. “As such,
tion deal, but previous reports indicate that it some of us worked hard to prevent the [govern-
involves the building of a gas-to-liquids, or GTL, ment] entering into a commitment that would
plant.) cost the country.”
Koang, who reports to Minister of Mines and He also informed the news portal that the
Petroleum Takele Uma, also confirmed that the company had tried to secure a large sum of
contract was being rescinded because Green- money ahead of starting work on the GTL pro-
Comm had grossly misrepresented its technical ject. “First, the company wanted the Ethiopian
and financial capabilities. government to put forward a $100mn standby
According to Quartz Africa, the US-based letter of credit [l/c], which we learned was
company is headed by Nebiyu Getachew, an because they sought to get billions from lenders,”
Ethiopian-American and a former employee he explained. “But we refused to give in, despite
of an automobile dealership who has no expe- immense pressure from some heavy quarters.”
rience in the oil and gas industry. It has no visi- The minister of state further noted that
ble assets, and its listed address is not currently GreenComm had not upheld its contractual
occupied. obligation to deposit $5mn worth of insurance
Getachew reportedly founded GreenComm in the form of a performance bond.

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