Page 8 - AfrOil Week 06 2022
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AfrOil                                         INVESTMENT                                              AfrOil






















                                        Block A1 is located in the deepwater section of the offshore zone (Image: Africa Petroleum)

                         The ministry described Block A1 as a licence   and reprocess 2D and 3D seismic data from the
                         area that had previously been assigned to BP   block and conduct an environmental impact
                         (UK) but then “became available in August 2021   assessment (EIA) within that period, but it did
                         after the company exited the block” within the   not uphold its commitment to drill an explora-
                         framework of its wider effort “to pivot from pro-  tion well by July 29, 2021.
                         ducing resources to integrating energy.”  BP’s failure to meet this milestone came as no
                           BP’s exit occurred after approximately sev-  surprise. The company had announced in July
                         eral years of legal wrangling over the fate of the   2020 that it did not intend to proceed with work
                         block. The British company obtained a licence   at Block A1, owing to a change in its corporate
                         for Block A1 in July 2019, about two years after   strategy that favoured low-carbon energy initi-
                         the Ministry of Petroleum and Energy stripped   atives. Subsequently, it began negotiations with
                         exploration rights from Africa Petroleum, an   The Gambia’s government on meeting require-
                         affiliate of Norway’s Aker Energy, citing the   ments for backing out of the project.
                         company’s failure to uphold its investment com-  Block A1 was one of two licence areas taken
                         mitments during a two-year exploration period.  from Aker Energy in 2017. The other is known
                           As it had done with Aker, the ministry   as Block A4. Africa Petroleum contested the
                         awarded BP a two-year exploration licence. The   withdrawal of its licence and regained control
                         British major did meet its obligations to acquire   over the asset in 2020, following a court battle. ™



       Ghana seeks investment for TOR repairs






             GHANA       THE Ghanaian government is seeking strategic
                         partners willing to provide the capital required
                         to rehabilitate the dilapidated state-owned Tema
                         Oil Refinery (TOR).
                           Minister for Public Enterprises Joshua Cud-
                         joe made the announcement while speaking to
                         local media outlet Joy News, saying that inves-
                         tors in the facility would be expected to provide
                         funds for the extensive repair work needed to
                         overhaul the plant.
                           “Given the revenue constraints that the state   The Tema refinery has a throughput capacity of 45,000 bpd (Image: TOR)
                         has at the moment and capitalisation of TOR to
                         enable it to turn around, the Finance Minister   56-year-old facility has an effective throughput
                         Ken Ofori Atta would let you know, and I sup-  capacity of only 30,000 bpd.
                         port that we won’t use tax money to go and fix   Reports in May 2021 suggested that the refin-
                         it,” he said.                        ery had depleted all of its feedstock, with oper-
                           The 45,000 barrel per day (bpd) facility has   ations halted for maintenance and repair works
                         been plagued by issues, since early 2017, when   to begin. Frustrations surfaced later in the year,
                         an explosion occurred at its distillation unit.   with local outlet Modern Ghana reporting in
                         The plant was then closed completely between   August that refinery staff had “recently locked
                         July 2020 and January 2021. Its crude distillation   up some management staff.”
                         and fluid catalytic cracking units have experi-  Meanwhile, state utility ECG said in Decem-
                         enced outages, while only one of the CDU’s fur-  ber that it had cut electricity supplies to TOR fol-
                         naces is currently operational. As a result, the   lowing the facility’s failure to pay $4.3mn of debt.



       P8                                       www. NEWSBASE .com                       Week 06   09•February•2022
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