In addition to this new 40 MW plant in Mozambique, the company operates 200 MW of solar power plants in South Africa and Rwanda and has new projects under development across Africa, including Mali, Nigeria and Kenya

OSLO, Norway, November 1, 2016/ — Scatec Solar (ScatecSolar.com) and Norfund (www.Norfund.no) have signed the Power Purchase Agreement securing  the sale of solar power over a 25 year period to the state owned utility Electricidade de Mozambique (EDM).

The agreement was signed at a ceremony in Maputo yesterday in the presence of the Norwegian Minister of Foreign Affairs, Mr Børge Brende, the Mozambican Minister of Mineral Resources and Energy, Mrs Letícia Klemens as well as Dr Mateus Magala, Chairman & CEO of EDM. The project is the first large scale solar plant to be built in the country and represents an important first step in realizing Mozambique’s ambition to increase renewable power generation in its energy mix.

The 40 MW plant is located close to the city of Mocuba in the Zambézia Province, and is expected to deliver 77,000 MWh per year of much needed electricity to the northern regions of Mozambique. The plant will deliver power to the national grid and produce enough energy to serve about 175 000 households.

A shareholder agreement was also signed between KLP Norfund Investments AS, Scatec Solar and EDM. The required project investment is estimated at USD 80 million. Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and EDM (25%) will provide equity, while IFC, the International Finance Corporation, a member of the World Bank Group, and the Emerging Africa Infrastructure Fund intend to provide project finance debt. The parties are targeting financial close and solar plant construction start in the first quarter of 2017.

“This is an excellent example of how private public partnerships can deliver renewable energy and support further economic growth in Mozambique. EDM and the government of Mozambique have demonstrated strong leadership in taking this project forward and it paves the way for further investments in renewable energy in the country,” says Scatec Solar CEO, Raymond Carlsen.

“Access to reliable energy is a prerequisite for development. Only 3% of the world’s electricity is generated in Africa, although 15% of the world’s population lives here. Clean energy is a focus investment area for Norfund, and we appreciate being a partner in this first independent solar power producer project in Mozambique together with EDM and Scatec Solar, says Norfund CEO, Kjell Roland.”

The project is a result of strong partnership between the governments of Norway and Mozambique. The Norwegian government has provided economic support as well as technical expertise to the energy sector in Mozambique for several years.

Scatec Solar is a leading developer and owner of large scale solar plants in Africa. In addition to this new 40 MW plant in Mozambique, the company operates 200 MW of solar power plants in South Africa and Rwanda and has new projects under development across Africa, including Mali, Nigeria and Kenya.

Accra, 28th October, 2016: The Ministry of Petroleum has observed with concern media reports on false allegations made by the New Patriotic Party (NPP) suggesting that:

1. In 2017 gas supply from the Jubilee Fields will stop as the FPSO is expected to shut down for a period of six months and therefore this will plunge the country into power supply challenges;
2. Ghana plans to export all its gas to China in return for $2 billion.

The Ministry views these statements as reckless, untrue and are calculated at best to create fear amongst Ghanaians. The Ministry therefore, wishes to clarify these issues.

1. In 2017 gas supply from the Jubilee Fields will stop as the FPSO is expected to shut down for a period of six months and therefore this will plunge the country into power supply challenges.

This is not true. In Ghana, gas supply is routed to our power plants through the gas plant in Atuabo. Gas Supply shutdowns are part of normal maintenance regimes on fields. Thanks to the hard work of the NDC Government, under the able leadership of President John Mahama, gas supply in 2017 will no more be from one field but from both the Jubilee and the TEN Field. Therefore, any shutdowns on one field would be substituted by Gas supply from the other field. Due to diligent planning, any shutdowns for maintenance on the Jubilee field would be more than compensated for by supply of gas from the TEN Field.

2. Ghana plans to export all its gas to China in return for $2 billion.

There is no basis for the assertion that Ghana’s gas would be exported for $2 billion. All of Ghana’s gas are being used and would continue to be used in Ghana for power generation. We should not confuse the use of proceeds or revenues from the sale of gas or its derivatives to support financing arrangements with the actual sale of lean natural gas and liquids. It is ridiculous to say that Ghana’s gas would be sold to China.

The CDB facility simply anticipates the use of revenues from the sale in Ghana to power plants of lean natural gas to support financing. No natural gas would be sold to Chinese to facilitate the financing. Any excess lean gas which is not sold to power plants in Ghana would be dedicated to petrochemical industry development including fertilizer production to support Agriculture in Ghana. Any excess LPG or other natural gas liquids not used in Ghana can also be exported either to our neighbours or to any potential buyer.

The Ministry therefore entreats Ghanaians to disregard these reports as they do not represent the facts.
We once again assure Ghanaians that our offices are opened to all persons who genuinely seek information on the happenings in the sector.

The Nigerian defence community has been advised to adopt the Local Content Policy in their operations, particularly in the manufacturing and maintenance of security equipment and development of software.

The Executive Secretary, Nigerian Content Development and Monitoring Board, (NCDMB), Engr. Simbi Wabote gave the advice on Wednesday in Abuja when he delivered a lecture to participants of the Nigerian Defence College, Course 25.

Speaking on the topic, Local Content Policies and National Security: An Assessment of the Oil & Gas Sector, he charged military authorities to also consider adopting Local Content in the production of security clothing, construction of security vessels and include the policy in other security contracts, especially in offshore locations and maritime facilities.

The Executive Secretary pledged the support of the Board to the Defence Community in developing a unique local content policy that would fit its operations.

According to him, the implementation of Nigerian Content in the oil and gas industry has yielded enormous achievements, including employment generation for thousands of Nigerians, skills acquisition, local manufacturing and asset ownership and prompted sectors like power, telecommunications, and construction to adopt the policy.

He added that countries such as Ghana, Kenya, Gabon and Oman have also adopted some of the local content models implemented in Nigeria.

Wabote described Nigerian Content as a national security imperative, noting that the Nigerian oil and gas industry must depend on Nigerian owned assets and personnel to avoid a scenario where the sector is forced to shut down because foreign owned assets or expatriates have to be withdrawn due to insecurity in the Gulf of Guinea Region, diplomatic tensions or outbreak of an epidemic in the country.

He stated that spend on procurement of manufactured goods gulp over 50 per cent of contracts budgets, much more than other elements like fabrication, construction and engineering. That he said, informed the emphasis of Nigerian Content implementation on in-country manufacturing and domiciliation of industry activities because of their capacity to create employment, retain spend in the economy and contribute to national industrialization.

He further explained that NCDMB is implementing the Nigerian Content Act using a four pronged approach that focussed on Manufacturing and Infrastructure, Human Capital and Technology, Supplier Development and Funding and Asset Ownership.

The Executive Secretary expressed satisfaction that the Board’s participation at the Defence College event in 2015 resulted in the partnership the military has forged with Oildata Wireline Services – an indigenous service company. The two parties collaborated in the deployment of fiber optic technology for pipeline monitoring and protection between Ugheli and Kwale, Delta State in 2015 and set up of Oilfield shaped charge manufacturing facility in Nigeria in partnership with the Defence Industry Corporation of Nigeria (DICON).

Responding to questions from the participants, Wabote explained that the Board was collaborating with the Nigerian Maritime Administration and Safety Agency (NIMASA) to implement the Cabotage Act as it pertains to the oil and gas industry. He noted that the number of Nigerian vessel owners in the oil and gas industry have increased to about 60 per cent of the total operators – a marked improvement on what obtained in 2010 when the Act was enacted.

He also explained that the Board’s Expatriate Quota Policy regulates the participation of expatriates in the Nigerian Oil and Gas industry through the issuance of biometric cards after confirmation that such skills are not available locally. The policy also assists the Board to electronically track their length of stay, compliance with provided succession plans and expected date of exit.

In his comments, the Deputy Commandant and Director of Studies, Nigerian Defence College, Major General EG Ode underscored the need for effective collaboration between the Defence Industry and the oil and gas industry and called for the development of local capacity across the industry value chain.

…pledges to create jobs, upscale capacity of Nigerians

…plans review of implementation process

The newly appointed Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote assumed office on Monday at the Board’s headquarters in Yenagoa, Bayelsa State, pledging to use the implementation of Nigerian Content to support President Muhammed Buhari’s administration to create jobs and upscale the capacity and skills of Nigerians in the Oil and Gas Industry.

The Executive Secretary, whose former roles included General Manager, Business and Government Relations, Shell Petroleum Development Company Nigeria, Local Content Manager, Shell C&P Global and General Manager, Nigerian Content Development, commended the management and staff of the Board for the huge achievements they recorded in the past six years implementing the Nigerian Content Act.

He however, noted that the urgent task before the Board would be to review its activities and implementation process and evolve new strategies. According to him, “the next step is that we are going to take stock and ask ourselves, how have we implemented the Act, where have we made progress and where do we need to change our tact and strategies. How have we been able to achieve some of the targets set out in the schedule, where are we in each of those categories and what are the big ones we need to focus on to move to the next level?”

Admitting that the oil and gas industry is facing challenges, particularly the sharp drop in crude oil price, reduction in activities and inability to fund new projects, Wabote promised to lead the Board to find prospects in the circumstances, adding “that it is in times like this that opportunities are created because you ask yourself, what can we do differently?”

He also hinted that the Board will extend its focus to indigenous operating companies, noting that the Board’s remit goes beyond monitoring international oil companies to include the midstream and some part of the downstream segments of the industry. He emphasized that the Board would look at the entire oil and gas spectrum to see how to create opportunities for Nigerians, support vendors and assist them to deliver optimal value for the country.

Reacting to the erroneous impression that NCDMB is responsible for the protracted contracting cycle, Wabote insisted that the Board would not abdicate its roles in the bid process as had been canvassed in some quarters, tasking operators and service companies to play their part to address the problem.

He explained further that “I have been on the other side and I can confirm that the hue and cry about delays in contracting cycle is not just on the part of NCDMB. The operators and contractors have to clean their houses if they want things to be done differently.”

He also dismissed insinuations that his background would influence him to unduly favour operating companies in the implementation of Nigerian Content, stating, “I am now a government official and government has its procedure and processes that we must implement and we will implement the Nigerian Content Law to the letter. That is the objective with which I am taking this office. I am accountable to people that put me here.”

The Executive Secretary also commended the former Acting Executive Secretary, Mr. Patrick Daziba for the high sense of duty exhibited during the period he acted and solicited the cooperation of management and staff to deliver on the Board’s mandate.

Moves by the Federal Government to boost power supply nationwide with the construction of a hydro-plant on Mambilla Plateau in Sardauna Local Council of Taraba State, North Eastern Nigeria may have turn out a tall dream.

Reason: The community hosting the project is on the verge of being cut off by gully erosion.

A border settlement with Cameroun, Lakkitaba, is reportedly in the throes of extinction if the problem was left to tarry.

Motorists and travellers negotiating Gembu, the administrative headquarters of Sardauna Local Government and Cameroun, are, according to reports, being left to devise an alternative route as a result of the erosion.

The Guardian, during a visit to the area, observed that the erosion had eaten deep into the only motorable road leading to the project site, a development that has instilled hopelessness in the people as regards the coming into fruition of the cherished facility.

Some community leaders, who spoke to the press, said the project would sure be affected if nothing was done urgently to fix the dilapidated federal road, as it would play host to heavy machines during construction.

The Village Head, Alhaji Hammidu Umar, pleaded with government to tackle the menace expeditiously. Similarly, commuters urged quick intervention to stave off avoidable loss of lives and properties.

The council’s Vice Chairman, Yerima Hassan Aliyu, who confirmed that the state government had been written, added: “This is a federal project but I am very certain that our governor, who is an architect by profession, will give all the needed help to fix the road.”

Speaker of the State House of Assembly, Abel Peter Diah, bemoaning the hardship of the people, called on government “to come to our rescue by bringing to an end this ongoing erosion that has taken over the major and only road leading to the site of the project.”

The Bank of Industry, BoI, has signed a $2 million agreement with the United Nations Development Programme, UNDP, to provide solar-powered electricity to no fewer than six communities in six states of the federation.

Speaking at the signing of the Memorandum of Understanding, MoU, on cost sharing pact in Abuja recently, Acting Managing Director of BoI, Mr. Waheed Olagunju, said the bank would provide $1.4 million for the project while the UNDP would provide the balance of $600,000.

Olagunju said: “This commenced in 2015 with a pilot phase in which the first set of low-cost, off-grid solar electrification projects were deployed in one community in each of the six geopolitical zones, in partnership with GVE Projects Limited and Arnergy Solar Limited.

“The pilot project involved the provision of long-term financing for the installation of micro-grid and stand-alone solar solutions in Bisanti community, Katcha LGA in Niger State, Idi-Ita/Onibambu community, Ife North LGA in Osun State, Kolwa community, Kaltungo LGA in Gombe State, Onono community, Anambra West LGA in Anambra State, Obayantor 1 community in Edo State and Charwa/Chakun communities, Makarfi LGA in Kaduna State. These projects were commissioned in record time between October 6, 2015, and May 24, 2016.

“The blend of BoI’s contribution in the sum of US$1.4 million as debt financing for the projects, with UNDP’s grant contribution of US$600,000 will provide the much needed stimulus to scale up the projects in view of the attendant reduction in the cost of deployment and enhancement of its overall viability,” he explained.

He noted that BoI’s contribution and the UNDP grant would be deployed to provide solar energy solution in states where both BoI and UNDP had existing collaboration. Olagunju said the pilot project scheme in Gombe, Niger, Osun, Anambra, Edo and Kaduna states, was aimed at giving rural communities the opportunity to take control of their energy generation and also pay for only the units consumed.

Olagunju disclosed that plans were underway to replicate the project in other off-grid communities in Edo State, in collaboration with the state government as well as other parts of the country, working with the various state governments. He said for Nigeria to meet up with its energy needs, she must diversify into the use of alternative sources as the country had some of the world most abundant and least exploited renewable energy sources, especially solar power.

He maintained that solar power could be utilized to provide the much needed electricity for the nation’s rural communities, rather than waiting in vain for the national grid to get to these areas He, however, said the Development Finance Institution’s (DFIs) medium term vision was to have about 100,000 homes installed with stand-alone solar home systems, pointing out that this move was essentially a programme aimed at poverty alleviation, reduction in rural-urban migration to foster rural economic development.

“We are all aware that power remains a major obstacle to growth in Nigeria, as inadequate and unreliable electricity undermines investment opportunity, economic growth, social and infrastructure developments,” he said, adding that the central power generation, transmission and distribution system operational in the country could no longer deliver competitive, cheap and reliable electricity to remote customers on and off the national grid.

According to him, renewable energy sources, such as hydro, wind and solar, are growing in relevance and commercial adoption on a global scale, even as issues such as climate change and energy security have taken the front burner globally. He said solar power had emerged as a tested solution to the rural electrification challenge and was now the cheapest source of electricity for more than one-third of Africa’s population, a figure that would continue to increase as the cost of solar plummets.

He said solar power solutions was the best technology Nigeria could get from the United States to be financed by the BoI and UNDP, adding that if the project succeeded, it would be used in other off-grid areas in the state and the nation at large. He said scaling this pilot project across 774 local government of Nigeria with 10 micro-grid installed in each local government would generate 300MW of uninterrupted electricity, devoid of sabotage or pipeline vandalism.

Olagunju further said BoI was working in partnership with 20 states   and the Federal Capital Territory, while the bank hoped to cover the remaining 16 states as soon as possible. The Country representative of UNDP, Mrs Mandisa Mashologu, who commended BoI for the collaborative effort to reach out to the communities, said both parties would look out for states already partnering with BoI and UNDP.

The Organisation of Petroleum Exporting Countries has agreed to cut production by 750,000 barrels a day, Bloomberg News reported Wednesday, citing a delegation member.

The surprise news triggered an immediate spike of more than 5 percent in crude prices, as markets had expected the Algiers meeting to end without agreement.

In London benchmark Brent North Sea crude for November delivery rose $2.72 to $48.69, while in New York a barrel of West Texas Intermediate (WTI) was up $2.38 to $47.05.

OPEC members, whose countries produce 40 percent of the world’s crude oil, agreed to cut their output to 32.5 million barrels per day, Bloomberg said citing a delegation source who requested anonymity.

An informal OPEC meeting opened in Algiers earlier Wednesday to discuss a possible freeze in output by the cartel, with the aim of raising prices which have fallen by more than half since mid-2014.