Nigeria Fuel Subsidy End Raises Protest Fears

The Nigerian authorities have announced the start of a controversial plan to scrap fuel subsidies – which is expected to push up petrol prices.

The government has spent more than $8bn (£5.2bn) on the subsidies in the past year and says it will use some of the money to improve infrastructure.

Labour unions have called for “mass protests”.

On Fuel Hikes and Petro-Economics

By Sydney Casely-Hayford, Sydney@bizghana.com

The Tema Oil Refinery (TOR) debt is a shifting target.  Without it’s interest element, the current principal debt is estimated at Ghc1.5billion.  This figure includes balances due to Ghana Commercial Bank (GCB), Barclays Bank, Standard Chartered Bank and other TOR notes raised on the commercial markets.  According to the Finance Minister Dr. Kwabena Dufuor, the balance due to GCB alone as at December 31, 2010 is approximately Ghc640million.

Anadarko’s Jubilee party caps tough year

By Sheila McNulty in Houston, Financial Times, with permission

When the Jubilee field in Ghana produces its first oil on Wednesday it will represent more than a boost in production for Anadarko Petroleum.

It will also validate the US independent oil group’s strategy to pursue international exploration even as its peers pulled back. Oil groups globally are facing barriers to new markets dominated by state oil companies but Anadarko is among a handful seeking organic growth abroad.

The strategy is paying off. Anadarko says it expects production to rise by 7-9 per cent over the next five years, much of it from the string of oil discoveries off the west Africa coast.

Oil Revenue Management, Clause 5

By Sydney Casely-Hayford, Sydney@bizghana.com

The Government placed a draft revenue management bill with Parliament recently, which is still being debated.  Other than the many clauses governing the collection and use of the oil funds, Clause 5 has become the most contentious.

As presented to Parliament by Government after cabinet approval, clause 5 is very clear and reads thus.

Kosmos submits Declaration of Commerciality to Ghana, Tullow to issue 4 million shares on GSE

By Emmanuel Dogbevi, Ghana Business news

Kosmos Energy, one of the stakeholders in Ghana’s Jubilee oil field where Ghana’s first commercial production of oil is expected in December has submitted a ‘Declaration of Commerciality’ to the Ghana government. The Declaration, it says is for the southeast Jubilee area. And Tullow Oil plans to issue four million shares on the Ghana Stock Exchange (GSE).

Tullow secures additional US$350 million debt funding

Tullow Oil plc (Tullow) announces that it has finalised and closed arrangements for an increase of US$350 million to its existing US$250 million corporate revolving credit facility, with the amended facility commitments now totalling US$600 million in aggregate.

On Thursday 14 October the amended US$600 million secured debt facility was closed with Bank of Scotland Plc, BNP Paribas, Credit Agricole Corporate & Investment Bank, HSBC Bank Plc, ING Bank N.V., Natixis, Société Générale, Standard Bank Plc, Standard Chartered Bank, and The Royal Bank of Scotland plc participating as mandated lead arrangers.

The amended and increased debt facility will supplement Tullow’s existing US$2.5 billion reserve based lend debt arrangements, providing additional funding capacity and flexibility for the Group’s future capital programmes.

Onyina-1 exploration well finds water-bearing reservoirs

Tullow Oil plc (Tullow) announces that the Onyina-1 exploration well in the Deepwater Tano licence offshore Ghana encountered water bearing reservoirs.

The Onyina-1 well was drilled to explore a large, high-risk, Campanian prospect between the Tweneboa and Jubilee fields in the northeast of the Deepwater Tano Licence. It intersected 49 metres of good quality sandstone reservoir, on prognosis, however they were water bearing at this location.

The Scramble For Ghana’s Oil Begins

By Carly Ahiable, Business in Ghana

Some people call it Dino Juice, Texas Tea, Black Gold while other call it the fluid with rising cost but here in Ghana, where the continental shelf is impregnated with oil, crude may be assuming a new name, HOPE (Help Our People to Enjoy). Who want to be hungry and suffer in abundance of oil wealth? Every Ghanaian hopes to enjoy peace and prosperity but how trustworthy are the international agencies and multinational companies in their resolve to develop the oil reserves of Ghana, and keep the nation united and peaceful as they find it?