Home Region Americas Erin Energy files for chapter 11 bankruptcy protection April 27th, 2018 Donal Scully Americas, Offshore

Houston-based Erin Energy Corporation, which mainly focuses on offshore oil developments in Africa, has filed for Chapter 11 bankruptcy protection.

Under the filing, made in the Southern District of Texas, Houston Division, Erin and some of its subsidiaries are asking the court to approve a reorganization plan as it seeks to restructure its debt.

Erin and the subsidiaries will continue to operate under the jurisdiction of the court.

Court documents show the company listing assets of nearly $247.54 million and total debts exceeding $628.72 million.

Erin has exploration licences for offshore Nigeria, Ghana, Gambia and Kenya but the oil sector in Africa has been struggling.</s>Mr. Dominic Mendy, the former Minister of Trade, Regional Integration and Employment, yesterday told the Janneh Commission that the main idea of getting Crude Oil from Nigeria, was to generate income and support the former Government of the AFPRC.

Mr. Mendy was summoned in connection to the lifting of Oil from the Federal Republic of Nigeria at the time he was Trade Minister. He said hence there was no additional budget support, the former president deemed it prudent to approach the former Nigerian President Sani Abacha for the provision of Crude Oil.

He however told the Commission that mechanisms were supposed to be put in place and that an agent should have been appointed for the dispensation of the fuel; but that the former president said he would discuss about that.

Prior to dwelling on the subject matter, he gave a synopsis of portfolios he held under the public service up to his dismissal in 1999.

According to him, it was for this reason, the former president issued him a Power of Attorney to the said country when Maba Jobe was the Gambia’s High Commissioner to Nigeria, at the time; that he signed the agreement between the two countries.

“I think I signed for about 200,000 metric tons of Crude Oil and when I came back, a committee was formed to see how the country would benefit from it,” he disclosed.

He further testified that the agreement he signed was not submitted to Cabinet at the time he was Minster and was not aware of any revenue generated after the lifting of the Crude Oil.

He explained that the former Government was supposed to put mechanism in place and to also appoint an agent for the dispensation of the fuel. He recollected that on the 22nd of July, 1999, his services were terminated and Mr. Foday Barry of the NIA then, went to his house and informed him that the former president wanted him to represent him in an arbitration in London, which he said he did not know about; that Mr. Barry told him that the matter was about Crude Oil; that he responded to him that he knew nothing about the matter, further stating that because the former president refused to discuss about the appointment of an agent.

The former Minister now consultant, explained to Commissioners that the main idea of having Crude Oil was to generate income and support the former Government of the AFPRC.

At this juncture, Commission Counsel Amie Bensouda, asked him about the agreement but he responded that he was arrested and detained for five days by officers of the National Intelligence Agency (NIA), whom he said conducted a search in his house and carried away some documents.

He however said he could not remember the person that headed the NIA team that conducted the search in his house; that the agreement was signed at the Nigerian National Petroleum Corporation (NNPC). “I cannot recall signing any Corporation agreement,” he expounded.

On whether he knew one Samuel Sarr, he responded in the affirmative; that Mr. Sarr used to have social relationship with many Government Officials but he did not know whether he worked for Government.

He finally testified that he did not know how Mr. Sarr got involved in the Crude Oil matter.

Earlier, the Managing Director and the Deputy of the Gambia Ports Authority Abdoulie Tambadou and Ousman Jobarteh, yesterday reappeared before the Commission with regard to the construction of a Hostel at the Regional Maritime University in Ghana, which the GPA also contributed to.

According to Mr. Jobarteh, in 2008, the Board of Governors of the Regional Maritime University in Ghana, produced a report on the University and opted for the construction of the hostel for students including Gambians.

He said the Board comprises of members from Anglophone countries within West Africa, and The Gambia pledged to support the funding; that the total cost for the project was $750,000 out of which the GPA contributed over $278,000, while the former Government of The Gambia, contributed over $100,000.

According to him, a letter was addressed to GPA from the office of the former president asking them to pay 40,000 Ghana Cedis as their contribution for the construction of the Hostel.

At this juncture, Mr. Tambadou made it clear to the Commission that he was not the MD at the time; that this matter was executed by the then MD of the Ports. Mr. Jobarteh also confirmed the payment of over $1.7 million, by the then Taiwanese Embassy for the maintenance of ferries.

Correspondences together with other relevant information and documents were tendered and admitted as exhibits.</s>Ghana bagged US$2.2 billion from remittances in 2017 from a total of US38.4 billion that Sub Saharan Africa recorded, according to the World Bank’s Migration and Development Brief.

Ghana was joint second with Senegal which also earned US$2.2 billion from remittances last year.

The largest remittance recipient was Nigeria with remittances of $21.9 billion. Remittances to Sub-Saharan Africa accelerated 11.4 percent to $38 billion in 2017.

Kenya (US$2.0 billion), Uganda (US$1.4 billion), Mali (US$1.0 billion) and South Africa (US$900 million) placed 3rd, 4th, 5th and 6th respectively.

The region is host to several countries where remittances are a significant share of gross domestic product, including Liberia (27 percent), The Gambia (21 percent), and Comoros (21 percent). In 2018, remittances to the region are expected to grow 7 percent to $41 billion.

Remittances to low and middle-income countries rebounded to a record level in 2017 after two consecutive years of decline.

The World Bank estimates that officially recorded remittances to low and middle-income countries reached $466 billion in 2017, an increase of 8.5 percent over $429 billion in 2016. Global remittances, which include flows to high-income countries, grew 7 percent to $613 billion in 2017, from $573 billion in 2016.

The stronger than expected recovery in remittances is driven by growth in Europe, the Russian Federation, and the United States. The rebound in remittances, when valued in U.S. dollars, was helped by higher oil prices and a strengthening of the euro and ruble.

Remittance inflows improved in all regions and the top remittance recipients were India with $69 billion, followed by China ($64 billion), the Philippines ($33 billion), Mexico ($31 billion), Nigeria ($22 billion), and Egypt ($20 billion).

Meanwhile, Sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4 percent. South Africa however is the costliest G20 country to send remittances from.

Major barriers to reducing remittance costs are de-risking by banks and exclusive partnerships between national post office systems and money transfer operators. These factors constrain the introduction of more efficient technologies—such as internet and smartphone apps and the use of cryptocurrency and block chain—in remittance services.

The global average cost of sending $200 was 7.1 percent in the first quarter of 2018, more than twice as high as the Sustainable Development Goal target of 3 percent.

“While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money. Eliminating exclusivity contracts to improve market competition and introducing more efficient technology are high-priority issues,” said DilipRatha, lead author of the Brief and head of KNOMAD.</s>Three African countries will soon start rolling out the world's first malaria vaccine.

Last year, more than 200 million people around the world were affected by the disease.

Most of those cases were reported in Africa.

Kenya, Ghana and Malawi will be among the first nations to try out the vaccine.</s>April 25 (UPI) -- Robust production from an evolving basin off the coast of Ghana in West Africa wasn't enough to change the outlook for the year, Tullow Oil said.

African-focused Tullow reported its interest in oil production during the first quarter averaged 87,700 barrels of oil per day, led by gains from its Tweneboa, Enyenra, Ntomme complex offshore Ghana. Output from Ghana has exceeded expectations so far.

The company is still in the process of remediating problems with a floating production facility parked over the Jubilee field off the coast of Ghana, considered one of the larger finds in recent years. Tullow said operations were closed for 19 days in the first quarter in order to carry out the first stages of repairs to parts of the floating infrastructure, which has been a chronic challenge for the company's work at Jubilee. Another week of closure is expected at the end of the year.

Net production from Jubilee averaged 22,600 bpd for Tullow in the first quarter. Net production form TEN was 32,400 bpd.

"Full year guidance remains between 82,000 and 90,000 bpd," the company's statement read. "Tullow's 2018 full year production forecast is unchanged."

Elsewhere, Tullow is reviewing its options in Kenya, while waiting for consent from the government in Uganda to sell off some of its assets to French and Chinese companies.

At the end of 2017, the company had $1 billion in free cash with no near-term debt maturities. Net debt declined to $3.4 billion and the company said it planned to spend around $460 million this year, unchanged from previous estimates.

"Tullow continues to make strong progress in 2018 and we continue to generate free cash flow from our high-return production assets in West Africa," CEO Paul McDade said in a statement.

Tullow, which has its headquarters in London, posted a loss of around $519 million for the first half of 2017. Half-year results are expected in July.</s>The Parliament of Ghana has ratified the African Continental Free Trade Agreement, seeking to boost intra-Africa trade through the creation of a single market for goods and services. This makes Ghana the second country after Rwanda to ratify the agreement.

It also aims at facilitating free movement of persons and capital to promote economic integration.

This was a major highpoint of the 18th Ordinary Session of the Assembly of Heads of State of the African Union (AU) held in Addis Ababa, Ethiopia, in January 2012.

The ratification of the agreement came after the Trade and Industries Minister, Mr. Alan Kyeremanten, had appeared on the floor of the House.

He announced to the House a formal offer to the AU by Ghana to host the African Continental Free Trade Area (AfCFTA) Secretariat.

Processes leading to the final selection of the country to host the Secretariat had already began and a decision would be taken at the next summit of the Heads of State and Government in the coming July.

A pre-condition for selection is that the member state should have ratified the trade agreement.

Mr. Kyeremanten expressed optimism that the early ratification of the agreement was going to strengthen Ghana’s chances and said, the trade agreement was good for the nation and Africa.

Mr. Fifii Kwetey, Ranking Member on Trade and Industry, shared the assertion by the Minister that the agreement was in the national interest.

He asked that the government should go beyond the endorsement, to take full advantage of it.

Mr. Ben Abdallah Banda, Chairman of Parliament’s legal and Constitutional Committee, in his contribution, said the benefits could be enormous.

Alhaji Inusah Fuseini, Ranking Member on legal and Constitutional Committee, on his part, said it should send powerful signal to the Europeans and the others that Africans were determined to trade among themselves to lift their people out of poverty.

Mr Samuel Okudzeto-Ablakwa, Ranking Member on Foreign Affairs, appealed to Nigeria and South Africa, the two economic giants, who opted out of the treaty, to reconsider their stand and join.</s>The Petroleum Technology Association of Nigeria (PETAN) is once again coordinating the Nigerian Pavilion at the Offshore Technology Conference (OTC) holding at Houston, Texas from April 30 to May 3, 2018.

 The OTC is the premier gathering of professionals and opinion leaders in the global oil and gas industry, and it provides excellent opportunities for positive portrayal and promotion of the great potentials of Nigeria and the Nigerian oil and gas industry.

 It also provides a unique platform for close interactions with leading international and major Nigerian oil service companies, indigenous oil companies, industry executives, government policy makers and political leaders, to share ideas on improving the Nigerian oil industry.

 PETAN member companies and many other indigenous oil service companies will be part of a robust contingent, to showcase the dynamism and potentials of Nigeria’s Petroleum Industry. About 2,500 professionals and industry leaders from Nigeria and beyond her shore will attend this year’s event.

 PETAN has been organising and hosting the Nigerian pavilion at the Offshore Technology Conference (OTC), Houston, Texas since 2005.

 The key highlights of OTC 2018 include;

 50 years of OTC: Programming which reflects on our history, the current state of the industry, and what is on the horizon.

 Faster deployment of new technologies: Solutions to reduce the development timeline and create project-ready technologies which meet current industry challenges.

 Cost reducing tools and techniques: Ways to decrease costs and improve overall value, while maintaining high standards for safety, operationability, and reliability.

 Integrating to innovate: How advanced software, nanotechnology, and the digital revolution are integrating disciplines and triggering an historic transformation in the offshore energy sector.

 Meeting global demand: Meeting the energy needs of fast-growing economies, while reducing carbon emissions and carefully considering the impact of digital technology.

 Update on world-class projects: The latest on landmark projects which have resulted in breakthrough technologies in a low oil price environment.</s>A number of nations offer right of returns for those persecuted due to historical injustice. Israel offers a right of return for Jewish people. Germany offers a right of return for those descended from Jews expelled or who fled the horrors of the Holocaust. Spain and Portugal offer citizenship to those whose ancestors were expelled from the Iberian peninsula due to the 1492 and 1497 expulsions and the Spanish Inquisition. Ghana is the first African nation to offer a right to return for those impacted by African slavery.

The importance of this cannot be underestimated. Ghana was one of the main ports from which African slaves were picked up and shipped out to the Americas. For the government in Ghana to not only acknowledge this but to attempt to rectify the horrible history that took place is a major step. Clearly people of African descent did not willing immigrate to the Americas, and for those that wish to return to Africa Ghana is a stable country in West Africa that speaks English. Ghana is the world's fastest growing economy according to the IMF and the World Bank.

Ghana has historically attracted a number of African American and Anglo Caribbean tourists. Those who stay long term under Ghana's right to return law are free to apply for dual citizenship if they have made substantial contribution to the economy or society of Ghana. The right to return is mutually beneficial for those in the African diaspora and for Ghana itself. African Americans who have made the move said they did so because they wanted to live in a place where they felt like they fitted in. Or that they felt like coming up. Or that it was important for them to have options as to where they wanted to live. The US media brainwashed African Americans into thinking that either we live in the inner city or we have to live in the South. It's nice to see African Americans taking matters into their own hands and deciding where they want to live, and on their terms. Hopefully more nations in Africa will offer right of returns for the African diaspora.</s>Community-based delivery platform Ruxster has launched in Ghana, connecting travellers with online shoppers in Africa to facilitate easy and affordable deliveries.

Launched earlier this month, Ruxster gives online shoppers access to a pool of community-driven travellers, who can make money by delivering goods purchased online to shoppers.

“We realised that, every day, people always ask for people travelling or coming into the country simply because they cannot afford the courier services fee for shipping of items,” Ruxster business lead Ibrahim Babatunde told Disrupt Africa.

“On the other side, people travel in and out of the country all the time. Ruxster connects this set of travellers to people that need things from their country of destination.”

The platform serves as a middleman that ensures security via an escrow system. While the current price for shipping items from abroad to Africa is on average between 50 and 70 per cent of the cost of the item, with Ruxster delivery fees are as low as 20 per cent.

The startup came about after Babatunde tried to ship goods worth US$300 from India, and realised the cheapest shipping he could access was around US$200.

“Several companies have tried to hack this solution, but as much as we respect their effort, one thing that is peculiar to Africa is the different culture that abounds. Most of the existing solutions are either doing consolidated shipping with a predefined shipping cost on the buyer,” he said.

“Our system is built on existing culture and is user-centered, as we give them full control of the process, ranging from the point of requesting an item, the pricing, and the whole delivery facilitation.”

Ruxster is currently bootstrapped, but has secured a partnership with online community Accra Expat, which has around 10,000 members, as well as some local e-commerce stores.

It is piloting in Ghana, but already receiving requests from Nigeria, Ivory Coast and Kenya.

“The plan is to network these countries by the beginning of the first quarter next year and scale into major African countries subsequently,” Babatunde said.</s>Local entrepreneurs are being encouraged to seize business opportunities in the growing Ghanaian economy where there will be no problems moving US currency out once investments are made there.

General manager of the Ghana National Petroleum Corporation Dr Kwame Amoah Baah-Nuakoh, responding to questions at a T&T Energy Chamber business consultation at Cara Suites Hotel in Claxton Bay yesterday, said he is hoping T&T investors will assist in building Ghana’s oil and gas industry.

There is a free flow of foreign currency in the West African nation he said, adding: “There is a healthy investment climate and a stable economy in Ghana, as well as strong legal and regulatory framework for the oil and gas sector.”

Baah-Nuakoh said local content is important to Ghanaians, so any company investing in the country must pass on knowledge and technical expertise and there must be collaboration with universities and training institutions.

“We are looking at getting foreign capital to invest in upstream, midstream and downstream projects. We have huge hydrocarbon deposits on shore and offshore and we are crawling when it comes to the gas sector.

“Trinidad and Tobago is an old industry and we want to be able to harness our natural resources for the mutual benefit of the Ghanaian people,” Baah-Nuakoh said.

Ghana experienced 8.5 per cent economic growth in 2017, compared with 2.5 per cent in 2016.

Baah-Nuakoh and his delegation will be meeting with business associations and government agencies this week to discuss opportunities.

“We are especially interested in setting up fertilizer and ammonia industries. We spend a lot of money importing fertilizers. If we can convert gas into fertilizer we won’t have to fly the gas or import the fertilizer,” he said

Ghana has 36,000 kilometres squared and 103, 600 km2 of open offshore and onshore acreages and in June the country is expecting its first gas from those fields.

Chief Executive Officer of the Energy Chamber Dr Thackwray “Dax” Driver said he was happy about the business prospects in Ghana.

“We have Republic bank there and there is a wide range of opportunities for Trinidadian businesses to develop exports in service. Ghana is a good opportunity that should be explored,” Driver said.
Erin Energy, a Texas company specialising in African offshore oil deposits with licences to explore off Nigeria, The Gambia, Ghana, and Kenya, files for bankruptcy protection.