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Cash for seat saga: Expatriate businesses fail to show up at Committee sitting

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Expatriate businesses expected to take their turn at the Special Committee hearing in Parliament House failed to show up today,[Tuesday, January 16, 2018] for unexplained reasons, Committee chairman, Kwasi Ameyaw-Cheremeh has confirmed.

The five member Committee hearing has to be suspended indefinitely due to the no-show of the business companies.

Mr Ameyaw-Cheremeh explained “Today we plan to have before us Expatriate businesses, we have written to them, we gave them 10:00 to appear before us, unfortunately we have waited up until now, its ten minutes after eleven, and none has shown up so we are unable to continue with the work of the Committee for the day.

So we will adjourn and probably recontact them to appear before us at a later date to be determined by the Committee, we will give them that opportunity to appear before us, we shall announce to the public like we did previously when we are able to firm up the new date”.

The Special Committee set up by the Speaker of Parliament to investigate the issues surrounding the recently held Ghana Excellency Business Award (GEBA) started hearing last Thursday [11th January,2018] and have so far interrogated minority members, Samuel Okudzeto Ablakwa(Member of Parliament for North Tongu) and Mohammed Mubarak Muntaka(Member of Parliament for Asawase).

Others include: officials from the Trade and Industry Ministry as well as event ogranisers, Millennium Excellence Foundation.

Prior to today’s hearing, Tuesday, there were indications that even the Committee Chairman did not know how many of the expatriates who made financial commitments at the event were to appear before them.

There are suggestions the expatriate business executives may not show up due to the political nature of the matter, and the effect it could have on their businesses going forward.

Background

The Ministry of Trade, supporters of the Awards, was alleged to have charged between $25,000 and $100,000, to enable expatriates to sit close to the President at the awards ceremony, which was organised by the Millennium Excellence Foundation.

The allegation was first made by the Minority Chief Whip, Muntaka Mubarak, in Parliament in December 2017.

Mr. Mubarak said the fees charged at the Ghana Expatriate Business Awards were not approved by Parliament, adding that the monies were also not accounted for in the Internally Generated Funds [IGF] of the Ministry’s accounts.

The issue was further reinforced by Mr Ablakwa, who suffered verbal assaults from Deputy Minister for Trade and Industry, Carlos Ahenkorah over the matter.

The Ministry of Trade and Industry initially dissociated itself from these allegations.

The Trade Ministry, in a statement, said it played no role in determining prices for seats at the event and clarified that it only facilitated the implementation of a new initiative by the Millennium Excellence Foundation.

But the Ministry after an order from the President to probe the matter clarified that an amount of GHc 2,667,215 was realized from the event.

The organizers of the Awards had also explained that no one paid to sit close to the President and that the amount was raised from sponsorship through a fundraising at the event.

Parliament subsequently formed a five member bi-partisan committee to investigate the matter.

Among the terms of reference of the Adhoc Committee include : to investigagte the alleged levy and collection of sums of money by the Ministry of Trade and Industry from expatriate businesses during the recently held Ghana Expatriate Business Awards event in Accra.

To inquire whether any payments were made and received and, if so, how disbursement was effected and whether any such disbursement offended any law.

To investigate any relevant related matters; and to recommend appropriate measures aimed at redressing violations, if any, that may have occurred and the prevention of any such violations; and report to Parliament on the 24th of January,2018.

 

Funding options for ‘Free SHS’

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Mr. Jerry J. Afolabi

“Education is the most powerful weapon which you can use to change the world.”

…Nelson Mandela.

As Ghanaians, we must make the education of the youth our ‘Core Value’ to develop the fundamental human capacity base of our country. The ‘Free SHS’ policy is laudable and acceptable, but its funding approach by the NPP government has come under serious scrutiny across the country.

Whereas others believe it should be funded through oil revenue, another school of thought also believes it’s should be funded through agricultural generated revenue. The educational system in Ghana has seen some significant improvement in the area of infrastructure, even though there is still more to be done.

The ‘Free SHS’ programme is believed to be the vehicle to drive Ghana’s growth and bridge the gap that exists in education. Ghana’s economy can only advance in development, entrepreneurship and be industrialised when we improve its human capital base through education (free, compulsory, universal basic education) by ensuring it is Accessible, Quality, Continuous, and Sustainable for all.

Article 25 of Ghana’s 1992 constitution provides for equal rights to educational opportunities for all. The article also introduces progressively free education at the secondary level for all Ghanaian children. Ghana’s history proves that since 1951 successive governments have tried different approaches, methodology and policy directions for full implementation of this constitutional provision (to ensure free, compulsory, universal basic education for all), but with just varying success rates.

It is worth commending government for its bold, confident step to introduce the ‘Free SHS’ policy and commitment to ensuring its full successful implementation; however, there are very crucial and mindboggling questions which remain unclear and have generated several debates and discussions across all political and institutional sections of the country.

An important and crucial issue of contention in Ghana now is how the whole Free SHS programme will be funded by government to ensure it is sustainable and continues. A number of key stakeholders have expressed strong dissatisfaction with the funding options, as well as the budgetary allocation for the 2018 academic year, but I sincerely believe we have the resources and requisite knowledge to ensure full implementation and success of this flagship programme. I will make some recommendations as to how we can fund the programme to go forward and guarantee its sustainability.

Questions on the Free SHS policy’s Sustainability

  • How will government continuously find funds to sustain the Free SHS policy?
  • Can the Ghanaian economy (revenue generation) accommodate the Free SHS policy’s full cost   annually?
  • What is government’s clear plan-blueprint to solve the educational infrastructure (classroom blocks, science labs, boarding facilities and availability of technology) deficit?
  • How to avoid risk of decreasing quality in SHS educational circle as a consequence of introducing the ‘Free SHS’ programme.

The various discussions and debates across the country have allowed the general public to buy-in on how government plans to fund the entire programme and ensure its sustainability. As a concerned citizen and a stakeholder, I am worried about the current revenue mobilisation capacity of our country and whether or not government has any clear-cut blueprint implementation strategy and funding alternatives to ensure that this ‘Free SHS’ policy is sustainable, continuous, accessible and compulsory for all schoolgoing-age children in the country.

Full implementation of the ‘Free SHS’ policy is set to cost Ghana about GH¢3.6bn annually – without budgetary provision to improve the infrastructural deficit. Looking at the current economic situation of the country – especially with respect to the skyrocketing public debt which currently stands at GH¢139bn and the shortfall in revenue collection – it is very unclear whether sustainable funding can be secured for the Free SHS programme. Particularly as government is yet to make public any official implementation framework strategy for the policy.

What is Free in the Free SHS Programme

  • Free SHS means Free tuition, free admission, no library fee, no science centre fee, no computer lab fee, no examination fee, no utility fee, no boarding fee, free meals for both boarding and days students, no PTA fee, free text books for all students, and no WAEC fee as well.
  • Free SHS also means that all Technical, Vocational, Agricultural Education and Training institutions in Ghana at the high school level are also free.

Recommendations to Consider for Sustenance of the Free SHS Programme

  • Quality Assurance: The ministry of education must acknowledge the risk of decreasing quality in SHS education delivery, and establish what I call the Ghana Education Evaluation Institute (GEEI) to perform regular evaluation of the Free SHS programme and publish the report to maintain and improve the quality of SHS education in Ghana.
  • Education is the core value base for any nation’s development. It is very important that we have bi-partisan discussions on the programme and obtain legislation from parliament of Ghana to back it up, so that successive governments won’t be able to discontinue the flagship programme.
  • Again, there is need for national stakeholder discussions/involvement and inclusion in all statements, all arms of government and the general public, to suggest the best possible ways how the Free SHS programme should be funded and which are acceptable to all – with a commitment. A policy blueprint must be developed, through a coordinated strategy for full implementation of the programme, for its funding, planning, implementation, monitoring, examination, review and evaluation to ensure continuity and sustainability of the Free SHS programme.

Recommended Funding Options for the Free SHS Programme

Create Endowment fund for Free SHS

One of the most reliable and sustainable means of funding education across the world is through an Endowment Fund created to support education – i.e. tuition, technology, research, books, students, school activities etc. History has it that education has been funded through endowment funds, especially, in developed nations like the US, UK, Germany and some notable Asian countries – and this has guaranteed the sustainability, efficiency, quality and continuity of education in all these countries, which we can learn from as a developing country that is committed to bridging the gap in education.

I wish to recommend that government, through the ministry of education, Ghana Education Service and all recognised education bodies, should initiate a broader stakeholder discussion on how an Endowment Fund can be established for the Free SHS programme to guarantee its sustainability and continuous reliable funding for it.

The Free SHS endowment fund when established would be the permanent and most dedicated source of funding for the programme, and maintain teaching, feeding, books and all other resources which may be needed for success of the programme.

Introduce a Special Levy to Fund Free SHS

On the other hand, a special levy should be introduced by government backed by Legislation to fund the programme – rather than the recent suggestions by some individuals that citizens should voluntarily contribute to support funding for the Free SHS programme. How Sustainable would that be? Need I say more than that in other jurisdictions higher education is funded with a portion of the tax revenue collected annually? Government should engage with all other stakeholders and individuals in a broader discussion to agree and introduce what I call the ‘Free SHS Levy’ to support funding for the programme going forward.

Percentage of Return on SSNIT Investment and other Pension schemes

The Ghana education ministry and government can initiate a stakeholder discussion and debate on the viable possibilities of channeling a percentage of the return on investment generated from all pension schemes and contributions to funding the Free SHS programme, since records and data prove that it is very reliable and can sustain the programme.

However, I wish to emphasise the need for immediate registration of all SHS students on a SSNIT scheme, or any other pension scheme and with a GRA TIN, to ensure that as they enjoy the Free SHS today they will also contribute for other generations to benefit from the programme. In that way it is continuous, sustainable and can be freely guaranteed.

Oil Revenue (ABFA & GHF)

Considering the current economic situation of the country; the fact that the debt stock of the country has increased to GH¢139bn as at the end of June, 2017; and the fact that the debt to GDP ratio is at 69%, which simply means the interest payments of the country annually is about 44%, it is very worrying as to how government can continuously fund the Free SHS programme – especially when revenue generation has become the biggest challenge for this country.

Some have said government should readily rely on the oil revenue – i.e. Annual Budget Funding Amount (ABFA) to fund the programme – while others say the Ghana Heritage Fund (GHF) should be used. But I ask: how reliable is oil-generated revenue, given the frequent fluctuations in crude oil prices?

I believe that some percentage from the ABFA & GHF and revenue generated from agriculture can be used to fund the programme.

Conclusion

The funding system for the Free SHS programme, I believe, is in a phase of transition. Let no one in this country doubt our capability and resolve to ensure this programme is successful and continuous, because it is within our power as a nation to make it work. More or less all aspects of the funding means will be reformed in the near-future, I believe, since we are committed to ensuring the programme is sustainable and continuous for the benefit of all citizens.

The key point in the debate about funding options for the Free SHS is the question of consensus needed as to which of them can be agreed upon as acceptable to all, as ensuring the programme is sustainable, continuous and with the required quality.

In my concluding remarks, we must acknowledge that competition raises quality; so I wish to state that in ensuring that SHS is free for all, we must provide the needed resources and facilities so as to improve the quality, infrastructure and remuneration of the facilitators/teachers in general.

Jerry J. AFOLABI is a financial & Economic expert who believes that ordinary people can do extraordinary things when given the opportunity. He is a Change Maker who believes that Ghana will become a developed nation. He has the ability of easily getting people to get things done for the good of humanity. Email: [email protected]/0541238987

 

Former President Kufour becomes first chancellor of UMaT

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The University of Mines and Technology (UMaT) Tarkwa, has installed former President, John Agyekum Kufour, as the first Chancellor of the institution.

The installation ceremony which took place at the UMaT campus on Friday was to confer authority on the new Chancellor and welcome him officially to the University system.

Hundreds of people including representatives of government, organizations, traditional authorities, members of the university staff across the country, students and the general public attended the special event.

The President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo led former President Kufour through the swearing of oath of office.

Speaking at the ceremony, Nana Akufo-Addo commended the university’s council for recognising the immense contributions of the former President made during his term in office for UMaT and mother Ghana.

The President said with the nine uncompleted Mineral Development Fund (MDF) projects on UMaT’s campus, Mr. John Peter Amewu, minister of Lands and Natural Resource has assured him that through the MDF all the deficit projects would be completed soon to commemorate the event.

President Akufo-Addo said he had been informed that 26 kilometers square of land had been donated to the university by the chief and people of Wassa Fiase Traditional Area and that designs for the construction of the 20,000-student capacity complex had been completed awaiting funds for the commencement of the project.

The President noted that the government would give an annual special budgetary allocation of 5 million Cedis to the University for projects.

He said there were few countries in the world with Universities dedicated to mining and allied industries and added that UMaT would provide higher education in mining technology and related science and also acted as a catalyst in the development of mining and technology.

He pointed out that ministry of Lands and Natural Resource and the university in its contribution to the fight against illegal mining had trained 400 small scale miners with additional 1,000 more set to be trained this year on sustainable mining practices.

According to the President, “The Ministry of Railway Development and UMaT wanting to revive the railway training school is a step in the very right direction considering government’s determination to revamp the railway sector”.

President Akufo-Addo said his government would rehabilitate and equip existing laboratories as well as the construction of new buildings that were currently on-going to enable the university deliver effectively on its mandate of teaching, research and community service.

Delivering his address, former President Kufour said in the current world, the future belonged to the economies that take technology and innovation seriously, and made the conscious effort to train their manpower in these competencies.

He said science, technology, engineering and mathematics education should be the cornerstone of the educational curricula of any serious nation that seek to develop industrially.

The former President said the university chosen to be committed singularly to this all important academic endeavor, with accompanying practical experience, was worthy of commendation and support from government.

He said “I envisage a future where this university will fast become the centre of the industry-driven transformational economic take-off that you have resolved and declared as the cornerstone of your government’s development policies”.

“Your Excellency, Mr. President, l know that the exploitation of the country’s bauxite resources is dear to your heart, and you envision an integrated aluminium and bauxite industry as well as other metallurgical industries in the not too distant future,” he said.

He pledged to work with the government to provide technologies and the requisite trained manpower to realise their noble vision under his chancellorship and appealed to Ghanaians to support UMaT to become a true centre of excellence in mining and technology.

Professor Jerry Kuma, Vice Chancellor indicated that if UMaT is given the necessary support to expand its infrastructure, laboratory equipment and staff development, the university would do more in the area of research and bring out more inventions to benefit Ghanaians.

In addition, he said UMaT would also be in a better position to absorb more of the students who would gain admission as a result of the free Senior High School programme.

 

UCC College of Distance Education increased female admission

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Female enrolments into the College of Distance Education (CODE) of the University of Cape Coast (UCC) have increased from 45.9 percent in the 2016/2017 academic to 46.8 percent in 2017/2018, representing 0.9 per cent academic year.

According to the Pro Vice-Chancellor the university, Professor George Oduro, indicated the interest of female education in the country and therefore commended the women for taking advantage of the opportunity offered to improve their academic standard.

 This, he said, would also help the women raise their social and financial status for the benefit of their families.

He also commended the male students for the support and encouragement to their women counterparts to pursue higher academic ladder.

The Pro Vice Chancellor said this during the 17th Matriculation of the college in Tamale for students from the northern zone comprising Northern, Upper East and Upper West regions.

The CODE admitted a total of 17,182 students to pursue education and business related programmes at both graduate and undergraduate levels for the 2017/2018 academic year.

The figure made up of 15,780 undergraduate and 1,402 post graduates, consisting of 9,234 males and 7,948 females.

He therefore stressed the need for the CoDE to double its efforts to adopt the technology functional to make access to quality education easy for its students.

He noted that many students, especially at the graduate level, were opting for distance learning mode because of its flexibility saying the use of technology would, therefore, enhance the delivery of lectures for students

This according to the Professor Oduro will enable the students participate in academic work irrespective of the location without striving to attain knowledge.

He reiterated that the university is to develop a programme to adapt information and communication technology (ICT) to teaching and learning to promote a hybrid of online and face-to-face courses at the University.

In creating a favorable condition for the students to access quality education with ease, new study centers have been open in Kasoa, Nsawam,Sefwi Juaboso,Nkawie and Ada to make education accessible to those that needed it to execute the development agenda to transform the country he added.

He noted that time is an economic resource and that the need for the students to manage their time well by exhibiting good academic standards to achieve their aim in future.

“As a distance education student, you are expected to be a good time manager since you are confronted with competing social, religious, job and academic demands” he stated.

He stressed that postgraduates programmes in Education CODE has been expanded to include research component while other fourteen existing study centres that were hitherto running only diploma programmes being upgraded to run the post diploma programmes in addition.

Prof Oduro advised the students to take their studies seriously to fulfill the purpose for being admitted into the university.

He assured that the university would continue to render service to many disadvantaged people who yearn to acquire high academic qualification without leaving their jobs.

Some students also appealed to the university management to make frantic efforts to ensure students either being matriculated or graduated in the mother campus.

According to the students most do not even feel the mother campus till completion which they believe is unfair.

Tullow delivers strong performance against industry volatility

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The Chief Executive of Tullow, Paul Mcdade has said that Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility.

According to him, the business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency.

Group’s Full Year Results are scheduled for release on Wednesday February 7, 2018.

Mr. Mcdade in a statement said, “Tullow delivered strong operational and financial performance in 2017 against the backdrop of continued industry volatility. The business is expected to generate free cash flow of $0.5 billion, above expectations, due to high levels of operated production and further progress on cost and capital efficiency.

‘There was also material improvement in the Group’s balance sheet, with significantly reduced gearing and an overall reduction in net debt of $1.3 billion. Over 2018 we expect to continue this positive momentum. With our diverse low-cost assets and high-graded exploration portfolio, enhanced by recent licence additions in Côte d’Ivoire and Peru, we have a strong foundation to grow the business and further reduce our debt.”

Operational update

Production

Tullow’s West Africa 2017 oil production exceeded expectations for the year averaging 89,100 bopd. This includes 7,400 bopd of net production-equivalent payments received under Tullow’s Corporate Business Interruption insurance for the Jubilee field. In Europe, working interest gas production performed in line with expectations with full year net production averaging 5,600 boepd.

In 2018, working interest oil production, including production-equivalent insurance payments, is expected to average between 82,000 and 90,000 bopd. Working interest gas production, which includes TEN associated gas sales and the impact of the Netherlands assets sales in 2017, is expected to average between 3,500 and 4,500 boepd. This brings overall Group production guidance, for both oil and gas, to between 86,000 and 95,000 boepd.

WEST AFRICA

Ghana

Jubilee

Full year 2017 gross production from the Jubilee field averaged 89,600 bopd (net: 31,800 bopd). Tullow’s Corporate Business Interruption insurance is expected to reimburse 7,400 bopd of net production-equivalent insurance payments, bringing expected full year effective net production from Jubilee to 39,200 bopd. Gross production in the latter part of 2017 was consistently above 90,000 bopd and we expect to build on this as we commence drilling in 2018.

Preparations continue in advance of the planned turret bearing stabilisation work in the first quarter of 2018. This work is expected to take place over two shut-down periods, totalling four-to-six weeks. A further planned shut-down of approximately three weeks is expected around year end 2018 to rotate the FPSO to its permanent heading.

The Government of Ghana approved the Greater Jubilee Full Field Development Plan in October 2017, allowing Tullow and its Joint Venture Partners to prepare for a multi-year incremental drilling programme to maximise and sustain oil production and gas export. The initial focus will be the drilling and completion of new wells in the Jubilee unit area that will make use of existing infrastructure, and the completion of a well previously drilled in the Mahogany discovery.

Tullow expects 2018 gross production from the Jubilee field to average 75,800 bopd (net: 26,900 bopd), which takes into account the planned shut-downs associated with the turret remediation work. Tullow’s Corporate Business Interruption insurance cover, which compensates Tullow for lost production associated with the remediation works, is expected to reimburse Tullow 10,200 bopd of net production-equivalent insurance payments. Jubilee effective net production is therefore expected to average around 37,100 bopd for 2018.

TEN

Gross production from the TEN fields exceeded initial guidance in 2017, averaging 56,000 bopd (net: 26,400 bopd). This strong performance was as a result of production and water injection optimisation which continues to be effective and the field performed consistently above 70,000 bopd during November and December 2017.

Following the ITLOS ruling in September, Tullow has received notification from the Government of Ghana to recommence drilling in the TEN fields. A multi-year incremental drilling programme will be started this year, seeking to ramp up production from the TEN fields to utilise the full capacity of the FPSO and sustain this over a number of years.

In the last quarter of 2017, Tullow signed the TEN Associated Gas (TAG) Gas Sales Agreement with the Government of Ghana and Tullow anticipates the start of gas sales from TEN in the first half of 2018. Gross gas sales equivalent to 4,200 boepd (net: 2,000 boepd) have been forecast for the year.

Tullow expects 2018 gross oil production from the TEN fields to average 64,000 bopd (net: 30,200 bopd). During the year, the rig schedule and timing of drilling and completion operations will be optimised, providing upside potential to this initial estimate.

Ghana drilling in 2018

Tullow has secured the Maersk Venturer rig which is expected to commence drilling in February 2018. The rig will be used across the TEN and Jubilee fields and has been contracted for up to four years with favourable early termination provisions. The first well planned is an Ntomme production well in the TEN fields followed by a Jubilee production well located in the north-eastern area of the field. Work is ongoing to finalise the sequence of further wells to optimise output from both the Jubilee and TEN fields. Tullow and its Joint Ventures Partners continue to evaluate the business case for contracting a second rig that would allow the acceleration of drilling on the TEN and Jubilee fields.

Non-operated Portfolio and Europe gas production

2017 West Africa net non-operated production exceeded expectations at 23,500 bopd. Net production in 2018 is expected to be around 19,100 bopd. The reduced year-on-year forecast is primarily due to natural decline as a result of sustained low investment levels during a period of low oil prices, combined with the expected exit from the M’Boundi field Congo (Brazzaville) which, once completed, would be effective from July 2017, and the cessation of production at the Chinguetti field in Mauritania.

Full year gas production from Europe averaged 5,600 boepd in 2017, which includes production from Tullow’s Netherlands assets prior to the completion of their sale in November 2017. In 2018, Tullow expects annual production from its UK assets to average around 1,900 boepd which takes into account cessation of production in the third quarter of 2018, ahead of decommissioning activities.

EAST AFRICA

Kenya

In Kenya, the recent phase of exploration and appraisal drilling in the South Lokichar Basin has been concluded and the focus is now on the Early Oil Pilot Scheme (EOPS) and the overall development plan for the discovered resources. Work is already under way on the EOPS, with initial injectivity testing commencing on Ngamia-11 and oil production and water injection facilities being constructed in the field ready to commence production/injection in the first quarter of 2018. Oil produced will initially be stored until all necessary consents and approvals are granted and work is completed for the transfer of crude oil to Mombasa by road.

Significant progress on the field development plan continues to be made and following the extended election period, Tullow has re-engaged with representatives of the Government of Kenya on the overall approach and timelines for progressing the development.

The Environmental and Social Impact Assessment (ESIA) for the overall field development is on track to commence later in the first quarter of 2018. Tullow intends to give its assessment of discovered resources and plans for development of the South Lokichar basin at its Full Year Results on 7 February 2018.

Uganda

Tullow’s farm-down in Uganda continues to progress and the Joint Venture Partners await approval of the transaction from the Government of Uganda. As previously disclosed, Tullow anticipates that the farm-down with Total and CNOOC will complete in the first half of 2018 with cash payment on completion and payment of deferred consideration for the pre-completion period (including the whole of 2017) being received at this time.

The Joint Venture Partners are also working towards reaching FID in the first half of 2018; at which point Tullow’s second cash instalment from the farm-down will be received. In line with its post-transaction status, Tullow has been reducing its operational footprint in Uganda and is now fully prepared for a non-operated presence only.

Operational activity is continuing as planned, with FEED and ESIAs for both the upstream and pipeline progressing in line with the FID schedule. Discussions on the pipeline project continue with both the Ugandan and Tanzanian Governments supporting progress on the key commercial and transportation agreements.

NEW VENTURES

Tullow has high-graded and reset its exploration portfolio over the last three years. The Group has acquired extensive seismic data across several licences, which is currently being processed and interpreted. This will significantly increase the prospect inventory, with Tullow targeting high-impact, low-cost and basin-testing opportunities.

Tullow has also reduced equity levels in the exploration portfolio ahead of drilling by completing numerous farm-downs with the aim of ensuring sufficient exposure in the case of success, while limiting future capital commitments and extracting value where possible. Finally, the team has been gaining access to highly prospective new acreage in both Côte d’Ivoire and Peru, as detailed below.

This provides Tullow with low-cost, high-impact exploration campaigns for the years ahead with established positions in the industry hotspots of Guyana/Suriname and Mauritania/Namibia, exciting new opportunities in Côte d’Ivoire and Peru and infrastructure-led exploration in our development and production heartlands in West and East Africa.

Africa

In December 2017, Tullow was awarded a 90% interest in two further onshore licences (CI-521 and CI-522) in Côte d’Ivoire, building on the four onshore exploration licences (CI-518, CI-519, CI-301 and CI-302) the Group signed in September 2017. The Group plans to conduct a full tensor gradiometry gravity survey (FTG) across the full area in the first half of 2018, before acquiring 2D seismic in 2019.

This position significantly enhances Tullow’s African New Ventures portfolio, with blocks located in a proven petroleum system, indicated by multiple oil seeps and past production from the Eboinda Oil Sands. If commercial discoveries are made, the maturity of Côte d’Ivoire’s oil industry suggests a relatively short and low-cost path to production.

In the second half of 2017, Tullow completed a farm-down of its 100% interest in Block C-18 in Mauritania to Total, Kosmos and BP leaving Tullow with a 15% non-operated interest. A two-year extension to the licence terms was also granted. In December 2017, the new operator, Total, commenced a large 9,000 sq km 3D seismic survey which is expected to be completed in the first quarter of 2018.

Tullow plans to drill the Cormorant prospect on the PEL37 licence in Namibia in the second half of 2018 and preparations for drilling are under way. The prospect will target light oil and has a number of similarly-sized follow-up prospects in close proximity. Also in Namibia, Tullow completed a farm-down of the PEL30 licence to ONGC Videsh of 15% in November 2017.

South America

Tullow is pleased to announce that it has agreed terms to add six new licences covering 28,000 sq km, offshore Peru, to its portfolio. The Group has concluded negotiations with Perupetro and agreed to acquire a 100% stake in Blocks Z-64, Z-65, Z-66, Z-67 & Z-68.

The agreements are pending approval by supreme decree by the Peruvian Ministry of Energy and Mines and Ministry of Economy and Finance, with formal signing of the licences anticipated in the first quarter of 2018.

Tullow has also agreed to acquire a 35% interest in the Z-38 licence through a farm-down from Karoon Gas Australia, also subject to government approval. The new acreage will complement the Group’s South America position and contains a number of attractive leads and prospects. The Z-38 licence is already covered by high quality 3D seismic and includes the Marina prospect which is a potential candidate for drilling in 2019.

Processing of 6,500 sq km of 3D seismic data acquired during 2017 on the Kanuku and Orinduik licences in Guyana is ongoing to mature and rank identified prospects. Preparations are under way to commence drilling in early 2019, although options to bring drilling forward into late 2018 are being considered.

In November 2017, Tullow agreed, subject to Government approval, a farm-down of 20% of its 100% interest in the Walton Morant licence in Jamaica to United Oil & Gas plc. A nine-month extension to the licence term was also granted, enabling a 2,100 sq km 3D survey to commence in April 2018.

The Araku-1 well drilled in October 2017 in Block 54 in Suriname was unsuccessful, but did prove the presence of a new petroleum system in the Demerara plateau which is now being followed up. At a gross cost of $35 million (net: $11 million), Tullow demonstrated its ability to drill high-risk, high-reward wildcat frontier wells at appropriate equity and at low cost. A two-year extension was granted for the adjacent Block 47 where the Goliathberg prospect is a potential drilling candidate for 2019.

Asia

Tullow is in the process of divesting its Pakistan assets and expects to complete this process in 2018.

Financial Update

On 29 November 2017, Tullow announced that it had completed the refinancing of $2.5 billion of Reserves Based Lending (“RBL”) credit facilities. The $2.5 billion of credit facilities are split between a commercial bank facility of $2.4 billion and an IFC facility of $100 million. The fully committed facilities are revolving with a three-year grace period and final maturity of November 2024. Tullow also decided to reduce the commitments of its Revolving Corporate Credit Facility to $600 million from $800 million, ahead of the scheduled amortisation that was due to occur in January 2018. As of year-end 2017, Tullow has total headroom including free cash of $1.0 billion with no material near-term debt maturities.

Tullow expects to report revenue of c.$1.7 billion and gross profit of c.$0.8 billion for 2017. The Group also expects to have generated $0.5 billion of free cash flow, significantly exceeding the forecast at the start of the year. This increase is primarily due to strong production performance, rigorous cost discipline and a rising oil price.

This free cash flow has enabled ongoing debt reduction and the Group expects year-end net debt to be $3.5 billion; a reduction of over $1.3 billion over the course of the year. Tullow’s gearing ratio (net debt/Adjusted EBITDAX) at 31 December 2017 is expected to be less than 3x, demonstrating that the Group is making good progress towards its long-term gearing policy of 2.5x or less.

The Group’s 2018 capital expenditure associated with operating activities is expected to total approximately $460 million. This total excludes $110 million of forecast Uganda expenditure which will be repaid from deferred consideration post the completion of the Uganda farm-down, which is expected in the first half of the year. The capex total comprises Ghana capex of c.$250 million, West Africa non-operated capex of c.$40 million, Kenya pre-development expenditure of c.$80 million and Exploration and Appraisal spend of c.$90 million.

At completion of the Uganda farm-down, Tullow is also due to receive $100 million cash consideration along with re-imbursement of 2017 capex of c.$60 million. A further $50 million cash consideration is due to be received when FID is achieved.

 

President Akufo-Addo inaugurates Twyford Ceramic Factory

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President Nana Addo Dankwa Akufo-Addo has inaugurated a US$77.26 million Twyford Ghana Ceramics Company Limited which has created 1,846 jobs for residents in the Shama District of the Western Region.

The factory which is into the production and distribution of tiles would operate at a designed production capacity of 14.4 million square metres per year with annual sales projected to be $ 82.8 million.

This would therefore reduce importation of tiles from US$90.66 million to USS$7.86 million per year with a further potential to reduce the demand on foreign currency and stabilise the local currency.

The factory, a subsidiary of Sunda (MU) Holdings Limited, a Chinese company is a boost to the New Patriotic Party’s one district one factory industrialisation programme.

President Akufo-Addo in his address reiterated his commitment to shift focus from taxation to production to boost the economy.

He said government was determined to add value to Ghana’s primary products to improve industrial activities to progress the living standards of the Ghanaian citizenry and that 95 per cent of raw materials needs of the company would be sourced locally.

President Akufo-Addo said Ghana Gas Company Limited would reduce the price per unit gas supply to the newly Twyford Ghana Ceramics Company Limited and other industries across Ghana as part of government’s agenda to improve the business environment.

Mr Y.C. Shen, the Group Chairman of SUNDA International said Twyford ceramics was set up in Ghana because of the enabling business environment created by the government through the one district one factory programme which they had taken advantage of to do business in Ghana and called for government’s support to ensure a smooth operation for the benefit of all.

He lauded government of Ghana for the one district one factory policy which he said was introduced in China several years ago.

‘’Your government’s policy of ‘one district, one factory’ encourages investors to set up a factory in every district of Ghana which we believe is the best idea to move Ghana’s development forward and fast.

‘’Forty years ago, China was not more developed than Ghana today. The then Chinese government made a similar policy of rural industrialisation and the results is what we see in developed china today’’, he said.

North Gonja to market smocks abroad

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The North Gonja District Assembly has taken steps to find more markets for smocks woven in the area by tasking the country’s High Commissioners and Ambassadors to promote smocks in their countries of assignment.

To this end, the Assembly has supplied a few smocks to some of the High Commissioners and Ambassadors to occasionally wear at events to attract markets for the product abroad.

Mr. Adam Eliasu Red-bawa, District Chief Executive for North Gonja, announced this in an interview with the Ghana News Agency at Daboya on Wednesday to specify efforts being made to promote the district’s smock industry.

Smock (batakari) weaving is a major economic activity at Daboya, capital of the North Gonja district in the Northern Region.

The town is noted for beautiful, quality smocks; but rising cost of production, materials and a dwindling market for smocks have become a concern for industry players in the area.

In 2016 the Savannah Accelerated Development Authority, in collaboration with the Ministry of Trade and Industry, declared that smocks be worn on the first Friday of every month to boost their patronage and step-up their international appeal and reach – thereby boosting employment and incomes of the large number of people employed in the industry.

Mr Red-bawa said: “I have also proposed that the High Commissioners and Ambassadors organise exhibitions of smocks as part of their activities, so the assembly can select some of the major smock dealers to attend and showcase the products to the outside world”.

He expressed hope that the High Commissioners and Ambassadors will soon kick-start the process and enable the Assembly to showcase the smocks to the outside world.

Mr. Red-bawa said the Assembly has also partnered a private investor to establish a factory in the area as part of the One-District, One-Factory programme to produce yarn for smock-weavers in the area, as part of efforts to reduce the production-cost of smocks.

He said farmers in the district will be engaged in cultivating cotton to feed the factory to ensure success, and he is hopeful that efforts being made will soon materialise into the factory being established to benefit people in the area.

Small businesses urged to build financial capacity

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Isaac Tweneboah-Koduah, a lecturer at the Garden City University, has advised business entrepreneurs to endeavour to build the financial and managerial capacity of their workers.

He said that would enable them to easily access loans from banks and micro-credit institutions.

He said research showed that financial institutions in the country are unwilling to give loans to small businesses because many entrepreneurs and their workers lacked basic knowledge in financial management.

Mr Tweneboah-Koduah, who is a business consultant and marketing entrepreneur, gave the advice at the opening session of a business plan competition training for 328 small businesses selected from the various districts and Municipalities in the Brong-Ahafo region.

The businesses were among the 7,000 businesses being trained nationwide by the National Entrepreneurship and Innovative Plan (NEIP), under the Ministry of Business Development.

Last year President Nana Addo Dankwa Akufo-Addo launched the NEIP with a seed capital of US$10 million which is expected to be scaled up to US$100 million through private sector implementation partner (PSIP).

NEIP is a multi-pronged approach aimed at creating the conducive and business-friendly environment to stimulate enterprise activities and provide integrated national support for start-ups and small businesses that would in turn generate employment for the teeming youth in the country.

Mr Tweneboah-Koduah noted that many small businesses in the country were collapsing because entrepreneurs lacked training that could provide realistic business plans and proposals to access funding and grants.

He said a good market research – target audience, market sizing, pricing strategy, competitive analysis, and value preposition-remained catalysts for business growth and development.

Mrs Statsy Offei-Darko, the Deputy Chief Executive Officer (CEO) of the NEIP, said her outfit had enough funding to support small businesses and advised young people to come out with creative ideas, develop their business plans and access start-up capital.

Throwing more light on the business competition, Mr Yaw Asamoah, the CEO of Africa SME Organisation, private sector implementing partner of NEIP, said the 7,000 selected businesses would be charged to provide five-page business plan concept note with focus on market research and strategy.

He said 2,000 of the small businesses would be shortlisted to provide 20-page full business plan draft adding that 500 of them which excel would be trained and provided with loans to start or expand their economic activities.

GMWU sets the record straight on GoldFields retrenchment saga

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The Ghana Mineworkers Union (GMWU) has reaffirmed their call on government to take immediate action to halt the implementation of Goldfields Ghana Limited’s contract mining decision/strategy, which according to the union will impact on the jobs of over 1,700 workers with serious economic and social consequences.

In a statement to set the records straight to correct “some factual misrepresentations put out by GoldFields Ghana in its quest to justify its unjustifiable business model of contract mining,” the GMWU said “according to GFG’s own official website (www.goldfields.co.za), Tarkwa Gold Mine is a “world-class, low-cost surface mine with a 6.1Moz Mineral Reserve and 15-year life (nine years mining, followed by processing of the surface stockpile and South Heap Leach material) that remains strongly geared to the gold price.”

“Strong potential for leveraging resource ounce conversion and driving larger pits with high gold prices”. Indeed, this assertion is supported by its audited Annual Mineral Resource/Reserve Report as at December 2016,” the statement said.

On salaries which Ghana Goldfields Limited initially stated that, for the past 4 years the Union cumulatively adjusted salaries more than 60%, the GMWU denied this fact stating that, “For the records, cumulative salary increase for the last four years is not close to 60% as thrown out in the public space by the Gold Fields EVP. On the contrary in the last four years, wages grew by 34%. Find the table below for details.”

Read the full statement here

GMWU setting the records straight

Gov’t seek synergies to achieve energy aspirations for citizens 

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Mr. Boakye Agyarko,-Energy Minister

Government intention for the energy sector is to build synergies and network with various institutions in order to achieve energy aspirations to benefit the citizens.

Minister of Energy, Boakye Agyarko speaking at the first quarterly meeting with Chief Executive Officers in the petroleum said: “As a sector, we will build synergies and collaborate among the various institutions to achieve the aspirations and visions of the government.

He added, “I am confident that at the end of this forum, we will all leave here with a clearer sense of direction for the effective and integrated development of our oil and gas endowment to play its pivotal role of transforming Ghana’s economy into a middle income status.”

The meeting among other objectives discussed the new petroleum policy and also deliberated on matters considering the petroleum industry.

The meeting,  Mr. Agyarko explained was“to provide the platform to exhort ourselves on the scope of the new Petroleum Policy, set annual targets and goals, identify potential debilitating challenges and devise strategies to mitigate them.”

He said the forum, among others will ensure effective monitoring and evaluation of the efficiency and effectiveness of policies and directives from the Energy Ministry saying, “The petroleum section of the country energy policy is being carved out for this discussion.”

The forum was aimed at, among other things, assisting in monitoring and evaluating the efficiency and effectiveness of policies and directives from the ministry, with a view to collectively discussing critical success factors and targets of the sector.

The purpose of the maiden forum was to provide the platform for performing CEOs to exhort themselves on the scope of the new petroleum policy, set annual targets and goals, identify potential debilitating challenges and devise strategies to mitigate them.

Highlighting the vision and goals for the sector, Mr. Agyarko: explained, “our plans for the upstream sector this year, will pursue aggressive basin promotion, especially in the Central, Eastern, outer continental shelf and Voltaian basins to attract competent companies, particularly majors, into these basins to increase exploration activities.

“Commercial discoveries from such exploration will not only increase the country’s reserves but also create the needed jobs and significantly increase revenue to the state.”

Mr. Agyarko indicated that govenment intended to implement open and transparent public competitive tender processes in the award of petroleum blocks.

“It is our target this year to conduct the first bidding rounds for the award of exploration and production rights to successful companies,” he said.

He, urged the Ghana National Petroleum Corporation (GNPC) and the Petroleum Commission (PC) to work hard to realise the set targets to improve on investor confidence in the petroleum sector.

A third agenda the ministry intended to pursue this year, he said, was the promotion of the development and commercialisation of indigenous gas resources.

“The ministry considers the gas industry as a major catalyst to the country’s industrial transformation and, as such, no stone should be left unturned in realising this dream.

“Recommendations from the Gas Master Plan Implementation Committee, on which all the CEOs are represented, will be forwarded to the Cabinet for approval and implemented to the letter,” he said.

The downstream sub-sector, if well managed, Mr. Agyarko said, would be the major game changer in the socio-economic development of the country adding that advancing the establishment of a petroleum hub, would be one of the government’s strategic anchor initiatives that would serve as a new pillar of growth in the Ghanaian economy.

The project, he explained, would accelerate the growth of Ghana’s petroleum downstream sub-sector and make it a major player in the economy.

“The petroleum hub project will increase the presence of major international oil trading and storage companies, create regional trading champions and encourage joint ventures between local and international companies for foreign direct investments, technology and knowledge transfer and wealth creation,” he said.

He said government realised the need for a policy to promote LPG and further aggressively pursue an increase in access towards the goal of 50 percent access by 2030.

“The policy is to also provide direction and a framework for safety legislation and operational standards in the industry,” he said.

He indicated  government’s commitment to churn out the maximum benefits from the oil and gas industry to the good people of Ghana and generations yet unborn.

“This, I strongly believe, can only be achieved through a sustained and coordinated exploitation of the country’s hydrocarbon resources and the prudent management of the downstream sub-sector.

“I am confident that at the end of this forum, we will all leave here with a clearer sense of direction for the effective and integrated development of our oil and gas endowment to play its pivotal role of transforming Ghana’s economy into a middle income status,” he added.

 

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