The majority of landlocked Uganda’s estimated 6.5 billion barrels of crude oil reserves are destined to be pumped to the East African coast for export (potentially linking up with supplies from Kenya, South Sudan and Ethiopia along the way). While preferred export routes continue to be debated, it is likely that multiple pipelines stretching across the East Africa region will be developed in the near future. The development of such infrastructure will be heavily dependent on project finance. In this article, we consider some key issues affecting international pipeline projects that sponsors and host governments in the East Africa region will encounter. (more…)
WE KNOW ENERGY®
Martin Stewart-Smith and Paul Jones
Ben James and Ana Becker-Weinberg
Are you a UK company that operates in an EXTRACTIVE INDUSTRY?
If so, do any 2 of the following apply to you:
- You have a balance sheet in excess of £18 million;
- You have net turnover of over £36 million; or
- You have more than 250 employees
If so, do you make annual payments to any Government of over £86,000?
If the answer to the above is YES, then from 1 January 2015 you will most likely be required to comply with the UK’s new Transparency Initiative Regulations.
Introduction The UK is set to become the first EU member state to transpose the most recent EU directives on accounting and transparency rules in an effort to satisfy growing demands for a European-wide strategy to fight corruption in relation to substantial payments that oil and gas companies are often required to make to government entities by way of signing bonuses, taxes or royalties. (more…)
Ben James and Paul Jones
With Tanzania in the final stages of evaluating bids for oil and gas blocks offered in its latest bidding round which closed in Q2 2014, it was Mozambique’s turn to announce its latest round in London on 23 October. Uganda and Kenya are also expected to embark on fresh licensing next year to complete a busy period for East African block auctions. (more…)
Tracy London and Matthew Mulqueen
Kenya is East Africa’s largest economy, yet it faces a power supply crisis. Per capita, it generates barely 4% of the power generated by South Africa. Only 18% of the population has access to electricity and, even for this fortunate minority, rationing and blackouts remain a daily reality.
The Kenyan Government has ambitious development goals for the country, seeking to achieve annual double-digit growth and to ‘create a prosperous and globally competitive nation with a high quality of life by the year 2030’. There is certainly plenty of cause for optimism. Politically, the country is relatively stable. The capital, Nairobi, is home to the regional offices of some of the world’s largest multinational corporations, including General Electric, Google and Coca Cola. These companies enjoy access to a labour force that is increasingly urbanised, professional, computer-literate and English-speaking. (more…)
Julian Nichol and Ana Becker-Weinberg
Originally published in Petroleum Review in October 2014.
On the 14th of August, the Parliament of the Republic of Mozambique approved a revised version of the Petroleum Law that revoked the existing Law nr. 3/2001, of 21 February.
In the context of the significant discoveries and rapid growth of the Mozambican oil and gas industry, the emphasis of the new Petroleum Law has been to ensure that Mozambique and its population benefit from the exploration and production of these discoveries. However, Law nr. 21/2014 of 18 August was approved in a significantly different version than that which had been heavily discussed between industry players and regulating authorities and subsequently submitted to Parliament. Where the Ministry of Natural Resources in the initial draft law had hesitated to impose concrete measures and/or restrictions in relation to local content and domestic consumption requirements, Parliament showed a heavier hand. There is now a requirement for foreign operators to “associate” with local companies in the acquisition of goods and services, as well as a requirement for 25% of all oil and gas produced to be delivered to the market in Mozambique. (more…)
PJM Sets Out Framework For Continued Participation Of Demand Response In Wholesale Markets Following EPSAFriday, October 10, 2014 2:35 pm by Stephen Hug
On October 7, 2014, PJM Interconnection, L.L.C. (“PJM”) filed with the Federal Energy Regulatory Commission (“FERC”) a blueprint for the continued participation of demand response resources in its markets in the wake of the United States Court of Appeals for the D.C. Circuit’s decision in Electric Power Supply Ass’n v. Fed. Energy Reg. Comm’n, 753 F.3d 216 (D.C. Cir. 2014) (“EPSA”). In that case, the D.C. Circuit vacated Order No. 745, FERC’s rule governing the compensation of demand response resources in wholesale energy markets on the basis that the rule encroached upon state jurisdiction over retail sales. The court’s opinion casts significant doubt on FERC’s authority to require transmission providers to allow demand response to participate in their markets, with some wondering whether there is any room left for demand response in wholesale markets at all. (more…)