Malawi is seeking investors to inject $2bn in power projects aimed at improving generation and supply. The country aims to increase capacity from the current 282MW to 3 407MW by 2020.

invest in MalawiMalawi experiences major power outages due to existing shortcomings in power generation. Lack of adequate power supply – currently at 282.5MW against a demand of 344MW – has undermined the country’s ability to attract investment and speed up economic growth.

95% of the power is generated by hydroelectric power plants on the Shire river in the southern region and the remaining 5% by a mini plant on Wovwe river in the north. The planned investment in phase II of Kapichira hydropower plant and also the interconnection of the electricity grid with that of Mozambique in 2011 is expected to help boost supply.

The government is inviting private investors to invest in short and long-term projects worth $2-billion, which will see power supply reach 3 407 by 2020. Feasibility studies for the development of hydroelectric power stations on the Shire, Songwe, Bua, Dwambazi, South Rukuru and Ruo rivers have been undertaken.

Other natural resources that could be exploited range from uranium reserves, which could be used as fuel for nuclear power plants, and coal reserves that could be exploited for use in coal-fired power plants.

Source: TradeInvestAfrica         Image: malawivoice.com

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By Roseline Okere

exploration wellsDEEPWATER project investments in West Africa have recorded a ten-fold increase from $1.5 billion, recorded in 2000, to $15.6 billion in 2010.
In the near future, investments are expected to rise even further, as new projects are being developed, such as Bosi in Nigeria, CLOV in Angola and the wider Jubilee area in Ghana.
The Chairman and Managing Director of Mobil Producing Nigeria, Mark Ward, who made this disclosure at the Nigerian Association of Petroleum Explorationists’ third Regional Deepwater Offshore West Africa Conference (DOWAC) in Abuja recently, stated that West Africa was clearly at early stages of deepwater investments.
According to him, throughout 2010, only 250 exploration wells were drilled in comparison to 1000 wells in deepwater Gulf of Mexico.  “Effective exploitation of the West African deepwater hydrocarbon endowment will largely depend on industry’s ability to continuously innovate and utilise technology coupled with the right investment incentives to extend the life of existing plays while also finding new players”.
Ward, who is also the Lead Country Manager, ExxonMobil affiliates in Nigeria, added that over $25 billion of oil equivalent barrels have been discovered in deepwater West Africa since the early nineties.
Nigeria and Angola in particular enjoyed tremendous deepwater exploration success in the 1990s with notable discoveries such as Erha, Bonga, Bosi and Agbami in Nigeria, while Angola had Girassol, Daila, Kissanga and Kizomba.  Many of the early discoveries are currently producing with over 12 world-class floating production storage offloading facilities in the West African region”.
Speaking on the success stories of deepwater production in West Africa, he hinted that from 85,000 barrels of oil per day in 2000, production has risen steadily to 2.5 million barrels of oil per day in 2010, a 30-fold increase.

Source: guardiannewsngr.com      Image: newsone.com

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Recent explorations have indicated that Sierra Leone could become a major exporter of oil and gas in the near future, making the energy sector a key area of growth.

Investment opportunities

oilRehabilitation and expansion of the Sierra Leone Petroleum Refining Company

The government is actively seeking a strategic partner with extensive experience in operations and management to rehabilitate and expand the moribund Sierra Leone Petroleum Refining Company (SLPRC).

Established in 1970 as a joint venture with major international oil companies, SLPRC ceased production ten years ago. However, the site has attracted significant interest based on its proximity to an operational oil jetty and the existing infrastructure.

The refinery had the capacity to produce 450 000 tonnes of crude oil per year. The refined products included premium motor spirit, domestic purpose kerosene, aviation turbine kerosene, automotive gas oil, bunker gas oil, fuel oil, bunker fuel oil, lead-free naphtha, liquid petroleum gas, marine diesel oil, and special distillate.

When rehabilitated, the refinery would be exceptionally well positioned to capitalize on the discovery of an exploitable hydrocarbon resource off the coast of Sierra Leone.

Interested investors will benefit from the following;

• Location: Sierra Leone is uniquely positioned to supply markets in US, Europe and the rest of Africa. The project is close to a sheltered deepwater harbour and international shipping lanes.

• Stock: Potential investors would have access to multiple oil producers in the Gulf of Guinea and South America, and possibly in Sierra Leone. Recent hydrocarbon discovery by petroleum company Anadarko in offshore Venus prospect indicate the likelihood of major oilfields in the country.

• The US and other nations provide a guaranteed market because they are encouraging the exploitation of oil resources in West Africa, with a view of reducing dependence on supplies from the Middle East.

Source: TradeInvestAfrica      Image: constructionweekonline

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CAPE TOWN (Reuters) – The World Bank is planning to coordinate funding for 30 gigawatts (GW) of new power generation in Africa over the next five years, a senior official said on Monday.

power“We are not going to finance everything ourselves, but how we can help leverage financing for that 30 gigawatts of additional capacity,” Reynold Duncan, the bank’s Africa energy specialist, told reporters on the sidelines of power conference.

All potential projects, including the mammoth Inga hydropower scheme on the Congo river in Democratic Republic of Congo, would be considered, Duncan added, but gave no details of specific project funding.

In a major report last year, the World Bank said sub-Saharan Africa needed to double its infrastructure spending to $93 billion a year, 15 percent of regional output, to drag its road, water and power networks into the 21st century.

The region needs an extra 7,000 megawatts of capacity a year to meet the demand of its 800 million people, who currently have access to the same amount of power as Spain, with a population of just 45 million.

Source: Reuters   Image: Reuters

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Cape Town — Massmart has received written notice from US firm Wal-Mart of its firm intention to make an all cash offer to acquire a 51 percent stake in the SA retailer.

WalMartThe board said on recently it was “unanimous” in support of the proposed deal, which would see Wal-Mart pay R148 per ordinary share, but it still needed the support of a two-thirds majority of shareholders and the South African authorities.

“The Massmart board has considered the terms of the offer and the opinion of [bankers] Morgan Stanley, the independent advisor and is unanimous in its support for the proposed transaction. The total transaction is valued at approximately R17 billion for 51 percent of Massmart,” the retailer said in a statement.

It said offers on comparable terms were being extended to the beneficiaries of the employee share trust, the Thuthukani trust and the black scarce skills trust.

“These offers will be inter-conditional with the offer to ordinary shareholders.”

The board said the offer from Wal-Mart followed a rigorous due diligence process.

“There are still a number of important conditions that need to be fulfilled before the transaction can be implemented. These include amongst others two thirds majority shareholder support (75 percent) and approval from the South African competition authorities.”

Massmart CEO Grant Pattison said the offer was a sign of confidence in the local economy and could create new jobs.

“This is a milestone in Massmart’s history and is a vote of confidence not only in Massmart and our employees, but also in the strong growth potential of South Africa and the continent.

Source: sapa.co.za/                                 Image: Jared C. Benedict

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