Tullow Oil has announced gas exports from its Jubilee field in Ghana have resumed following the completion of works on the FPSO - a gas compressor.

Tullow also said the governments of Uganda and Kenya have agreed on a route for the regional crude oil export pipeline.

Tullow said this was a major milestone "and the company looks forward to working with the governments and partners on development of the significant discovered oil resources in Uganda and Kenya".

In addition, Tullow said the Spari-1 well in Suriname is currently being plugged and abandoned as no significant hydrocarbon shows were encountered.

In Norway, the Salander well found sandstones with good reservoir properties but no hydrocarbons were encountered. The well was drilled in 350 metres of water to a total depth of 2,439 metres and will be plugged and abandoned, the company said.

Chief executive officer Aidan Heavy said: "Tullow continues to make good progress in 2015 having reset the business and with continued emphasis on managing costs, capital expenditure and the balance sheet.

We are also focused on operational efficiency and the Jubilee compressor issue has been resolved ahead of schedule. With production back to normal at Jubilee, we expect to meet our full year production guidance. Looking forward, we plan to further deleverage the business as we look at non-core assets and our retained equity in our major developments.”

 

Source: Yahoo News

 

The Bank of Ghana has positioned its Monetary Policy Rate at 24 percent following the merger of its two key monetary policy instruments in controlling the country's inflation and money supply.

The Reverse Repo is the rate at which, effectively the Bank of Ghana lends to commercial banks .

According to the central bank, it has merged its monetary policy rate and ReverseRepo as part of efforts to streamline its monetary operations toward a more transparent regime.

Governor of the Bank of Ghana, Dr. Henry Kofi Wampah said the monetary policy stipulation stay unchanged with the maximum threshold for banks remaining at 25%. The therefore, does not expect banks to adjust their lending rates accordingly with the change in monetary policy regime, as the Bank of Ghana itself has kept the rate at which it lends to commercial banks.

"The merged rate will continue to be referred to as the Monetary Policy Rate and be positioned at 24 percent. This merger is to ensure transparency in the monetary policy stance of the Bank of Ghana," a statement issued by the central bank said.

At the end of the last Monetary Policy Committee meeting in July, the central bank maintained its policy rate - which signals interest rate trends - at 22 percent.

The central bank explained: "These changes, in effect, do not reflect a change in monetary policy stance, since the maximum lending rate of the Bank of Ghana remains unchanged at 25 percent".

The Bank of Ghana has also introduced a seven-day Reverse Repo (lending) Facility, available to all banks to help them manage liquidity more effectively.

According to the Bank of Ghana, the Reverse Repo Facility will be the principal instrument through which the central bank injects liquidity into the banking system during periods of general liquidity shortage.

The attempt by the Bank of Ghana to have absolute control of money circulatingin the country reflects the continued rise in inflation, which is of grave concern to managers of the economy and necessitates the Bank of Ghana reducing demand for credit facilities.

Inflation for the month of June increased to 17.1 percent, up marginally from 16.9 percent recorded in May this year. The depreciating cedi has fueled import inflation, threatening the government's end of year inflation target of 13.7 percent.

 

Source: B&FT