Air Senegal International (ASI) has stopped operations as a row between the Senegalese state and majority shareholder Royal Air Maroc (RAM) has grounded all remaining flights, the Moroccan airline said on Friday.
RAM, which owns 51 percent of ASI and had provided several aircraft, recalled its last plane from the airline's fleet earlier this month, leaving ASI, one of West Africa's few reliable carriers, with just two operating planes.
RAM criticised Senegal for the country's unilateral decision in 2007 to take majority control of the airline, a move that has not yet materialised. RAM also says Senegal owes the company about 4 million euros.
RAM has taken a "you want it, you can have it" posture lately, adopting an orderly but insistent withdrawal from the company.
Saturday, April 25, 2009
Sunday, April 19, 2009
Iran and Senegal agree to expanded ties
Iran continues to expand its economic links with Senegal. A memorandum of understanding was reportedly executed today obliging the Islamic Republic of Iran to cooperate with Senegal in producing auto diesel, undertaking mine exploration, producing machinery and constructing power plants.
Iran has made good on its intentions to expand economic and cultural ties with Senegal. Trade ministers inking todays agreement pointed to the construction of the giant auto manufacturer Iran Khodro's assembly plant in Senegal. The agreement appears to build on that venture.
Iran has made good on its intentions to expand economic and cultural ties with Senegal. Trade ministers inking todays agreement pointed to the construction of the giant auto manufacturer Iran Khodro's assembly plant in Senegal. The agreement appears to build on that venture.
Offshore oil exploration not the first time for Senegal
The recent spike in oil prices has revived interest in exploration off the Senegal's coast. Here's a good overview of past exploration activities:
In the last 48 years, more than 144 hydrocarbon exploration wells have been drilled in Senegalese territory. At least 49 of these drilled offshore, with 23 of these being located in the Casamance Offshore. The other area of interest that has been drilled is onshore in the vicinity of the Cape Vert Peninsula. The rest of the Senegal Basin outside these areas remains under-explored.
In addition, modern analysis indicates that many of the boreholes drilled, particularly those based on seismic information acquired before 1962, were poorly located in prospects and many were limited to exploration of the Tertiary to Senonian intervals.
The upstream oil industry is becoming increasingly important to the Senegalese economy. In 1981, PETROSEN, the national oil company, was created by the government of Senegal and is responsible for all hydrocarbon exploration activities.
During the 1950s petroleum prospecting started and in the 1960s and 1970s a number of small fields were discovered, but found uneconomical not exploited. In the late 1970s, offshore exploration started again and a field of heavy crude oil of 1 billion barrels was discovered. So far only one gas field (Diam Niadio 14) has been discovered. The gas is exported by pipeline to the Societe Nationale d'Electricite for its gas power stations. Current gas reserves are estimated to be 3 billion cubic metres. According to the US Department of Energy, Senegal produced and consumed 1.4 billion barrels of dry gas.
The offshore border area containing the Dome Flore and Gea fields became the subject of dispute between Senegal and Guinea-Bissau. In 1993, the Agence de Gestion et de Cooperation entre la Guinea-Bissau et le Senegal (AGC) was established as a joint commission to oversee oil and gas exploration and fishing in the disputed area between the Senegal and Guinea-Bissau.
In July 2004 Hunt Oil Company, through its wholly owned subsidiary Senegal Hunt Oil Company, signed an agreement with Petrosen (Petroleum Company of Senegal), giving Hunt the exclusive right to carry out petroleum exploration and production operations in Sangomar-Rufisque Offshore Area of Senegal (approximately 3,701,805 square acres).
Energy Africa acquired the St. Louis exploration licence with Petrosen in late 2003. Tullow operates the licence with a 60 percent interest. Dana acquired a 30 percent interest from Tullow in the fourth quarter of 2004. Petrosen holds the remaining 10 percent.
In March 2005 Sterling signed a farm-out deal with Markmore Energy (L) Ltd, a private oil and gas company wholly owned by investor Tan Sri Halim Saad for the Dome Flore offshore petroleum license held by Sterling. The Dome Flore block offshore Senegal and Guinea Bissau, contains an estimated 800 million barrels of heavy oil in place. The discoveries lie in 50 metres of water, approximately 70 km offshore.
In the last 48 years, more than 144 hydrocarbon exploration wells have been drilled in Senegalese territory. At least 49 of these drilled offshore, with 23 of these being located in the Casamance Offshore. The other area of interest that has been drilled is onshore in the vicinity of the Cape Vert Peninsula. The rest of the Senegal Basin outside these areas remains under-explored.
In addition, modern analysis indicates that many of the boreholes drilled, particularly those based on seismic information acquired before 1962, were poorly located in prospects and many were limited to exploration of the Tertiary to Senonian intervals.
The upstream oil industry is becoming increasingly important to the Senegalese economy. In 1981, PETROSEN, the national oil company, was created by the government of Senegal and is responsible for all hydrocarbon exploration activities.
During the 1950s petroleum prospecting started and in the 1960s and 1970s a number of small fields were discovered, but found uneconomical not exploited. In the late 1970s, offshore exploration started again and a field of heavy crude oil of 1 billion barrels was discovered. So far only one gas field (Diam Niadio 14) has been discovered. The gas is exported by pipeline to the Societe Nationale d'Electricite for its gas power stations. Current gas reserves are estimated to be 3 billion cubic metres. According to the US Department of Energy, Senegal produced and consumed 1.4 billion barrels of dry gas.
The offshore border area containing the Dome Flore and Gea fields became the subject of dispute between Senegal and Guinea-Bissau. In 1993, the Agence de Gestion et de Cooperation entre la Guinea-Bissau et le Senegal (AGC) was established as a joint commission to oversee oil and gas exploration and fishing in the disputed area between the Senegal and Guinea-Bissau.
In July 2004 Hunt Oil Company, through its wholly owned subsidiary Senegal Hunt Oil Company, signed an agreement with Petrosen (Petroleum Company of Senegal), giving Hunt the exclusive right to carry out petroleum exploration and production operations in Sangomar-Rufisque Offshore Area of Senegal (approximately 3,701,805 square acres).
Energy Africa acquired the St. Louis exploration licence with Petrosen in late 2003. Tullow operates the licence with a 60 percent interest. Dana acquired a 30 percent interest from Tullow in the fourth quarter of 2004. Petrosen holds the remaining 10 percent.
In March 2005 Sterling signed a farm-out deal with Markmore Energy (L) Ltd, a private oil and gas company wholly owned by investor Tan Sri Halim Saad for the Dome Flore offshore petroleum license held by Sterling. The Dome Flore block offshore Senegal and Guinea Bissau, contains an estimated 800 million barrels of heavy oil in place. The discoveries lie in 50 metres of water, approximately 70 km offshore.
Friday, April 17, 2009
A new Senegal energy source: openness
A unique solution to Senegal's energy dilemma was recommended recently by Alex Segura, the IMF's resident representative. The solution is two part: cash and transparency. And the two go together. Senegal's utilities are stuck in a spot market rut: they buy fuel oil one tanker at a time, in cash, frequently borrowed cash, from who-knows-where... Instead Segura urges transparent bidding. International finance experts have always pushed open bidding in African economies, with little progress. In the energy sector it makes sense, but is no easier than other sectors such as infrastructure. Oil powers Senegal's feeble generation capacity. That's imported, refined oil--especially subject to the world extaction, refining and transportation market, and its very evident vagaries, especially recently... It will take some real arm twisting for Senegal's utility sector (hardly deserving the name) to institute the discipline, and smarts, necessary for a successful open bidding program. But the payoffs would seem great: the consequent tools of hedge and option trading of supplies could create a buffer in hard economic times as these... Segura's recent comments were larded with praise for the progress being made by Senegal's establishment in the area of budget reform and accountability, setting the foundation for sophistication in its energy policies and practices...
Friday, April 10, 2009
IMF: backpayments being squared, but tough times ahead
The International Monetary Fund (IMF) concluded recent reviews of Senegal's finances with (for Senegal) high marks for catching up with payments to private contractors. But the April 2 report stressed tough times ahead as the world economy comes to bear.
“Senegal is beginning to experience the effects of the global economic crisis. Main channels of transmission are declining remittances, commodity prices, external demand, and foreign direct investment," according to a statement by Johannes Mueller, IMF Mission Chief for Senegal. He notes positive signs on the horizon: "Declining fuel and food prices are projected to lower inflation to about 1 percent in 2009 and limit Senegal’s import bill, thereby helping contain the external current account deficit."
Despite budget and accounting reforms, falling tax revenues will require deficit spending to continue infrastructure improvments and private contracting, according to the IMF report.
No mention is made of the recent local elections and whether they would chill President Abdoulaye Wade's promotion of intrastructure and private projects. Recently the president reportedly stated his pleas to God that he be allowed to complete infrastucture such as the coastal highway...
“Senegal is beginning to experience the effects of the global economic crisis. Main channels of transmission are declining remittances, commodity prices, external demand, and foreign direct investment," according to a statement by Johannes Mueller, IMF Mission Chief for Senegal. He notes positive signs on the horizon: "Declining fuel and food prices are projected to lower inflation to about 1 percent in 2009 and limit Senegal’s import bill, thereby helping contain the external current account deficit."
Despite budget and accounting reforms, falling tax revenues will require deficit spending to continue infrastructure improvments and private contracting, according to the IMF report.
No mention is made of the recent local elections and whether they would chill President Abdoulaye Wade's promotion of intrastructure and private projects. Recently the president reportedly stated his pleas to God that he be allowed to complete infrastucture such as the coastal highway...
France gains Senegal's telecommunications
According to news reports, the government of Senegal has sold its interest in the national telecommunications company Sonatel to France Telecom, making it the majority shareholder with 52.2 percent of Sonatel shares.
The government says it makes Sonatel a better value, but its workers don't think so. They've promised to strike.
Senegal will remain the second largest shareholder in Sonatel with 17.28 percent of the capital. Current Sonatel shareholders gain a premium of 32 percent over the stock price as of April 7, 2009. Thus the government gains 200 billion CFA francs (305 million Euros) without cutting Sonatel's budget.
The government says it makes Sonatel a better value, but its workers don't think so. They've promised to strike.
Senegal will remain the second largest shareholder in Sonatel with 17.28 percent of the capital. Current Sonatel shareholders gain a premium of 32 percent over the stock price as of April 7, 2009. Thus the government gains 200 billion CFA francs (305 million Euros) without cutting Sonatel's budget.
Thursday, April 2, 2009
How to do it right: German solar engineering in Casamance
In May 2007, the German Ministry of Economics and Technology (BMWi) offered German companies an opportunity to exchange thoughts and ideas with Senegalese partners and institutions. In addition to establishing contacts there, they were also encouraged to present initial business ideas and to develop them further with their partners.
In October 2008, Schott Solar in co-operation with its partners officially began the operation of a solar emergency power system installed with the village inhabitants for a hospital clinic in Baïla, located in Casamance province in southern Senegal.
The clinic in Baïla has an emergency room, a delivery room, 10 beds, a pharmacy and accommodation for family members. Previously, during power outages (not uncommon in Senegal), the staff had to make do with petroleum lamps and candles and, if there was any extra diesel available, the clinic was sometimes able to run a power generator until they were back on the grid.
In this first project, Schott Solar and SMA joined forces with Kaito Energie AG, which had been developing and investing in business-oriented projects in Casamance for several years.
The local electricity network is often overloaded and can sometimes cut off its service several times a day. A five-kilowatt solar power system was installed to supply the clinic with power when the regular network is down. The power from the solar modules is initially stored in batteries. If there is a power outage, the system switches over to a so-called mini-grid with virtually no interruption to maintain stable power, vital to the clinic.
To guarantee the energy supply, Schott Solar donated photovoltaic modules and inverter company SMA donated a ‘Sunny’ back-up system to the clinic in Baïla.
In addition to the solar modules, Schott Solar also provided the system technology and supported the assembly. The installation was completed by the company and its employees. Meanwhile, Kaito Energie AG took responsibility for project management on location and dealt with the local authorities. The village community built the building extension on which the system was installed.
On the roof of the clinic, 102 Schott Solar modules produce approximately eight kilowatt a year--any surplus is stored in batteries.
The modules were transported by ship via Dakar to the regional harbour in Ziguinchor in Casamance, and then taken overland to Baïla. In Casamance, located on the edge of the topical rainforest, climatic conditions are extreme with a great deal of rain.
Following the dry season from November to June, hot monsoon winds herald the rainy season and humid weather from the south. In order to maintain performance, special double-glazed modules were used, based on stainless steel frames which have stood up in Indonesia and Thailand since the late 1980s.
Schott Solar claims its modules meet standards twice that of the IEC 61215 standard: the modules are subjected to temperatures of +85°C and a humidity of 85 percent. During the so-called temperature change test, they have to hold their own against temperature cycles ranging from -40°C up to +85°C. In addition to the solar modules themselves, the power inverter also plays a major role for the operating efficiency and the performance of a solar energy system.
People living in Baïla were also directly involved in the installation of the system. The village community built the extension on which the employees of the project partners mounted the system in May. Trainees from the neighbouring technical college worked with experts from Germany and helped to install the modules on the roof.
German engineering, always awesome to see...
In October 2008, Schott Solar in co-operation with its partners officially began the operation of a solar emergency power system installed with the village inhabitants for a hospital clinic in Baïla, located in Casamance province in southern Senegal.
The clinic in Baïla has an emergency room, a delivery room, 10 beds, a pharmacy and accommodation for family members. Previously, during power outages (not uncommon in Senegal), the staff had to make do with petroleum lamps and candles and, if there was any extra diesel available, the clinic was sometimes able to run a power generator until they were back on the grid.
In this first project, Schott Solar and SMA joined forces with Kaito Energie AG, which had been developing and investing in business-oriented projects in Casamance for several years.
The local electricity network is often overloaded and can sometimes cut off its service several times a day. A five-kilowatt solar power system was installed to supply the clinic with power when the regular network is down. The power from the solar modules is initially stored in batteries. If there is a power outage, the system switches over to a so-called mini-grid with virtually no interruption to maintain stable power, vital to the clinic.
To guarantee the energy supply, Schott Solar donated photovoltaic modules and inverter company SMA donated a ‘Sunny’ back-up system to the clinic in Baïla.
In addition to the solar modules, Schott Solar also provided the system technology and supported the assembly. The installation was completed by the company and its employees. Meanwhile, Kaito Energie AG took responsibility for project management on location and dealt with the local authorities. The village community built the building extension on which the system was installed.
On the roof of the clinic, 102 Schott Solar modules produce approximately eight kilowatt a year--any surplus is stored in batteries.
The modules were transported by ship via Dakar to the regional harbour in Ziguinchor in Casamance, and then taken overland to Baïla. In Casamance, located on the edge of the topical rainforest, climatic conditions are extreme with a great deal of rain.
Following the dry season from November to June, hot monsoon winds herald the rainy season and humid weather from the south. In order to maintain performance, special double-glazed modules were used, based on stainless steel frames which have stood up in Indonesia and Thailand since the late 1980s.
Schott Solar claims its modules meet standards twice that of the IEC 61215 standard: the modules are subjected to temperatures of +85°C and a humidity of 85 percent. During the so-called temperature change test, they have to hold their own against temperature cycles ranging from -40°C up to +85°C. In addition to the solar modules themselves, the power inverter also plays a major role for the operating efficiency and the performance of a solar energy system.
People living in Baïla were also directly involved in the installation of the system. The village community built the extension on which the employees of the project partners mounted the system in May. Trainees from the neighbouring technical college worked with experts from Germany and helped to install the modules on the roof.
German engineering, always awesome to see...
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