Two Korean firms win bid for power plant

Equatorial Guinea official says search for oil expensive

Accra (Greater Accra), 30^th April ‘99 –

A consortium of two Korean engineering firms has been selected as "prime candidate for award" to undertake the turnkey supply of engineering, procurement and construction services for the proposed Ghana Industries Power Project (GIPP).

A statement released by KMR Power, a US-based power corporation which owns and operates private power projects world-wide, on Thursday said SK Engineering and Construction Company Ltd and Samsung Corporation were selected following competitive bidding from prominent contractors and turbine suppliers.

The GIPP is a 220-megawatt combined cycle gas-fired project currently in an advanced stage of development.

KMR Power, which also includes Emerging Power Development Limited of the United States, was awarded the rights in 1997 to build, own and operate the plant.

Power to be produced will be purchased by Ashanti Goldfields and the Electricity Company of Ghana which will re-sell it to other large mining and industrial companies.

The plant, which will be the first privately financed independent power project in Ghana, is an important step in the government's efforts to promote the development of private power.

It is also aimed at providing a long-term and cost-effective power to the mining and industrial sectors.

Accra (Greater Accra), 30^th April ‘99 –

Mr Gabriel Nguema Lima, Presidential Adviser at the Ministry of Mines and Energy of Equatorial Guinea, on Thursday described the search for oil and other hydrocarbons as a capital-intensive, time-consuming and painstaking venture.

There is, therefore, the need for restraint and endurance by all stakeholders, especially governments and the population, as exploration takes a long time and is a big sacrifice.

Mr Lima, who attended the third Oil and Gas Africa '99 Conference and Exhibition which ended on Wednesday, was speaking to newsmen before departure for home.

He said when a nation makes a find in commercial quantities, the waiting and money spent on the project becomes a thing of the past, as the profits after that override the costs incurred.

Mr Lima said Equatorial Guinea suffered initial severe setbacks, which nearly stopped the search for oil in the country."But through perseverance and goodwill from governments since independence, we have been able to get to where we are now, as a young dynamic oil nation".

He said exploration activity has focused on two areas: offshore Bioko, which is an extension of the Niger Delta Basin; and Rio Muni, which lies between the producing areas of offshore Gabon.

"All the players in the industry must do is to remain optimistic. Another aspect is to get the kind of negotiations that will get you the big companies to explore in your area".

He said Equatorial Guinea is privileged to be lying in the hub of the dynamic offshore petroleum province. The size of the area under exploration is approximately 40,000 square metres.

Mr Miguel-Angel Ondo Angue, Director-General of Mines and Hydrocarbons, Ministry of Mines and Energy, Equatorial Guinea, said exploration started in the 1960s, when Mobil drilled the first wells.

He said this proved to be a big drawback initially, but they managed to pull through.

"Our first discoveries came in 1992 in the Alba fields. This caused us to approach Cameroon, Ghana and Gabon for technical support, which we are glad has come in handy in our present state."

Equatorial Guinea currently produces 75,000 barrels of oil per day.Production levels are expected to go up with plans to develop new platforms that will produce over 120,000 barrels a day.

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