Firm Announces Multiple Contract Awards In Saudi Arabia

National Energy Services Reunited Corp., a national, industry-leading provider of integrated energy services in the Middle East and North Africa and Asia Pacific regions, reported awards valued up to 2.5 Billion Saudi Riyal ($660 Million) for Coiled Tubing & N2, Stimulation Services and Cementing Services for a period of five (5) years with possible extensions of up to 2 years with the National Petroleum Technology Company, a subsidiary of NESR.

Dr. Mohammed Y. Al-Qahtani, Senior Vice President for Upstream, Saudi Aramco commented: “NESR is a key partner for Saudi Aramco, and we are very pleased to see National Petroleum Technology Company, a subsidiary of NESR, progress in such a short span of time. As we have previously stated, we would like to see local high- caliber firms from Saudi Arabia that have proven their ability to handle complex projects to step up and take a larger role to help achieve Saudi Aramco’s In-Kingdom Total Value Add Program (IKTVA) goals, which aim to increase the company’s locally sourced goods and services to 70 percent by 2021 and contribute to the Vision 2030, Saudi Arabia’s national transformational program. With these awards, we would also like to see NESR introduce innovative technologies to address our challenges.”

“These awards are key as they provide a baseline for our growing operations in Saudi Arabia” said Sherif Foda, Chairman of the Board and CEO of NESR. “We are very grateful to Saudi Aramco for reposing their faith in us. As a premier national service provider, we have made significant investments in training and developing the national workforce in Saudi Arabia to deliver top level service quality. At NESR, we are committed to playing a positive role in the development of the communities in which we operate and that drives our commitment to leadership in IKTVA. These contracts allow us to grow our investments in our ongoing initiatives in Saudi Arabia.”

 

OPEC Fund For International Development Launches New Strategy

OFID’s highest policy-making body, the Ministerial Council, held its 40th Annual Session in Vienna, Austria, and approved the general principles of OFID’s new Strategic Framework.

The new strategy affirms OFID’s commitment to providing support to developing countries – especially low-income countries – in an increasingly complex and challenging development landscape.

At the Ministerial Council meeting, OFID Director-General Dr Abdulhamid Alkhalifa said: “OFID’s vision is to be a relevant, agile and efficient development finance institution that can deliver maximum development impact to its partner countries while becoming self-sustainable in financing its operations.”

Over the coming months, OFID will embark on a journey to diversify its financial resources and to implement a coherent and consistent set of actions aimed at creating greater efficiency throughout the institution and equipping it with more innovative and responsive operational and financial instruments.

As part of its new strategy, OFID will renew its focus on partnerships. OFID works closely with organizations such as the World Bank, regional development banks and the bilateral and multilateral agencies of OFID member countries, as well as specialized agencies of the United Nations.

In addition to strengthening existing partnerships, OFID aims to form new relationships to revitalize the global partnership in support of sustainable development.

In keeping with previous years, a highlight of the Ministerial Council’s public session was the presentation of the OFID Annual Award for Development.

The 2019 Award was bestowed on Vida Duti – Country Director of the IRC International Water and Sanitation Centre in Ghana – in recognition of her remarkable work and engagement in ensuring sustainable water, sanitation and hygiene (WASH) services for the population of Ghana (see press release PR14).

The Ministerial Council also considered and approved OFID’s financial statements and 2018 Annual Report, which shows cumulative commitments to global development exceeding US$23.4 billion.

OFID aims to continue to support the global efforts to overcome development challenges, as it has done since 1976, by: extending concessionary financial assistance; participating in the financing of private sector activities in developing countries; contributing to the resources of other development institutions. Since it was established, the organization has improved its capabilities and operational reach to support South-South development and socioeconomic growth in partner countries around the world. Public Sector lending, including to low-income countries, will continue to represent the largest portion of OFID’s loan portfolio, going forward.

The Ministerial Council comprises the finance ministers and other high-level representatives of OFID Member Countries. It meets once a year.

Uganda Mourns IAEA Boss’s Death

The Minister of Energy and Mineral Development, Eng. Irene Muloni, has expressed utter shock at the news that the Director General of the International Atomic Energy Agency (IAEA), Yukiya Amano, had passed on.

The agency’s secretariat Monday announced the death of the Japanese official

 “I’m really very shocked! It’s a pity that we have lost a very great committed man. He was very instrumental in helping us as a country to bring in the cobalt 60 Cancer Treatment Machine and seeing Uganda realise its full potential of using nuclear energy for peaceful purposes,” said Muloni.

Ms. Sarah Nafuna, the Head Nuclear Unit at the Ministry of Energy and the National Liaison officer to the IAEA also expressed her sincere regrets at the death of the Director General.

“We shall miss our DG (Director General of IAEA). His support to the development of Uganda’s Nuclear Power Project for peaceful purposes and acquiring the Cancer Treatment Machine at Uganda Cancer Institute was very key to our country. He even attended its commissioning,” recalled Nafuna.

Amano met the president early in January 2018 ahead of the commissioning of the Cobalt 60 cancer machine at Uganda Cancer Institute, Mulago. At the meeting at State House, President Yoweri Museveni stressed the importance of peaceful use of nuclear both in resolving Africa’s energy needs and on health matters.

Barkindo OPEC Reappointment Good For Global Oil Markets Stability

The African Energy Chamber has saluted the re-appointment of H.E. Mohammed Barkindo as Secretary General of OPEC and is looks at it as a factor of stability for African and global oil markets.

Secretary General Barkindo has managed to keep OPEC united as an organization under very unstable times and a deep crisis in commodity prices. His leadership and diplomacy has restored market stability and successfully sealed landmark agreements like that of the Declaration of Cooperation between OPEC and non-OPEC member countries.

More importantly for our continent, it is under Secretary General Barkindo that OPEC gained its two newest African members, Equatorial Guinea in 2017 and the Republic of Congo in 2018. Last year, he was awarded the Africa Oil Man of the Year award by Africa Oil & Power for prioritizing of cooperation in turbulent times, for stabilizing oil markets and for raising the voice of Africa on the global energy stage.

“The extension of H.E. Mohammed Barkindo’s mandate as Secretary General for another term is excellent news. It is well-deserved and a result of the trust he has gained from the entire global energy community,” declared NJ Ayuk, Executive Chairman of the Chamber and CEO of the Centurion Law Group.

“Secretary Barkindo has maintained faith in the future of the oil & gas industry, he picks the right battles and fights them with courage. As the race towards stability continues, his sense of team work will continue building the bridges our industry needs to achieve greater prosperity.”
 

Helen Clark Appointed As New EITI Chair

The Extractive Industries Transparency Initiative (EITI) Members’ Meeting Monday confirmed the appointment of Rt Hon. Helen Clark as the Chair of the EITI. The EITI Board for 2019-2021 was also elected.

Helen Clark is a widely respected global leader on sustainable development and international cooperation. She served three successive terms as Prime Minister of New Zealand between 1999 and 2008.

While in government, she led policy debate on a wide range of economic, social, environmental and cultural issues, including sustainability and climate change. She then became the UNDP Administrator for two terms from 2009 to 2017, the first woman to lead the organisation.

She was also the Chair of the United National Development Group, a committee consisting of the Heads of all UN funds, programmes and departments working on development issues.

 Outgoing EITI Chair, Fredrik Reinfeldt commented: “I am delighted to be succeeded by Helen Clark as EITI Chair. The governance of extractive resources is one of the most pressing issues of the 21st century.

Helen's previous leadership roles in global development make her excellently qualified to open up new avenues for dialogue on the role of extractive resources in sustainable development.

Over the last 12 years, the EITI has grown from an initiative to a global Standard for the good governance of the sector. I would like to pay tribute to the network of stakeholders and partners who have developed the Standard and leveraged it to pursue tangible reforms and better investment." 

Mark Robinson, Executive Director of the EITI, welcomed Helen Clark's appointment, saying that: "We are delighted at Helen's appointment and confident that her political and diplomatic skills will help shape the EITI, as it continues to play an important role as the benchmark for extractives governance and transparency. Helen will be the fourth Chair of the EITI and the second woman to take up the role."

Incoming Chair, Rt Hon. Helen Clark, expressed her appreciation of the work of previous leaders of the EITI and commented: "At EITI, I will be working with more than 50 countries globally to improve transparency, accountability, and governance, and to raise the bar for extractives governance.

I am grateful for the role Fredrik and the outgoing Board have played in forging consensus on the revised 2019 EITI Standard, and I look forward to taking this important work forward."

Baker Hughes, GE Get BP's Turbomachinery Contract

BHGE to provide turbomachinery equipment for four FLNG compression trains for BP's Greater Tortue Ahmeyim natural gas project; Award is second major contract for Greater Tortue development, expanding on BHGE's contract for subsea production equipment; Floating LNG facility to provide circa 2.5 million tonnes of LNG per annum and represents the first stage of a multi-phase project

Baker Hughes, a GE company announced that it has been awarded a contract to supply turbomachinery equipment for the first phase of BP's Greater Tortue Ahmeyim floating liquefied natural gas (FLNG) project located offshore Mauritania and Senegal. BHGE will provide the technology for four compressor trains for offshore gas liquefaction on board Golar LNG Limited's industry leading FLNG solution, expectedto deliver 2.5 million tonnes of LNG per annum.

The contract was awarded to BHGE in the first quarter of 2019 by Golar's topsides contractor, Black and Veatch (B&V).The award builds on a separate subsea production contract also received by BHGE in the first quarter for the Project,demonstrating the strength and breadth of the company's fullstream portfolio for offshore gas fields.

Each of the four trains will consist of a PGT25+G4 aeroderivative gas turbine driving a centrifugal compressor. This solution was designed, tested and proven based on a model that B&V and BHGE developed together previously for a similar application (http://bit.ly/2PLhEHc). The gas turbines and compressors will be manufactured, tested and transported from BHGE's plants in Italy.

"Being selected for this important project reinforces our gas leadership position in the global LNG market and an important region,"said Rod Christie, President and CEO of BHGE Turbomachinery & Process Solutions. "Our technology solution has been proven to support FLNG, is based on a strong partnership with B&V and offers best-in-class reliability rates that will help reduce operational risks for Golar and BP."

Technology Details

The PGT25+ G4 gas turbine family has over 560 units in operation, with more than 3.7 million of fired hours of operating experience. First introduced in the mid 2000's, the PGT25+ G4 builds on the LM2500 and PGT25 heritage, which has over 2500 engines in service and has accumulated more than 94 million hours of operation with best-in-class reliability and availability.

Project Details

The initial subsea infrastructure connects the first four of 12 wells consolidated through production pipelines leading to a floating production, storage, and offloading (FPSO) vessel. From here liquids are removed and the export gas is transported via a pipeline to the FLNG hub terminal where the gas is liquefied.

The Greater Tortue Ahmeyim project will produce gas from an ultra-deepwater subsea system and mid-water floating production, storage and offloading (FPSO) vessel, which will process the gas and remove heavier hydrocarbon components. The gas will then be transferred to a floating liquefied natural gas (FLNG) facility at an innovative nearshore hub located on the Mauritania and Senegal maritime border. The FLNG facility is designed to provide circa 2.5 million tonnes of LNG per annum on average, with the total gas resources in the field estimated to be around 15 trillion cubic feet. The project, the first major gas development to reach FID in the basin, is planned to provide LNG for global export as well as  making gas available for domestic use in both Mauritania and Senegal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

Reshaping Of Oil Markets Has Only Started

By Abdulnasser Alshaali

Oil prices are more volatile than they have ever been in the past 10 years, with a lot of uncertainty rising on what direction those prices will take in the future. As a result, it’s becoming ever more difficult for countries and businesses to assess projects and decide their feasibility in the near term.

It also makes it hard for countries, as well as individuals, to budget for hikes in oil prices, and to better utilise lower oil prices to remove subsidies or to support businesses.

With shifting geopolitics, supply-demand mismatch, and new entrants, volatility and uncertainty in the oil market are here to stay. Looking back at trends over the past 50 years, there were very specific major shocks to the oil market, like the 1973 embargo, leading to a sharp increase and an eventual drop to a price at which supply balanced out demand.

Similarly, uncertain supply with higher Asian demand increased oil prices post the year 2001, resulting in a pre-2008 peak and another in 2011. But this is no longer the case.

What has changed is that shifts in prices are more extreme and take place over shorter periods of time instead of taking years to flatten out.

Geopolitics and uncertain supply cannot be separated from one another. And despite the widely circulated rhetoric that countries like the US may be a major player in the oil market one day, such predictions fail to account for two points.

One, shale oil, which is what’s bringing the US to self-sufficiency in oil post-2021, requires different refining, with many oil refineries around the globe being accustomed to the type of oil that they have been importing for years. This means that we are far from witnessing dramatic changes in terms of suppliers.

Additionally, with countries having to cut down their production due to sanctions and others doing so because of turmoil, it is only expected that tightness in supply will grow further, with unfettered demand.

This brings me to the second point, which is that demand for oil is expected to outgrow supply in the long-term. Though this is yet to be observed and confirmed, a reversal in oil prices in the past five years is one indication of the same, but not one that can be taken for granted.

Such demand — if moderated by energy supplies from other sources, including biofuels and renewables — could be significantly lower than anticipated. The result would be a more balanced market with less volatility in oil prices than what we are observing today.

Furthermore, new oil production in various regions is coming online, such as Uganda in Africa and Guyana in South America. Russia, along with countries in the European Union (EU), possess significant shale oil reserves. However, France and Bulgaria, both EU countries, have banned the process of extracting shale oil, known as fracking, due to its negative environmental impact.

Though it is hard to ascertain where oil prices are headed, there are certain events taking place today and likely going to shape the oil market of tomorrow.

Firstly, countries that are able to tap into their oil resources will be able to move closer to self-sufficiency, and so will their nearby regions. As that takes shape, dynamics in the oil market will no longer be determined by straight forward demand and supply, but rather how much energy does a region require as part of its total mix of all energy sources.

Therefore, today’s players in the oil market will not necessarily be tomorrow’s players. In fact, this can be only assessed and forecast by taking into account potential and progress in oil producing regions to determine excess supply, and hence exports.

Tomorrow’s players in the oil markets will be regions with the highest exporting capacity, not countries.

Secondly, traditional oil producers and exporters are now moving up the supply value chain to safeguard against future unpredictability, with mergers taking place to consolidate operations and streamline investments.

Mubadala Investment Company in the UAE, established through the merger of Mubadala Development Company and International Petroleum Investment Company, is one example. Another is the merger of Oman Oil Co and Oman Oil Refineries and Petroleum Industries Co.

Thirdly, oil prices have been pushed to the extreme by speculation, not by a sudden surge in demand or a sudden drop in supply. When oil prices started dropping post-2014, oil supplies were stored on ships, oil tankers, rather than admitted into the oil market.

While one reason was to keep excess supply off the market and hence upward pressure on oil prices, the other was for investors and speculators hoarding oil barrels to sell them at a price that seemed destined to continue rising. This also enabled them to honour their options contracts in an oil market where prices were increasing unabated.

One general observation in the commodities’ market is that prices stay on a mild upward trajectory in the long-term, even if there were steep pitfalls along the way. But if and only if there were no major changes in the supply-demand dynamics.

Therefore, and with an overall growing demand for oil, and its by-products, it is only expected for the price of oil, taken on average every decade or two, to be higher than in preceding ones.

However, such a growing demand will not be necessarily supplied from today’s traditional players, with growing self-sufficiency from domestic and regional resources, inclusive of other sources of energy that, in net, would reduce dependence on oil.

How oil prices will be impacted is anyone’s guess.

The last thought that I want to leave you with: what about the markets for gas and Liquefied Natural Gas (LNG)?

Abdulnasser Alshaali is a UAE based economist.

 

National Energy Services Reunited Signs Agreement With Saudi Aramco

National Energy Services Reunited Corp., a national, industry-leading provider of integrated energy services in the Middle East and North Africa region, signed a land lease agreement with Saudi Aramco to build a state of the art operating facility in the newly launched King Salman Energy Park.

SPARK is a 50-square-kilometer energy city megaproject, which will position Saudi Arabia as a global energy, industrial and technology hub. Saudi Aramco will develop, operate, manage and maintain the project's infrastructure in partnership with the Saudi Authority for Industrial Cities and Technology Zones (MODON).

SPARK's role in enabling localization within the Kingdom's energy supply chain aligns with the strategic goals of Saudi Aramco's In-Kingdom Total Value Add (IKTVA) program and affirms the Kingdom's commitment to Vision 2030 by serving as an economic catalyst and advancing Saudi Arabia's strong position in the global energy sector.

When operational, SPARK is estimated to contribute more than $6 billion to the Kingdom's GDP annually and create up to 100,000 direct and indirect jobs.

Dr. Mohammed Y. Al-Qahtani, Senior Vice President for Upstream, Saudi Aramco stated, ''SPARK will emerge as a key enabler for Saudi Aramco's In-Kingdom Total Value Add Program (IKTVA) which has a mission to raise local content to 70% by 2021. Presently, the Kingdom's requirement for energy-related industries is growing and requires dedicated industrial development focused on the energy sector and SPARK will provide for the development of a world-class energy industry hub to support the same.''

Dr. Qahtani added, ''We're looking forward to collaborating with NESR, one of our first anchor partners at SPARK, and are very encouraged to see NESR take a leading role in developing the energy infrastructure of the Kingdom and the larger region at such an early stage of its journey.''

Sherif Foda, Chairman of the Board and CEO of NESR stated, ''We are very honored to be given the opportunity by Saudi Aramco to be part of this endeavor at its inception. NESR has considerable experience in local manufacturing and indigenizing the supply chain which is already being implemented in the Kingdom.

This new facility shall be NESR's flagship operating facility in the Kingdom and will host all our product lines as well as that of our technical partners. I would like to thank Saudi Aramco for reposing their faith in NESR and as a local company, we are very proud of our contributions to the Kingdom's energy industry and look forward to amplifying our efforts in this regard.''

Chinese Energy Conglomerate Convicted of International Bribery

A federal jury in New York City today convicted the head of a nongovernmental organization (NGO) based in Hong Kong and Virginia on seven counts for his participation in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda in exchange for business advantages for a Chinese oil and gas company, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department's Criminal Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York.

Chi Ping Patrick Ho, aka "Patrick C.P. Ho," aka "He Zhiping," 69, of Hong Kong, China, was found guilty today after a one-week jury trial before U.S. District Judge Loretta A. Preska in the Southern District of New York of one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), four counts of violating the FCPA, one count of conspiring to commit international money laundering and one count of committing international money laundering.  Ho is scheduled to be sentenced before Judge Preska on March 14, 2019, at 10:00 a.m. EDT.

"Patrick Ho paid millions of dollars in bribes to the leaders of two African countries to secure contracts for a Chinese conglomerate," said Assistant Attorney General Benczkowski.  "Today's trial conviction demonstrates the Criminal Division's commitment to prosecuting those who seek to utilize our financial system to secure unfair competition advantages through corruption and bribery."

"Patrick Ho now stands convicted of scheming to pay millions in bribes to foreign leaders in Chad and Uganda, all as part of his efforts to corruptly secure unfair business advantages for a multibillion-dollar Chinese energy company," said U.S. Attorney Berman.  "As the jury's verdict makes clear, Ho's repeated attempts to corrupt foreign leaders were not business as usual, but criminal efforts to undermine the fairness of international markets and erode the public's faith in its leaders."

According to evidence presented at trial, Ho was involved in two bribery schemes to pay top officials of Chad and Uganda in exchange for business advantages for CEFC China, a Shanghai-based multibillion-dollar conglomerate that operates internationally in multiple sectors, including oil, gas, and banking. 

At the center of both schemes was Ho, the head of a nongovernmental organization based in Hong Kong and Arlington, Virginia, the China Energy Fund Committee (the "CEFC NGO"), which held "Special Consultative Status" with the United Nations (UN) Economic and Social Council.  CEFC NGO was funded by CEFC China.

According to the evidence presented at trial, in the first scheme (the "Chad Scheme"), Ho, on behalf of CEFC China, offered a $2 million cash bribe, hidden within gift boxes, to Idriss Déby, the President of Chad, in an effort to obtain valuable oil rights from the Chadian government.  In the second scheme (the "Uganda Scheme"), Ho caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by Sam Kutesa, the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly.  Ho also schemed to pay a $500,000 cash bribe to Yoweri Museveni, the President of Uganda, and offered to provide both Kutesa and Museveni with additional corrupt benefits by "partnering" with them in future joint ventures in Uganda.

The Chad Scheme

According to the evidence presented at trial, the Chad Scheme began in or about September 2014 when Ho flew into New York, New York to attend the annual UN General Assembly.  At that time, CEFC China was working to expand its operations to Chad and wanted to meet with President Déby as quickly as possible.  Through a connection, Ho was introduced to Cheikh Gadio, the former Minister of Foreign Affairs of Senegal, who had a personal relationship with President Déby.  Ho and Gadio met in midtown Manhattan, New York where Ho enlisted Gadio to assist CEFC China in obtaining access to President Déby.

Gadio connected Ho and CEFC China to President Déby.  In an initial meeting in Chad in November 2014, President Déby described to Ho and CEFC China executives certain lucrative oil rights that were available for CEFC China to acquire.  Following that meeting, Gadio advised Ho and CEFC China to send a technical team to Chad to investigate the oil rights and make an offer to President Déby.  Instead, Ho insisted on a prompt second meeting with the President.  The second meeting took place a few weeks later, in December 2014.  Ho led a CEFC China delegation, which flew into Chad on a corporate jet with $2 million cash concealed within several gift boxes.  At the conclusion of a business meeting with President Déby, Ho and the CEFC China executives presented President Déby with the gift boxes.

To the surprise of Ho and the CEFC China executives, President Déby rejected the $2 million bribe offer.  Ho subsequently drafted a letter to President Déby claiming that the cash had been intended as a donation to Chad.  Ultimately, Ho and CEFC China did not obtain the unfair advantage that they had sought through the bribe offer, and by mid-2015, Ho had turned his attention to a different "gateway to Africa": Uganda.

The Uganda Scheme

According to the evidence presented at trial, the Uganda Scheme began around the same time as the Chad Scheme, when Ho was in New York, New York for the annual UN General Assembly.  Ho met with Sam Kutesa, who had recently begun his term as the 69th President of the UN General Assembly ("PGA").  Ho, purporting to act on behalf of CEFC NGO, met with Kutesa and began to cultivate a relationship with him.  During the year that Kutesa served as PGA, Ho and Kutesa discussed a "strategic partnership" between Uganda and CEFC China for various business ventures, to be formed once Kutesa completed his term as PGA and returned to Uganda.

In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa's relative) had been reelected as the President of Uganda – Kutesa solicited a payment from Ho, purportedly for a charitable foundation that Kutesa wished to launch.  Ho agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni's inauguration, business meetings with President Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda that CEFC China could participate in.

In May 2016, Ho and CEFC China executives traveled to Uganda.  Prior to departing, Ho caused the CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called "foundation," which wire was transmitted through banks in New York, New York.  Ho also advised his boss, the Chairman of CEFC China, to provide $500,000 in cash to President Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected.  Ho intended these payments as bribes to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China.

Ho and CEFC China executives attended President Museveni's inauguration and obtained business meetings in Uganda with President Museveni and top Ugandan officials, including at the Department of Energy and Mineral Resources.  After the trip, Ho requested that Kutesa and Museveni assist CEFC China in acquiring a Ugandan bank, as an initial step before pursuing additional ventures in Uganda.  Ho also explicitly offered to "partner" with Kutesa and Museveni and/or their "family businesses," making clear that both officials would share in CEFC China's future profits.  In exchange for the bribes offered and paid by Ho, Kutesa thereafter steered a bank acquisition opportunity to CEFC China.

This case was investigated by the FBI and IRS-CI.  U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Department of Justice, Criminal Division's Office of International Affairs provided assistance.

Trial Attorney Paul A. Hayden of the Criminal Division's Fraud Section, FCPA Unit and Assistant U.S. Attorneys Douglas S. Zolkind, Daniel C. Richenthal and Catherine E. Ghosh of the U.S. Attorney's Office for Southern District of New York's Public Corruption Unit and the Criminal Division's Fraud Section are prosecuting the case.

GE Launches World's First 6B Repowering Gas Turbine Solution

GE's Power Services business is celebrating the 40th anniversary of its 6B gas turbine fleet by launching the world's first 6B repowering solution. 

GE also announced it has signed its first agreement for the solution with a global chemical company to repower three 6B gas turbines and save significant amounts of fuel each year at its site in Asia.

The recent announcements mark another example of GE's continued commitment to investing in its mature fleets to keep them competitive.

In Africa, GE has an installed base of 60 6B gas turbines at various locations with the most recent installation in Cabinda, Angola. The fleet is mainly used for power generation for grid supply as well as for large industrial uses like refineries.

"We're excited to mark our 40th anniversary of the 6B fleet and unveil our new repowering solution," said Scott Strazik, president & CEO of GE's Power Services business.

"This fleet is known for its dependability—a reputation earned with global fleet reliability of 98.4 percent, which is about 2 percent higher than the industry average and translates to approximately 17 more days of availability per year. At the same time, the 6B fleet has aged, and there's growing demand to improve performance. Today's announcement and our recent expansion of our Advanced Gas Path technology to the 6B fleet highlight our continuing investment in our mature fleets to help power producers and industrial operators remain competitive in today's very dynamic marketplace."

""As a company, we believe that more efficient power plants means more power available on the grid to respond to the growing energy needs of the African continent.

As a result, we are always focused on solving our customers' most complex problems with customized and innovative solutions that help optimize operational performance" said Elisee Sezan, General Manager, GE's Power Services business for Sub-Saharan Africa.

Part of GE's Fleet360* platform of total plant services solution, the new 6B Repowering Solution incorporates advanced F and H class technology to elevate the machine's performance to leading levels for its class.  

The repowering consists of a full "flange-to-flange" upgrade of all major components, including the combustion system, hot gas path and compressor, and it transforms the 6B unit into a GE 6F.01 gas turbine, which is also available as a new unit.

The new 6B Repowering upgrade, which fits into the existing 6B footprint, can advance performance in both gas turbine and combined-cycle operation.

It's capable of:

  • Increasing turbine output up to 35% simple-cycle / 25% combined-cycle
  • Improving efficiency up to 5% points in simple and combined-cycle operations
  • Achieving up to $3 million in fuel savings per unit annually
  • Achieving NOx emissions as low as 15 ppm.
  • Extending the hot gas path inspection interval to 32,000 hours (from 24,000 hours) and major inspection interval to 64,000 hours (from 48,000 hours)

Since its first installation in 1978 at Montana-Dakota Utilities' Glendive Power Plant in USA, GE's 6B fleet has accumulated more than 65 million operating hours. GE's fleet spans more than 1,150 6B turbines across all corners of the world, powering energy production facilities and industrial applications in segments such as petrochemical, oil and gas, exploration and cement production.

In 2009, GE launches the 6B Performance Improvement Package (PIP), featuring advances in materials, coatings, sealing and aerodynamics derived from its F-class technology to increase output and efficiency.

Today, PIP is installed on 200+ units, 5 of which are in Africa with 9 additional upgrades planned. It has also become the standard configuration for new 6B gas turbines.

Subscribe to this RSS feed

Kampala