The Minority Spokesperson on Energy, KT Hammond has alleged that the lead operator on the Jubilee Oil field, Tullow Oil, is defrauding Ghana.<\/p>\n
According to KT Hammond,\u00a0following\u00a0the fall in oil prices on the international market, Tullow\u00a0\u201cdeclared a whopping $2 billion losses arising out of their operations in other jurisdiction,\u201d and the company wants to use profits from Ghana to reduce their losses.<\/p>\n
[contextly_sidebar id=”CbudD2X1MZgheoTWNHhmntjq91WF34EZ”]KT Hammond said even though the falling crude oil prices have taken a toll, it is not enough to totally distort their operations especially when according to him, Jubilee’s cost of production hovers around $10 and $12 per barrel hence they are still making a lot of profit.<\/p>\n
\u201cI do know for a fact that in our jubilee field production cost is between $10 and $12 per barrel…So there is no way this guys are running out of resources or production cost outstripping their revenue,\u201d the ranking member on energy said.<\/p>\n
“Indeed, at the time of the signing of the plan of development, the world price of crude was about 42, 43, 45 better than it is and even then, they agreed to go on with production because they knew they were never going to incur losses,\u201d he added.<\/p>\n
He was of the view that claiming to have been hit by the development in the oil and industry is not accurate, hence, attempts to layoff Ghanaian workers is also not fair.<\/p>\n
Tullow Oil Ghana to layoff workers<\/strong><\/p>\n Tullow oil Ghana has confirmed that it has started consultations with some of its employees who are likely to be laid off in the coming months<\/strong><\/a><\/span>.<\/p>\n \u201cThe extent of redundancies and organisational changes will be determined on case by case basis and may therefore differ from one Tullow operation to the other,\u201d a statement from Tullow Oil Ghana said.<\/p>\n According to the company, the move is as a result of challenges in the oil and gas industry which have taken a heavy toll on crude oil prices.<\/p>\n Gov\u2019t lowers 2015 oil revenue target by 64%<\/strong><\/p>\n KT Hammond’s claim follows a statement made on the floor of Parliament by the Finance Minister that due to the fall in crude prices, Ghana\u2019s oil revenues have been affected greatly<\/strong><\/a><\/span>.<\/p>\n This according to Seth Terkper has compelled government to reduce oil revenue targets from $4.2 billion to $1.5 billion which is about 64% cut.<\/p>\n He said the sharp decline of the price of oil on the world market continues to pose serious challenges to the achievement of the 2015 economic program.<\/p>\n