Glencore was said to have been importing petroleum products for storage and sale to various customers within Ghana, in violation section 11 of the National Petroleum Authority Act, ACT 691, 2005.

[contextly_sidebar id=”Zv3WnEoTOawCNWBpRBIiL9MyK02QNVQp”]The NPA, in a June 2017 letter sighted by Citi News, threatened legal action if Glencore did not cease its operations.

Glencore, a July 2017 letter responding to the NPA’s claims, said all its business in Ghana is within the remits of the law, adding that the NPA may have been working with “inaccurate information” with regards to its involvement in Ghana’s petroleum industry.

“Our role is strictly limited to being an international supplier of petroleum products. As you recognise on your own website, ‘the industry works closely with international suppliers like… Glencore… to supply about 80 percent of petroleum products currently consumed in the country’.”

“We do not (and have not at any time) undertaken or engaged in any ‘business or commercial activity in the downstream industry’ in Ghana for the purpose of Section 11(1) of the Ghanaian National Petroleum Act (“NPA”)… Contrary to the information you have received, we have not in fact imported or stored any petroleum products in(to) Ghana.”

Dealings with Tema Fuel Company

The letter noted that Glencore on occasions places petroleum products into storage at Tema Fuel Company’s (TFC) bonded tank farm, “on behalf of the Ghana Bulk Distribution Companies that have purchased and (imported) the petroleum products.”

TFC is licensed to own, manage and develop a storage depot at Tema and to rent and lease its depot space.

Given Glencore is an international supplier, it does sell petroleum products “regularly” to Ghanaian BDCs by way of Delivered Ex-Ship (DES) terms or by way of In Tank Transfer (ITT) at TFC’s tank farm.

In this light, the company notes that “DES terms place the obligation to obtain import licenses and pay customs duties on the buyer.”

To the best of its knowledge, Glencore says its customers are “fully licensed by the Authority to operate in Ghana’s petroleum downstream industry.”

Glencore further stated that “we do not sell petroleum products direct to Oil Marketing Companies or Bulk Customers in the Power Sector in Ghana.”

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By: citifmonline.com/Ghana

The post Our petroleum dealings in Ghana legal – Glencore appeared first on Citi 97.3 FM - Relevant Radio. Always.

The NPA, in a June 2017 letter sighted by Citi News, threatened legal action if Glencore does not cease its operations.

[contextly_sidebar id=”rfqhroBd473yT3QoxlhD67iPy4L8U4v6″]Glencore is said to have been importing petroleum products for storage and sale to various customers within Ghana, thus flouting section 11 of the National Petroleum Authority Act, ACT 691, 2005.

“We wish to advise that the importation of petroleum products into the country is carried out only by companies duly licensed by the Authorities (i.e. Bulk Distribution Companies and Oil Trading Companies),” the letter from the NPA stated.

“On the basis of the above, you are hereby advised to suspend any such activities with immediate effect, failing which the Authority will have no choice but to take necessary legal action against your company.”

Possible sanctions

This news comes after the controversy over the involvement of two unregistered companies, Zup Oil and Movenpinaa Energy, in the sale of contaminated oil.

Those companies were found to be operating without a license and the NPA indicated that they would face sanctions.

The NPA, also said it would take legal action against the firms and conduct further investigation to determine the actual quantity and quality of contaminated oil received.

“There is a standard sanction that we impose on such petroleum service providers who do not have licenses to operate. What we do is to enforce these sanctions which are known to everybody in the industry. For every trivial activity that they engage in, they pay GHc10,500,” the NPA acting Chief Executive Officer previously explained.

Zup Oil and Movenpinaa Energy will, however, be given the opportunity to regularise their operations.

The contaminated fuel story was brought to the fore by a Citi News report, indicating that Ghana may have lost about GHc 7 million in revenue following attempts by BOST to sell the fuel.

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By: citifmonline.com/Ghana

The post NPA threatens to sue Glencore for operating without license appeared first on Citi 97.3 FM - Relevant Radio. Always.