According to the Minority Spokesperson on Finance, Cassiel Ato Forson, the GNPC is investing huge sums of the tax payers’ funds into Gold mining, road construction and other areas that have no bearing on the focus of the entity which is in the petroleum sector.

Parliament on Thursday approved the 2018 work programme for the state petroleum company.

Speaking to Citi News after the approval, Ato Forson indicated that, the current management of GNPC is leading the entity unto the wrong path.

“Basically, I am concerned about GNPC. GNPC has decided not to focus on their core mandate. I say this because the programmes that we approved today is something that stinks. GNPC is deviating from their core mandate as enshrined in law. For some strange reason, GNPC is saying they are going to spend 20 million dollars for the purposes of building their head office in Accra. In spite of that, they have an existing head office and they are saying they are spending 13.4 million cedis to renovate that office. What at all are they renovating?” he quizzed.

“Let us not forget that the same people have budgeted 20 million dollars to build a head office in Accra.  Again they are saying they are going to spend another 10 million dollars to build an operational office in Takoradi. I grew up in Takoradi and I do not know of a building that will cost 10 million dollars. They are also saying they will spend 2 million dollars to build a clinic… They are deviating from their core mandate. I think we should get GNPC to focus on their core mandate and not deviate from what they are doing. I think it is appalling.”

Meanwhile, the Energy Minister, Boakye Agyarko said the GNPC is better off under its current management which had even secured over 50 million dollars in savings of the initial cost of putting up a headquarters.

“For a GNPC headquarters that was projected to cost 76 million, we thought it was a ridiculous amount and so GNPC was instructed to look at the project again. What we have been able to do is to scale down the project and also commit 20 million dollars to the project.

“Obviously at the end of the project, we expect plus or minus another 2 million so when the charge was made that 20 million is excessive, I wanted to point out to my friends on the other side that we had actually climbed down from 76 to 20 million.”

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By: Marian Ansah & Duke Mensah Opoku/citifmonline.com/Ghana

The post GNPC off-track by going into mining, others – Minority fumes appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Minister of Energy, BoakyeAgyarko tells Citi Business News the move will also increase government’s revenue from the sector to propel economic growth and transformation.

ExxonMobil’s investment in the oil sector becomes the first major one in Ghana following the landmark ruling by ITLOS in the maritime border dispute between Ghana and Ivory Coast, in September last year.

The apparent victory by Ghana gives the country an appreciable reputation among the global oil giants.

The Energy Minister, BoakyeAgyarko explains to Citi Business News the move is set to trigger further investments in the short to medium term.

“Exxon Mobil is coming in with the highest standard of safety, financial accounting and all that we need to get done as a country…we have received a lot of expression of interests from other major players; the BP, Shell, Chevron, among others. All of them are now coming to operate in Ghana,” he stated.

On his part, the CEO of the Ghana National Petroleum Corporation (GNPC), Dr. K.K. Sarpong, stressed the enforcement of local content policies.

In his view, the plan will give Ghanaians access to opportunities in Exxon Mobil’s operations where necessary.

“In terms of local content policies, the laws have been strengthened the Petroleum Commission is at the forefront of enforcing the laws and we at GNPC have the sustainability and localization department which tries to make sure that we bring our partner’s attention to the mode of operation so that we take advantage to get benefits from our local people both corporate and individuals.”

ExxonMobil joins other operators in Ghana’s petroleum upstream sector including, Tullow, Kosmos, ENI, among others.

Earlier, some industry analysts raised concern over the Energy Minister’s failure to subject the contract to competitive bidding as spelt out in the Petroleum Exploration and Production law.

Reacting to this however, the Energy Minister maintained that the negotiations started before the passage of the law, it couldn’t have taken retrospective effect.

“There were four issues which put the negotiations into abeyance; they bordered on the treatment of foreign exchange, tax issues, among others. When we came in in 2017, the company approached us again and expressed their interest to revive the negotiations with the country but outlined the need to work around the issues so it could pave the way for their operations,” he stated.

“ExxonMobil started its program of operating in Ghana before the passage of the E&P law was passed in 2016 as such the law could not take a retrospective effect,” Mr. Agyarko added.

The company is expected to start its exploration activities fully after Parliament ratifies the deal.

Ghanaian ownership is estimated at thirty percent.

This comprises 10 percent royalty to the government of Ghana while the GNPC owns 15 percent stake as Carried and Participation Interest.

Also, the local partner for ExxonMobil is entitled to five percent of the company’s stake.

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By: Pius AmihereEduku/citibusinessnews.com/Ghana

The post Gov’t signs agreement with ExxonMobil appeared first on Citi 97.3 FM - Relevant Radio. Always.

While industry has wholly welcomed the move, some industry analysts have cautioned against the outstanding debts facing institutions involved in the supply of gas.

Citi Business News spoke to a couple of players involved in the sector and their perspectives have been backed with strong arguments which suggest possible ways that the government could use to ensure maximum benefit of its intended program.

President Akufo Addo first mentioned the reduction at the Commissioning of the Twyford ceramics factory at Shama over the weekend.

Per the reduction, businesses would buy a million British Thermal Units of gas at 6 dollars 50 cents, down from the 8 dollars 84 cents.

This also translates into some 26 percent reduction.

For industry, this is pleasant news as it will ultimately reduce the cost of power hence their operational costs.

The CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah said,

“The reduction is good for businesses and it has positive impact on the cost of electricity and therefore reducing the cost of production and we consider that to be important for businesses and I also like the President’s emphasis on industrial consumers.”

But the Executive Director of KITE, Ishmael Egyekumhene and the Vice Chairman of the Public Interest and Accountability Committee (PIAC), Kwame Jantuah share divergent views on the immediate benefits of the move.

Mr. Egyekumhene explained possible reasons for the reduction as, “There is a foundation volume of gas that the Jubilee partners give to the government at no cost but in the build-up, GNPC actually charges Ghana Gas for the gas supplied.”

Mr Jantuah believes otherwise as he argues that, “It sounds like the government is trying as much as possible to satisfy Ghanaians through words but the government needs to be clear and explain to the people that for certain reasons, they will be able to reduce gas rates by a certain percentage.”

VRA indebted to Ghana Gas

According to the semi-annual report of the Public Interest and Accountability Committee, for 2017, VRA owed Ghana Gas to the tune of 107.18 million dollars with interest.

Ghana Gas in turn also owed GNPC to the tune of 132.03 million dollars.

A situation analysts believe requires pragmatic solution to turnaround the fortunes of the companies.

Regarding the use of the energy bond to settle the debts, Mr. Ishmael Egyekumhene and Kwame Jantuah had these to say.

“The debt that VRA is owing to Ghana Gas, those debts must be cleared because the country would have to pay the loans that it secured to build the gas processing plant,” Mr. Egyekumhene stated.

The PIAC Vice Chairman also maintained, “Let’s make sure that we pay these debts once and for all so that everybody knows the state of the companies involved. I am not too happy with the fact that we are playing yo-yo with tariffs. We cannot do that at all!”

Meanwhile, the AGI is optimistic that the affected institutions should put in place mechanisms to absorb them from any potential shock due to the reduction.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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Speaking on the Citi Breakfast show on Wednesday, Mr. Mould explained that some of the taxes have outlived their usefulness hence must be reviewed downwards or totally scrapped.

[contextly_sidebar id=”v7HtkSeoxzYZUqTFJxBFNaQ5VRe3T5Vl”]Currently, data from the National Petroleum Authority (NPA) shows that there are about 10 different kinds of taxes and levies on petroleum products.

Fuel prices hit all-year-high

Fuel prices have hit all-time high in September, with petrol selling at an average price of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

Although some observers have blamed the surge in fuel prices on the depreciation of the Ghana cedi as well as unstable prices on the international market, analysts believe the local taxes on fuel prices are major factors.

Mr. Mould in the interview called for a quarterly review of the forex rate margin and a scrap of the BOST levy.

“I think one of the areas is the forward forex rate. It is an anticipatory rate – what they anticipate the [exchange] rate to be at the end of the period where they are supposed to have sold the product, and collected the money and buy the foreign exchange – I think that should be looked at.”

This he said is because per the forex rate margin, assuming the rate is “5% and the actual exchange rate is 1% percent, then the consumers are paying an extra four percent, so I think rather it should be like a fund where a claim could be made by the BDCs for any unanticipated forex loss that they make. That’s an area that should be looked at because it may be too high and it should be reviewed quarterly.”

Mr. Mould argued that the BOST margin should be scrapped “because there is no reason for it to be there anymore.”

“BOST is operating as a commercial entity, and they have told us over the years that they are making a lot of profit. The BOST margin was put there so that we could have some strategic stocks…government has looked at ways of funding the strategic stocks so the BOST margin I think should go except BOST makes very strong case for it to be retained.”

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Alex Mould backs calls for review of fuel taxes appeared first on Citi 97.3 FM - Relevant Radio. Always.

“I am Chair of the GNPC but I consider that to be service that I am rendering. If you think that that it is a reward, I beg to differ. I consider what I am doing as a service to my country, ” Mr. Blay said.

Mr. Blay was appointed a few months ago to serve as Chairman of the GNPC by President Nana Addo.

He also commented on NPP’s internal affairs, including the suspension of some executives, saying it would not be advisable to reinstate them.

He believes reinstating them would be unfair since in his view , they failed to contribute to the party’s victory in the 2016 general elections.

Making his case on Point Blank segment of Eyewitness News, Mr. Blay said : “If you needed people to undertake the biggest battle of an election and you thought that those that were in charge will not contribute to winning so you put them aside and you put other people in charge and they go to the battle and they are victorious. I do not see the wisdom that we should go back for people we thought will not help.”

The National Vice Chairman of the party, Sammy Crabbe was suspended indefinitely in 2015, alongside the party’s General Secretary, Kwabena Agyepong.

The suspension of the two came shortly after the suspension of Paul Afoko, who was National Chairman.

They were suspended for “misconduct” which included a disregard for party structures.

Mr. Afoko and Mr. Crabbe subsequently filed a suit over their suspension but both suits were thrown out by the court.

Mr. Blay also emphasized that Mr. Afoko will not be reinstated, adding that “there has not been any discussion” in relation to reinstating him.

I wasn’t surprised

According to him, the instruction for him to take over Afoko’s role after his suspension did not come as a surprise to him, because the party’s constitution makes provision for the “Vice Chair to act when the Chairman is not around.”

“The way the crisis was going, it was not surprising that I found myself to be Chair. One door closes and another opens. The situation I find myself as acting Chairman of the party presents new challenges. I have been busy and I find it interesting but that is okay,” Mr. Blay added.
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By: Marian Ansah/citifmonline.com/Ghana

The post My appointment as GNPC Chair not a reward – Freddie Blay appeared first on Citi 97.3 FM - Relevant Radio. Always.

In attendance was Freddy Blay, Chairman of the governing New Patriotic Party (NPP) and Ghana National Petroleum Corporation (GNPC), Dr. Kofi Koduah Sarpong, CEO of GNPC, Dr. Alfred Ahenkorah, Executive Secretary of Energy Commission.

They rest were Mr. Isaac Osei, the Managing Director of Tema Oil Refinery (TOR), Mr. Robert Mosore, Board Chairman of  TOR, Mr. Ismaela Ibrahim, Office of the Vice President and Dr. Kwame Achampong-Kyei, Chairman of Bulk Oil Storage and Transportation Co.(BOST).

The two parties had an in-depth discussion on the Aboadze-Tema Gas Transportation Pipeline Project as well as other areas of mutual synergy and future opportunities for cooperation such as pipelines, refineries, petroleum storage, LNG/CNG systems, LPG distribution and natural gas compression.

As a result of the discussions, a consensus emerged that Ghana has faced power challenges for the past several years due to the fact that thermal power plants did not have enough fuel resources to fire power generation plants.

The short to medium term development and prosperity in Ghana have been impeded by the uncertainty in natural gas supply.

The Ghana Government plans to transmit natural gas from the Western Region (Tacoradi) to the Eastern Enclave (Tema) by building an onshore natural gas transmission pipeline which will also act as a driver for economic development due to the numerous distribution stations which will be constructed along the coast line of Ghana.

In April, 2017, Jereh Group and the Ghana National Gas Company (GNGC) signed a Project Implementation Agreement for the Aboadze-Tema Natural Gas Transportation Pipeline and gas infrastructure Project. Under a 15 year BOT mode, the terms of this agreement triggered the immediate commencement of preliminary site works as well as Front-End Engineering Design (FEED) activities which are currently on going. Jereh Group is responsible for the design, financing, construction, operation, maintenance and management of the project.

During the visit to Jereh’s state-of-the-art industrial oil and gas manufacturing complex, Yaw Osafo-Maafo, Senior Minister of Ghana described Jereh as being a highly experienced and capable organization in the oil and gas services sector and expressed optimism regarding the company’s impressive development potential.

He also went on to say “my impression of this company is first class, and what I have seen of this company is first class.”

The Senior Minister described Ghana as the center of the West African alliance and advised that an exemplary performance by Jereh on the gas pipeline infrastructure project would lead to many other opportunities both in Ghana and other West African countries. He also went on to mention that the project will further promote the economic and trade cooperation between China and Ghana under the “One Belt, One Road” Initiative.

In a speech delivered by Jereh Group’s Chairman and Co-founder, Mr. Sun Weijie stated that, “as one of China’s largest independent oil and gas companies, Jereh Group will harness its resources and capabilities into numerous other opportunities within the Ghanaian energy sector. We are happy to have signed a project implementation agreement (PIA) with Ghana for the construction of a critical natural gas infrastructure.”

“We believe it will be a catalyst for economic growth and major industrialization across the coastline of Ghana and the Gas Infrastructure project is certainly not the end of our collaboration. On the contrary, we perceive this step as the beginning of many great things to come. We believe that we can turn Ghana’s strategy of ‘one district, one factory’ into a reality,” he added.

After the visit, the Ghanaian delegation was hosted by the Mayor of Yantai City, Madam Zhang Yongxia and her team of Yantai government officials in the Dongshan State Mansion. The Mayor expressed her gratitude to the delegation and gave effusive praise to Yantai Jereh for its excellent work in the international energy sector.

Two days prior to the the Vice President of Ghana, Dr. Mahamudu Bawumia and a delegation of senior Ghanaian government officials including the Deputy Energy Minister, Mohammed Amin Anta, met with a delegation from the Chinese oil and gas conglomerate, Yantai Jereh Group (SZ 002353) led by its Board Chairman Mr. Sun Weijie in the Diaoyutai State Guesthouse, Beijing.

About Jereh

Yantai Jereh Group is a multi-billion dollar publicly traded global organization with a presence in over 60 countries worldwide, specializing in oil and gas services, EPCC project implementation, as well as equipment manufacturing, technological services, project implementation and turn-key engineering. It offers integrated solutions in a flexible, efficient way to help customers resolve the issues and challenges they face.

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Credit: Yantai Jereh Group

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Dr. K.K. Sarpong was also appointed Managing Director of the GNPC, while Mr. Kwabena Kwakye , Prof. J. S Nabilla, Mr. Yaw Kyei, Nana Adjoa Hackman and Ogyeahohoo Yaw Gyebi II, were appointed members to serve on the GNPC Board.

A letter signed by the Chief Of Staff, Madam Akosua Osei Opare, and addressed to the Minister of Energy, which made the announcement, also asked the Minister of Energy , Boakye Agyarko, to make the necessary steps to swear in the board members.

About Freddie Blay 

Frederick Armah Blay, popularly called Freddie Blay, is a Ghanaian lawyer and a politician.

He was a Member of Parliament for Ellembele for years, and served as the First Deputy Speaker in the Fourth Parliament of Ghana.

He lost his seat in the general elections held on 7 December 2008 to Armah Kofi Buah of the NDC.

He was a member of the Convention People’s Party (CPP), but resigned to join the New Patriotic Party[1] after being criticized by some CPP stalwarts for not campaigning for the CPP flagbearer Paa Kwesi Nduom, instead endorsing the NPP’s presidential candidate then, Nana Akufo-Addo.

About Dr. K.K Sarpong 

Dr. K.K Sarpong over the past decades, has served the nation in different capacities, and has earned several accolades for his diligence and the result-oriented approach to his work.

He served as Deputy Managing Director (Finance and Administration) at Produce Ghana buying limited from 1990 to 1994, and later moved to the position of Deputy Chief Executive (Finance and Administration) at COCOBOD from 1994 to 1998.

In addition, Dr. K.K Sarpong has worked with the Tema Oil Refinery (TOR), Ghana Food Distribution Corporation, Kumasi Asante Kotoko as well as various advisory boards.

He is a Chartered Accountant and also holds a PhD in Industrial and Business Studies from the University of Warwick, as well as an M.Acc in International Accounting and Finance from the University of Glasgow.

He also holds an MBA in Accounting and B.Sc (Administration) Accounting Option from University of Ghana, Legon. He replaces Mr. Alex Mould in that capacity.

–

By: Marian Ansah /additional files from wikipedia/citifmonline.com/Ghana
Follow @EfeAnsah

The post Freddie Blay named GNPC Board Chairman appeared first on Citi 97.3 FM - Relevant Radio. Always.

The entity became the national team’s sponsor in 2013 and has supported the team with an amount of USD 3 million yearly.

Part of the amount has been used to pay the salaries of the Black Stars since then.

However, in recent weeks, Majority Leader, Hon. Osei Kyei Mensah Bonsu, has stated that the Mines and Energy Committee of Parliament has decided to urge the corporation to end their sponsorship of the Black Stars and use their funds for other ventures.

Asiamah was speaking at his office on Monday when Kwesi Appiah and high-ranking officials of the Ghana FA visited him.

He said that the deal was still on but transparency on the part of the Sports Ministry and the Ghana Football Association would be the watchword.

“I speak as the Minister for Youth and Sports we should have uniformity in these discussions and I represent the President of Ghana.

The GNPC deal will continue. The support for the national team will continue. However, this time, we will emphasise on greater transparency and accountability in how the funds are used.

We have to ensure proper oversight of the funds so the money will now be channeled through the Sports Ministry. It will no longer go through the Ghana FA. This will enable the Minister to report directly to Parliament which happens to be the people’s representative.”

Following the Sports Minister’s declaration, it is expected that the payment of the salary of new Black Stars head coach, Kwesi Appiah, will not be a challenge for the Ministry or the Ghana FA.

–

Source: BBC

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The Takoradi MP, Dr. Kobby Otchere Darko-Mensah, told a large crowd of NPP supporters that late afternoon that, when the NPP is voted into office, the headquarters of the Ghana National Petroleum Commission, GNPC, was going to be relocated to the Western Region.

“…This will ensure that our people get some of the oil jobs to do and to give the region its fair share of the resources it produces…I have always maintained that Ghana is developed like kwashiorkor where everything is centered in Accra…we need to decongest Accra! GNPC will come here for all of us to get some of the jobs to do”.

This promise, as it was reiterated several times on public radio and on different platforms, has been accepted by the people of the region. However, opposing views have been registered by some institutions and Civil Society Organizations.

This piece is to present the issues from both sides of the argument, and to help us understand and to engage further on either side we belong.

The Relocation is a 2012 and 2016 NPP campaign promise

In page 25 of the NPP’s 2012 Manifesto Highlight, it was stated there that “…we will make the western region the hub of the oil and gas industry by relocating the relevant agencies in the industry from Accra to the Western Region”.

In the 2016 manifesto, the 2012 promise was redefined to have a bigger scope. In page 44, under the heading Energy and Petroleum in chapter 3 of the document, the NPP said it is going to “develop in collaboration with the private sector, Western Region into a regional oil services hub with a first class port facility, as well as positioning it as an efficient center for back-office support for the oil industry in the west African sub region, including the relocation of the headquarters of GNPC to the region”.

From the two manifesto promises, it can be seen that, the 2012 promise was a bit lighter in content in terms of the vision compared with 2016.

This promise has got experts in the oil and gas sector as well as concerned members of the public talking. They ask:

1. How will the relocation of GNPC give the western region its fair share of development and provide jobs?
2. Will the Petroleum Commission, Tullow, Kosmos and all other agencies in the petroleum mid and upstream sectors be asked to move to the western region? If no, how will GNPC alone transform the fortunes of the region, and if yes, will their relocation make the western region better of?
3. Will GNPC be relocated again in the likely event that oil is found in other parts of the country especially Volta region?

The debate

[How will the relocation of GNPC give the western region its fair share of development and provide jobs?]

Dr. Emmanuel Steve Asare Manteaw, ISODEC/GHEITI

“The chiefs and people of the region are agitating because of the sharp contrast between what the region gives to the state in terms of revenues and what the state in return gives back to the region to develop its infrastructure. But when GNPC is relocated, no new jobs will be created for the people in the region because, GNPC will leave Accra along with its staff. No new jobs! It will be better to create the petrochemical industry in the region which will have a greater potential of employing more people as a result of the many ancillary works that will come along with it. The industrial parks and the likes should be the focus. That will create jobs and develop the region.”

“Takoradi as I know it is congested. Large chunk of the land is taken over by mining. Others are taken by rubber and palm plantations. So there are land issues there. Finally, if you convert the Western Region into the “Texas” of Ghana, you will end up deepening the troubles of the people as the city will be more expensive to live in. Mind you, the industry is a specialized one so not everyone will get to work there”.

Cadman Dadzie, Director of Projects- Sekondi Takoradi Chamber of Commerce and Industry (STCCI)

“…The blackmailing of the Western Region by our so-called experts and critics must stop! It must stop! When the chiefs in the region asked for 10 percent retention of the oil revenues for infrastructural development, you kicked against it with excuse that the oil is drilled offshore. You blackmailed them with all manner of excuses. Sadly, some sons of the region even joined the wagon. However, these same so-called experts will come back here to say the western region is deprived. You come back to say the region is lagging behind in infrastructural development! You even agree the worst also comes from the West. How do you get the problem fixed when you kick against every proposal? I hear them talk about the fact that Takoradi is already choked and that when GNPC comes here the city will be congested, but let me ask, which part of Ghana is choked and congested than Accra where GNPC is located now?”

“…What the government seeks to do is a basic international best practice. You can cite Aberdeen, you can cite Estravenger, the Johannesburg and all over the world. These are cities which have been built because of the resources which are found there… It is not just the social responsibility bit of developing where these resources are taken, but the business side of it… When GNPC is relocated, the hospitality industry will benefit, the real estate business will thrive, building contractors will benefit, the number of air travel between Accra and Takoradi will increase and a lot more, local contractors will get some of the contracts that GNPC gives to contractors in Accra. So what is it? It will really be of greater business sense to have GNPC in the region and we at the STCCI are all out for it. In fact, we are keenly waiting for it!”

[Will the Petroleum Commission, Tullow, Kosmos and all other agencies in the petroleum mid and upstream sectors be asked to move to the western region?]

It is a fact that since 2012, it has been the Member of Parliament for the Takoradi constituency Dr. Otchere Darko, who has been constantly talking about the relocation of the GNPC publicly before it became a huge topic ahead of the 2016 general elections.

On Saturday 11^th July, 2015, Dr. Kobby Darko Mensah stated at a public lecture at Raybow Hotel in Takoradi that “if you take the last election [2012], we were very clear in our vision to make the western region the hub for oil and gas development. What it means is that, we are going to bring GNPC to Takoradi, Petroleum Commission, and also ask all the oil companies to relocate their headquarters to the region because there is a clause like that in the 1992 constitution”.

This statement by the MP who is seen in the inner circles of the NPP as the brainchild of this relocation provides answer to question 2.

Indeed, it will be a mirage and a bunch of disappointments if it is only GNPC is located. This will not in any way make the region the ‘Texas’ of the country as the NPP seem to be portraying.

In fact, the collaborative development of the Western Region into a regional oil services hub with a first class port facility, as well as positioning it as an efficient center for back-office support for the oil industry in the west African sub-region cannot be realized if key players of the industry remain in Accra if the GNPC is indeed relocated.

[Will GNPC be relocated again in the likely event that oil is found in other parts of the country especially Volta region?]

This has been the major concern of some industry players who have already commented on the relocation.

Dr. Kwame Ampofo – Chairman, Energy Commission.

“The relocation of GNPC may not be necessary because positioning of the headquarters of any organization is done by considering many factors. The particular headquarters is going to have linkages with other institutions; even international ones for example, finance issues, easy access to the seat of government, foreign affairs and other agencies in the energy sector. But most of the oil been produced from the western region does not mean that it will continue to be like that forever. In fact, the current data been collected by GNPC indicate that the Keta Basin will become the largest hub in this country and perhaps the West African sub region. Does that mean you will relocate the headquarters from the Western Region to Anlo-Keta or somewhere and then maybe in the Voltain Basin when we discover more fields in that case also? So the decision to relocate I don’t think has been analyzed carefully”.

Ismeal Agyekumhene- Executive Director, KITE

“From where I sit, quite frankly I can’t envision any straight benefit apart from the fact that if you put that promise in perspective, they want to turn the western region into the Oil and Gas Hub. If that is the thinking, then it is almost like having Houston as the headquarters of oil and gas in the USA for example. But in terms of the added benefit, I really can’t envision any serious implication apart from letting the people of the western region feel that they have the oil resources located in the region so getting the national headquarters closer to them is something. If GNPC makes a find in lets say the northern part of Ghana, are we going to move the head office? Another important thing is whether we are going to get all the other international Oil Companies; the Tullow, the Kosmos, the Anadarko to move to the Western Region? I am not too sure whether they have room to accommodate the expansion. So in terms of the local economy, yes, businesses are going to be a bit more vibrant, but it comes at a cost, I mean land is very expensive in Takoradi”.

Dr. Ishmeal Ackah-Head of Policy Unit-ACEP

“…We believe that it is not something that was well-thought through because very soon we are going to produce oil in the Volta Region so are we going to shift GNPC from the Western Region to the Volta Region? We can maintain GNPC here [Accra] and rather open subsidiary office probably for operations in the western region”.

My Opinion

There are two forms of development; one that is deliberately done, and one that happens as a result of another activity. In the absence of a deliberate plan to give back what the Western Region deserves, development in the region has been a spillover from the many activities.

Giving the importance of the Western Region, I will go for any genuine plan to deliberately develop it. The neglect of the region is not deliberate, at least, when you listen to people in government, and so a deliberate plan to give back to the region is long overdue. We could use the gold which gives more money to the country far better than the oil [at least for now] to turn the region around.

However, if the NPP believes that the oil, which is currently giving us only 3 or 4 percent of GDP, can be used to give back to the western region what it deserves, so be it.

However, if in the mind of the NPP, this “Western Turned Texas” promise is not doable in their years in power, it is never late to consult and to listen to suggestions from experts.

Undoubtedly, failure on the part of the party to honor this promise will affect its political fortunes in subsequent elections given that many of the comments from the middle class in the region are for the relocation.

To make this dream a reality, the NPP must produce a clear plan for the reinforcement of the existing structures in the Twin City to be able to accommodate the pressure already tearing apart the Twin City, produce a clear thought-out spatial plan for the oil and gas hub it seeks to create, [bearing in mind how the region is struggling to get land for a new Western regional hospital, and even one for a Sekondi District Hospital].

The aforementioned clearly communicates the negatives of their move to the people in the region, and so they must show a clear “sustainable” job creation plan and a workable capacity building plan for the sons and daughters of the western region, [bearing in mind also how difficult it has been to get people to meet the requirement for the Tullow Scholarship Scheme].

However, even though the NPP may have its own plan, the execution of the plan cannot be done in isolation. The experts who have thrown these challenges should be involved and given audience to make it a reality.

I doubt the NPP can afford to do any political maneuverings with this promise because; the eyes of the youth, the middle class and the chiefs are wide open.

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By: Obrempong Yaw Ampofo

E-mail: [email protected]

The post Obrempong’s Oil Diary: GNPC’s relocation; the yes, the nos and my take appeared first on Citi 97.3 FM - Relevant Radio. Always.

Mr. Panford, an industrialist, and a former Vice President of the Association of Ghana Industries (AGI), He argues that, the plan will facilitate the long-term goal of making the Western Region a hub for oil and gas.

The African Center for Energy Policy, ACEP, has kicked against NPP’s plans to relocate the headquarters of the Ghana National Petroleum Corporation (GNPC) to the Western Region.

[contextly_sidebar id=”3Vxr6JIUPlttTTnP09HJZCaG3Q93mF0y”]Speaking at a media interaction in Accra, the Head of Policy Unit of ACEP, Dr. Ishmael Ackah, said the decision will put policy makers in a tight corner, since oil exploration will commence in some other regions as well.

President-Elect, Nana Akufo Addo, during his thank you tour of the Western Region, reaffirmed his pledge to relocate the offices of the GNPC to the region, to enable the region benefit more from the oil find.

In a Citi News interview, Mr. Ato Panford, a first-time MP, argued that a conscious effort has to be made to consolidate all the gains made in the oil and gas industry in the Western Region.

“A lot of natural and mineral resources are mined or extracted from this region, and we cannot as a region point to any substantial benefit from these resources. The oil find provides us another opportunity to use a major resource like the oil to develop the region.”

“GNPC headquartered in the region will move a lot of investments here to change the status-quo of the down-stream direct economic impact of the industry, and a lot of our local people will directly and indirectly benefit from the relocation. Everything can’t be in Accra and we need to spread development across the country, and this relocation is essential and necessary if we are to achieve the needed development in the oil and gas sector’, he said.

Ato Panford mentioned the impact of  the VRA Thermal plant located at Aboadzie, which led to the construction of the VRA Hospital, and International School, as well as the Corporate Social Responsibility impact, which has supported the Aboadze Township and its environs.

“The relocation can highly improve the socio-economic dynamics of the region, and hope for the youth to strife higher to become part of this industry through deliberate and strategic support of the educating and developing the skills to strife hard to find themselves meritoriously into the industry through Technical Education in the region.”

Dr.K.K Sarpong is reported to be the named the next CEO of GNPC, and he is expected to spearhead the relocation of the corporation’s office to the Western Region.

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By: Franklin Badu Jnr/citifmonline.com/Ghana

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