[ 2014-09-17 ]

Energy Ministry accused of mysteriously contracting foreign companies
Ghana's Energy Ministry has been accused of
awarding new petroleum contracts to eight foreign
companies under mysterious conditions.

Executive Director of the Africa Centre for Energy
Policy, Mohammed Amin Adam said at a news
conference Tuesday, that the award of the
contracts lacked transparency which may breed
corruption in the oil sector.

For these reasons, Dr. Adam mentioned that the
administrative processes involved awarding the
contracts were open to abuse, wealth seeking and
corruption.

According to him, some of the companies including
A-Z Petroleum, Sahara Energy fields and Heritage
Oil, among others are inexperienced to execute
deep water exploration as well as lacking the
financial resources to operate.

Just after the conference, Dr. Adam told Joy FM's
Kwakye Afreh Nuamah that some of these companies
are start-ups and do not have the capacity to
engage in any oil business in the country.

Some of the companies from the Ghanaian side, he
said were established between June 2013 and
February 2014.

He continued, once they are start-ups “one
wonders what start-ups can do with oil contracts
which involve so much technical requirements;
which involve so much financial requirements.”

The executive director downplayed the credibility
of these companies in the oil business, saying,
they are companies managing marginal fields in
Nigeria “and yet in Ghana, they are the
companies we're giving contracts to.”

“If we have these companies that are being
patronized in Ghana; we are just selling our oil
blocs for nothing.”

In protecting the country's oil industry from
being exploited by such foreign firms, Dr. Adam
counseled the government to ensure there is
transparency in the award of oil contracts to
promote an open market.

“We think that government must adopt an open and
transparent process for awarding oil contracts in
order for us to do due diligence on the companies
that are coming in to explore for oil to ensure
that we maximize the value of our oil
resources,” he emphasized.

Communications Advisor to the Energy Ministry,
Edward Bawa told Joy News that due diligence was
followed in the entire processes.

The processes, he indicated involved the technical
committee set up by the government, the
negotiation team, Cabinet and the Parliament.

He said the Petroleum Bill has been approved by
Cabinet and would be laid before Parliament when
it returns from recession.

Source - MyjoyOnline

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