Business in Ghana

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Archive for April 23rd, 2014

Exclusive: Nigeria favors local firms in $40 billion oil contract awards

Posted by Business in Ghana on April 23, 2014

By Emma Farge and Tim Cocks, Reuters

DAKAR/LAGOS (Reuters) – Nigeria has awarded most of its long-term oil contracts worth an estimated $40 billion a year to local companies, according to a confidential list seen by Reuters, meaning global traders need to partner with them to access crude from Africa’s top producer.

Global commodity traders, refiners and Nigerian dealers jockey at an annual tender for access to the OPEC member’s prized crude oil, which is easy to refine and produces more high-value fuels.

The contracts cover around 340 million barrels of oil, worth close to $40 billion annually based on current Brent prices, and run for a year, though they can be renewed. They were allocated to just 28 companies, versus around 50 in 2012, the last time they were awarded.

In a break with tradition, no contracts were given directly to global trading houses Glencore Xstrata (GLEN.L: QuoteProfileResearchStock Buzz), Vitol VITOLV.UL, Trafigura TRAFGF.UL or Gunvor, with only Switzerland’s Mercuria winning a contract, according to a list that four industry sources verified as accurate. Read the rest of this entry »

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The only free cheese…

Posted by Business in Ghana on April 23, 2014

By Charles Wereko-Brobby (Dr), Chief Policy Analyst. Ghana Institute for Policy Options (GIPPO)

I got into a spot of bother recently for ‘putting the knife’ to one of our sacred cows. I put our civil society organizations (CSOs) into the same field as our politicians, opining that they only call on others to act instead of them taking charge and leading. Now I find it necessary, nay imperative, that I must return and train the full bores of my double-barreled guns onto the civil society organizations again, but without a hinge of apology this time, no matter what brouhaha ensues

Last Thursday, the Government of Ghana organised a stakeholder consultation on the Economic Partnership Agreement (EPA) with the European Union. Arrogating themselves to the role of our stakeholders, the CSOs thronged the meeting with an assortment of politicians, producers, and the Great and the Good of Ghanaian ruling classes to do what our leaders always do best, namely to shout over the rafters about what we do not want, but without offering any alternatives whatsoever.

When the assembled folks found the Head of the EU Delegation in Ghana in their midst, they turned their guns onto him and bayed “Dzulo” ( Thief) with the shrillness and excitement that normally leads to a mob lynching without guilt being established. Claude Maerten, one of the gentlest souls I have met, had to be bundled and hurried out of the meeting like a cat on a hot tin roof; by a mob led by the representatives of the CSOs. Read the rest of this entry »

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