Business in Ghana

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Posts Tagged ‘GNPC’

Powa Barging. Critical News, 6th December 2015

Posted by Business in Ghana on December 6, 2015

Sydney Casely-Hayford, sydney@bizghana.com

OMG! Twenty-five days (25) only left to the end of ‘Dumsor”. And in case Dr. Kwabena Donkor has any other interpretations, let’s make it clear to him that we the people of this country are not fools. We know exactly what is the difference between “load shedding” and “dum sor”. Load means “dum”, shed means “sor”. They are one and the same thing. We are not going to allow these infantile lies to change the goal post to end this ineptitude of managing power and electricity.

GNPC has too much money on its hands and have become a conduit for Government to redirect funds a it needs. Every year, GNPC receives money from the petroleum funds. So far this year they have received $98 million. It’s a lot of money to manage as a company, but with clear mandates to deliver we should expect plenty. But GNPC is not a transparent company. I have not seen a copy of their financials yet, neither have I heard anyone discuss whether they are meeting their targets and obligations to the people of Ghana. Instead I hear lots of comments about ex-gratia meant for persons who left the company or were sacked years ago.

I just got word that Tsatsu Tsikata has sued MP for Adansi Asokwa, Mr. KT Hammond in the High Court for unsavory statements. I am looking forward to 2016. Tsatsu was appointed Energy Advisor to JJ in December 2000, succeeded by Nana Asafu-Adjaye and gave up this position immediately after the NPP came to power in 2001. His entitlements, ex-gratia etc. should not be an issue today. We live in interesting times. Read the rest of this entry »

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IMF Might Need Some Answers. GNPC, GNGC, ENI and Due Dilligence

Posted by Business in Ghana on December 14, 2014

By Sydney Casely-Hayford

The news that Ghana’s Parliament approved the deal on the oil and gas project with ENI of Italy could raise important questions related to the Country’s program with the IMF.

There are implications for the budget, even as the price of crude continues to dip below the numbers used to estimate oil revenues to fund the Budget and other sectors, especially social safety nets might be compromised.

Whether subsuming GNGC into GNPC will affect the share of carried and participated interest of GNPC in its contract with ENI and whether there will be an impact on public and publicly guaranteed external debt is a big question.

Parliament already did the unthinkable and passed the $8billion contract with ENI speedily as it does when under pressure from Government to shore immediate cash demands.

The IMF program is struggling to finality, principally on a few key issues. One, the total value of Government debt is still open to debate and whether the composite debt must include liabilities of certain key parastatals such as VRA, GNPC and TOR must still be of concern. As also the debt of key Municipalities and Metropolitan Assemblies.

Two, the projected revenues are a problem with periodic budgets consistently below target and the payroll envelope is still threatening to engulf revenues.

As Parliament ducked the minority call for a stay in loan approval pending the $700million facility in court re: GNPC, the decision begged the question whether anyone had taken a closer look at ENI on the world scope. Read the rest of this entry »

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IMANI Alert: Can the Tema Oil Refinery deliver today? A possible way out

Posted by Business in Ghana on September 7, 2014

The energy sector is undoubtedly the most essential sector if Ghana is to come out of its current economic atrophy.  President Mahama underscored this fact when he declared that the Atuabo Gas project in his view, is the game changer in Ghana’s energy mix and an attempt to resurrect the near moribund economy.  That the second Millennium Challenge Compact is dedicated to energy attests to the vision.

One essential player in the energy picture of this sector is the Tema Oil Refinery (TOR).  TOR was established by Ghana’s first President, Kwame Nkrumah with financial and technical support from Italian investors. TOR’s mandate at the onset was refining crude oil for Ghana and her neighbouring countries. TOR’s core business has over the years been broadened to include procurement, storage, refinery and distribution of crude oil. However many observers have argued that the ambitions of TOR whilst in keeping with a growing economy such as Ghana’s was not strategically anchored in a future vision for running it as a serious profitable business, hence its current near defunct and financially broke natural order.

We have seen successive governments design strategies some of which have involved large financial investments and bailouts of the institution-the result of which is the current recovery levy which became a public debate with various analyses emerging on how the country could generate value from such an economic venture. Such debates and discussions that did not bring closure to the TOR debacle, have resulted in the establishment of institutions such as Bulk Oil Distribution Companies (BOST), Bulk Distribution Companies and Oil Marketing Companies with various responsibilities and duties being assigned to each of these institutions to ensure that the procurement, refinery, storage and distribution of petroleum products within the supply chain are comprehensive to prevent frequent shortages. Recent developments have prompted further discussions of the revival of TOR and how to make it an efficient economic entity. However the following factors must be considered prior to undertaking such investment. Read the rest of this entry »

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The Recantation. Critical News, 22nd June 2014

Posted by Business in Ghana on June 22, 2014

Sydney Casely-Hayford, sydney@bizghana.com

It was a good idea to trip to the Accra Mall on Saturday.  Same day we expected to beat Germany to stay in contention to win the World Cup, and I was not surprised at the numbers I saw shopping and de-tensioning before the match later that night.

Nature blessed us, we have not had much rain lately, and the power supply has been more consistent.  I am not confident enough to lay the success of this temporary “dumsor” fully on the floor mats of VRA, GRIDCO, BUI and ECG; the gang of four who can’t seem to calculate how much supply we have unless they talk to the politicians.

So the timely intervention by almighty nature is a boon to all praying religions and their dedication to Brazillia.

My own prediction last week that the Black Stars would win 3-1 against the USA did not happen, and I was reminded by friends, family and readers, that I need to be more prayerful.

I am not egoistic enough to think that my added prayers alone would ensure world cup success.  If that were possible, I would mount a podium next to Duncan Williams and charge muchos dollars.

But I have been wondering.  Is there a thriving private economy from Government?  Analytically, isn’t the private sector functioning without Government?  It appears so, since all that Government does is make payroll and even that.  It seems to me that we are getting on with life despite Government being broke. Read the rest of this entry »

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Burning Fires in Our Backyard. Critical News, 13th October 2013

Posted by Business in Ghana on October 13, 2013

Sydney Casely-Hayford, sydney@bizghana.com

Tuesday evening, I am sitting on the porch overlooking the Panbros salt pans from the hilltops of McCarthy Hill.  There is a man across the opposite fence.  I can see him from my lofty perch, dressed in a pair of baggy shorts, no shirt and carrying what looks like a kerosene lantern.  He is walking across from my left to the edge of the open land space he inhabits and I decide to retire, not an interesting scene to keep my attention.

Half hour later, just as I am nodding off, I hear the spat-spatting of what sounds like rainfall and I wonder when I missed the gathering clouds during the day and why is it still raining at this time of year?  Thinking I could use the pattering rainfall to lull myself to sleep, I ignore the event and doze off.

But later, a persistent crackling wakes me up and I sleep-stumble to the balcony to check things out.  The smoke filled balcony and the raging fire beneath me, shocks me out of sleep and I reel from the gathering heat below. Read the rest of this entry »

Posted in Critical Weekly News, Sydney Casely-Hayford | Tagged: , , , , , | 1 Comment »

Anadarko’s Jubilee party caps tough year

Posted by Business in Ghana on December 15, 2010

By Sheila McNulty in Houston, Financial Times, with permission

When the Jubilee field in Ghana produces its first oil on Wednesday it will represent more than a boost in production for Anadarko Petroleum.

It will also validate the US independent oil group’s strategy to pursue international exploration even as its peers pulled back. Oil groups globally are facing barriers to new markets dominated by state oil companies but Anadarko is among a handful seeking organic growth abroad.

The strategy is paying off. Anadarko says it expects production to rise by 7-9 per cent over the next five years, much of it from the string of oil discoveries off the west Africa coast. Read the rest of this entry »

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A Message For Cocoa Board, GNPC and TOR

Posted by Business in Ghana on November 30, 2010

By Kwaku Adu-Gyamfi (Voice of Reason), NJ, USA

For Ghanaians to get real equity, please list these companies on Ghana Stock Exchange Market, anything less is just a joke.

Who are the true owners of the Cocoa Board, TOR and GNPC?

Why can’t ordinary Ghanaians buy shares in Cocoa Board and GNPC or TOR, if they’re the true owners   of these companies? Read the rest of this entry »

Posted in Kwaku Adu-Gyamfi, Social Services | Tagged: , , , , , , | 3 Comments »

Critical News, 22nd August 2010

Posted by Business in Ghana on August 23, 2010

There couldn’t have been a better week for democracy in our Ghana, this week.  The NDC party, not the Government, went on public record to state their intention to clean the judge’s benches and served notice to the Chief Justice of her perceived bias in recent rulings by the judiciary.  Following the decision to allow Kwadwo Mpiani and Wereko Brobbey to walk without a recommendation to formally charge them with any offence, the judges explanation of his understanding of the law, so completely baffled both opposing sides that the NPP claimed it as a vindication of their innocence and the NDC took up arms against the law.  The pity of it all is that the NDC party, which has not been able to dissociate itself from the Government, thought they should threaten mayhem and cause fear and panic across board by resurrecting the murder of judges under the (p)NDC, which no adult of voting age in Ghana has forgotten.  We are reminded of this event every time we pass in front of the Courts in Accra. Read the rest of this entry »

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Critical News 1st August, 2010

Posted by Business in Ghana on August 2, 2010

Glory, Glory, Glory!  What a start to the week.  The New Crusading Guide blessed the week with the story of the year so far.  Tsatsu Tsikata involved in a contentious (have to be careful here, might cause Fear and Panic!) contract with MODEC, the builders and managers of the FPSO Kwame Nkrumah.  Rather longwinded so here are the essential facts as I see them.  Tsatsu signed a contract to provide advisory services to MODEC back in 2008 when he was in custody.  The IFC through the Multi-lateral Investment Guarantee Agency (MIGA) were only recently told of this contract.  Both the IFC and MIGA are heavily invested in the FPSO, which is owned by Jubilee Ghana BV 21, a special purpose company, set up to raise funds for the development of the Jubilee field unit in West Cape 3 Points.  This also involves Tullow, Kosmos, Anadarko, the EO Group, Sabre Oil and GNPC.  I will do a very detailed report on the shareholding structure of all this in the coming week.  It will impress you! trust me.  Anyway, the IFC and MIGA are p***** off because they were only told at the back end.  The contract is for $5million, two has been paid, all of it during the NDC era and the remainder to be paid when the first oils starts.  Great start to the week!  It got more interesting as the days rolled forward, and Tsatsu publicly threatened to sue through his company Strategic Oil and Gas.  He owns 50% of the company and we are yet to know who owns the other half!  This story will run for a long time.  Until the due diligence is completed and the IFC and MIGA are content, the FPSO will not be storing any oil!  Imagine what this will mean to Ghanaians if one person’s greed halts our whole economic jump off! Read the rest of this entry »

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