National Petroleum Authority, Ghana

The Chief Executive of the National Petroleum Authority has reaffirmed Government Policy of liberalizing the Petroleum Downstream Sector that, Deregulation is on Course.
The NPA Boss re-echoed this during a speech at a function on Tuesday October 7, 2008 to commission a $25 million bulk Oil storage and petroleum terminal owned by Cirrus Oil Services Limited in Tema???.
Honourable Minister for Justice and , Honourable Deputy Minister for Energy, other Ministers present, Metropolitan Chief Executive, Nii Mei Naa Mei, the Chief Executive, Management and Staff of Cirrus Oil Services, distinguished invited guests, Ladies and Gentlemen of the Press

I feel a personal sense of gratification with today?s event and I think I can say so for the whole of the National Petroleum Authority because of its exceptional significance as one of the key achievements since the formation of the NPA, and the nation?s efforts at deregulating the petroleum downstream sector.
It is a little over 3 years now since His Excellency the President of the Republic inaugurated the Board of the National Petroleum Authority and charged it with various responsibilities including, opening up the downstream sector through liberalization, ensure fair trade practices and competition, efficiency and above all create jobs for the people.
The supreme objective of all these assignments was to culminate into what is now known as Deregulation, a successful and significant milestone which today?s occasion serves to manifest.
The beginning of the process was a bit murky, looking at the infrastructural monopoly that the State-owned Bulk Oil Storage and Transport Company BOST, and TOR held and commanded over the sector.
Those in the private sector then, were unsure of a clear direction of government policy and were therefore jittery at investing in oil-related infrastructure like tank farms. However, following the policies and encouragement of the NPA, a Company like Cirrus Oil Services Limited took up the challenge and today we are here to witness the commissioning of this multi-million Ghana Cedi facility which would help further deepen the deregulation process that all of us, especially consumers have been yearning for. I remember all the discussions held with the Chief Executive of Cirrus who tried to glean from these discussions the direction of policy and the Authority?s programme going forward.
Now Oil Marketing Companies are expected to get competitive wholesale prices which they can also extend to the final consumer. This is because there would be more than one source for bulk supply of products.
People have asked the question in recent times whether the deregulation has been abandoned, I think the answer to that question can be summed up in today?s event. Deregulation is on course and the private sector is continuing to take full advantage of the conducive environment that the process has created.
As regulators in a sector that deals with highly inflammable and hazardous products our advice to those who would be operating the facility is that safety cannot and should not be negotiated. After the March 15, 2008 fire incident at the BP Oil Refinery in Texas which killed 15 people and injuring about 180 others there was a report by the Chemical Safety Board of the US. The conclusion of this report to me is very pertinent to quote on this occasion. I quote as follows: the incident was caused by safety failings that went beyond specific issues at the site that day and were symptomatic of a wider ?dysfunctional safety culture?. In our own country there was the Asokwa incidence and other minor ones that have occurred and these make it imperative that safety becomes your watchword. As is done in the airline industry there is always a back-check before take off because people and systems can fail. From the test runs you have done we are convinced that you have fine tuned yourselves for the responsibility you seek to carry.
In this effort we expect that you would go by the Authority?s guidelines on the operation of such facilities as outlined in the licence and construction permit granted to your company. As part of the safety measures we expect you to turn away all BRV?s that do not meet the NPA?s minimum standards of operation. That way we can prevent the increasing accidents involving the Bulk Road Vehicles on our roads with its attendant loss of life and property. The Authority realising the importance of safety has organised training workshops for operators of LPG facilities and together with the industry have also come up with guidelines for the operation of petroleum retail outlets.
Finally, I wish to congratulate the Chairman, Board, Management and Staff of Cirrus Oil Services Limited, a wholly owned Ghanaian company, for this bold statement of confidence in the deregulation of the petroleum downstream sector.
You have partnered us in the deregulation process from the start and together we have come this far. It is our hope that you would continue to show the same dedication and commitment to our country?s progress and hopefully you would go even further and integrate into upstream operations to have a fully fledged indigenous privately owned OIL MAJOR COMPANY operating in the upstream, midstream and downstream sectors.
Cirrus Oil Services Limited, we at the National Petroleum Authority are proud of you and wish you all the best in this new venture. Ayekoo