National Petroleum Authority, Ghana

BOST gets 50% rise in margin.

landpado — Tue, 02 Feb 2010 15:53:36 +0000

The Bulk Oil Storage and Transportation Company (BOST) has received a 50% rise in its margins with petroleum marketers also receiving a 15%. This was contained in the latest petroleum price review by National Petroleum Authority (NPA) which took effect from February 1, 2010. In spite of the increases to the margins, the ex-refinery price of petroleum experienced a reduction of more than 2%.
Following this development, BOST now receives a margin of GHp 2.2500 per litre as against GHp 1.500 per litre. The marketers also received a rise from GHp 7.2000 per litre to GHp 8.2800 per litre. The ex-refinery price also decreased from GHp 86.0500 down to GHp 84. 2200 per litre. The increment is the first since 2005 and the industry is expected to be motivated by this move. In the case of BOST, the increment is expected to serve as a boost to their financial obligations especially the repayment of loans acquired for the construction of storage tanks for the country. This could further aid future investments of BOST in the construction of extra storage tanks to expand the nation’s strategic storage capacity.

TOR assures of constant fuel supply

landpado — Fri, 22 Jan 2010 15:19:15 +0000

In spite of fire outbreak……..
TOR assures of constant fuel supply
The Management of the Tema Oil Refinery (TOR) has assured the public of constant fuel supply in spite of the fire outbreak at the loading gantry of the refinery on Tuesday. TOR has accordingly constituted a committee comprising representatives of key stakeholders in the petroleum industry to advice on alternatives measures to ensure that fuel supply is maintained throughout all the fuel depots nationwide. These came to light during a fact finding mission by the Board of Directors of the National Petroleum Authority (NPA) to the refinery after Tuesday’s fire outbreak which claimed one life, injured two and damaged the main loading rack of the refinery.
Addressing the Board of NPA, the General Manager, Commerce, of TOR, Dr. A.K. Doku said the extent of damage and the cause of the fire outbreak were yet be fully determined but said the fire started during one of the loading sessions for premix fuel into Bulk Road Vehicles (BRVs) killing one person and burnt large portions of the loading gantry which has currently been shut down. However, he hinted of an elaborate programme in place to ensure that fuel supply is not affected.
According Dr. Doku, there was no need for panic since TOR was in the process of kick starting the discharge of products to depots in Takoradi, Akosombo and the Afram Plains to service Oil Marketing Companies (OMCs) thereby preventing the possibility of shortages on the market. Already, some Bulk Distribution Companies (BDCs) have loading gantries which are serviceable to the OMCs which are another reliable means of supplying products to the market. The Refinery is putting measures in place to secure the supply of LPG to the market since its loading rack was also affected by the fire. Dr. Doku assured the visiting NPA Board that in the cause of the week, the alternative means of supplying LPG would have been in place. Welcoming the Board of NPA to TOR, the Deputy Managing Director of TOR in charge of Engineering and Production Dr. Ali Abugre, appreciated the concern NPA has shown in these difficult times and was optimistic that in the next two weeks, situation at TOR would return to normal. Dr. Abugre requested NPA to furnish TOR with the stock positions of BDCs to inform strategic decisions of whether NPA should engage suppliers to augment the local stock position. Responding, the Chairman of the Board of Directors of the National petroleum Authority (NPA), Kojo Fynn, expressed regrets at what has happened but was satisfied with the arrangements made by TOR to secure the supply of products to the market. He called for stiffer safety regulations to forestall future occurrence.

Policy on Price Risk Management to be ready in December

kariko — Thu, 19 Nov 2009 16:11:06 +0000

The National Petroleum Authority (NPA) is leading a group of stakeholders in the oil industry to develop a national price-risk management (hedging policy for the country). The policy which is in its advanced stage of preparation should be ready for implementation by the end of December 2009. The Acting Chief Executive of the NPA, Alex Mould disclosed this shortly after the Platts conference on managing risks in the oil and energy sectors which was held in London in mid November 2009. Platts is the world’s leading provider of information on energy and metals with the aim of driving transparency and help drive market efficiency and liquidity. Platts also provides the highest quality and relevant news and price assessments of petroleum products.
The focus of the conference was timely considering the volatility in the oil sector, economies with exposure to oil prices have been forced radically to reassess previously well established processes in managing the rise and fall of prices.
According to the former banker, the hedging policy has become crucial because petroleum price must be managed to protect consumers against “stress levels” as experienced in 2008 where price levels stayed above the USD100/bbl level for the greater part of the first nine months of the year and peaked around USD147/bbl in May 2008. He cited the critical role petroleum plays in the country’s economy and said having a policy to manage prices of petroleum would be crucial for planning and managing business enterprises at the micro level and the economy at the macro level. The idea of hedging as a risk management tool began years ago but had never been implemented simply because there was no policy in place that met the approval of the stakeholders in the industry.
The hedging policy, which will define the strategy and tactical imperatives, will focus on (i) the executing party; (ii) the price-risk management instruments and tools, (iii) the time frame (tenor) of each execution strategy; (iv) the execution strategy (v) the monitoring and controls; and (vi) reporting (vii) appropriate approval levels. Such a policy would also ensure a smoothening out of prices throughout the year and will be benchmarked against other risk management tools to effectively measure its performance over the year.
Hedging in the past has been a no-go arrear in the history of the country because it has been seen by many as a speculative endeavor and that hedging strategies could go wrong. With the decision to institute an effective hedge policy, consumers can be assured of a protection when prices of petroleum products in the international markets rise, and at the same time benefit from a fall in petroleum product prices.
Mr. Mould lauded Platts for the initiative in providing a forum where oil, energy and the minerals industry participants could network and discuss strategies and useful tools in managing price volatility.

NPA participates in Platts’ conference on Risk Management

landpado — Thu, 12 Nov 2009 10:05:12 +0000

Platts, the world leading provider of information on oil and minerals is holding a conference in the UK on ‘Managing Oil and Energy Risk’. The conference which is curently underway is bringing together ‘key decision makers from across the European oil and gas majors, financiers, commodity traders, rating agencies, stock exchanges, governments and regulatory bodies, to examine the issues and challenges at the heart of current European oil debate’, Platts sources say. The National Petroleum Authority (NPA) is participating in the conference. The Acting Chief Executive of the Authority, Mr. Alex Mould and the Deputy Director, Planning, Pricing and Research (PPR), Mr. Dan Amoah are representing the Authority. Last year, oil prices soared to unprecedented highs only to plunge to five-year lows. First half of this year saw prices down only to shoot back at th fastest rate seen in a decade. In the face of these volatility coupled with global credit crunch, every company with exposure to oil prices has been forced radically to reassess previously well established processes — from who they can trade with to any longer term ideas of price. There has also been a marked reduction in the number of institutions offering risk management tools to the market, as they are unable to extend those services to the market place through lack of credit. Unsurprisingly, credit and counterparty risk top the list of concerns among energy professionals when talking about managing costs. This conference ends on Friday.
Credit: Platts

TOR supplies refined products to the market.

landpado — Wed, 11 Nov 2009 15:30:24 +0000

The Tema Oil Refinery (TOR) has for the first time in several months begun supplying products from its refinery to the market. This follows the delivery of 950,000 barrels of crude into the refinery by Sahara. With the supply of crude, TOR’s Crude Distilling Unit (CDU) kicked into action followed by the RFCC refinery plant. Presently, TOR is supplying 2million liters of Gas oil and 1.5million of Gasoline to the market and this would be consistent for next couple of days whilst stocks last. The last delivery of 950,000 of crude oil is expected to last about 27 days and the next consignment of crude is expected to arrive by November 22nd 2009 which will also last about 12 days.

Fuel Prices up by 5%

landpado — Fri, 06 Nov 2009 13:26:55 +0000

Fuel prices are up by 5% across board since last Sunday November 1 2009. The increment is occassioned by rises in price of crude oil and products on the world market. Subsequently, Premium is selling at Gp 116.9800 per Litre, Gas Oil sells at Gp 118.0500 per Litre and Kerosine at sells at Gp 91.0000 per Litre. MGOLocal aslo sells at Gp 97.7400 per Litre and RFO sells at Gp 67.1600 per litre. With the increment, LPG now sells at Gp 83.8100 per Kilogramme. PREMIX also sells at Gp 54.2700 per Litre and UNIFIED now going for Gp 104.4800 per Litre. Platts figures on the world market have seen a steady rise in the last cpouple of weeks with crude price of crude hovering in the region of $80 per barrel.

Crude Oil prices near $80 barrel

landpado — Wed, 28 Oct 2009 10:00:31 +0000

Crude oil prices on the international markets are nearing $ 80 a barrel. Platts figures by close of business on Tuesday 27th October quoted dated Brent at $76.395. In the last three weeks, prices of crude and products have been rising steadily and are likely to push ex-refinery prices of products upward. This trend is also likely to cause a rise in the ex-pump prices should government decide not to absorb the latest increment. The National Petroleum Authority would learn by close of business on Friday whether government or the consumer would pay the difference. In fulfillment of its campaign promise, government reduced taxes on the petroleum products in March this year which is independent of all other related charges which affect the computation of figures on petroleum prices. In June this year, there was almost a 30% rise in the ex-pump price which has remained still for nearly four months.

NPA raises the bar for Oil Marketing Companies (OMCs).

landpado — Mon, 19 Oct 2009 08:58:29 +0000

Very soon all Bulk Road Vehicles (BRVs) hoping to cart petroleum products from the Tema Oil refinery or any bulk loading depots must pass stringent tests before they can receive products. This is a latest move by the National Petroleum Authority (NPA) to raise the bar for its main stakeholders in the petroleum downstream sector-the Oil Marketing Companies (OMCs) and transporters. The move comes in the wake of reported cases of accidents involving Bulk Road Vehicles (BRVs) otherwise known as ‘tankers’. Recent checks by NPA have shown that some of these BRVs plying the roads are not road worthy and because of the hazardous nature of the products they carry, their continuous usage of the road pose danger to motorists and the environment. All BRVs would soon have to pass all tests and display their certification stickers from the NPA before they shall be recognized as road worthy. These stringent tests will include vehicle testing by certified vehicle testing firms, the Driver Vehicle and Licensing Authority (DVLA). The stickers are specially designed and security enhanced and must be reviewed periodically and be displayed on the vehicles at all times. The Tema Oil Refinery-TOR and other bulk loading depots have been put on high alert to insist on these stickers from NPA before they supply products to any BRV.
In order to ensure better appreciation of the issues, the National Petroleum Authority-NPA organized a one-day seminar for all stakeholders in the industry to brief them on the new standard measures and also ensure that the new system takes off smoothly. Present at the seminar were union leaders of the transporters (BRVs), operations Mangers of Oil Marketing Companies and Calibration Companies. There were presentations by officials of Road Safety Limited (RSL) on procedures for inspections of BRVs by safety inspection companies which would lead to the granting of certificate and stickers. Officials of NPA also so took turns to educate transporters on the requirements for obtaining a BRV license and the new standard. With regards to the allowable age for BRVs, the NPA is proposing a maximum allowable age of 10years since these vehicles carry highly inflammable products. However, the transporters are divided over the proposal by the NPA and suggest the Authority differentiate between BRVs that ply long trips as opposed to those who service OMCs in Accra.
However, the NPA has outlined a comprehensive timetable to phase out old BRVs year by year leading to full compliance. The seminar also discussed the reintroduction of flow metres following growing concerns by the union of transporters who are surcharged by some OMCs for recording shortages in the delivery of products. OMCs were encouraged to invest in modern equipments in monitoring and measurement to ensure that such inaccuracies are eliminated. The Director of Technical Division of the NPA, Mr. Isaac Tagoe was grateful for the cooperation displayed by all stakeholders in promoting standards, professionalism and ensuring safety to promote compliance in the sector.
19-10-09

NPA has moved offices

kariko — Sat, 17 Oct 2009 14:44:18 +0000

The National Petroleum Authority (NPA) has moved offices from the Frema House on the Spintex Road in Accra to the Centurion building in Cantonments. The new premises of the NPA are located at number 11, 5th Circular Road at Cantonments in Accra. The Centurion building is located between the Ghana Free Zones Board and the junction to NAFTI. With the new offices, the NPA has now integrated its workstations for speed and convenience of work which results in efficiency for all members of the public we serve. You are invited to visit us at our new offices to do business or familiarize and experience our warm reception as always if not better. At the moment, landline phones are yet to be connected, but in the meantime, please call our TOLL FREE 080012300 or Steve on 0244 640622 or Yaro on 0209200884 bewtween 8am-5pm Monday to Friday.

Coordinated moves by oil producers have stabilized prices: Russia

kariko — Fri, 20 Mar 2009 15:00:44 +0000

Moscow (Platts)Russia’s deputy prime minister Igor Sechin said Thursday that coordinated
action between OPEC and other oil producers helped stabilize crude prices at
about $40/barrel.

“We believe this is the result of joint work. We support the cut in oil
supply, and Russia participates in this work,” Russia’s Prime-Tass news agency
quoted Sechin as saying at a meeting with President Dmitry Medvedev outside
Moscow.

“We think Russian companies have contributed to the stabilization of
prices, but this work should continue.” Sechin said Russia cut oil output by 3
million mt and exports by 15 million mt in 2008.

During the December OPEC meeting in Oran, Algeria, Sechin said Russia
would reduce its oil supply by a further 16 million mt, or 320,000 b/d, in
2009 if low oil prices persisted.

Sechin has said that crude stocks currently stand at about 62 to 63 days.

Sechin also called for holding an international conference of major oil
producers in Moscow at the end of this year to discuss crude pricing issues.

OPEC and non-OPEC producers will be invited, he said.