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12.08.2005 Business & Finance

Energy Ministry signs MOU for Floating Storage Oil


Accra, Aug. 12, GNA - The Ministry of Energy and Kampac Oil Company of the US have signed a 70-million dollar Memorandum of Understanding for a Floating Storage Oil (FSO) Unit, off the shores of Tema. Professor Mike Ocquaye, Minister of Energy, signed for Ghana, while Mr Charles Ampofo, Chairman of Kampac Oil, signed for his company. The FSO Unit is a large oil facility, which is part of the deregulation process and will sit offshore Tema with fuel for sale to buyers across the country.

It will enable persons interested in setting up fuel filling stations and oil marketing companies to do so easily and make pricing competitive.

The FSO Unit will have a storage size of 2.3 million barrels, approximately 310,000 metric tonnes with five compartments of crude oil, fuel oil, gas oil, petrol and kerosene.

Briefing the Minister and the media before the signing, Mr Ampofo said energy had become the most defining issue in the country. "One thing is certain, the era of dependence on other countries for easy oil is over. What we do next will determine how well we meet the energy challenges of this century and the next."

He said in order to increase investment attraction and meet its demand in this current competitive world, Ghana would require increasing energy at reasonable cost and price.

Mr Ampofo said after the company had completed all requirements including the Environmental Impact Assessment it would construct the same facility permanently onshore.

He noted that the purpose was to create an oil logistic centre and also attract oil companies in the region to Ghana as it was in Rotterdam and Singapore.

"Our ultimate objective is to make it easier for indigenous entrepreneurs to participate in the oil sector.

"The recent discovery in new frontiers in West Africa is an opportune time for us to be ready."

Prof. Ocquaye welcomed the signing of the MOU saying it was coming at a time when Ghana was working to increase her energy requirement capacity.

He said with 30 per cent of electricity coming from thermal sources, it was imperative that relatively cheaper and more competitively priced oil would make the running of the thermal plant at Aboadze worthwhile.

He urged the company to make sure that all environmental requirements were fully met.