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Business news for Monday, November 30, 2020
Source: Business 24
2020-11-30
John Peter Amewu, Minister of Energy
The Energy Ministry has shortlisted three bids for the Ghana oil hub project, with one investor pledging up to $ 15 billion to finance the storage component of the ambitious program.
Since then, the offers have been sent to the Attorney General’s Department for review and advice, and a response is expected by the end of the year for the project to take off in January.
“The expression of interest was massive, but three were chosen and sent to the AG for advice,” the project’s technical advisor, Dr. Eric Yeboah, told Business24.
Analysts say the $ 60 billion project will be the largest private investment in Africa.
The 20,000-acre oil hub will have four refineries with a cumulative capacity of 600,000 barrels per day (bpd), two oil docks, four million-capacity tank farms and two petrochemical plants.
The hub, which will be located in Bonyere in the western region, targets very large and ultra-large crude carriers (VLCC and ULCC) traversing the West African coast, a popular route for European vessels.
The project is expected to accelerate the growth of Ghana’s petroleum sector and make the country a major player in the African oil and gas industry.
The government is targeting $ 1.56 billion in export tax revenue through the project, which is forecast to create around 780,000 jobs and increase GDP by more than half by 2030.
“We look forward to serving the VLCCs and ULCCs, and also exploring market opportunities in the sub-region,” said Dr. Yeboah after a stakeholder engagement with the residents of Bonyere over the weekend.
Phase one scheduled for January
Some US $ 12bn is needed to finance the first phase of the three-phase project. The first phase comprises the valuation and compensation of the land, followed by the development of petrochemical plants, a refinery and tank farms.
The completion of phase one will make available a projected crude refinery capacity of 350,000 bpd and a storage capacity of 1 million, with ancillary facilities and services scheduled for the second and third stages, respectively.
“The surveyors have already started work and we are in discussions with the communities about compensation and settlements,” added Dr. Yeboah.
Displacement and compensation
Although the project was designed to ensure minimal displacement, some communities and farmland will be affected.
However, residents are optimistic about the project and pin their hopes on youth employment and infrastructure development in the creation of the center.
“The project will help the Jomoro district and our children will also get jobs,” Samuel Cudjoe, a Bonyere resident, told Business24.
The Ministry of Energy has requested 20 competent young people from each community within the enclave for training in professional services to position them for employment when the project takes off next year.
“The communities will involve us through their consultants in land valuations and appropriate compensation to ensure they are not defrauded,” said the project’s technical advisor.
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