Sat, Dec

BOST SHOOTS DOWN COPEC CLAIMS - Defends $2 discount per barrel

Business & Economy

The Bulk Oil Storage and Transportation Company has refuted claims made by the  Executive Secretary of COPEC, Duncan Amoah, that  Ghana lost in excess of GHC30 million in revenue from a transaction the company had with an unlicensed company.

The Bulk Oil Storage and Transportation Company has refuted claims made by the  Executive Secretary of COPEC, Duncan Amoah, that  Ghana lost in excess of GHC30 million in revenue from a transaction the company had with an unlicensed company.


Addressing a news conference yesterday, Albert Mantey, Head of Fuel Trade at BOST, said Mr Amoah’s assertions smacked of total display of lack of understanding of happenings in the oil industry.

According to Mr Martey, BOST rather saved the nation some money in the transaction.

The COPEC boss, in a media interview, said Ghana lost an estimated GHC30million in revenue when 1.8million barrels of crude oil were sold to an “unlicensed company”, cited as BB Energy.

He alleged the oil was sold to the private company at a discount of two dollars a barrel when prices on the international market were on the rise.

However, Mr Mantey said the actual product that came in was 945,000 and the quantity sold was 942,000. He therefore wondered where the COPEC boss got the 1.8 million barrels of crude that he alleged was sold to BB Energy.

On Mr Amoah's assertion that BOST sold the products at a discount of $2 per barrel, the Head of Fuel Trade at BOST explained that it was not out of place on the commodity market to give such discount.

“Secondly, if you are buying anything and you are ready to do cash instead of the 90 days or 120 days and if you are ready to do any settlement, you can be granted discount because there is value for money. You can invest the money earlier and get returns instead of waiting for the 90 days,” he explained.

He added, “If I sell a product today and you are willing to pay me earlier, or willing to give me discount, I, the trading head, in consultation with the Managing Director, have the right to give as much as 5% discount. That is the trading policy.”

On how the product came to BOST, he said: “When the products came in there was a credit period of 90 days, so it means that by March, April, May the products should be settled off.” 

Mr Martey added that the decision to sell the products was made in September because of technical issues with TOR.

“As a result of this, the decision was arrived at in September because suppliers' money could not be kept for that long,” he reiterated. 

Mr Martey explained further that the decision to sell the products at FOB was a prudent commercial decision made by BOST “because incurring another cost which we wouldn’t know how much it will be and hiring a freight which we couldn’t tell how much it will be” informed their decision to sell at FOB.

On the allegation that BB Energy was unlicensed, he stated that any supplier that brings crude to TOR to be refined does not need a license to do so and described the fuel being sold in Ghana a as one of the best in terms of quality in the world. 

“We use to do 500 ppm...today we are doing 50, so it means that if we used to do A+, today we are doing A++, which is a rating that underlies determining of fuel prices in the industry.

“So, these allegations are unfounded and just a display of ignorance. If Duncan Amoah would do any good to the COPEC group, he needs to understand how petroleum prices at the OTC level will be translated   to the pump station level. It a whole value chain he needs to understand.  Until then, all that he is doing is a waste of time,” he said.

Meanwhile, BOST MD Alfred Obeng Boateng has sued the COPEC boss for making alleged false claims  that he (Mr Boateng) through his agents, had threatened to take his life, following the  allegations he leveled against him and the BOST.

The suit, which is expected to be moved on March 23 in the High Court said: “ The plaintiff/applicant herein praying this honourable court for an order of injunction restraining the defendant/ respondent herein, his agents, assigns, workmen, and all persons claiming through or under him from further publishing or broadcasting any word or words or images in any manner whatsoever to the effect that plaintiff had coopted, engaged, contracted or solicited the services of any person or persons to curse, insult, attack, threaten the life of the defendant or threaten to kill defendant in three days pending a final determination to this suit upon terms more particularly stated in the accompanying affidavit.”

The COPEC boss had indicated that some unidentified assailants allegedly linked to Mr. Obeng had since this revelation vowed to eliminate him in three days.

Relatedly, the Director of Operations for Pressure Group Alliance for Accountable Governance, Davis Opoku Ansah, has called on Ghanaians to ignore the accusations leveled against the BOST MD by Mr Amoah. 

Mr Opoku Ansah, in a radio interview, accused COPEC of engaging in broad daylight blackmail to gain undeserved favors from BOST. 

He alleged that, some two weeks ago, Mr. Amoah met with the MD of BOST at a Hotel in Accra to convince him to permit his business friend to transport products.

He challenged Duncan Amoah to deny the allegations.   

 The AFAG Operations Director believes Mr Boateng’s failure to grant the permit resulted in the allegations leveled against him. 

He dared Duncan Amoah to bring evidence of the 1.8 Million barrels because, “The crude sold to BB Energy was 942,000 Barrels and not what he alleges. He is engaged in moves to destabilize the MD and his good works at BOST.”

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