Ghana Petroleum Commission to deregister Oil companies with ‘fake’ Ghanaian Partners

The Acting Chief Executive Officer of Ghana’s Petroleum Commission Mr. Egbert Faibille Jnr. has issued a stalwart statement of intent, as his outfit seeks to deregister all companies that were fronted for by nonexistent local companies latest by January 2019.

He expressed worry that some local Ghanaian entities in the past have fronted for some international oil and gas companies in the guise of being partners but after securing the needed license, they are not involved in the operations of the company but rather receive monthly compensation of $10,000.

After a thorough Monitoring and Evaluation exercise was embarked on to audit the industry, the situation is being addressed, as most of such companies have been fished out, Mr. Faibille recounted.

Mr. Egbert Faibille was outraged that some Ghanaian entities will go to the extent of aiding foreign companies rather than focusing on skills transfer and capacity building to help in growing the economy.

” We have created a monitoring and evaluation department who have been in the field and we have seen the companies where it is on paper that this is a JV company but the indigenous Ghanaian company doesn’t even have presence in the office, the JV doesn’t work. They have come and we have told them that when it is time for renewal of their JV we will not renew it. So most JVs that are fronts are going to be deregistered on the books of the Petroleum Commission beginning January next year. Some of them have come to concede they go and take $10,000 a month and instead of focusing on transfers issues and what they have to help Ghanaians and for that matter you go there and they hand you $10,000 a month just for joining up with them to deceive the system”, Mr. Faibille asserted fervidly.

The CEO of the Petroleum Commission further asserted that the oil sector is not being dominated by foreign entities and that local companies are highly also engaged. And that government and the commission has put in place very effective measures to that local content are taken more seriously in the oil sector. And local companies can also bid for the 6 new blocks that have been opened up for te9ndering processes. He disclosed that current regulations provide 5% equity in all agreement be made available to competent local firms.

These assertions were made during a press briefing after the launch of the open tendering process in the oil sector which saw many stakeholders in the oil sector coming together.

By: Emmanuel Ohene Gyan