The Chief Executive of the Ghana Petroleum Authority, Dr. Mustapha Abdul-Hamid and a team from Ghana, today paid a courtesy call on the Executive Chairman of the Sierra Leone Petroleum Regulatory Agency, PRA) Dr. Brima Baluwa Koroma.
Hosting the team at the Agency’s headquarters at the British Council, Tower Hill, Freetown, Chairman Baluwa Koroma on behalf of His Excellency, Brigadier Rtd. Julius Maada Bio, expressed gratitude for the visit as it manifests a strong bilateral cooperation between the two former British colonies; Sierra Leone and Ghana.
Briefing the delegation on reforms in the downstream sector, Chairman Baluwa Koroma highlighted the successes of the Agency under the New Direction Administration; citing a proactive monitoring and expansion of the sector.
He said that the government has succeeded in opening up the sector, which has paved the way for new players like All Petroleum Products and key others to emerge.
“We cannot overemphasize the timeliness of this visit as this industry is under massive reforms.
Sierra Leone needs Ghana in every capacity and we desire to tap into opportunities and experiences from Ghana that will enable us to overcome the emerging industry challenges,”
“The sector continues to record sustainable revenue growth,” Chairman Baluwa noted.
Since the country is constrained by having regional tank farms, he said that storage capacity has been a major challenge as there is frequent replenishment of products.
Another challenge he discussed with Dr. Abdul-Hamid, was that of regulatory reforms since the PRA Act of 2014 need review to address current market situations. The PRA Boss requested specialized training exchanges and staff capacity building.
In his response, Dr Mustapha Abdul-Hamid commended the PRA Boss for doing much in reforming the industry from it moribund state it was a few years ago.
“I thought I could be the one to share my knowledge with you. However, you are a smart young man, I have learnt a lot from our discussions today and so far, this team at PRA is on the right trajectory. Let me tell you I have been following your activities. Having seen the industry in Sierra Leone, there are many untapped opportunities that investors should grab and our regional collaboration will go a long way to strengthen our relationship and different economies as Africans. We are willing to support the downstream sector in Sierra Leone to get it right in whatever capacity, and we hope to sign a fruitful memorandum of understanding soon,” he said.
Dr. Hamid noted that what has been helping Ghana's oil industry is the active participation of the government through the Ghana Oil Corporation, unlike Sierra Leone which depends wholly on private players that normally decide what happens. He said Goil is government-owned and market-driven, market price can only move when Goil moves prices. The government must take its destiny into its own hands ASAP.
“In Ghana, we have over one hundred and seventy oil marketing companies. But if GOil doesn’t change the price, they won’t change and because of our regional tank farms and ionization policy, we as government have been able to control the price of oil products and manage our crisis. The best way your government can do is to have a stake in the industry, “he advised.
Comparing regional license fees, Dr. Hamid said that they charge 750,000 dollars for a Bulk Distribution Company license, while new registration for an Oil Marketing Company license is US$50,000, unlike Sierra Leone which collects US$2,000 for an Oil Marketing Company license p.a. He emphasises that PRA should be made financially viable to have the muscles for efficient regulation.
The visit climaxed with an exchange of gifts and a conducted tour of the Kissy Oil refinery.
