The management of the operations of the Bulk Oil Storage Company (BOST), is on the verge of being handed over to a company that though is registered in Ghana, has majority Nigerian ownership and control.

Local bulk oil distributors say they are disappointed that Ghanaian companies were considered as incapable of managing the tank farms owned by the BOST.

They have therefore petitioned the Energy Minister, Mr. Emmanuel Armah Kofi Buah to live President John Mahama’s avowed promise to build the capacity of local companies and suspend the impending take-over of the management of the facility.

The entire deal, the distributors say, is shrouded in total secrecy.

Government is said to have engaged a little known company, which has no track record of any business to speak of, and is not even registered with the National Petroleum Authority (NPA), to take charge of the management of the terminal and bulk transportation of petroleum products and the national strategic stock.

The Government's decision to contract an 'inexperienced' foreign owned company comes at a time when local Ghanaian companies have been compelled to invest substantial amounts in bulk distribution infrastructure and operations. 

The Ghana Chamber of Bulk Oil Distributors estimates that its members have invested in excess of US$180 million in petroleum products tank farms in Ghana.

Under the new arrangements which BOST unveiled at a recent meeting of industry operators, the Nigerian company will have total responsibility for importing the bulk of Ghana’s petroleum product needs, including the very sensitive national strategic stocks.

The supply and security worries are compounded by the emerging evidence that the company the Government is handing BOST over to, has no track record of credible and substantial business in Ghana, nor is it a major player in Nigeria, where it has its parent company and majority shareholding.

The Ghana Chamber of Bulk Oil Distributors insists that its members have the track record, the financial and technical abilities and requisite skills to manage the facility.

“We urge you to think Ghanaian and uphold the clarion call by…President John Mahama and further evidence your belief in the Ghanaian,” by suspending “any intended contracting of a foreign owned companies and rather present existing Ghanaian farm operators, owners and BDCs (Bulk Distribution Companies) an opportunity to provide solutions to meet BOST’s needs,” the petition stated.

Read the full petition of the bulk oil distributors here.