Ghana to become fastest growing economy in 2011 – World Bank

The World Bank has projected that Ghana would be the fastest growing economy in Sub-Saharan Africa, with growth rate of 13.4 per cent in 2011, dropping to 10 per cent in 2012.

Launching the Bank’s global economic prospects report via a video-conference on Thursday, Mr Andrew Burns, Manager of Global Macroeconomics in the World Bank’s Prospects Group, said Ghana was still in position to register strong economic growth without the oil sector, particularly in construction services as large infrastructure projects were being undertaken.

He said, Ghana’s economy benefited from strong rebound of both volumes and prices of gold and cocoa, increase in tourism, and higher household and government spending last year, with growth rate estimated at 6.6 per cent in 2010.

However, Mr Burns cautioned that if the inflows from the oil sector in Ghana were not managed prudently, it could distort the incentive structure for agricultural exports.

He said developing countries had recovered so fast from the global economic downturn and were now pulling along the high income countries, which was unusual.

The report noted that Africa appeared to have sustained growth and transformation in 2010 and the private sector was increasingly attracting investment into their economies, adding “Africa appears to be poised for sustained growth due to private capital flows.”

The World Bank said most developing countries had in addition, recovered from the world food crisis and had projected a steady global growth for developing countries.

“The world economy is moving from a post-crisis bounce-back phase of the recovery to a slower but solid growth in 2011 and next with developing countries contributing almost half of the global growth,” it said.

It estimated that global GDP, which had expanded by 3.9 per cent in 2010, would slow to 3.3 per cent in 2011, before climbing back to 3.6 per cent in 2012.

The Bank noted that developing countries were expected to grow about seven per cent in 2010, six per cent in 2011, and 6.1 per cent in 2012.

It said the growth rate in developing countries would continue to outstrip growth in high-income countries which were projected to grow at 2.8 per cent in 2010, 2.4 per cent in 2011 and 2.7 per cent in 2012.

The Bank said strong developing-country domestic demand growth was leading the world economy, yet persistent financial problems in some high-income countries were still a threat to economic growth and required urgent policy actions.

Low income countries were projected to be strengthened more with a growth rate of 6.5 per cent in both 2011 and 2012, since their countries saw trade gains in 2010, and overall, their GDP rose by 5.3 per cent in 2010.

According to Mr Burns, the global food prices were having a mixed impact.

He said in many economies, dollar depreciation, improved local conditions, and rising prices for goods and services indicated that the real price of food had not risen as much as the dollar price of internationally traded food commodities.


Source: GNA

MODEC finds no evidence of corruption in Ghana oil deal

MODEC, the Japanese company now under investigation for bribery in Ghana’s nascent oil sector says it has found “no evidence of any violation” in its role in the joint venture, the Wall Street Journal reports citing a statement from the company.

MODEC, is a Japanese company that owns the floating production and storage offloading (FPSO) vessel used for oil production at the country’s largest oil field, Jubilee.

The company has been cited in documents that Kosmos Energy filed to the U.S. Securities and Exchange Commission January 13 as being investigated for corruption.

In the documents, Kosmos said partners in the field as well as the International Finance Corp. (IFC), part of the World Bank, “are working with MODEC and its legal advisors to investigate” some “potential violations by [the contractor] under the U.S. Foreign Corrupt Practices Act.”

Kosmos added that financing for the FPSO vessel–worth $875 million–used by MODEC had been suspended pending the investigation. It also said as a result of the investigations, costs on the field might go up, saying partners in the Jubilee field may be required to contribute further funds as a result.

But MODEC said in the statement, “This investigation has found no evidence of any violation of the U.S. Foreign Corrupt Practices Act or any other applicable jurisdiction’s anti-bribery laws in relation to its arrangement.”

Commercial production of oil started in Ghana December 15, 2010, and as a result of this investigation, a $225 million political insurance risk from the Multilateral Investment Guaranty Agency (MIGA) of the World Bank has been suspended, MIGA has said on its website in July 2010.


Source: ghanabusinessnews.com

Ghana’s first crude oil sold above $90 per barrel – Tullow

Tullow Oil and the Vitol Group, producers and marketers of Ghana’s oil, have rebuffed claims by a section of the Ghanaian media that the first consignment of 650,000 barrels from the Jubilee Oil Fields was sold below the prevailing world market price.

In a joint statement describing the assertion as incorrect, which was issued over the weekend, Tullow and Vitol said the price per barrel of Ghana’s first crude consignment was sold well over $90.

“We can confirm that the price achieved was well in excess of $90 per barrel, with a small differential linked to the Dated Brent crude price index,” they stressed in the statement issued on their behalf by Infocus PR, a communications, public relations firm.

Tullow and Vitol also stated that as crude oil sales contracts are private and confidential it is not customary to disclose further details.

They however said “It takes a while for the market and, refiners in particular, to assess the fair value of any new crude oil, since ultimately its value reflects the actual yield and quality of products that a refiner obtains as compared with its formal technical and paper yield.”

Confirming that many buyers had expressed interest in Ghana’s sweet light crude oil, Tullow and Vitol said “While we can’t disclose specific details of the actual price obtained for the first sale as these details remain confidential, there was significant interest in buying the new Jubilee crude from at least four major international buyers.”

Tullow Oil and Vitol also hinted of a strong interest from refiners and traders for the new Jubilee crude, which they believe, will contribute to meeting the growing global demand for energy.

The statement further explained that daily prices linked to an index can however move both up and down, as is the case with all crude grades, worldwide.

It expatiated further, that the use of the word “discount” when applied to an index price at the time of a sale, therefore merely indicates its relative value at that actual moment in time, which is a complex but well understood relationship in oil markets.

“It is totally different and should not be confused with the use of the word “discount” as in “sold below its true and fair market value” Ghana’s two oil producers and marketers said.

With an initial production of around 120,000 barrels per day (bpd) Ghana will rank as sub-Saharan Africa’s seventh largest producer.

The Jubilee Oil Fields are estimated to hold up to 1.8 billion barrels and have a lifespan of 20 years.


By Edmund Smith-Asante
ghanabusinessnews.com

Ghana signs $120m electricity deal with Chinese company

The Ministry of Energy and the Hunan Construction Engineering Group Corporation of China, last Tuesday, signed a US$120 million commercial loan agreement for the extension of electricity to 500 communities in the Northern Region.

The sector Minister, Dr Joe Oteng-Adjei, signed on behalf of the Government of Ghana (GoG) while the Gen­eral Manager of the Overseas Project Department of the Group, Mr Yu Guohui, initialled for his organisation.

The Government of Ghana (GoG) is contributing US$18-million for the project.

Dr Oteng-Adjei said the execution of the project was in fulfilment of a promise President J. E. A. Mills made to the people of the Northern Region when he visited parts of the area last year on a familiarisation tour.

The project, he added, formed part of the US$300 mil­lion to be used to connect about 1,400 communities in the Northern, Upper East and Upper West regions to the nation­al grid.

He explained that the move to improve the electricity capacity in the three regions was based on a recent assess­ment carried out by the ministry, which revealed that those areas fell below the national average.

The Northern, Upper East and Upper West regions, with 43.52 per cent, 31.95 per cent and 30.39 per cent accessibil­ity rates, respectively, fall below the required national average figure of 66.70 per cent.

To that end, Dr Oteng-Adjei stated that the government had resolved to raise the electricity accessibility rates of those regions to that of the national average in line with the policy of the national electrification programme which was aimed at extending electricity to all, parts of the country by the year 2020.

Mr Guohui, for his part, pledged the commitment of his outfit to execute the project to the expectation of the gov­ernment.

The minister used the occasion to deny reports that Ghana sold the first barrel of its petroleum products at US$67, which was far below the global market price.

He explained that Ghana was lifting oil for the first time since the discovery of the resource, and in line with standard practice, the country rather enjoyed a discount of between US$2 and US$4 on the market.


Source: Daily Graphic

Ghana to receive $215m World Bank budget support

Ghana will receive $215 million from the World Bank to support the country’s budget.

The World Bank says its board approved the Poverty Reduction Support Credit (PRSC) Thursday in Washington.

The goal of the credit it says, is to support the government of Ghana’s efforts to consolidate ongoing fiscal stabilization and promote the development objectives set in the Ghana Shared Growth and Development Agenda (GSGDA). The GSGDA is Ghana’s medium term development policy framework for 2010-2013.

According to the World Bank, over the last decade it has given Ghana a total of six Poverty Reduction Support Credits, averaging $100 million per year in budget support between 2003 and 2008, to support implementation of the Ghana Poverty Reduction Strategy (GPRS I and II).

After the fiscal crisis of 2008, an agreement was reached to increase budget support in a countercyclical manner to help Ghana reduce its macro-imbalances in a way that does not hurt growth, the process of job creation, and the poor.

Accordingly, a record total support of $300 million was delivered in 2009, and $215 million now. It is expected that this particular support will continue to fall in the future as the macro-imbalances continue to be reduced, and that its efforts will shift back towards support for job creation, the Bank added.


Source: ghanabusinessnews.com

Ghana returns to Fruit Logistica after missing 2010 edition

Ghana returns to the 2011 edition of Fruit Logistica after missing one of Europe’s largest fresh fruits and vegetables fair last year.

Ghana was unable to attend the event in 2010 due to lack of funds.

This year about 21 delegates representing 24 companies and organisations from Ghana are registered for the fair to be held in Berlin February 9 to 11, 2011.

According to the organisers of the event, Messe Berlin, the fair is almost fully booked. Organisers are expecting about 2,300 exhibitors from around the world.

The fresh produce trade fair will be attended by exhibitors presenting a complete range of products and services from all levels of the fruit and vegetable marketing sector, Messe Berlin says.


Source: ghanabusinessnews.com

Ivory Coast crisis: ECOWAS has eggs on face, West Africa Central Bank lies about freezing account

The drama that is going on in Ivory Coast is becoming farcical, as the actors each look ridiculous and unfit for their roles.

The actor with the worst act in the drama has turned out to be ECOWAS, the West African regional grouping made up of 15 countries, some ruled by dictators and known lunatics who are hounding and killing their own citizens daily. There are even suspected murderers with no known democratic credentials parading the corridors of ECOWAS as presidents.

It was therefore, funny when ECOWAS, despite its inability to raise an army under the circumstances jumped the gun, joined the chorus of international community to order Laurent Gbagbo to step down or be removed by military force.

The ECOWAS obviously, eager to be seen to be part of the international community in condemning the situation in Ivory Coast, issued the threats against Laurent Gbagbo without any careful analysis of the issues at stake.

The other joker whose jokes fail to amuse the audience is the West African Central Bank (BCEAO). Despite joining the IMF, World Bank and others to impose economic and financial sanctions on the Gbagbo faction, the Gbagbo government is said to be drawing money from the Dakar office of the bank every day.

Allasane Ouattara, the man the international community believes is the winner of the November 28, 2010 election run-off complained to journalists in Washington in a conference call that the incumbent, Laurent Gbagbo, was still receiving central bank funds on a daily basis.

Gbagbo is still withdrawing money daily from the BCEAO, headquartered in Senegal, Dakar.

Apart from the financial muscle Gbagbo has as a result of the BCEAO’s decision to allow him access to the country’s funds, despite telling the whole world that it has frozen the accounts, Gbagbo says he can’t guarantee the safety of the millions of ECOWAS citizens in that country.

Now stuck in a quagmire, ECOWAS seems to be embarrassed with no clear answer to the political stand-off in Ivory Coast, which without any doubt is a threat to regional stability.

Right from the word go, it was possible to tell that ECOWAS has no political will to invade Ivory Coast with an army to remove Gbagbo from office. The act in itself would have been catastrophic for the people of Ivory Coast and its neighbours, particularly, Liberia and Ghana. The high number of refugees already fleeing to Liberia and the fall in business activities on border towns between Ghana and Ivory Coast are signs that portend to what could possibly have happened, as the military invasion would lead to an escalation of violence in that country.

As Ivory Coast continues on the precipice, it doesn’t appear clearly now that the international community has an answer to the political crisis. ECOWAS, by its hasty thoughtless threat has lost the moral right to mediate a peaceful resolution, so now who would intervene?

In any case, a speedy resolution of the tension in Ivory Coast is necessary and must therefore be achieved as soon as possible to save that country from falling headlong into destruction.

It is unfortunate, however, that over 240 people have already died and some 50 are reported missing.

By Emmanuel K. Dogbevi

Email: edogbevi@hotmail.com

11 people in court in UK over e-waste dumping in developing countries – EA

The Environment Agency (EA) of the UK, says 11 people have been taken to court as part of its investigation of e-waste exports from Britain to other parts of the world.

Following enquiries by ghanabusinessnews.com regarding the outcome of the EA’s investigation into e-waste dumping into Ghana by some British companies, the EA’s Senior Media Officer Scarlett Elworthy said “I can confirm that the waste case that you are following has gone to court. There was an initial hearing in November 2010 and in total 11 defendants are due back in court later this month.”

According to her “the investigation is part of the biggest investigation ever carried out by the Environment Agency into the illegal export of electrical waste from the UK to developing countries.”

Her response however, did not say anything about the specific case of Ghana.

The eleven people, however she says have been charged with shipping prohibited waste under the Transfrontier Shipment of Waste Regulations 2007 and European Waste Shipment Regulations 2006.

“The law is clear - hazardous waste electricals, including everyday items such as televisions and refrigerators, cannot be sent overseas for recovery or disposal. As well as containing precious metals such as gold, copper and aluminium – electrical waste can also harbour hazardous substances including mercury and lead that are harmful to people and the environment,” she indicates,  adding that “there is evidence to suggest that illegally exported electrical waste from the UK is ending up on waste sites in Africa, causing harm to people and the environment.”

According to the EA over six million electrical items, amounting to one million tones, are thrown away in the UK every year.

Half of the 18 investigations the Environment Agency’s National Crime Team is currently conducting into the illegal export of waste are in relation to electrical waste. The remaining nine investigations include the illegal export of tyres and household waste, it added.


Source: ghanabusinessnews.com

Ghana government denies $48,000 gold watch gift to Mrs. Obama

The government of Ghana has denied the report that Mrs. Ernestina Naadu Mills, the country’s first lady has given a Backes & Strauss gold watch gift worth $48,000 to Mrs. Michelle Obama, the US first lady.

News reports citing the US Federal Register report said the Ghanaian first lady gave the gifts to Mrs. Obama during the visit of President Obama to Ghana in 2009.

In a straightforward statement the Ghana government says “The First Lady of the Republic of Ghana, Mrs. Ernestina Naadu Mills, did NOT present Mrs. Michelle Obama with a Backes & Strauss wristwatch valued at $48,000, when President Barrack Obama and his wife paid a state visit to Ghana in the second week of July 2009.”

The statement however indicated that during the visit of President Obama and his wife, through the government, all kinds of gifts were presented to them.
A blogger known as Craig M described the watch as a “stunning Backes & Strauss automatic timepiece. The 18kt rose gold watch contains 2.35 carats of diamonds with its dial adorned with the flag of the Republic of Ghana.

Contained within the graphic of the flag is the display for a moonphase complication. The watch was presented to her on behalf of Ghana by Backes & Struass, and the African Watch Trading Co Ltd. This is certainly no slouch of a watch but its extravagance comes second to the understanding that diamonds and gold are two of Ghana’s greatest resources.”

But the government statement says “Without any equivocation, the gift was handed over, neither on the orders, nor, with the knowledge of Mrs. Naadu Mills.”

Meanwhile, the only gifts listed as coming from Mrs. Mills to Mrs. Obama on the US Federal Register were the watch and “six pieces of ‘kente’ cloth and two glass bead jewelry sets, each consisting of a necklace, earrings, and two bracelets, all valued at $615”.

Ghana prepares for refugees from Ivory Coast crisis with “Operation Quagbo”

Ghana’s Western Regional Coordinating Council has inaugurated an operational team to deal with the influx of refugees that might result from the ongoing political crisis in Ivory Coast, the GNA reports.

The team has been named “Operation Quagbo 2010”. It will receive, screen, register, group, disperse and manage returnees and refugees from Ivory Coast as well as seeing to the overall coordination of the operation.

The Ivory Coast has been in political stand-off following a disputed elections run-off November 28, 2010. The incumbent President Laurent Gbagbo insists he has won the elections and so is his opponent, Alassane Ouattara. The two have been installed as presidents, making the Ivory Coast have two presidents.

The tension has led to riots, and some over 200 people are believed to have been killed and some more than 20,000 have fled to Liberia.

The UN Peace Keeping Force in that country has also come under some attack. The UN force is offering protection to Ouattara who is widely believed by the international community to have won the elections.

The West African regional grouping ECOWAS, which is largely expected to have resolved the matter, in its first attempt, demanded that Gbagbo steps down through peaceful means or be removed out of office with military force. Following that threat, not much has been achieved by ECOWAS despite a series of negotiations, which also involved the African Union (AU).

It is not clear yet how or when the political crisis would be resolved in Ghana’s western neighbour, but it is becoming obvious that Ghana would have to prepare to take in refugees from Ivory Coast, and the country is doing so with the inauguration of this team.


Source: ghanabusinessnews.com

Ghana rural banks attract investment from El Maniel

Ghana’s rural banks have attracted El Maniel International, an investment concern with interest in the mining sector.

According to a statement from the company, its Board has unanimously agreed to acquire Rural Community Banks in Ghana, especially those operating in mining areas as one of the company’s significant business growth and development milestones.

There are over hundred and twenty-five rural banks in the ten regions of Ghana, according to information on the website of the ARB Apex Bank Ltd., which is the central bank of the Rural Community Banks in the country.

The company however, does not say how many banks it intends to invest in.

The CEO of El Maniel, Jamie Khoo, says “As micro-credit services from RCB are commonly provided to small-scale mine operators, this Rural Community Banking division initiative in Ghana will be expected to also function as a reservoir of network and resources to compliment our gold trading business arm under EMLL Mining Limited.”

“Our banking initiatives is envisaged to be friendly towards small scale miners as a number of them are still facing difficulties in gaining access to the necessary capital from banks due to the nature of their activities being scattered, informal and lack of acceptable forms of collateral demanded by such banks,” he added.

El Maniel says it is a publicly traded ventures and holdings company with a current focus in gold field exploration and mining, oil terminal operations and philatelic investments.


Source: ghanabusinessnews.com

Ghana repays Barbados part of over $600,000 for repatriation of stranded Ghanaians, other nationals

The Ghana government has paid its share of the cost of repatriating some stranded Ghanaians and other African nationals in that country in 2008, the Nation News, a Barbadian publication reports.

The publication cited the Barbadian Minister of Foreign Affairs and Foreign Trade, Senator Maxine McClean as saying on Wednesday January 19, 2011 that Ghana had paid its half of the $618 446.40 that the government paid to charter a plane to repatriate the 97 tourists.

The Ghanaians and other African nationals were stranded in Barbados when the Ghana International Airline (GIA) which flew them there on a tour failed to return to Barbados to bring the tourists back on February 15, 2008.

The tourists however returned to Ghana on Wednesday night May 7, 2008 after Ghana and Barbados agreed to bear the cost of returning them to Ghana.


Source: ghanabusinessnews.com

Traditional Ghanaian ruler also gave $685 gift to Mrs.Obama

Apart from Mrs. Ernestina Naadu Mills, another prominent Ghanaian also gave gifts to the US first lady Michelle Obama, according to the US Federal Register.

The Omanhene of the Oguaa Traditional area, Osabarima Kwesi Atta gave some gifts worth $685 to Mrs Michelle Obama during the Obamas’ visit to Ghana.

According to the US Federal Register report, Osabarima Kwesi Atta who is also the president of the Oguaa Traditional Council in Cape Coast gave a gift consisting of a traditional necklace made of green, yellow, and white beads, a pair of brown leather sandals, two woven seat covers and three pieces of Ghanaian ‘kente’ cloth.

All the presents, however, go to the National Archives (Foreign Archives specifically) because US law bars any US government official from receiving presents from foreign governments and persons.

Mrs. Mills’s gifts to Mrs. Obama, a Backes and Strauss “Black Star of Ghana” watch “crafted in 18 karat gold with diamonds and leather,” has generated some debate in Ghana.

The Ghana government has issued a statement denying that Mrs. Mills ever gave gifts to Mrs. Obama. It says “The First Lady of the Republic of Ghana, Mrs. Ernestina Naadu Mills, did NOT present Mrs. Michelle Obama with a Backes & Strauss wristwatch valued at $48,000, when President Barrack Obama and his wife paid a state visit to Ghana in the second week of July 2009.”

The statement however indicated that during the visit of President Obama and his wife, through the government, all kinds of gifts were presented to them.

The head of the Public Affairs Unit of the US Embassy in Ghana Ben Easp has told media in Ghana that the Embassy can confirm that indeed, neither Mrs. Mills nor the Ghana government has given the gift of a watch from Backes & Strauss valued at $48,000. He has therefore promised to get clarification from the White House about the clerical error that was captured by the US Federal Register.

The gifts are among a number of generous gifts given to the US first family and other public officials by government officials around the world.

According to the register Obama and others accepted the gifts because “non-acceptance would cause embarrassment to donor and US government.”

By Ekow Quandzie
ghanabusinessnews.com

Mrs. Mills’s $48,000 gold watch gift to Mrs. Obama was ‘free of charge’ – Backes & Strauss

Backes and Strauss (B & S) and Africa Watch Trading Co Ltd (representatives of B&S in Ghana) have defended the presen­tation they made to Mrs Michelle Obama when the latter visited Ghana in the com­pany of her husband last July, saying the gesture was on behalf of the people of Ghana.

In a letter clarifying the issue, B & S emphasised that the gift was offered by the company “free of charge, to be presented as a gift from the people of Ghana to Mrs Michelle Obama”.

The letter confirmed an earlier explana­tion that the Backes & Strauss wristwatch which was presented to the wife of the Amer­ican President was given to her on behalf of Ghana by the said company.

Later at a press conference at the Castle in Accra yesterday to clarify the issues further, the Director of Communications at the Office of the President, Mr Koku Anyidoho, affirmed that “neither the First Lady nor the government has anything to do with the gift”.

He said the American Embassy was also ready to corroborate the claims and authenticate the correspondence attached to the gift.

The correspondence which accompanied the gift said, inter alia, “To mark the occasion of the historic visit of the US President and Mrs Michelle Obama to Ghana, the Africa Watch Trading Company, in collaboration with Backes and Strauss, has designed a unique watch, the Black Star of Ghana.”

“Based on the Backes & Strauss Regent 1609 AD Limited Edition watch, which was designed to commemorate the first mapping of the moon 400 years ago, the Black Star of Ghana model incorporates the national flag on part of the dial,” it said.

According to the correspondence, “It is craft­ed in 18 karat rose gold, with three rows of ideal cut round diamonds set into the case, and with a single 0.19 karat ideal cut round diamond set in the crown.”

“Only one example of this Black Star of Ghana model is being made: A unique gift to offer to a unique visitor. Through the use of gold and diamonds, the watch reflects Ghana’s her­itage as a country blessed with vast natural wealth and the national flag and Black Star reflect the country’s proud independence and the role in the modern world,” it stressed.

The correspondence said, “In recognition of this unique occasion, Africa Watch Trading Com­pany is pleased to offer the Black Star of Ghana model free of charge, to be presented as a gift from the people of Ghana to Mrs Michelle Obama.”

Source: Daily Graphic

Gbagbo withdraws $160m from West African Central Bank

Incumbent Ivorian President Laurent Gbagbo is reported to have successfully withdrawn an amount of $160 million from the West African Central Bank, despite sanctions imposed on his government following Ivory Coast’s political stand-off.

The country has two presidents following a disputed election run-off on November 28, 2010. The opposition leader Allsane Ouattara and incumbent Laurent Gbagbo both claimed victory and have since been sworn in as presidents.

While Gbagbo is in the presidential palace, Ouattara is in a hotel in the capital Abidjan.

The international community supports Ouattara and have imposed various sanctions on Gbagbo to force him to stand down, but he is yet to agree to do so.

The World Bank, the IMF and the West African Central Bank have all imposed sanctions on Gbagbo believing that economic pressure would force him out of power. Gbagbo is supported by the country’s army and the international community believes that if he is unable to access any more funds to pay salaries of the soldiers, they may turn against him and force him out of power.

Meanwhile, Gbagbo’s ally at the bank, has been forced to quit. Governor Philippe Dacoury-Tabley, an Ivorian, quit after the bank held a meeting Saturday. He was said to have failed to implement an order to reject Gbagbo’s signature for funds. He however said, he couldn’t so so for technical reasons.

Outtara, meanwhile has been asked to nominate a new bank boss.

The bank is made up of treasuries of eight countries in West Africa.


Source: ghanabusinessnew.com

Jubilee oil can be refined in Ghana – Dr. Akabzaa

Ghana’s crude oil, the Jubilee sweet can be refined by Ghana’s Tema Oil Refinery, according to extractive industry expert, Dr. Thomas Akabzaa.

Dr. Akabzaa said these Sunday January 23, 2011during discussions at a weeklong Reporting Oil training session for journalists from Ghana and Uganda in Accra.

Presenting a discussion paper on the classification of crude oil, he said geographical locations and type of crude are used to name different types of crude oil. He said the TOR has the facility to refine the type of oil that is produced from the Jubilee oil field.

Dr. Akabzaa used the global standard for classifying oil API to illustrate the point.

There are many different types of crude oil and Classifications of crude oil is based on the geographical locations, sulfur content and relative weight but the major classification is done based on the location, as the oil comes from various parts of the world and they differ in their characteristics, according to information on the website of the American Petroleum Institute (API).

The American Petroleum Institute or the API provides a basis to measure the density of the oil. If the presence of sulfur is low in the crude oil, it is termed as ‘sweet’ and if the oil has high sulfur content then it is termed as ‘sour’. Based on the geographical classification, the various benchmarks are North Sea crudes, United State crudes, West African crudes and Persian Gulf crudes. The North Sea crudes comprise of Brent, Osberg, Forties, North Sea basket etc. Brent Sweet Light crude is light but not as light as the West Texas Intermediate (WTI). Brent crude is suitable for the production of gasoline. The sulfur level is 0.36% whereas the API gravity is around 38.5 degrees for the North Sea crudes.

Dr. Akabzaa said the oil produced from the Jubilee field is around API 38 degrees and contains sulfur less than 0.3% and therefore is classified as Jubilee sweet. It is also light and therefore, can be refined in Ghana.

His position is contrary to what Ghana National Petroleum Corporation (GNPC) officials have told the media in Ghana. According to GNPC and government officials TOR can’t refine the oil produced from the Jubilee field, however, from Dr. Akabzaa’s explanations, crude from the Jubilee field can be refined in Ghana.


Source: ghanabusinessnews.com