The Petroleum Regulatory Agency (PRA), has paid a return visit to its Ghanaian counterpart, the National Petroleum Authority (NPA) in Ghana over the week.
In October 2021, the Ghana National Petroleum Authority led by its Chief Executive, Dr. Mustapha Abdul-Hamid, visited the PRA in Sierra Leone where both parties committed to experience sharing and policy development in regulating the downstream sector in their respective countries.
The PRA delegation which was led by Executive Chairman Brima Baluwa Koroma, had a fruitful industry discussion with government officials and Ghana petroleum downstream players mainly on the current global economic shocks, their impact and mitigations. This was followed by a visit to various petroleum facilities.
The PRA boss commended the Chief Executive of the Ghana National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid, for providing the platform where both agencies could share industry experience in terms of structures, systems and processes, and how a strategic partnership could reposition both regulatory bodies.
Dr. Mustapha Abdul-Hamid NPA EC & PRA Boss Brima Baluwa Koroma
the “These are unusually difficult times to be a regulator in the downstream petroleum sector, the commodity is evidently the engine of our various economies and everyone depends on this product. The prices are exogenously determined coupled with the fundamental strength of the trading currency, the US Dollars. The petroleum sector is not immune to the effect of this stronger US Dollar.
The discussion revealed the need to engage the respective governments in actualizing the implementation of ECOWAS common currency for economic stability. The African Continental Free Trade Agreement would be meaningless without a common continental currency.
The twin effect makes the industry vulnerable to instability, however, even though the sector in Sierra Leone is 100% private-sector driven, the Sierra Leone government is working assiduously for service delivery to it citizens, and we are committed to ensuring the availability and affordability of the products at all times. So as one of the leading markets in Africa, the NPA has a lot to offer to PRA which is why we are here in partnership to see where we could tap into each other’s opportunities and create synergy,” he said.
Chairman Baluwa in a meeting with investors highlighted investment potentials in the downstream petroleum sector in Sierra Leone.
“Sierra Leone is a compelling investment destination, the downstream industry in Sierra Leone has lots of investment opportunities which we call on investors to take advantage of in terms of petroleum importation, storage, regional tank farms, jetties and bunkering. We have a committed President who is always ensuring the protection of investors and their investments”.
Strategically, the country is well positioned within the Mano River Union basin to serve as a hub for regional distribution of petroleum products to Guinea, and Liberia and part of the ECOWAS community.” he said.
In his welcome, the Chief Executive of the Ghana National Petroleum Authority, Dr. Mustapha Abdul-Hamid, expressed thanks and appreciation to the PRA boss and the Government of Sierra Leone for such a laudable venture in furthering a strategic partnership and industry development in both countries; adding that their operations are critical in moving their nations’ economies forward.
Listening to the Sierra Leone peculiar challenge in terms of no government participation in the value chain, Dr. Abdul-Hamid, said that what has been saving their situation during the height of the crisis is the participation of the Ghanaian government in the sector through the Ghana Oil company and BOST. While BOST is the Bulk Oil Storage and Transportation company 100% owned by the government, it has the mandate to guarantee 12 weeks of petroleum products in Ghana. On the other hand, Goil controls 25% of the market with the responsibility to supply fuel to the presidency and MDAs. This he said has helped them to determine how the industry is controlled without private players stifling the market and the risk of operating a critical sector like the petroleum predominantly by the private sector.
Despite these structures, he commended the PRA boss for protecting the industry and transforming the petroleum downstream sector by paving the way for new entrants, a success he related to fairness, transparency and accountability in the sector.
Dr. Abdul-Hamid committed the NPA of Ghana to provide technical and needed support to the PRA at all times and encourage Sierra Leone to quickly establish a semblance of the GOIL model back home.
The Executive Chairman also met with Ghana’s Bulk Oil Storage & Transportation company (BOST) executives led by DMD Mr. Moses Mensah Assem who expressed a desire to invest in the construction of tank farms in Sierra Leone, adding that the mandate of BOST to manage the business of storage and transmission of fuel, focusing on excellence in security, safety and profitability are in line with Sierra Leone’s aspiration. Their mandate also guarantees 12 12-week minimum stock level at all times.
