ACEP predicts bleak future for Ghana’s oil industry

Think tank, African Center for Energy Policy, has forecasted a bleak future for Ghana’s oil industry due to what he says is refusal by companies granted production licences to explore for more oil.

ACEP Executive Director, Dr. Amin Adam, says the situation has arisen because there is an absence of proper due diligence on the companies’ capacity to explore oil before they are awarded licences.

Although Ghana is in its fifth year of oil production, Dr Amin Adam says the country may soon witness a decline in production unless companies with strong capacity are engaged to explore.

“When it comes to contract we still have very serious issues relating to how companies are evaluated. We have issues relating to open and competitive bidding process which other countries are using but we are not using,” Dr Amin Adam said.

He has urged Parliament to push for full contract disclosure by government agencies that award exploration licences.

Amin Adam

Dr. Amin Adam was speaking to Joy News on the sidelines of an international oil and gas training programme for journalist.

Meanwhile, the Environmental Protection Agency (EPA) fears it may lose its highly trained staff to oil production companies operating in the country.

Although the EPA lacks adequate human resource to fully monitor activities of oil companies especially on the FPSO, the company says it is losing key staff multinational companies who offer better job opportunities.

EPA’s Deputy Director in charge of oil and gas, Kojo Agbenor Efunam, told Joy News the agency is under constant pressure to find ways to keep its staff.

Commenting on the issue, Dr Amin Adams said the problem at EPA must not be taken lightly.

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