Investigations conducted by Citi Business have confirmed that Ghana’s first batch of crude was sold between two and four dollars lower than the current world crude price which is hovering around $98.
This is contrary to earlier reports that the oil was sold at $66. Tullow, which was responsible for the first lift has remained tight lipped about the exact price it was sold for.
US oil company ExxonMobil is reported to have bought the cargoes of Jubilee crude loading on 1-7 January and 8-18 January from trading companies Vitol and Trafigura. The next companies to lift the crude will be Kosmos and Anadarko, and it remains unclear how much they will sell the commodity for.
However, Energy Minister Joe Oteng Adjei has explained to Citi Business that though the first consignment was sold below the world market price it was much higher than the reported $66.
“My information is that the discount is between $2 and $4 so technically it can never happen that our product will go as low as $67. Tullow who lifted the first oil is not under obligation to reveal to us the price that they got.”
Ghana National Petroleum Corporation (GNPC) is the fourth in line to lift the crude. This will be between the end of February and the first week in March. Energy Minister told Citi business that the government is hopeful it will get a good price by the time it is Ghana’s turn to lift the crude.
Meanwhile, the Energy Minister on Tuesday January 19, signed a commercial agreement with Hunan Construction Engineering Group Corporation of China for the electrification of some 500 selected communities in the Northern Region.
The project will increase accessibility rate of electricity in the Northern, Upper East and West regions.
Currently the accessibility rate of the three regions is 43.52%, 30.39% and 31.95% respectively. The project is expected to cost $310 million and is expected to be completed in 5 years.