The Bulk Oil Storage and Transportation Company Limited (BOST) has initiated a formal investigation into its long-delayed depot upgrade project, which has caused significant operational disruptions and drawn industry scrutiny.

The project, initially contracted to Automation Services Limited (ASL) for US$23 million, remains incomplete despite substantial payments and repeated timeline extensions.

BOST management has consequently interdicted its General Manager for Assets and Infrastructure, Nicholas Samari, citing poor oversight of the project.

The company says it is now reviewing procurement decisions, contractor performance, and financial disbursements to determine accountability for the prolonged delays.

The depot upgrade, which was expected to modernise BOST’s storage and distribution infrastructure, was awarded to ASL in May 2022 through a competitive tender.

The contract commenced in August 2023 with an initial 12-month completion timeline. However, more than two years later, key components of the project remain unfinished.

According to internal reports, BOST has already disbursed US$16 million to the contractor, representing nearly 70 percent of the total contract sum. Yet, the anticipated operational improvements have not materialised, leading to logistical bottlenecks in the petroleum supply chain.

The delays have forced the National Petroleum Authority (NPA) to suspend its zonalisation policy multiple times, allowing petroleum marketers to transport products across zones to mitigate supply shortages.

Industry players argue that these disruptions have resulted in increased transportation costs, inefficiencies in product allocation, and reputational damage to BOST.

Reacting to the ongoing challenges, Dr. Riverson Oppong, Chief Executive Officer (CEO) of the Chamber of Oil Marketing Companies (COMAC), underscored the logistical and economic impact of the disruptions, warning that continued inefficiencies in the petroleum distribution network could have far-reaching consequences.

Citing the Kumasi Depot, which serves the Ashanti Region and surrounding areas, Dr. Oppong highlighted how fuel supply disruptions at the facility have forced oil marketing companies (OMCs) to source fuel from Tema, leading to increased transport costs and delivery delays.

“The impact is immediate and severe. Only last week, several of our members struggled to secure adequate fuel by Friday, creating shortages that affected businesses and consumers alike. This is a double jeopardy for consumers—first, they face supply disruptions, and second, where fuel is available, OMCs are under immense pressure to absorb additional costs rather than pass them on,” he explained.

Dr. Oppong stressed that while OMCs are making efforts to mitigate cost implications for consumers, sustained inefficiencies could force adjustments in pricing structures. The longer the BOST depot upgrade remains incomplete, the greater the strain on the industry, potentially disrupting fuel security and economic stability.

Calling for urgent intervention, he urged BOST and other stakeholders to expedite infrastructure repairs and modernisation efforts, stating that a revamped and fully functional downstream sector is critical for efficient energy distribution, price stability, and overall economic resilience.

“The situation calls for immediate resolution. A robust and well-maintained infrastructure is not just an industry requirement but a national priority,” he said.

Market observers warn that prolonged instability could undermine investor confidence in Ghana’s downstream petroleum sector. A senior industry analyst noted, “The fact that US$16 million has already been paid without visible progress suggests weaknesses in contract enforcement and monitoring. This raises broader concerns about how state-owned enterprises manage capital-intensive projects.”

BOST’s management has not yet indicated whether it will pursue legal or financial recourse against ASL for the delays. The original contract terms remain undisclosed, making it unclear whether penalties for non-performance were included.

However, sources familiar with the matter suggest that the company is considering a forensic audit of the project’s finances. Such a review would examine whether the contractor met its obligations and whether BOST’s internal controls were sufficient to prevent cost overruns.

“The priority now should be a full financial and technical audit to determine whether the contractor can deliver or if a new procurement process is required. There also needs to be transparency about the lessons learned to prevent similar setbacks in future projects,” the analyst added.

The ongoing investigation is expected to inform BOST’s next course of action, including whether ASL will be allowed to continue the project or if alternative contractors will be engaged. BOST’s management has indicated that all procurement decisions related to the upgrade will be scrutinized to identify any lapses.

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