The Chamber of Bulk Oil Distributors (CBOD) has stressed the need for a streamlined and well-regulated oil and gas sector, urging regulatory authorities to continue exploring avenues to deepen earnings from the sector.

The Chamber of Bulk Oil Distributors (CBOD) has underscored the importance of a streamlined and well-regulated oil and gas sector, urging regulatory authorities to to explore ways to increase earnings from the sector.

Emphasising the importance of efficiency and cost-effectiveness, the Chamber said there is the need for a greater private sector investment in specific operations, while the government focuses on maintaining a robust regulatory framework and enforcing industry standards.

Against this backdrop, CBOD called for a standardised approach to the installation and calibration of metres, a critical component in ensuring accurate measurement and billing within the sector. Under the proposed system, metres mandated by the Ghana Standards Authority (GSA) could be installed by either the Depot, the National Petroleum Authority (NPA) or the Ghana Revenue Authority (GRA).

The GSA would take on the responsibility of regularly calibrating these metres, it added.

This method, according to the CBOD, aligns with international best practices. By designating a single authority – the GSA – to handle metre calibration, the proposal aims to eliminate redundant efforts by multiple entities, which often result in additional costs for consumers.

“The role of the GSA in ensuring and maintaining standards is in the best interest of the state. All regulations within the sector should ultimately serve the national interest and be subject to state/regulatory oversight,” a statement issued by CBOD stated.

CBOD’s statement comes on the back of the latest directive by the Ministry of Energy to GRA on a new standard for measurements in the oil and gas sector for revenue assurance. This standard was collaboratively developed by GSA with the Ministry of Trade and Industry and other stakeholders.

“The ministry’s directive mandating all entities involved in revenue assurance measurements within the oil and gas sector to comply with the new standard is welcomed by the Chamber. The CBOD believes that a single unified measurement system certified by the GSA is sufficient to ensure accurate and reliable data.”

Additionally, CBOD acknowledged GRA’s quest to ensure revenue assurance for the government, adding that “any institution, whether private or public, mandated to undertake that on the government’s behalf should do so in compliance with standards set by both the GSA and the Ministry of Trade and Industry to ensure a transparent and efficient measurement system within the oil and gas sector”.

Furthermore, CBOD expressed support for initiatives by the Ministry of Energy to engage in further dialogue with relevant stakeholders, noting the importance of establishing a transparent and efficient measurement system within the oil and gas sector.

Meanwhile, in response to CBOD’s calls to suspend the operations of Strategic Mobilisation Limited (SML) at petroleum depots, the GRA stated in a June 14 letter that the company had been “directed to resume its monitoring operations of the Downstream Petroleum sector effective June 14, 2024, in accordance with the Presidential Directives on the KPMG report”.

“SML is expected to ensure that all systems are fully operational and compliant with the relevant standards and regulations to deliver accurate, reliable and timely monitoring services to support our revenue assurance,” the GRA stated. Against this background, GRA asked Bulk Oil Distributors to cooperate to ensure a successful resumption of the monitoring exercise.

It is following this development that the Ministry of Energy announced to have collaborated with relevant authorities to develop new standards for measurements in the oil and gas sector, utilising the Coriolis mass flow metring system based on the Singaporean Standard. The Minister for Trade and Industry, pursuant to Section 13 of the Ghana Standards Authority Act, 2022, Act 1078, has declared these standards operational and mandatory.

“In view of the foregoing, we wish to indicate that all persons and entities undertaking measurements for purposes of revenue assurances in the oil and gas sector are expected to do so in accordance with the new standards,” the ministry stated.