Business News of Thursday, 28 September 2006

Source: GNA

Floodlights at oil jetty will improve oil operation

Tema, Sept. 28, GNA - Six sets of Sodium Lamp Floodlights were on Wednesday commissioned at the Tema Oil Jetty to help improve oil operations in the country.

The importation and installation of the lights estimated at 250,000 dollars, was financed by the Vitol Group, the world's largest independent buyers, sellers and shippers of oil. To bring the Tema oil jetty operations in line with international standards, Vitol, in 2004, initiated discussion with the Tema Oil Refinery (TOR) and the Ghana Ports and Harbours Authority (GPHA), which resulted in the provision of the lights, which were commissioned yesterday.

Handing over the project to the two companies after commissioning it, Mr Ian R. Taylor, President and Chief Executive of Vitol Group of Companies, said in supplying and lifting crude and oil products, his company saw the need to resolve one critical limitation confronting TOR and GPHA, that is, their inability to receive vessels at night due to inadequate lighting facilities.

This limitation, Mr Taylor said, created delays for vessels coming in to load or discharge their cargoes, adding that, unlike other ports in the region, ships could not enter or exit between the night and the following morning.

He said this unfortunate situation created problems, which resulted in the poor utilization of vessels, as well as large bills for TOR, due to delays to ships.

Recounting Vitol's operations in the country, Mr Taylor said the company had been actively involved in the refining sector of Ghana for the past 13 years, adding that, Vitol's first supply of petroleum products was executed under a contract in 1993, from the then Ghana National Petroleum Corporation (GNPC).

He said in 1998, Vitol partnered international lenders to secure the financing for the major expansion project to increase TOR's crude oil distillation capacity to 45,000 barrels per day. He stated further that to increase Vitol's commitment, it had recently signed a contract with GNPC to explore for oil in Ghana, and would be spending about 20 million dollars over the next few months on the project.

The Vitol Chief Executive disclosed that his company's total financial commitment to Ghana was currently well over 100 million dollars.

Mr Taylor said in handing over the floodlights, Vitol was fulfilling a promise it made to TOR last year, and hoped "these lights will be used and maintained under best practised principles to ensure a long term benefit to all interested parties."

Dr Kofi Kodua Sarpong, Managing Director of TOR said the installation of the floodlights was a laudable project, and commended the management of TOR for its foresight and the continued mutual relationship between the two organisations.

Dr Sarpong pointed out that the benefits of the lights could not be understated in TOR's operations, and mentioned the benefits to include: a 24-hour berthing of some class of vessels; enhanced products distribution; safe operations of Mooring men around the clock; reduction of demurrage if not completely eliminated; and vessels, apart from oil vessels, could navigate safely to the port even after sundown. He urged other public-spirited organisations to emulate the shining example of Vitol, and support TOR in its operations to enable it to become the best refinery in Africa.

Mrs Sophia Horner-Sam, Deputy Minister of Ports, Harbours and Railways reiterated the call on the two beneficiary institutions, TOR and GPHA to take good care of the facility.