The Board of Directors of the National Petroleum Authority (NPA) has withdrawn the operating licenses of 24 operators and expunged their names from the list of accredited petroleum service providers in the country.
The companies, which include operators in Oil Trading, Petroleum Product Exporters, Offshore Bunkering Companies and Oil Marketing Companies (OMCs), failed to comply with the obligations and conditions under which they were granted licenses to do business in the country.
Additionally, the black-listed companies refused to honour decline pay licensing fees as well as financial obligations to the Authority.
They were engaged in fuel adulteration and lacked urinals at their premises, among others, which were unearthed by the Inspection and Monitoring Department of the NPA during unannounced compliance monitoring activities.
After several warnings to the operators who appeared to be violating the rules of engagement, the Inspection and Monitoring team suggested to the Board of the Authority to take punitive measures against such companies.
A source close to the NPA explained that the decision of the Board to revoke the licences of the said companies was in line with Section 19 of the NPA Act, 2005 (Act 691).
Out of the 24 companies, 19 of them fall in the category of oil trading companies.
They include Kingdom Energy, Generation Investments, Capital Trust Logistics Limited, Yimpex Ghana Limited, Forester Associates Limited, Petrodel Resources Ghana Limited and Petro-Ghana Limited.
The others are Tanzila Petroleum Ghana Limited, H. Wagner Limited, West African Petroleum Company Limited (WAPCO) and New Frontiers Energy Limited.
Oil Marketing Companies (OMCs), which have been affected, include Tropic Oil Company Limited, Petro Ghana Limited and Deebabs Energy.
Free Enterprise Group Of Companies Limited, a petroleum product export company and Lottoj Oil And Gas Services Limited and Offshore Bunkering Company also faced the sanctions.
The decision was taken at the Board’s ordinary meetings held on March 19 and April 26, 2012 to review and approve the application of sanctions on companies that are not in good standing.
A statement signed by Alexander Mould, Ag. Chief Executive of NPA, cautioned that any individual or companies that transact or conduct business with the afore-mentioned companies “do so at their own risk.”
The management of Ghana Oil Company, GOIL says it is not worried at the decision of the National Petroleum Authority (NPA) to withdraw its Oil Trading license.
The authority confirmed the withdrawal of the licenses of 24 companies in the oil business that failed to comply with some licensing and financial obligations to Joy Business.
This was after the NPA published the names of these defaulting firms in some newspapers.
Meanwhile, Acting Managing Director of GOIL, Chris Ackumey told Joy Business the withdrawal will not have any effect on the operations of the companies.
“The last time we used that licenses to import oil was in 2010. Ever since we have not done any activity or operated under the Oil Trading Companies (OTC’s) license. We are doing business mainly as an Oil Marketing Company (OMC),” he noted.
“The NPA is the regulator and if they say they have withdrawn the license its ok. We don’t need the OTC license for now because presently we are not importing oil but if the need arises we will go and renew it. For now, we’ll just let it be because it doesn’t affect our standing as an OMC and we are operating as an OMC,” he concluded.
Emelia Ennin Abbey