Dear Mr. Afetsi Awoonor,
Advancing BOST’s Mandate for a Sustainable and Efficient Energy Future
Congratulations once again on your well-deserved appointment as the Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST).
This appointment reflects your exceptional leadership qualities and proven dedication to Ghana’s energy sector.
As BOST remains a cornerstone of Ghana’s energy security and economic stability, your role comes with both immense responsibility and unparalleled opportunities. I wish you success as you embark on this critical journey.
Given BOST’s strategic importance to national development, I humbly offer the following recommendations to support your efforts in enhancing operational efficiency, reducing costs, and achieving sustainable growth.
A. Enhancing Procurement Strategies
BOST’s mandate to ensure a reliable and cost-effective petroleum supply can be bolstered by leveraging local resources. Procuring Bonny Light Crude Oil (BLCO) for processing at local refineries, such as Sentuo, presents an opportunity to reduce reliance on imported finished petroleum products while lowering operational costs.
That said, I recognize the challenges of maintaining a steady supply of BLCO. Therefore, developing a complementary strategy for acquiring finished products would help ensure continuity in the supply chain, thereby safeguarding energy security and optimizing costs.
B. Consolidating the “Zonalization” Policy for Government Benefits
Strengthening and consolidating the National Petroleum Authority’s (NPA) “zonalization” policy for distributing refined petroleum products can yield substantial benefits for the government. These include:
- Reducing financial strain on the Unified Petroleum Price Fund (UPPF).
- Maintaining robust stock reserves to mitigate supply disruptions.
- Ensuring consistent nationwide supply of refined petroleum products.
To further this agenda, I strongly recommend establishing a new distribution zone (depot) in the Volta Region to serve Volta, Oti, and neighbouring areas. Currently, the six existing depots—Accra Plains, Mami Water, Akosombo, Kumasi, Buipe, and Bolgatanga—provide essential services, but expanding this network will enhance distribution efficiency.
The Keta Constituency, my beloved constituency, is strategically positioned to host this new depot due to its accessibility and potential for development. Alternatively, Ketu North presents another viable location worthy of consideration. Collaborative engagement with the NPA will be critical to realizing this vision.
Your leadership, coupled with the presence of our colleague at the NPA, provides a unique and timely opportunity to deliver transformative benefits to the Volta Region and beyond.
C. Optimizing Transportation through Rail and Pipelines
The current reliance on Bulk Road Vehicles (BRVs) for transporting petroleum products poses significant financial and environmental challenges. Transitioning to more sustainable and cost-efficient modes of transportation is crucial. Below are key initiatives to consider:
- Pipeline Infrastructure Development
Revive the Accra Plains–Mami Water–Akosombo Pipeline, addressing issues of encroachment and operational deficiencies. This pipeline’s reactivation will significantly reduce transportation costs.
Fully utilize the Debre–Bolga Pipeline by ensuring adequate stock levels at the Debre and Buipe depots. This will enhance Ghana’s capacity to export petroleum products to Burkina Faso, Mali, and Niger. - Collaboration with the Volta Lake Transport Company (VLTC)
Forge partnerships with VLTC through Build-Operate-Transfer (BOT) arrangements to secure funding for barges and tugboats. This will strengthen waterway transportation as a viable alternative to road networks. - Rail Petroleum Bullet Coaches
Revisit the concept of rail bullet coaches for petroleum transportation. Securing BOT funding for this initiative will improve cost efficiency while reducing road congestion and associated risks.
D. Building Local Capacity and Investing in Technology
As a national institution, BOST has a critical role in fostering local expertise and capacity. Transitioning from reliance on external contractors, such as Nigeria’s TSL, to in-house terminal management will empower Ghanaians while building domestic capacity.
Furthermore, investing in advanced stock management software is essential to improving product security, addressing discrepancies, and restoring confidence among stakeholders. Adopting such technology will enable BOST to lead the charge in innovation and operational excellence within the energy sector.
Conclusion
Mr. Awoonor, these recommendations present a roadmap for BOST to redefine its role as a model institution in Ghana’s energy sector. Your expertise, vision, and commitment to excellence uniquely position you to drive this transformation.
Please be assured of my unflinching support and readiness to collaborate with you in achieving these goals. Together, we can chart a resilient and sustainable energy future for Ghana.
I wish you great success in your endeavours.
Yours sincerely,
Senanu F. Dekutse
Downstream Petroleum Consultant / Former GM, Sephem Oil