Ghana's Energy Sector, Oil and Gas News
Obuasi West MP outraged by Vivo Energy’s non-compliance with regulatory requirements
The Member of Parliament for Obuasi West, Mr Kwaku Kwarteng has filed an urgent question in Parliament asking the Minister for Energy & Petroleum to appear before the house and explain why Vivo Energy (formally Shell Petroleum Ghana) continues to operate in Ghana without complying with regulatory requirements.
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A statement issued in Accra Thursday, by Juliana Boahemaa, special assistant to the Obuasi West MP said in May 2013, the National Petroleum Authority approved an application by Vivo Energy to take over Shell Petroleum Ghana and operate in Ghana's downstream petroleum sector.
A condition for the approval was that Vivo Energy would, within 60 days, give up some of its shares to indigenous Ghanaians to bring the total Ghanaian investment in their company to 25%. This condition was accepted in writing by Vivo Energy.
In complete disregard for this requirement, Vivo Energy has refused to step up its Ghanaian ownership.
In its letter of 3rd November 2014 to Vivo Energy, the National Petroleum Authority decried the multinational company's non-compliance in the following terms:
"The non-compliance has been raised in a number of meetings with Vivo Energy (London) and the former Managing Director Mr. Ben Osoro of Vivo Ghana Limited. At each of the said meetings, a favorable response was given by Vivo Energy Limited to activate the process for a private placement of the shares outstanding for local Ghanaian entities to purchase approximately 8% of the current shares capital to bring up the total indigenous investment in Vivo Energy Ghana Limited (Shell Ghana Limited) to 25%. We have however noted that to date, Vivo Energy Ghana Limited has not complied with the requirement."
Accordingly, the NPA refused Vivo Energy's 27th October 2014's application for renewal of their oil marketing company license.
It's been 17 months since the 60 days expired yet Vivo Energy continues to operate unlawfully without stepping up their indigenous Ghanaian ownership.
This disdain for the regulatory requirements of Ghana has infuriated the Member of Parliament who has filed an urgent question asking the Minister for Energy & Petroleum to answer to Parliament why Vivo Energy continues to operate in downstream petroleum industry.
