Business News of 2014-02-25

Petroleum Commission orders MODEC to formalize contracts

The Petroleum Commission has directed Mitsui Ocean Development & Engineering Co., Ltd (MODEC) to with immediate effect, formalize contracts with Seaweld Engineering Limited after their operations on the Kwame Nkrumah FPSO vessel were terminated.

According to the Commission, it is unacceptable that after three years of providing man power services on the vessel, there was no formal agreement between MODEC who are mangers of the FPSO and Ghanaian firm Seaweld Engineering Limited.

The operations of Seaweld Engineering Limited and three of its personnel were terminated early this year.

A special committee was set up by the Petroleum Commission to investigate the dismissal of the three workers as well as the alleged arbitrary dismissal of Ghanaians on the floating production storage and offloading (FPSO) vessel Kwame Nkrumah.

The committee began hearing submissions on the matter on Monday January 21, 2014 after receiving a petition from, the Ghana Oil and Gas Service Providers Association (GOGSPA).

The contract of Seaweld Engineering Limited is reported to have also been terminated after close to four years of operation on the FPSO leading to the dismissal of the workers.

The mangers of the FPSO, Kwame Nkrumah-MODEC, Seaweld Engineering limited and the Ghana Oil and Gas Service Providers Association (GOGSPA) presented their case before the committee.

But after two weeks of investigations by the Petroleum Commission, the director of special services at the Commission, Kweku Boateng said, MODEC has been instructed to regularize the operation of Seaweld engineering limited and that of other sub contractors.

The Petroleum Commission has also instructed Seaweld Engineering Limited to replace the three demobilized workers on the vessel.

This is despite efforts by MODEC to partner another company Global Energy Ventures Group to provide the replacement.

Speaking to Citi Business News, Mr. Boateng said this will be done while the commission continues to investigate reasons for the dismissal of the workers.

“We have received several versions of the story and we are yet to receive a report of the three gentlemen from the off shore installation manager which claim the activities of the three men were compromising the safety of the vessel,” he said.

Meanwhile, the Ghana Oil and Gas Service Providers Association (GOGSPA) has welcomed the recommendations by the petroleum commission.

According to the Executive Director of the Ghana Oil and Gas Service Providers Association Nuetey Adzeman ,”we expected to conclusion of the Petroleum commission because the dismissal of the workers was not right.”

Source: citifmonline.com
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