Business News of Mon, 26 Feb 201810

BOST states record on sale of crude oil

The Bulk Oil Storage and Transportation Company Limited (BOST) says it sold 942,000 barrel of crude oil to raise $51.3 million ($51,386,100) to defray part of the company’s debts.

According to BOST, in September 2017, when the crude oil was sold, the average price of the commodity on the world market was $56.55.

However, BOST gave a discount of $2 per barrel and sold the product at $54.55 per barrel.

BOST, therefore, rejected reports indicating that at the time of the sale, the price of crude oil on the world market was $62.

A statement issued by Media Relations Manager of BOST, Nana Akua Adubea Obeng, said the crude was sold to BB Energy as Free on Board (FOB).

According to her, $27.2 million ($27,208,016.13) of the money was used to defray BOST’s indebtedness to British Petroleum (BP).

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Also, she said $15 million was also used to defray BOST’s debt to Mocoh Energy.

She explained that BB, which purchased the crude oil, paid $7 million into BOST’s current account in Ghana with BOST’s UMB account at the head office, which can also be verified.

Obeng stated that the Finance Department of BOST has done the accounting and issued the final invoice to BB Energy, and as result, BB would make additional payment of $2.1 million ($2,178,084) as final payment to BOST to close the transaction.

“The final payment of invoice is always done when the final and total product is discharged or taken from the tank where the exact quantity is determined on the outturn report as certified by a third party.

“The board and management of BOST encourage all media houses, civil society groups and interested individuals to always avail themselves of the open-door policy of the company to verify information they receive about the company”, she added.

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