GHANA, has joined the league of African countries lifting Nigeria's crude oil for refining, thereby expanding the frontiers of private sector initiatives for the energy sector on the continent.
Three other countries had earlier blazed the trail in an agreement with the Nigerian National Petroleum Corporation (NNPC), which will no doubt boost activities in the sector.
The countries are South Africa, Zimbabwe and Cote d'Ivoire.
Under the agreement, Ghana will be lifting about 30,000 barrels per day of sweet crude oil for refining at its Tema refinery for one year.
Contrary to the bilateral and inter-government relations agreement on crude oil sales/lifting that obtained during military rule, the new pact will be private sector-driven, according to NNPC's General Manager, Group Public Affairs, Mr. Ndu Ughamadu.
This strategy, Ughamadu said in an interview with the News Agency of Nigeria (NAN), will facilitate prompt payment for the crude. This is far at variance with the military-era government-to-government contracts, which were usually fraught with delays in payments and other bureaucratic bottlenecks.
The crude oil lifting by Ghana, the general manager stated was consummated about three weeks ago to coincide with the corporation's 24th anniversary.
The NNPC/Ghana contract signed in March this year Ughamadu stated further, was designed to improve the nation's economy which would translate to enhanced democratic dividends to the people of Nigeria.
According to him, the cost of the consignment could easily be determined by the prevailing price of crude as at the time the lifting process began.
Crude oil price in international market has been hovering between $27 and $30 per barrel at both the London and New York markets.
In 1992, Ghana was among the crude oil term buyers from Nigeria, with daily approved lifting quota of 30,000 barrels.
Ghana's National Petroleum Corporation was also in 1994 listed as one of Africa's crude oil term buyer from Nigeria with 20,000 barrels per day volume, which was specifically designed for refining to meet the domestic fuel requirement of that country.
However, between 1995 and 1999, crude oil supply to the neighbouring country was believed to be on an irregular basis, as the contracts were based on government-to-government basis.
But with the introduction of open bidding system by the current management of NNPC under the Group Managing Director, Mr. Jackson Gaius-Obaseki, some African countries which bidded for the crude oil lost out due to their inability to meet the qualification criteria.
During the exercise, South Africa which bidded for 100,000 barrels per day got 55,000 barrels while the National Oil Corporation of Kenya also suffered a set back.
Seven other West African countries including Togo and Benin Republic lost out as only Ghana featured in the published guideline.
The Federal Government since 1988 had limited eligibility for the lifting of the nation's crude to four categories of companies. These are:
