Shell says ready to share experiences in oil sector with Ghana
Shell Trading, one of the world’s leading oil trading companies, has pledged to place its expertise at Ghana’s disposal as the country begins its oil and gas production by the last quarter of the year.
It said with its experience in the sector, which spans decades, the country stands to benefit a lot from the company and better manage its trade in oil.
The Chief Economist of Shell Trading, Mr Roberto Siebert, told the Daily Graphic at the just ended Oil and Gas Summit in Accra that “we have the expertise in trading, environmental management, exporting and importing and diversity in the contest of strong business principles”, adding that “Shell will also ensure that Ghana benefits from the perspective of health, safety and environment”.
He said the company trades in eight million barrels of crude and four million barrels of refined oil in a day and that these are some of the things the company intends to bring to bare on the country’s economy.
Shell holds the notion that no single group in society has all the answers, capability and credibility to address all challenges posed by energy issues.
It also works with a range of people in voluntary organisations and associations (sometimes called public/private partnership) to address environmental and social problems.
Mr Siebert said Shell had a global spread and it was respected wherever it found itself because of its commitment to ensuring strong business principles that do not only ensure the benefit of the company, but also the countries in which it operated.
He described Ghana’s oil as sweet light crude oil which is in high demand in any part of the world. “Your oil can go anywhere in the world because of its quality and this is what the country needs to capitalise on to do all that is right to achieve the benefits it brings to the country”, he said.
Mr Siebert said the processes adopted by the government to ensure that the find became a blessing and not a curse was appreciable but cautioned against any attempt to be secretive.
To him, such a move might spark petty squabbles in the country which might escalate to unbearable levels. “This is why we believe that the government has taken the right step and we will believe that it will succeed to better the lives of the people”, he said.
Mr Siebert added his voice to that of the many experts who had advised the government to be guided by the experiences of countries that had not gained much from their find.
“There are many examples around you and Nigeria is one; Angola and the rest and those examples can help shape the future for your country”, he said.
He said Ghana’s oil production might be small in the initial stages but noted that its contribution to the world’s stock was significant and necessary, considering the dwindling stocks in certain parts of the world where oil is produced.
Mr Siebert said as the world developed, the demand for oil increased, therefore “every drop into the world’s stock is important”.
“The world’s average decline in oil production is between four and five per cent and so every new discovery must be welcomed and that is why Shell is excited about Ghana’s find; more especially, the quality”, he said.
Ghana expects oil to generate an average annual revenue of $800 million for the state coffers from next year, which the government believes will go a long way in boosting the country’s budget.
Using a 10-year average price of oil at $65 per barrel, the government predicts that annual government revenue from oil and gas will average $800 million between 2011to 2029, rising from $490 million in 2011 to a $2 billion peak in 2017.
The projection is based on the assumption that Ghana will produce 500 million barrels of oil over the next 20 years; more modest than an earlier official estimate of 800 million barrels of reserves and well below upbeat expectations of double that.
Source: Daily Graphic