Ghanaian OMC field choked – Energy Expert
Mr Kwame Kessie, Energy Consultant on Friday averred that the local downstream oil marketing sector is choked as about 90 officially registered companies with the Association of Oil Marketing Companies (AOMCs) with scores of them as non-members.
Mr Kessie who is the Managing Director of Mocoh Ghana Limited called for amalgamation of Oil Marketing Companies (OMCs) to create space for growth and health environment for national development.
He called for merger especially among indigenous OMCs, which will strengthen their operational base and profitability as well as build their capacity to compete favourable with the multi-nationals.
Mr Kessie told the Ghana News Agency in an interview in Accra that, the energy sector was capital intensive, with diverse security implications; “it is dangerous for any nation to allow multi-nationals to dominate the sector”.
He said with the current surge for setting up OMCs with its attendant citing up of Filling Stations, it will be difficult for “our smaller OMCs to make meaningful impact. Some even operate only one Filling Stations whilst others have only registered with the regulator, but without any presence on the grounds”.
The Mocoh Ghana MD explained that properly managed OMC field would create huge employment opportunities in the country and also inject healthy competition, that would work to the benefit of all.
“Monies generated from the sector will remain in the country, our local currency will be strengthened as funds will not be repatriated to any third country,” he said.
He said, Mocoh Ghana Limited which is a supply and trading company with a focus on Africa recently acquired 100 per cent shares of Engen Ghana Limited to bring to the local market services of world class logistical team who understands the complexities of the markets.
He said Engen Ghana under its new management through Mocoh would inject in the Ghanaian downstream sector industry dynamism to help customers find the right solutions to ever changing market conditions.
“We have an unrivalled expertise and a wide network of relationships across the continent, which we are bringing onboard to transform Engen Ghana for the the motoring public,” Mr Kessie stated.
He said the transaction agreement was signed between Engen Holdings (Pty) Limited and Mocoh Ghana Limited on March 1, 2019.
According to the agreement, Mocoh Ghana an affiliate of Reston Energy, a Ghanaian petroleum company would hold 55 per cent and the Mocoh Group 45 per cent shares.
The Mocoh Group, headquartered in Geneva Switzerland, has been operating in Africa for 21 years and is actively involved in the trading, logistics and the distribution of petroleum products across the continent.
Mr Kessie said Mocoh’s operations spread far beyond Africa to encompass a global business connecting markets in Europe, the Americas and Asia; “we have successfully navigated global financial crises and energy market volatility and we trade in some of the most complex markets in the world”.
He assured Engen Ghana staffs and management that, there would not be any retrenchment, but rather existing staff capacity would be built whilst roping others to fill any operational gaps.
Source: GNA