Energy experts and players in the petroleum sector are questioning the amount put out as the cost of fuelling the Karpower barge, describing it as being on the high side.
The Ghana National Petroleum Corporation (GNPC) and Karpowership Ghana Company Limited, a subsidiary of Karadeniz Energy Group, the energy wing of the Turkey-based Karadeniz Holding, stated that the about 30,000 metric tonnes of Heavy Fuel Oil (HFO) needed every month to power the barge will cost about $9 million.
However, checks by The Finder revealed that the cost of 30,000 metric tonnes of Heavy Fuel Oil hovers around $5.5m on the world crude oil market and this figure includes freight and handling charges.
As of Monday, one metric tonne of Heavy Fuel Oil was selling at $144.75.
The checks also revealed that the cost of freight for one metric tonne of Heavy Fuel Oil costs $30 while handling charges hover around $10.
This means the total cost of delivering one metric tonne of Heavy Fuel Oil to the Karpowership is $184.75.
Therefore, 30,000 metric tonnes of Heavy Fuel Oil will cost $5,542, 500.
If the power barge was using crude oil, the 30,000 metric tonnes would cost between $11 million and $12 million a month.
Ghana National Petroleum Corporation (GNPC) is funding the provision of the fuel upfront, which will be supplied by Trafigura, a global trading business, including the supply and offtaker of crude oil, petroleum products and liquefied petroleum gas (LPG), and Karpowership Ghana will reimburse GNPC with proceeds from power sold.
In this regard, energy experts and players in the petroleum sector told The Finder that anything above $5.5m for 30,000 metric tonnes of Heavy Fuel Oil a month would be profit for GNPC and Trafigura.
Trafigura deal questioned
The experts questioned the involvement of Trafigura in the supply of the Heavy Fuel Oil to power the barge.
They explained that GNPC is an exploration and trading company and has the capacity to directly supply the HFO to the power barge without involving Trafigura.
Industry watchers
Industry watchers also condemned the award of the contract to supply the HFO to Trafigura because Bulk Oil Distribution Companies (BDCs) are more than capable of supplying any quantity of HFO.
It is a fact that some BDCs supply HFO to companies in the country to power their machines.
Some of them described the contract given to Trafigura as total disregard for the President’s Buy-Made-in-Ghana campaign.
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