Ghana to lose $1m/day due to late installation of Chemical Plant

The Minister of Roads and Transport, Mike Hammah, has confirmed reports that Ghana stands the risk of losing 1million dollars a day if the chemical plant needed at the Takoradi Port to maintain the Floating Production Storage and Offloading vessel, FPSO Kwame Nkrumah, is not completed before its arrival in July 2010.

The Daily Graphic edition of Monday May17, reported that the Chemical plant needed at the Takoradi Harbour to maintain the vessel has not been installed.

Mr. Mike Hammah in an interview on the Citi Breakfast Show on Monday, said whiles on a familiarization tour at the Takoradi Harbour, he was informed that officials of Tullow oil were encountering some difficulties in securing a land for the installation of the chemical plant.

He added that without the Chemical Plant at the Takoradi Port, it would be impossible for the FPSO to be operational.

“It is a critical activity, because without the chemical plant, there is no way that FPSO can be operational. Besides if the chemical plant is not suitable, what it means is that, they will have to look elsewhere and it will cost this nation a whooping amount of 1 million dollars a day”.

The Transport Minister stated that if the facility is not completed before the arrival of the vessel in July, the partners in the Jubilee Fields, including the government of Ghana, through the Ghana National Petroleum Corporation (GNPC), will incur the avoidable debt of $1 million a day for as long as it takes to complete it.

According to Mr. Mike Hammah the situation at the Takoradi Port took him by surprise since the unfortunate situation was never brought his notice in any of their meetings with Tullow Oil.

He said that he had given the port authorities a week to conclude the procedure of the land for commencement of works on the installation of the Chemical Plant.

He was however optimistic that the Chemical Plant will be completed before the arrival of the vessel. The FPSO Kwame Nkrumah which was commissioned in Singapore on May 1, by the First Lady, Naadu Mills has already set sail for Ghana and will arrive in July.