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Business News of Thursday, 7 May 2015

Source: B&FT

BOST garners US$280 million suppliers’ credit

Management of the Bulk Oil Storage and Transportation Company (BOST) say its transformation agenda has increased its credibility internationally, as it has attracted high value credit lines and partnerships from international petroleum companies.

Speaking at a press conference in Accra the Managing Director of the company, Kwame Awuah Darko, said BOST now has suppliers’ credit lines of up to US$280million on open account terms.

This, he said, means the reforms being carried out in BOST have caught the attention of both commodity suppliers and the global financing banks, thereby weaning the company off its reliance on local banks for financing petroleum imports.

When he took over as MD some 18 months ago, he said the company was seen as a failed state-owned enterprise, and had neither the confidence of local banks nor bulk distribution companies.

“Our nine-month turnaround strategy is aimed at restoring the company’s operations --restructuring the company’s organisation structure, restructuring the company’s balance sheet -- as well as restoring the company’s infrastructure to be able to enhance our operations.”

BOST, he said, has also repositioned itself within the West African sub-region and has now been recognised by Sonaby -- Burkina Faso’s State Owned Petroleum Company -- as one of its suppliers of choice.

Additionally, he said, the BOST facility in Buipe that was idle when he took over has now become a depot of choice for Malian petroleum marketers.

Kwame Awuah Darko indicated that with the continued improvement of BOST infrastructure across the country, the end of 2015 should see the company becoming the biggest player in the country’s downstream petroleum sector as well as in the West African sub-region outside of Nigeria.