BOST to bear cost of future fuel contaminations
Management of the Bulk Oil Storage and Transportation (BOST) Company, has resolved to pass on the cost of any future oil contaminations to the company’s depot managers across the country, thereby relieving government of any cost arising out of such negligence from the company.
BOST has in recent times, received intense public criticism for allegations of fuel contamination between 2016 and 2017, with persistent recorded operational losses till date.
The rot of contamination, according to the African Centre of Energy Policy (ACEP) and BOST itself, has resulted in the loss of approximately US$300 million.
Meanwhile, the company has also admitted that a staggering US$2million is recorded each month as transmission losses. In response, BOST says it is rehabilitating its river vessels to pave way for the resumption for transporting petroleum products by water to the various depots.
As part of the water transport strategy, the management team is to put all of the company’s four badges in operation to facilitate transportation of petroleum products from the south to the northern part of the country through the Volta Lake Transport system.
The long-term strategy is for BOST to earn a revenue of about US$810 million in five years from an expected investment of US$180 million.
The company has asked government for a financial support of US$150 million out of which US$ 65 million would be used for infrastructural development, thus fix broken down facilities, over-aged pipelines among others and about US$75 million to engage in fuel trading.
Addressing a section of the media in Accra, BOST’s MD, Mr Edwin Provencal said, he is determined to ensure that the issue of fuel contamination becomes a thing of the past.
“One of the things we’ve done was to engage with management of all depots which had
been outsourced to third parties, letting them know that all costs arising out of their omission or
commission will be borne solely by them. “No more contamination – our depot managers will be made to bear the cost if it happens,” he stated.
As part of measures to cut down expenditure, BOST is equally planning to forego foreign training for its staff, opting for a more affordable technical training from the Tema Oil Refinery (TOR), as other West African nations do send their technical staff for training at TOR.
Source: BusinessZone Online