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BULK OIL STORAGE AND TRANSPORTATION COMPANY LIMITED (BOST)

LOCATION : 2ND FLOOR DIAMOND HOUSE ACCRA

ADDRESS: P. O. BOX MB 499, ACCRA , GHANA

TEL: +233-21 7010211-4 , +233-21-660332

E-MAIL: bost@bostghana.com

FAX: +233-21-7010210

PRIMARY FUNCTION: Strategic Storage of Petroleum Products

ENABLING LEGISLATION: BOST was incorporated in December 1993 as a private limited liability company under the company's code of Ghana . The company is also covered under the Energy Commission Law (Act 541) of 1997.

HISTORY

Until May 1, 2002, BOST was responsible for the distribution of petroleum products from its seven (7) depots strategically located in the country.

BOST was also made to announce revised petroleum prices on behalf of government.

In May 2001, BOST was directed by the Ministry of Energy to restructure and focus on its original mandate of keeping strategic fuel reserves and transporting bulk oil throughout the country in the most efficient way. Consequently, five (5) out of the seven (7) depots were transferred to Tema Oil Refinery (TOR) on lease basis on June 1, 2002 while the remaining two (2) depots, one in Kumasi and the other in Bolgatanga were retained by BOST for the keeping of strategic fuel reserves.

A new Managing Director was appointed in September 2001 and a Board of Directors for BOST was put in place late 2001 under the chairmanship of Nana Addo Dankwa III, the Okuapemhene.

In August 2002 and June 2003, BOST brought in strategic stocks for two (2) weeks.

In August 2002, BOST brought in the first consignment of strategic fuel reserves consisting of gas oil and premium gasoline. The second consignment was received into the country June 2003.

POLICIES, FUNCTIONS & SERVICE TO THE PUBLIC

BOST implements the government's policy to ensure stability in the supply and price levels of petroleum products in Ghana . Government provides long-term funding for the creation of strategic fuel reserves through a Strategic Stock Levy imposed on petroleum products users. Government's intention is to build a reserve stocks that will be able to meet national demand of petroleum products for a minimum of six (6) weeks in the event of an interruption in the normal supply of these products.

BOST uses the proceeds from the Levy to manage the construction, running and maintenance of petroleum tank farms and distribution networks located or to be located at vantage points in the country for the purpose of keeping the fuel reserves.

In the event of an interruption in the normal supply of petroleum products in the country, BOST will advise the government on the draw-down procedure for the reserved stocks.

CONTRIBUTION TO THE STATE

BOST's function provides the insurance for the availability of petroleum products in Ghana . Properly implemented, this provides the basis on which the whole nation, including private investors can plan the lighting, heating, cooking and other requirements derived from petroleum products with a large degree of certainty.

POTENTIAL FOR PRIVATE INVESTMENT

BOST has a large potential for private investment. The current levy, though helpful, can be used to achieve government's objective in a minimum of about fifteen (15) years. Private participation in the construction of tank farms, petroleum pipelines, railway lines as well as procurement and disposal of fuel can be worked out satisfactorily.

KEY STAKEHOLDERS:

The government of Ghana is the sole shareholder of the Company

MAJOR ACHIEVEMENTS (1999-2002 & First half of 2003):

Depot Network

Since the inception of BOST, it has constructed petroleum storage depots at seven (7) strategic locations in Ghana . As stated earlier on, five of these depots have been reallocated to the Tema Oil Refinery as operational depots for the efficient distribution of petroleum products. BOST currently has only two (2) depots, one in Kumasi and the other in Bolgatanga. The table, below shows the present storage capacity of BOST vis-à-vis the desired status of having capacity to store twelve weeks of the national requirements of gas oil, kerosene, premium gasoline and liquefied petroleum gas (LPG). In terms of storage facilities, therefore, BOST has to build additional space for over 300,000 metric tons of petroleum products.

Existing BOST Storage Depots (Capacities in Metric Tons)

BOST also has an 80-kilometer, 6-inch petroleum pipeline that runs from Tema to Akosombo. These pipelines are used to transport products directly from the Tema Oil Refinery to the Accra Plains Depot and the Mami Water Depot; and to the Buipe Depot via the Akosombo transit depot.

The construction of the Buipe-Bolgatanga fuel pipeline project which will facilitate the continous flow of products to the north and the neighbouring countries is in its detailed-design stage.

Negotiations with VRA/VLTC on the construction of a petroleum pipeline between Debre and Buipe to enable the transfer of fuel to the north and countries along the Volta Lake all year are also on-going.

Product Procurement

For the first time in the history of the country, the first consignment of strategic a fuel reserve was brought in by BOST in August 2002. A second consignment was received in June 2003. The reserves made up of gas oil and premium gasoline is capable of keeping the nation going for two (2) weeks in the event of an interruption in the normal supply of these products.

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