Petroleum Commission urged to engage GSA to standardize oil measurement

Parliament has urged the Petroleum Commission to work with the Ghana Standards Authority, (GSA), to check the measurement of Ghana’s oil meant for export.

This follows concerns raised by some civil Society Organizations about the metering system used by multinational companies producing oil in Ghana.

After debating the issue on the floor of Parliament, Executive Director of the Ghana Standards Authority, Prof. Alex Dodoo, stated that the measurement of oil meant for export cannot be left in the hands of foreigners.

Prof. Dodoo argued that it is important for the relevant state institutions in the oil and gas industry to collaborate with the Standards Authority to protect Ghana’s interest in the export of oil.

“Currently, we don’t have an independent way of checking what is being paid for the oil. The Ghana Standards Authority has the scientific competence, but we also believe that we need to talk to the Ghana Revenue Authority as well as the Petroleum Commission to be sure that when the fuel comes out, the proper levies are collected, the state makes its money and GSA will get a small bit, and then the petroleum Commission is aware,” he said.

He said relying on the buyer to determine the amount of barrels of oil exported puts the country in a disadvantage position.

Prof. Dodoo commended Parliament for urging the Petroleum Commission to work with GSA to come out with a standardized system that will be accepted by players in the oil and gas industry.

He was hopeful a legislation will be passed to compel all the institutions to work in that direction.

Background

In 2010, when Ghana started commercial oil production, the country did not have an independent method for checking the metering system used in production.

This compelled Civil Society Organisations to push for a system that will give Ghana the power to standardize the volume of oil produced.