Ghana’s strategic stock oil keeping company, Bulk Oil and Storage Transport Company Limited (BOST), has chalked impressive successes just over one year after Edwin Nii Obodai Provencal was appointed the Managing Director of the state company.
Mr. Provencal was appointed in August 2019 to replace George Mensah Okley, after the former resigned from his post.
At the time he assumed office, BOST’s assets, such as pipeline infrastructure, storage tanks, barges, tugboats and other vital installations had been abandoned for years without repairs.
Besides, BOST was saddled with huge legacy debts which dated back under the leadership of Kwame Awuah Darko and the National Democratic Congress’ administration.
However, the sordid state of BOST has seen an improvement.
In a presentation by the Managing Director of BOST to staff at the Accra Plains Depot (APD) on Monday, he highlighted on the key successes the company had recorded in the last year.
He said 6 out of the 15 storage tanks at APD, Buipe and Bolga, which were abandoned, have now been repaired and are currently in use.
According to him, the Buipe-Bolgatanga Petroleum Product Pipeline (B2P3) had also been repaired and currently in use while repair works on the 6’’ Tema-Akosombo pipeline has just been completed.
Touching on some ongoing repair works, Mr. Provencal mentioned the repairing and spraying of barges and tagboats and extension of 8″ pipeline to the oil jetty, supply and installation of mass flow meters, fixing of pumps and loading arms, remedial works on 18″ CBM pipeline and commencement of Front End Engineering Design (FEED) for Accra -Kumasi pipeline.
On the revenue performance of the various department of company, the Terminal Department recorded GHS48 million revenue in 2020, as compared to GHS45 million in 2019.
The volume of products sold in 2020 was 685,000 metric tonnes, as compared to 652,000 metric tonnes, representing five percent jump.
The Transmission Department also raked in GHS7 million in 2020 as compared to GHS2.9 million, representing 141 percent with the volume of product skyrocketing to 23,224 metric tonnes in 2020 while 2,200 metric tonnes was sold in 2019, representing 1,057 percent.
Interestingly, the Fuel Trade Department made GHS0.6m loss in 2019. However, in 2020, it made GHS26 million in profit, representing 4,348 percent after trading 150,000 metric tonnes of fuel compared to 77,000 metric tonnes in 2019.
Meanwhile, the company also realised GHS178 million in revenue from other sources in 2020, as compared to GHS123 million realised in 2019.
Turn Around Time At Depots
Previously, it took about four hours for Bulk Road Vehicle (BRV) drivers who went to BOST depots to load fuel. However, after a restructuring exercise at the depots, it now takes about two hours and 30 minutes for the drivers to go through pre-loading and post loading process and exit the depots.
Reduction In Expenditure
In 2019, the company’s expenditure stood at GHS400 million. However, the figure has been reduced significantly to GHS163 million in 2020.
Going forward into 2021, Mr. Provençal stated that other steps the company plans to take include upgrading of BOST Depots, shipping of 12″ pipes stack in Houston, USA to Ghana, repair of remaining two defective barges, implementation of performance management system and reclassification of staff placement and salary and addressing salary issues.
Mr. Provencal commended staff of BOST for working very hard for achieving parts of the company’s target for the year 2020.
In his view, it would take the company about five years to set it on sound footing. He charged the staff to continue to support management to turn the company around for the benefit of the majority and not selected few.
“We’re on a five year journey and we’re in the first year. By year two, we’re going to get better and by the time we get to year five, we will have arrived.
“What we need is resilience and focus from all & sundry despite the obstacles. I won’t take decisions that will benefit only a few: my decisions will benefit the majority of staff who are making things happen,’’ he explained.
Mr. Provencal promised not to repeat the mistakes of his predecessors, assuring the staff that he would make sure that staff are rewarded based on their performance but not on favouritism.
“I believe in rewarding people who deserve it,” he said.