There is a need to review petroleum agreements in the mid-year budget - COPEC

- The Chamber of Petroleum Consumers Ghana (COPEC) has called for an immediate review of existing petroleum agreements in Ghana

- It added that all non-performing petroleum contracts need to be annulled with immediate effect

- The call comes ahead of a mid-year budget review that is to be presented by the Minister of Finance, Ken Ofori-Atta

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The Chamber of Petroleum Consumers Ghana (COPEC) has called on the government to immediately review all existing petroleum agreements.

It has called for possible consideration of the annulment of non-performing contracts as a matter of urgency.

COPEC argued that the outbreak of the coronavirus has worsened the level of upstream revenues and the non-performance of some contracts makes the situation worse.

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Per a report by citibusinessnews.com, COPEC’s Executive Director, Duncan Amoah, explained that the mid-year budget review to be presented on Thursday, 23 July 2020, should aid the government in the reconsideration of its position on oil contracts.

This, he added, would help mitigate all associated risks as Ghana is losing both upstream and downstream revenues.

Amoah again noted that it would be great to have Ghana reposition itself to obtain more stake in its oil business.

He also suggested that the government needs to consider some form of investment from the Ghana National Petroleum Corporation if it hopes for higher returns in the exploration and production of oil.

YEN.com.gh earlier reported that the Minister of Finance, Ken Ofori-Atta, will soon present the mid-year budget review to Parliament.

Ofori-Atta will present it on Thursday, 23 July 2020, and the action is in line with the requirement of Section 28 of the Public Financial Management Act, 2016 (Act 921).

It has been gathered that the minister will also use the opportunity to request supplementary estimates.

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Source: YEN.com.gh