In Ghana, Sentuo Calls for Local Crude Oil to Be Priced in Cedis — MyJoyOnline

Sentuo Oil Refinery in Ghana has called on the government to price local crude oil for the country’s two domestic refineries in Ghanaian cedis. The company said the current pricing model causes losses due to the difference between the cedi and US dollar exchange rates when processing each tonne of raw material.

Dollar Peg

According to MyJoyOnline, Sentuo’s management explained the currency losses by a structural and legal requirement to purchase Ghanaian oil, including low-sulfur crude from the Jubilee field, in US dollars.

The company noted that it pays for domestic raw materials in cedis, but their initial price is usually pegged to the dollar. As a result, Sentuo has to convert cedis into dollars to pay for the oil.

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Appeal to GNPC

Sentuo Group Executive Chairman Xu Ningquan raised the issue on September 23 during a meeting with Ghana’s parliamentary energy committee. He called on the government to intervene and persuade the Ghana National Petroleum Corporation to sell local crude oil to domestic refineries.

According to Ningquan, the company’s current volume is 40,000 barrels. Sentuo plans to add another 60,000 barrels to increase capacity to 100,000 barrels.