The problems on the FPSO

 

Revenue Collection challenges

1. The flow meters installed by the operator are not functioning properly since they were installed so the major means of currently determining volumes is by tank dipping. This could deny Ghana significant revenues. The FPSO has been declared a customs zone and if there is no scientific way of monitoring export volumes for tax assessment, then Ghana will be losing. Both the Ministry of Energy and the GNPC have confirmed that they are aware of this problem and have ordered for new meters. Why this has not come to the public domain in such a long time and why the problem has not been resolved raises serious concerns. The use of tank dips is not accurate because, if the tanker is not leveled, depending on where the rod is dipped, the same results may not be ascertained in terms of the quantity of oil produced on the FPSO.

2. The most serious of the problems is the inability of the Ghana Standards Board to verify the calibrations of all meters – flow meters and production line meters. This means that if the meters have been tempered with, Ghana has already lost substantial quantity of oil. The Ghana Standards Board complains of logistical problems which is unacceptable for a country that says it is ready to produce oil.

3. There is the need to place more than one officer on the FPSO for effective monitoring however the operator is unwilling to allocate additional space. Tullow has no right to deny the Government of Ghana additional space to monitor revenue recollection. The Revenue Commissioner by law can employ any means and enjoys unlimited access to any facility for the purpose of assessing and collecting revenues due the state.

4. The GRA needs to communicate with its officer on FPSO independently, however, currently all communications are through the operator’s facilities. There is therefore the need to obtain satellite phones and independent internet connectivity.

5. Real-time transmission of data from the electronic seals on the FPSO to GRA on-shore centers is not yet fully achieved. This is because the operator is blocking such moves citing interference with its communication systems

 

 

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