The Petroleum Commission has secured permit from the Bank of Ghana to set up a fund to support local oil companies.
The oil exploration fund, expected to be operational by the end of the year, will among other things provide financial support for local oil companies to help them remain competitive among international oil companies.
Currently, funding has become a major challenge for local oil companies as the banks are hesitant in giving loans to these local companies.
The Commission, established in 2011, is the regulator of Ghana’s upstream petroleum sector and is mandated to regulate, manage and co-ordinate all activities in this sector for the overall benefit and welfare of Ghanaians.
Speaking to 3FM Business on the sides of a workshop organized by the Petroleum Commission for journalists, Director of Special Services at the Commission Kwaku Boateng, said account has already been created for the fund.
“The account has already been created and we have the approval from the Bank of Ghana to go ahead. We want to set up this fund to support local companies who have challenges with funding”, he stated
He disclosed that the source of revenue for the funding will be the percent levy set aside on oil contracts.
The media workshop was to engage the media on the operations of the petroleum commission and its contributions to the economy and oil production in the country.