Comprehensive  Ghana Oil and Gas news, information, updates, analysis


NEWS

Oil & Gas fund to raise GH¢50 million for Ghanaian Companies

A fund solely dedicated to supporting companies in the oil and gas industry will be launched in June this year, and seeks to raise GH¢50million.

Licensed by the Securities and Exchange Commission (SEC) and managed by Weston Capital, a local private equity and investment-advisory firm, the Weston Oil and Gas Fund will focus on investing in majority-owned Ghanaian companies that provide services to the oil and gas industry.

At 20 pesewas per share, the fund promises to give retail investors with as little as GH¢50 the opportunity to directly invest in the burgeoning oil and gas sector.

The fund will target companies that provide services such as engineering, transportation and catering to oil producers as well as refiners and oil-marketing companies.

Chief Executive Officer of Weston Capital Frederick Ofori-Mensah said the fund will position itself to become a specialist financier for SMEs participating under the local content provisions in the sector, with the sole aim of transforming such companies and eventually helping them list either on the Ghana Alternative Exchange (GAX) or the main Ghana Stock Exchange (GSE).

“We want to reignite the ordinary Ghanaian’s interest in the sector — which at this point has rapidly dwindled over the past few years; we also want to enhance the participation of indigenous companies by helping them access funding that is relatively cheaper and patient.”

State-owned Ghana National Petroleum Corporation (GNPC) says it will invest US$20billion with its partners, including Tullow Oil Plc and Anadarko Petroleum Corp., in the next 10 years to boost production at its offshore fields to 500,000 barrels from about 100,000 barrels currently. Tullow operates the country’s Jubilee oil field.

The Weston fund will help deepen Ghana’s mutual funds market, Adu Anane Antwi, Director-General of the Securities and Exchange Commission (SEC) said. “As a specialty fund with a focus on the oil and gas industry, it creates an avenue for every Ghanaian to invest in the oil and gas sector.”

Mr. Ofori-Mensah said that Weston’s agenda was driven by the unavailability of an investment vehicle that enables indigenous Ghanaians (retail/institutional investors) to invest indirectly in the oil and gas sector.

“Upstream exploration activities require hundreds of millions in capital, and the downstream set-up takes several millions to succeed. In line with Weston Capital’s value proposition to bring innovation to the financial market, this mutual fund has been set up to improve on the product base within the mutual funds space.

“The other side of Weston’s agenda is actively contributing to the local content agenda by helping to alleviate the financing challenge indigenous companies participating in the sector are facing.”

He emphasised that the complexities of the risk profiles for companies participating in the sector make it slightly unattractive even for mainstream commercial banks.

Source: BFT

Get the latest news and updates on Ghana’s oil and gas value chain by following us Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.

Profile photo of Editor
Follow Us

Editor

Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
Profile photo of Editor
Follow Us

Share this article

Leave a reply

Personality of the Month
  • Prof. Thomas Mba Akabzaa Chief Director of Ministry of Petroleum          …
Follow Us Online
Join the Discussions

Summary: Revenue mobilization from the oil sector for Agricultural production in Ghana, a myth or reality?

Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992…

Responses Add your response


About Us
Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
Events Calendar
<< Aug 2017 >>
MTWTFSS
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar