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The Africa Center for Energy Policy (ACEP) has called for a review of contracts that are given to companies mandated to drill oil in the country.

According to the Executive Director of the Centre, Mr Benjamin Boakye, such a move is necessary as most companies that have signed contracts with Ghana after its oil discovery have failed to deliver on their agreements with the country.

ACEP also said some of the companies had refuge in the preliminary ruling of the International Tribunal for the Law of the sea (ITLOS) which placed injunction on field operations in the disputed area until the determination of the case between Ghana and Ivory Coast.

Those companies outside the disputed area also significantly failed to deliver on their obligations.

According to Benjamin Boakye all such contracts must be reviewed and cancelled where necessary.

“The petroleum contracts define how the industry is shaped, they define investments in the sector, because we do not have the money to produce oil ourselves we end up encouraging and inviting foreign participation with regards to the contract”, he stated.

Mr. Boakye was of the view that companies that fail to deliver on their contracts must have their contracts terminated.

“So we propose to the ministry that on the back of that information that some companies are just sitting on the oil blocks they need to invite them and see whether they can renegotiate the processes and cancel the contracts of those that cannot do the work”.

Meanwhile Chief Executive Officer of the Chamber of Bulk Oil Distributors, Senyo Hosi stated that it is important that the oil resources are properly utilized to get the best economic benefit out of it.

“We need to come up with a proper formula that can enable us attract the right investors, the loan that we take to develop our resources. For you to really maximize the economic situation you have to optimize the economic resources and the resources are not being optimized. People do not have technical capacity, people do not have financial capacity”

He added, “There is the need for increased accountability in the entire chain and those companies that did not abide by the contracts must be dealt with”.