SML disputes Fourth Estate’s documentary, denounces allegations as misrepresentations

SML, a key player in the petroleum sector, vehemently disputes the claims made in a recent documentary by the Fourth Estate.

FILE PHOTO: An oil storage tank and crude oil pipeline equipment.

The company contends that the documentary is rife with misrepresentations, false claims, and a lack of understanding regarding its operations.

Among the main points of contention, SML challenges the Fourth Estate to produce evidence of a purported 10-year contract, emphasizing that the approved contract duration is five years according to the decision made at the 46th Board meeting of the 5th PPA Board. Additionally, the company strongly denies the alleged annual payment of $100 million, highlighting that its upstream operations have not yet commenced, and no revenue has been realized.

SML defends its engagements with GRA, portraying them as risk-reward contracts where GRA invests nothing in the investment chain. Contrary to the accusations, SML asserts that it is not exempt from duties and taxes, with 31% of its monthly earnings going to GRA as per legal requirements.

The company challenges critics to provide evidence of wrongdoing in its contract arrangements and defends its charging formula as industry-standard. SML asserts its crucial role in the downstream petroleum sector's growth, citing a notable increase in reported figures, rising from an average of 350 million liters per month in 2018 and 2019 to 450 million liters per month as of June 2020.

SML sheds light on its innovative measures, including the installation of ultrasonic flow meters and automatic tank gauging systems to enhance accuracy and efficiency in monitoring petroleum product movements. The company insists that its work provides a crucial foundation for revenue assurance and auditing, benefiting the entire industry.

Despite the controversy, SML takes pride in its skilled technical team, comprising both Ghanaian-trained engineers and experienced expatriates. The team's diverse expertise spans various fields, ensuring a comprehensive approach to technical challenges.

Notably, SML acknowledges the challenges posed by illegal activities in the oil sector, hinting at a larger battle against a cartel involved in illegal trade.

The company positions itself as a crucial player in collapsing such illegal operations and supporting the government's fight against petroleum sector illegalities.

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