Petroleum expert, Tsatsu Tsikata has stated that Ghana can only consider a hedging policy for its crude oil if it has the required capacity and well trained people to implement the policy.
Ghana's hedging policy requires trained men and capacity - Tsikata
Government abandoned plans to hedge the country’s crude oil exports in July this year following renewed optimism that prices of crude oil will rebound after a slump earlier in the year.
Hedging enables a buyer to purchase oil at an agreed price in future by paying a premium now to international insurance and oil companies based on a predetermined maximum rate.
Speaking in an interview on Starr FM, Mr. Tsikata said “hedging is an important instrument which requires trained capacity. Hedging should also be seen as a long term, consistent and structured activity. I think we should look at hedging in a more comprehensive light”.
Mr. Tsikata further said that even though Ghana is on track with its management of the oil sector, a lot more is required to totally avoid the difficulties other countries have been hit with in their handling of the sector. He also praised Nigeria’s President Muhammadu Buhari, for bringing some sanity into the country’s oil sector.
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