The Success Story Of Petroleum Hub Development Corporation

Charles Owusu, Chief Executive Officer of Petroleum Hub Development Corporation (PHDC)

The Petroleum Hub Development Corporation (PHDC) is a State-Owned Enterprise established under the Petroleum Hub Development Corporation Act, 2020 (Act 1053) to promote and develop a Petroleum and Petrochemicals Hub in Ghana.

PHDC is an agency under the Ministry of Energy which commenced its operations in September 2021 with the inauguration of its Board of Directors and the appointment of Charles Owusu as the Chief Executive Officer (CEO).

Following the establishment of the Corporation, steps have been initiated by the CEO and Management to attract investors for the Petroleum Hub Project.

The Corporation has also initiated several activities geared towards the achievement of its mandate and ultimately achieving the President’s Vision of developing a modern, diversified, efficient, and financially sustainable energy economy.

PHDC also aims to support the country to attain accelerated growth and development.

Details:

The Petroleum Hub Project is estimated to cost at least US$60 billion.

The Hub Project is to be a private sector-led investment with the government providing basic amenities such as land, regulatory framework, and other economic incentives.

PHDC is currently developing an Integrated Petroleum Complex which will sit on a 20,000-acre land in the Jomoro Municipal Assembly in the Western Region of the Republic of Ghana. 

It will consist of the following infrastructure including three (3) Refineries with capacity of 300,000 bpsd (minimum) each, five (5) Petrochemical plants with capacity of 90,000bpsd each. There will be ten (10) million cubic metres interconnected storage tanks, jetties and port infrastructure.

Other services

There would be state-of-the-art laboratory for petroleum products, fabrication workshop, metering and calibration services, equipment supplies,  logistics services, remote monitoring & diagnostics, lubricant storage & supply, inspection & certification services.

The Project will be implemented in three (3) phases and expected to be completed in 2036.

Achievements of PHDC

Taking his turn in the documentary produced by the State Interests and Governance Authority (SIGA) on SOE’s, Mr. Charles Owusu, CEO of PHDC said the year 2024 is widely regarded as a period of significant growth, transformation, and strategic impact of the outfit he heads.

He said PHDC is not only fulfilling its mandate of developing Ghana’s petroleum infrastructure but also expanded its influence on the broader energy sector.

The approach of PHDC, he noted, has been characterized by a combination of visionary thinking, a commitment to sustainability, and a focus on international partnerships.

This, he noted has solidified PHDC’s legacy as one of the key architects of Ghana’s petroleum sector advancement in the 21st century. Below are the most notable achievements:

Operationalization of PHDC Office

Upon taking the helm in 2021, Mr. Owusu said management identified the pressing need for a modern, scalable office building.

This, he posited will eventually become one of the achievements of the Nana Akufo-Addo’s government as management plans to successfully complete and operationalise PHDC’s office building in Jomoro.

The office would provide the Corporation with a permanent operational base, improving its capacity to manage day-to-day activities efficiently.

Signing of Phase 1 Investor

One of the most critical achievements under PHDC leadership was the successful signing of the Phase 1 investor in June 2024, securing a total investment commitment of US$12 billion.

This agreement will see the construction of a refinery of 300,000bpsd capacity, one (1) petrochemical plant of 90,000bpsd capacity, three (3) million cubic metres storage tanks, jetty and port infrastructure.

This major milestone marked a pivotal step towards the realization of the Petroleum Hub Project and affirmed investor confidence in the long-term viability of the initiative as more companies both local and foreign have expressed interest in the development of the Hub.

Groundbreaking Ceremony for the Petroleum Hub

In August 2024, the Petroleum Hub Project officially commenced with a groundbreaking ceremony presided over by H.E, President Nana Addo Dankwa Akufo-Addo. This event signified the formal launch of construction activities, setting the stage for the project’s physical development and eventual completion.

Compensation and Resettlement Programme

Following the groundbreaking ceremony, the President instructed the Ministry of Finance to release GH₵ 200 million for compensation and resettlement efforts related to the Petroleum Hub Project.

This allocation of funds was a critical move toward addressing community concerns and ensuring that the project could progress without further delays.

Upon the issuance of the directive, PHDC in collaboration with the Lands Commission and the Land Consultant embarked on a Farm exhibition and validation exercise from 22nd August to the 11th of September 2024 to commence payment of compensation and resettlement.

Out of the total number of 3,019 farmers on album, 2,422 forms were received and validated with 597 exhibition forms remaining.

Innovation, Technology and Sustainability Advanvcement

A core function of PHDC is to provide a ready workforce for the development of the Petroleum Hub.

Through PHDC’s innovation and technological foresight, a Data Repository Portal has been developed to provide investors within the Hub access to a ready workforce.

This is made possible as job seekers who are interested in job prospects in the Hub can simply upload their information onto the portal to be recruited.

The portal will promote and foster transparency and fairness in the recruitment process of the estimated 780,000 workforce for the Hub Project.

 Job applicants can simply access the user-friendly portal either by USSD, Web or Mobile.

Development of a Strategic Plan (2024-2028)

Under the new Management, the Corporation has developed a comprehensive Strategic Plan for the period 2024-2028.

This strategic document outlines PHDC’s long-term goals, operational priorities, and key performance indicators to guide the Corporation’s activities and ensure the successful execution of its mandate.

These achievements reflect the CEO’s dedication to overcoming challenges and driving forward the Corporation’s strategic objectives.

International Partnerships and Economic Impact

Under this new leadership, PHDC has entered into a 5.5million Euro landmark agreement with three Spanish institutions in the Canary Islands, Spain.

This initiative is aimed at training 780,000 skilled, semi-skilled and unskilled Ghanaians in the Petroleum Hub.

The programme involves the University of Las Palmas, the Finnova Foundation, and Casa Africa of the Canary Islands Government—three institutions with notable achievements in the petroleum industry.

This was made possible through the collaborative efforts of Canary Consulting & Trading (CCT) and Aurum Global Partners (AGP).

Legacy of Transformation and Future Prospects

PHDC lays strong emphasis on governance, ensuring that it remains transparent, accountable, and resilient in its operations.

PHDC plans to implement robust corporate governance structures and advocates for anti-corruption measures.

The state agency would by this be reinforcing the corporation’s reputation as a trustworthy player in the global energy market as evidenced in the Corporation’s core values.

Source: Ghana/otecfmghana.com/ Michael Ofosu-Afriyie,  Kumasi.