EFFECTIVE PETROLEUM COST MANAGEMENT KEY TO SECTOR’S SUSTAINABILITY – MODEC BOSS
The Chairman and Managing Director of MODEC Production Service Ghana JV Ltd, Mr. Theophilus Nyarko Ahwireng, has emphasized the critical importance of effective petroleum cost management in ensuring the sustainability of the sector. Speaking at a public lecture organized by the College of Engineering at Kwame Nkrumah University of Science and Technology (KNUST), Mr. Ahwireng argued that proper cost management is more vital to the sector’s success than the discovery of petroleum resources itself.
“The management of petroleum costs is far more important than its discovery,” he asserted. “Without proper cost management, we may witness advanced technology extracting oil offshore, but the revenues generated will merely cover operational expenses, leaving the nation with little to no benefit.”
The lecture, themed “Capturing the Optimum Value of Petroleum Resources: Looking Beyond the Fiscal Elements,” explored strategies for maximizing the value of petroleum resources. Mr. Ahwireng emphasized that resource-rich nations must look beyond government revenue shares and establish robust frameworks to fully harness their natural wealth.
“To unlock greater benefits from petroleum resources, nations must first conduct a comprehensive review of their economic structures,” he explained. “This foundation is essential for identifying pathways to sustainability. It is equally critical to analyze the profile of discovered resources. Understanding what you have is the first step toward leveraging it effectively.”
Mr. Ahwireng highlighted the transformative potential of petroleum resources, drawing comparisons with countries like Nigeria, Norway, and Singapore. He noted that these nations have demonstrated how strategic resource management can reshape economies and impact future generations.
The MODEC boss stressed the need for clear mandates for state actors, emphasizing the importance of alignment among revenue managers, resource managers, and policymakers. He argued that this alignment is critical to ensuring that the benefits of petroleum resources are maximized and that the sector contributes meaningfully to the nation’s development.
As Ghana continues to explore its petroleum resources, Mr. Ahwireng’s emphasis on effective cost management and strategic resource management serves as a timely reminder of the importance of getting it right. By prioritizing proper cost management and establishing robust frameworks for resource management, Ghana can unlock the full potential of its petroleum resources and ensure a sustainable future for generations to come.http://knustnoticeboard.info