Dram Oil requires recoveries from Alfapetro Ghana Limited in alleged contract breach  

An Accra High Court will hear a case on June 10, 2025. The case involves Dram Oil and Trading Limited and Alfapetro Ghana Limited.

Dram Oil (the Plaintiff) seeks to recover $887,671.69 from Alfapetro Ghana Limited (the Defendant). This amount represents under-recoveries from the National Petroleum Authority. The Defendant allegedly failed to pay this sum to the Plaintiff.

Dram Oil also requests interest on the $887,671.69 amount. The current interest stands at GH¢54,458,449.38 at an annual rate of 46 percent. This interest calculation includes facility interest due to the Defendant's default since December 2013.

The Plaintiff claims another recovery of $79,977.26 from Tranche 2 under-recoveries. This amount is equivalent to GH¢1,023,708.93 based on March 2024 exchange rates. The Defendant allegedly did not pay this sum either.

Interest on the $79,977.26 is currently GH¢3,767,248.87 at a rate of 46 percent per annum. This also includes facility interest incurred since April 2016 when payments were due.

Dram Oil seeks an additional recovery of $1,325,207.45 for direct sales proceeds owed by the Defendant. This amount is calculated as GH¢78,028,214.50 in current interest at a rate of 46 percent per annum.

The facility interest calculation started in December 2013 and continues until December 2023 when the Amended Writ was issued.

In 2012, Mr. Eric Forson contacted Mr. Randolph Koranteng about a distribution contract for oil trading work with Dram Oil (the Plaintiff). Following discussions between them, they entered into a distribution agreement on September 13, 2012.

This agreement involved distributing 7,100 metric tons of petroleum products imported by Dram Oil using a credit facility worth $9,993,529 from UT Bank Ghana Limited.

Under this agreement, Alfapetro was responsible for issuing proforma invoices to oil marketing companies provided by Dram Oil and paying all proceeds into a specific Collection Account at UT Bank.

The parties agreed that Alfapetro would receive a distribution fee of $8 per metric ton distributed and that full payments were made to them.

After executing the agreement in late December 2012 or early January 2013, Alfapetro completed distributing the petroleum products but allegedly failed to pay under-recoveries received from the Authority as required by their agreement with Dram Oil.

Source: GNA