Dram Oil requires recoveries from Alfapetro Ghana Ltd 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 USD 887,671.69. This amount represents under-recoveries from the National Petroleum Authority. Alfapetro Ghana Limited (the Defendant) allegedly failed to pay this sum.

Dram Oil also requests interest on the $887,671.69 amount. The current interest stands at GH¢54,458,449.38 at a rate of 46% per annum.

This interest includes facility charges due to the defendant's default since December 2013. Payments should have been disclosed and settled by then.

The plaintiff is also seeking $79,977.26 for Tranche 2 under-recoveries. This amount equals GH¢1,023,708.93 based on March 2024 exchange rates.

The defendant allegedly did not pay this sum either. Interest on this amount currently stands at GH¢3,767,248.87 at a rate of 46% per annum.

This interest calculation began in April 2016 when payments were due until March 2024.

Additionally, Dram Oil wants $1,325,207.45 for direct sales proceeds owed to them by the defendant. This amount is based on an exchange rate of GH¢12.8 to USD 1.

Interest on this direct sales sum is currently GH¢78,028,214.50 at a rate of 46% per annum.

The facility interest calculation started in December 2013 and continues until December 2023.

In 2012, Mr. Eric Forson contacted Mr. Randolph Koranteng about a distribution contract for oil trading work.

Based on these discussions, they signed a distribution agreement around September 13, 2012. This agreement involved distributing 7,100 metric tons of petroleum products using a credit facility worth $9,993,529.

The Letter of Credit was issued by UT Bank Ghana Limited as part of a Trade Finance Credit Facility Line.

Under the agreement terms with the defendant, they were responsible for issuing invoices to oil marketing companies provided by Dram Oil.

It was agreed that all sale proceeds would go into a specific Collection Account at UT Bank established by Dram Oil.

The parties also agreed that the defendant would receive a distribution fee of $8 per metric ton distributed with full payments made accordingly.

After signing the agreement in late December 2012 or early January 2013, the defendant completed distribution of the petroleum products purchased by Dram Oil.

However, Mr. Forson allegedly refused or neglected to pay the full under-recoveries received from the Authority as required by their agreement.