The Petroleum Hub Development Corporation (PHDC) has given assurance to investors of a 100% tax exemptions and other benefits aimed at encouraging investment in the sector.
The CEO of PHDC, Charles Owusu said there are several advantages that have now been put into effect by law for the purpose of protecting and ensuring the profits of investors.
Speaking at this year’s Offshore Technology Conference (OTC) in Houston, Texas, Owusu said, “the PHDC has been declared a free-zone enclave and thus there will be incentives such as 100% tax exemption on duties and levies, exemption on corporate income tax for 10 years and thereafter, will not exceed 15%, total exemption from payment of withholding taxes from dividends arising from the petroleum hub and no restrictions on repatriation of funds.”
Also, he added that “Ghana is a strategic destination for investments as it is the headquarters of the African Continental Free Trade Area (AfCFTA) with a market potential of over 1.3 billion people and combined Gross Domestic Product (GDP) in excess of US$3 trillion.”
Investing in Projects
In an engagement with prospective investors, Owusu further outlined the various phases in the development of the Petrochemical and Petroleum Hub situated in Jomoro, Ghana.
Indicating that an estimated US$60 billion will be invested into the hub by completion.
“The key infrastructure of the hub will include but not be limited to Refineries, Petrochemical Plants, Storage Tanks and Jetties & Ports Infrastructure,” he said.
Elaborating on the phases, he said there’ll be “the construction of 3,000,000m3 storage tanks, construction of jetty and port infrastructure, the construction of one refinery of 300,000bpsd, the construction of one petrochemical plant and development of ancillary and social amenities for phase one.”
“Phase two will have the construction of one refinery of 300,000bpsd, construction of two petrochemical plants, construction of additional 4,000,000m3 storage tanks, LNG onshore infrastructure.”
According to him, “phase three will have the construction of additional one refinery, construction of two additional petrochemical plants, additional 3,000,000m3 of storage tanks and development of social amenities,” he said.
Owusu added that he is convinced that Ghana’s geographical location could be leveraged to produce and supply liquified natural gas (LNG) and other petroleum and petrochemical products to Europe even in the wake of recent developments in the world geopolitics involving Russia, to bridge the resulting supply gap.
Offshore Technology Conference
The Offshore Technology Conference (OTC) is an annual conference that gives media exposure to over 300 journalists from around the world and gives the opportunity to network with over 60,000 energy professionals from more than 100 countries who are themselves or representatives of prospective investors of the Hub.