Accra: An Accra High Court, Commercial Division, is set to hear the trial concerning an alleged breach of a distribution agreement contract between Dram Oil and Trading Limited and Alfapetro Ghana Limited on June 10, 2025. The case centers on financial recoveries that Dram Oil claims are owed by Alfapetro Ghana Limited under the terms of their agreement.
According to Ghana News Agency, Dram Oil, the plaintiff in this case, seeks a court order to recover USD 887,671.69, or its Ghana Cedi equivalent, from Alfapetro Ghana Limited. This amount represents the principal of under-recoveries allegedly due to Dram Oil, which Alfapetro received from the National Petroleum Authority under the category labeled Tranche 1. Dram Oil asserts that Alfapetro failed to remit these funds as required. The plaintiff also demands interest on the sum, currently calculated at GHC54,458,449.38, based on an annual interest rate of 46%. This interest accounts for the facility interest rate incurred by Dram Oil due to Alfapetro's alleged default, spanning from December 2013 until December 2023.
In addition, Dram Oil seeks to recover USD 79,977.26, or its equivalent, related to Tranche 2 under-recoveries. The plaintiff claims these funds were also withheld by Alfapetro after receipt from the Petroleum Authority. Interest on this amount, calculated at an annual rate of 46%, stands at GHC3,767,248.87. This interest period extends from April 2016 to March 2024.
The legal action further includes a demand for USD 1,325,207.45, or its Ghana Cedi equivalent, representing outstanding direct sales proceeds allegedly owed to Dram Oil by Alfapetro. The associated interest on these proceeds, calculated at the same annual rate of 46%, totals GHC78,028,214.50.
The case dates back to 2012, when Mr. Eric Forson, Managing Director of Alfapetro Ghana Limited, approached Mr. Randolph Koranteng, CEO of Dram Oil, with a request for a distribution contract. Following negotiations, a distribution agreement was established on September 13, 2012, for 7,100 metric tons of petroleum products. Under the agreement, Alfapetro was tasked with distributing the products and depositing all sales proceeds into a specified account at UT Bank. Alfapetro was entitled to a distribution fee of USD 8.00 per metric ton.
Despite the completion of the distribution by early 2013, Dram Oil alleges that Alfapetro, through Mr. Forson, failed to remit the full under-recoveries and direct sales proceeds as stipulated by the agreement. The court proceedings aim to address these claims and determine the financial obligations of Alfapetro Ghana Limited to Dram Oil and Trading Limited.