About $100m Required to Settle Petroleum Hub Land Claims – Tony Aubynn

The Chief Executive Officer of the Petroleum Hub Development Corporation, Dr. Tony Aubynn, has revealed that about $100 million will be needed to compensate landowners affected by the Petroleum Hub project.

He noted that compensation is a major component of the land acquisition process for the initiative, which forms part of the government’s broader plan to establish Ghana as a leading petroleum and petrochemical hub in the sub-region.

Dr. Aubynn made this known during a media interaction following a strategic meeting between the Corporation and Civil Society Organizations. He explained that although Ghana’s laws require compensation, the payment may not be made in a single tranche, as government is exploring other payment models to ease financial pressure and ensure long-term sustainability.

He added that the Minister of Energy and Green Transition, along with other key government actors, is working on a suitable framework to begin the compensation process in line with legal obligations.

“Due to the reduction in the land size, we need to re-calculate the compensation amount. We are looking at around GH¢800 million to GH¢900 million, which translates to about $100 million,” he said.

He further indicated that President John Mahama has questioned the delay in releasing the funds, prompting the minister to take steps to address the challenges holding back the payment.

While he could not specify when the compensation will be fully executed, Dr. Aubynn assured that efforts are ongoing to create a sustainable model that allows phased payments. “You don’t have to pay everything at once, but there must be a structured plan that ensures the compensation is delivered,” he stated.

Dr. Aubynn also disclosed that President Mahama has approved a reduction in the total land area for the project from 20,000 acres to 13,000 acres, approximately 5,000 hectares. This adjustment is expected to impact the compensation cost and guide the future land development strategy for the hub.

The Petroleum Hub project aims to attract major investments into refining, petrochemical production, storage facilities and other related infrastructure. Establishing a fair compensation system is considered a crucial step toward unlocking the project’s full potential.