$2.3M oil contract dispute between Dram Oil and Alfapetro adjourned to October 13

The Accra High Court (Commercial Division) has postponed the trial of a high-stakes legal dispute between Dram Oil and Trading Limited and Alfapetro Ghana Limited over an alleged breach of a petroleum distribution agreement. The case, which was due to start on June 10, 2025, has now been adjourned to October 13, 2025.

The adjournment follows a request from Alfapetro’s legal team, who informed the court a day prior to trial that lead counsel, Ace Anan Ankomah, was out of the country and unable to appear. 

The request, dated June 9, cited their recent instruction on the matter and asked the court for a new date in early July. However, after in-camera consultations with both parties, the court, presided over by Justice Mavis Akua Andoh, deferred the trial to October.

What’s the Case About?

Dram Oil, the plaintiff, is seeking to recover a total of over $2.3 million (plus interest) from Alfapetro, its former distributor. The amount stems from unpaid under-recoveries and direct sales proceeds allegedly collected by Alfapetro but never transferred as agreed under a 2012 distribution contract.

The suit centers around three main claims:

Tranche 1 Under-Recoveries:

Amount: $887,671.69

Interest: GH¢54,458,449.38 at 46% per annum, calculated from December 2013 to December 2023, with further interest until final payment.

Tranche 2 Under-Recoveries:

Amount: $79,977.26

Interest: GH¢3,767,248.87 at 46% per annum, from April 2016 to March 2024, and beyond until payment.

Unpaid Direct Sales Proceeds:

Amount: $1,325,207.45

Interest: GH¢78,028,214.50 at 46% per annum, calculated from December 2013 to December 2023.

Dram Oil claims these funds—meant to be paid into a designated collection account at UT Bank (now GCB Bank)—were withheld by Alfapetro in breach of their distribution agreement.

How It Started

According to Dram Oil, in 2012, Alfapetro’s Managing Director, Eric Forson, personally appealed to the company’s CEO, Randolph Koranteng, to consider assigning part of their trading business to Alfapetro. This resulted in a distribution contract signed on September 13, 2012, for the handling of 7,100 metric tons of petroleum products valued at nearly $10 million.

Per the agreement, Alfapetro was to handle distribution logistics and collect payments from oil marketing companies (OMCs), with all sales proceeds directed to Dram Oil’s bank account. Alfapetro was to earn a distribution fee of $8 per metric ton, which Dram Oil claims was fully paid.

Despite successfully completing the distribution, Alfapetro allegedly withheld the under-recovery payments made by the National Petroleum Authority and direct sales proceeds from the OMCs—triggering the legal action.

What Dram Oil Wants

Recovery of all outstanding principal amounts and interest

A court declaration affirming Alfapetro’s breach of contract

Payment of accrued interest until the date of final settlement.