Alex Mould raises concern over Aker’s resubmitted strategy

Alex Mould, a former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), has expressed misgivings about the entire integrated Plan of Development (PoD) resubmitted by Aker Energy in relation to the Pecan oil field.

“Per the resubmitted PoD, Aker Energy wants the government to allow them to continue exploration after their exploration period has ended and retain oil fields not covered under PoD, which should be relinquished as per the Petroleum Agreement.

“The energy and finance expert also disclosed Aker were seeking to let any development in the future of the unrelinquished fields, be subjected to same poor economic terms to the government, instead of applying for a new agreement which will increase the government’s equity share by 100 per cent,” Mr Mould bemoaned.

Speaking at the maiden Oil and Gas Conference held at the University of East London in the United Kingdom on Tuesday, he noted that Aker Energy wanted to have all exploration, appraisal and development costs of the unrelinquished fields to be charged to the Pecan oil field thereby reducing the government’s revenue and also extending term of Agreement by 4 years to July 19, 2040.

Mr Mould indicated that instead of going through the processes of tendering for sub-contracts, which was used for TEN (Tullow) and SGN (eniGhana) from 2012 to 2016, the Ministry of Energy and Petroleum Commission were in the process of approving contracting strategy, “the Alliance Model in the PoD” which was against current laws and regulations of upstream petroleum sector.

“This will give Aker Energy sole right to go ahead and give out major contracts worth over $3 billion, without tendering, using so-called Alliance Model where only existing, preferred foreign vendors who have global contracts with Aker Energy will be given major contracts.

Reacting, the Minister of Energy, Peter Amewu, who was also at the conference, confirmed terms Aker was asking for in resubmitted PoD and would refuse approving PoD should Aker Energy insist on charging cost of exploration and development of other discovered fields and prospects in the block to Pecan development. -3news.com