Parliament directs Energy Minister to re-negotiate Deep South West Tano oil deal
Parliament has directed the Energy Minister, John Peter Amewu, to re-negotiate government’s amended deal with AGM Petroleum for oil exploration in the Deep South West Tano oil block.
The ministry, per the directive, has six months to return to the house to update it on steps taken to re-negotiate the amended agreement.
The Parliamentary directive came barely hours after the Minority Caucus in Parliament held a press conference on Friday, questioning the decision by the Nana Addo Dankwa Akufo-Addo led government to reduce the Ghana National Petroleum Corporation (GNPC)’s take in the oil block from 10 per cent to three per cent.
Expressing its opposition to the deal, the minority at the press conference, addressed by its leader, Haruna Iddrisu, said the amended deal, as presented to the law making house would reduce Ghana’s stake in the block from 43 per cent to 18 per cent.
The reduction in Ghana’s stake, Mr Iddrisu, the member for Tamale South projected would result in a loss of US$10billion to the state.
Questioning the basis for ceding five per cent to Quad Petroleum, a company said to be registered only last year, as a local partner, Mr Iddrisu demanded to know “who is benefiting from this five per cent local content?”
After returning from a three-hour suspension to continue with business and a series of consultation between the leadership of both sides of the House and the Speaker of Parliament, the House agreed to approve the deal if returned in six months amendment to shore up Ghana’s interest.
Chairman of the Energy Committee and Member of Parliament for Odotobri, Emmanuel Akwasi Gyamfi, reading out the amended report of the Committee said the decision to direct the minister and the ministry to renegotiate the oil deal was in the interest of the country.
“The Committee expressed concern to reduce the total interest of the GNPC in the (oil) block under consideration especially considering the GNPC’s long held vision of becoming an independent oil operator.
“The Committee under the circumstance recommends to the House to request the Minister to renegotiate and increase the GNPC’s interest from three per cent to 10 per cent.
“The Committee recommends that the Minister of Energy, together with Patrica (mother company of AGM Petroleum and AKER Energy), should facilitate the resolution of the issues,” Mr Gyamfi said.
The issue of Aker Energy and the South Deepwater Tano Contract Area came to the fore a fortnight ago when policy think tank, Imani Africa, claimed that Ghana could lose as much as US$ 14 billion if it did not take steps to renegotiate the deal.
The government, however, in a rebuttal said Imani was misinformed on the matter.
Energy Minister, Peter Amewu, clarifying the issue said the Petroleum Agreement covering the DWT/CTP contract area operated by Aker Energy was executed on February 8, 2006, between the Government of Ghana – GNPC, AMERADA HESS Corporation, Lukoil and Fueltrade subsequently farmed in 2015.
The government of former President John Dramani Mahama first entered into the agreement with AGM Petroleum in 2013 despite objection from the Africa Centre for Energy Policy (ACEP), an organisation thought to be sympathetic to the opposition New Patriotic Party at the time.
BY JULIUS YAO PETETSI
