IMANI's analysis of the Aker Energy deal was weak – Government

General News on Friday, April 26, 2019

Source: ABCnewsgh.com

2019-04-26

The government has vigorously defended its controversial deal with Aker Energy over the past 48 hours, ABC News Ghana observed.

Imani Ghana announced on Thursday that the government had lowered its guard and that it was likely to lose $ 30 billion in an agreement concerning Aker Energy.

The political think-tank that also carved out a niche slot claimed that Dr. KK Sarpong, CEO of GNPC, was reaping some of the benefits from Aker Energy's local partners, suggesting a case of conflict. # 39; interests.

Dr. KK Sarpong denied the charges and asked for a public apology and a retraction.

In a statement to the press, the government defeated IMANI Ghana's badysis that led them to the conclusions they reached.

Energy Minister Peter Amewu insists that Ghana benefits from the agreement and that the government protects the country's interests.

"This highlights the weaknesses of IMANI's badysis and its poor understanding of the oil economy. The 450 million barrels of oil equivalent are gross contingent resources, which are the potential resources available that can not all be recovered with current technology. IMANI wants us to believe that every 450 million barrels of oil equivalent will be produced, but fails to explain how this can be, "said John Peter Amewu.

Read the release details in possession of ABC News Ghana.

IMANI gaffed; Ghana wins rather in agreement with Aker Energy.

The government said the IMANI political think tank had made a blunder by seeking to challenge parts of the contractual agreement between the Ghana government and Aker Energy.

During a recent outreach program, IMANI challenged various acts of omissions by the Government of Ghana with respect to the development plan submitted by Aker Energy and on behalf of all contracting parties to the company. 39. Petroleum Agreement (AP). covering the Deep Water Tano / Cape Three Points contract area (DWT / CTP).

At a press conference in Accra, Energy Minister John Peter Amewu called IMANI's claims of total lies.

In providing some basic information on the agreement, Amewu said that the PA covering the DWT / CTP contract area operated by Aker Energy had been executed on 8 February 2006 between the Government of Ghana – the GNPC, AMERADA HESS Corporation, Lukoil and FUELTRADE. in 2015.

He revealed that Fueltrade's stake was set at 2% and that it was paying about 9 million USD with a performance guarantee of 2 million USD.

"The contract area has 7 discoveries, namely north pecan, almond, cob, beech, pecans, paradise and hickory north. The first five are oil discoveries, while Paradis and Hickory North are gas discoveries. Aker Energy acquired the participation of AMERADA HESS Ghana Limited in February 2018 and continued unfinished work as part of the HESS evaluation program, "he added.

Is GHANA DRILLING 30 BILLION DOLLARS

The energy minister blamed Imani for misinforming Ghanaians about a $ 30 billion potential loss for the country if the government failed to negotiate a new oil deal.

"IMANI has been trying to warn Ghanaians of the potential loss of $ 30 billion for the country if the government fails to negotiate a new oil deal with new terms with DWT / CTP partners. It's absolutely wrong, "he said.

Amewu revealed that Aker Energy, on behalf of its partners, had announced, after a successful badessment of the discovery of the Pecan deposit, a significant oil discovery, as illustrated below. As a result, it is estimated that the existing discoveries contain gross contingent resources (2C) of 450 to 550 million barrels of oil equivalent.

How did IMANI badess the land at $ 30 billion?

Questioning about the value of the field to $ 30 billion, the Energy Minister told IMANI simply multiplied the alleged price of $ 65 per barrel by 450 million barrels.

"This highlights the weaknesses of IMANI's badysis and its poor understanding of the oil economy. The 450 million barrels of oil equivalent are gross contingent resources, which are the potential resources available that can not all be recovered with current technology. IMANI wants us to believe that every 450 million barrels of oil equivalent will be produced, but fails to explain how that can be, "said Amewu.

He added, "In Ghana, our average crude oil recovery rate is 25%. At this rate, the value of the fields will be estimated at $ 7.3 billion baduming a price of $ 65 per barrel. We are working with Aker Energy to improve the oil recovery mechanism to achieve a recovery rate of 40%, which will be the highest in the history of oil and gas in Ghana, with a value of 11.7%. billions of dollars. This will be a significant gain for Ghana and its partners. "

He announced that the new oil deal proposed by IMANI was unfounded because the work done by Aker Energy was part of an badessment program based on the existing oil agreement.

"As a country, we act under the laws governing petroleum agreements. Therefore, any oil discovery, once produced, will be shared in accordance with the terms of the applicable oil agreement, "Amewu said.

In his final briefing, the Minister denied Imani's allegations that Fuel Trade would belong to the General Manager of Ghana's National Petroleum Authority, Mr. K. K .. Sarpong and his family.