$ 95 million spent between 2013 and 2016 without a productive oil well – Deputy Minister

News from Tuesday, April 30, 2019

Source: thebftonline.com

2019-04-30

Dr. Mohammed Amin Adam, Deputy Minister of Energy in charge of Petroleum, said that a total of 95 million US dollars had been spent between 2013 and 2016 for drilling oil wells, but none resulted in the discovery of crude oil in commercial quantities.

He said 13 oil contracts had been signed between the previous government and oil investors, with US $ 880 million earmarked for exploration work.

The deputy minister said it was for this reason that the ruling government, the new patriotic party, decided to change its strategy and continue aggressive explorations to increase the country's oil reserves and production before that the Jubilee deposit is exhausted.

Dr. Adam made this revelation at a press conference in Accra, in response to some of the concerns expressed by IMANI Africa, a policy think tank, about alleged allegations or omissions and / or Government's share of the Aker Energy Oil Agreement.

"All of the oil discoveries in Ghana were oil contracts signed under President J. A. Kufuor's government and those signed from 2013 to 2016 – representing the largest number of oil contracts signed by the Government of Ghana; as I speak, no wells have been drilled, "he said.

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This, he said, will increase the country's oil revenues – to accelerate the development of its infrastructure and improve the well-being of the population.

The deputy minister said the country held a net share of 55 to 60 percent of oil in the DWT / CTP oil bloc, as agreed in the oil deal with Aker Energy.

On Thursday, April 25th, IMANI Africa, a policy think tank, in a rights advocacy program, raised concerns over various omissions and / or government commissions regarding the Aker Energy Development Plan. covering the Tano / Cape in deep water. Three Points Contract Area (DWT / CTP).

Responding to the reasons why the Ghana National Oil Corporation (GNPC) failed to acquire the 10% stake in the DWT / CTP block in 2015, Mr. Adam said that, although funds have been allocated to this end, the management of GNPC did not seize the opportunity.

As a result, when Aker Energy acquired HESS's participation in the DTP / CTP, the country lost the opportunity to acquire the 10% stake.

In addition, the GNPC management had used the funds provided for this purpose to secure the agreement with Karpower and other transactions outside its mandate.

Mr. Adam called for research on the reasons that motivated the GNPC to use the funds for the 10% participation in the guarantee of the Karpower project.