The renegotiated agreement between AGM and Aker Energy stinks; withdraw now – NDC deputies to the government

General News of Saturday, May 4, 2019

Source: kasapafmonline.com

2019-05-04

The parliamentary group of the National Democratic Congress (NEC) of minorities calls for the immediate withdrawal of the renegotiated AGM / Aker Energy oil deal, which is currently under review and approval by the House.

According to NDC deputies engaged in a crusade against the new agreement since yesterday, the renegotiated oil deal will not benefit Ghanaians and the sooner it will be withdrawn, the better.

According to them, the country's participation in the initial agreement, negotiated by the previous government, led by Mr. John Dramani Mahama, has been reduced by 25% in favor of Aker Energy, the new owner of the oil bloc .

At a press conference in Parliament on Friday, May 3, 2019, the minority leader, Haruna Iddrisu, revealed that 5% of the new agreement covering the South Deepwater Tano contract area had been awarded to a local company unknown, Quad Petroleum, which was registered on April 10, 2019.

According to NDC MPs, Quad also started operations on the same registration date, raising doubts about the technical and financial capacity of the local oil company.

The action of the Akufo-Addo-led government makes it clear that they have ceded Ghana's oil interests to foreign hands.

"Instead of protecting public finances and ensuring that citizens take advantage of the country's oil resources, the current government has proven beyond a reasonable doubt that it is more concerned with protecting foreign interests in the country. detriment of collective national interests, "he noted.

He added: "… rather than improving or maintaining the original agreement signed between the Government of Ghana (GNPC), GNPC Explorco, the Akufo-Addo Government has shamefully reduced Ghana's participation by 43% at 18%, which represents a 58% reduction. The impact of the "sale" of the AGA / Aker Energy is enormous; a potential loss of more than 250 million barrels of recoverable oil equivalent production, almost the size of the entire Jubilee deposit. "

For the minority group, the renegotiated agreement is a scam, all the more so as the PNB has already invested more than 30 million US dollars in data acquisition and risk reduction. Exploration on the block, thus making it attractive before the AGM / Aker Energy entry. in the same block.

Context

The previous NDC-led government negotiated and signed the South Deepwater Tano contract area with AGM Petroleum Ghana Limited with Ghana, with the following participation:
– Fee: 10%
– interest paid by GNPC: 10%
– additional interest of GNPC: 15%
– GNPC Explorco: 24%

The existing oil agreement gives Ghana a potential stake of 43%. composed of 25% owned and participating shares and a 24% commercial interest of the remaining 75%.

However, in accordance with the renegotiated agreement presented to Parliament for ratification, Ghana's interest is as follows:
– Fee: 10%
– interest paid by the GNPC: 15%
– additional interest of GNPC: 3%
– GNPC Explorco: 0%
– improved tax breaks.

According to the minority. "This renegotiated agreement is a real scam and betrayal of public trust in the government of this NPP."

They do not see why the government is determined to ratify the renegotiated agreement when a request from the AGM Energy Group in this regard was rejected by the former Minister of Energy , Hon. Boakye Agyarko.