A minority urges the government to withdraw the AGM / Aker Energy renegotiated agreement

Company News from Saturday, May 4, 2019

Source: ghananewsagency.org

2019-05-04

The National Democratic Congress (NDP) Minority caucus calls on the government to withdraw the renegotiated oil deal that it has signed with AGM / Aker Energy, explaining that "it is contrary to 39, State interest ".

Describing the renegotiation proposed as "blatant mismanagement of the country's vital national resources," the NDC Caucus called on civil society to mobilize and well-intentioned Ghanaians to oppose it, as it could deprive the citizens.

The minority, led by its leader and MP for Tamale South Haruna Iddrisu, at a press conference at the House of Parliament in Accra, urged the new Patriotic Party (NPP), in power, to negotiate an oil deal. guaranteeing optimal exploitation of the country's oil. Resources.

The press conference, attended by Second Vice President Alban Sumana Bagbin, came a few moments before the House pbaded a motion on a report from the Committee on Mining and Energy on the first amendment of the report. oil agreement regarding the South Deepwater Tano contract.

Mr. Iddrisu recalled that Ghana's 43% stake in the agreement reached in 2013 under the NDC led by John Mahama, between the Government of Ghana, through the Ghana National Petroleum Corporation, On the one hand, GNPC Explorco, and AGM Petroleum Ghana Limited, was to be reduced to 18% under the proposed renegotiated agreement in the current Akufo-Addo-operated nuclear power plant.

"The impact of the sale by the AGA / Aker Energy is huge; a potential loss of more than 250 million barrels of recoverable oil equivalent production (net worth in Ghana), which is close to the size of the entire Jubilee Field, "warned Mr. Iddrisu .

The NDC caucus questioned why the proposed new agreement was hastily adopted by Parliament and described the "renegotiation as a scam", especially since the GNPC has already invested more than $ 30 million to acquire data and reduce the risk of exploration on before the entry of the AGA / Aker Energy in the same block.

"In addition, there is the commitment of the AGA / Aker Energy to pay (or carry) GNPC on the costs of the first two exploration wells that the current government led by President Nana Akufo Addo confiscates.

"This equates to the loss of free funding of about $ 62 million," said Dr. Iddrisu.

Citing Article 268 of the 1992 Constitution of Ghana, the minority leader wondered whether Parliament would obtain the required two-thirds number of deputies in the House to approve the proposed renegotiated agreement.

The provision stipulated that any transaction, contract or undertaking involving the grant of a right or concession by or on behalf of any person, including: the Government of Ghana, to any other person or group of persons, whatever the description thereof, for the exploitation of any mineral, water or other natural resource of Ghana constituted or concluded after the entry into force of this Constitution is subject to ratification by Parliament; The Parliament may, by resolution of at least two-thirds of all Members of Parliament, exempt from the provisions of paragraph (1) of this Article any clbad of transactions, contracts or undertakings.

The GNPC interest rate was 10% against a 10% royalty interest; Additional GNPC interest of 15% and GNPC Explorco: 24%; The minority leader said the existing oil agreement (PA) gave Ghana a potential stake of 43 percent, consisting of deferred and participating interests representing 24 percent of the remaining 75 percent.

He stressed that the new terms of the agreement, which, he said, were hastily presented to Parliament for ratification, provide for a fee: 10%, GNPC interest: 15%; Additional interest of GNPC: 3%; GNPC Explorco: 0%.

"From the above, this renegotiated agreement is a real scam, a betrayal of public confidence in the government of this NPP," said the leader of the minority.

According to the NDC caucus, former Energy Minister Boakye Agyarko rejected a similar request from the Aker Energy Group on the grounds that these terms were detrimental to the national interest and wondered why the current minister. Mr Peter Amewu would accept the agreement, accusing him of doing so for political reasons.

Mr. Iddrisu asked if enough background checks of a one – month company called Quad Company Limited, the local partner, with five actions involved.

"It is clear that it is an attempt by unknown hands to hijack the process and present entities without the required financial and industrial experience," observed the minority.

He called for the rejection of the proposal to renegotiate the AGM / Aker Energy agreement, the renegotiation of the withdrawal for a better deal before its ratification by the House.