Parliament approves controversial AG contract

Company News from Saturday, May 4, 2019

Source: 3news.com

2019-05-04

The minority concerns in Parliament regarding the AGM Petroleum Limited contract, which has been called a "sale", were ignored as the house approved the revised contract.

The crucial decision to accept the recommendations of the Parliament's Mining and Energy Committee was taken by a vote by the Speaker, Professor Aaron Mike Oquaye, on Friday night.

A few hours after approval, the minority told reporters at a press conference that the new deal would see the country's share in the oil contract reduced from 43% to 18%.

Haruna Iddrisu, leader of the minority, told the media that the deal would cost Ghana about $ 10 billion. After a first evaluation of the contract, it is not in the interest of the state and must be withdrawn.

"We, minority, believe that this negotiated agreement is a total sale, especially as it is proven that the GNPC has invested more than 30 million euros to acquire data and reduce the risk of exploration on the whole surface, "he said.

Even the Mining and Energy Committee was divided when it sat in chambers to review the contract. This was evident in the recommendation report presented to the august house. He admitted that his conclusion was not unanimous but by a "majority decision".

AGM Petroleum is part of a consortium, AGR Gibraltar, consisting of Minexco (OGG) Inc. ("Minexco"), AGR Energy AS ("AGR") and MED Songhai Developers Limited.

The approval of the amendment by the Parliament means that the oil block of the AGM covering the South Deepwater Tano contract area will be handed over to Aker Energy.