The Ministry of Energy has assured the Russian energy company, Lukoil following concerns about being sidelined in the Ghana National Petroleum Corporation’s (GNPC) intended acquisition of stakes in Aker Energy and AGM Petroleum Ghana.
In a letter to the Energy Minister, Lukoil stated it has not been aware of and engaged in discussions of its partners to sell the stake and change the operatorship, despite it being one of the main partners in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana, with a 38 percent Licence Interest and a 42.22 percent Participating Interest.
Responding to the letter, the Energy Ministry said, “We wish to formally acknowledge your comments regarding the proposed transaction between Aker Energy/AGM and GNPC and to reiterate our appreciation of the long-standing relationship with Lukoil.”
“We can confirm that GNPC has the necessary financial backing and technical competence to acquire the stakes under discussion and to participate in the operator company, which will remain unchanged.”
The Ministry alleviate the oil company’s fears that the project execution and schedule will be put at significant risk by the proposed transaction.
“On the contrary, at the successful completion of the transaction, GNPC Explorco will become a 40% shareholder in the operator Joint Venture Company. As such, there will be no resignation or change of operator.”
The Ministry of Energy further revealed that the acquisition transaction is still at its early stages and currently under negotiations, affirming that Lukoil and Fueltrade will be engaged at the appropriate time.
“It is expected that at the appropriate time, Aker Energy Ghana Limited and GNPC will engage with Lukoil and Fueltrade in accordance with the JOA.”
The GNPC wants to acquire stakes in two oil blocks – a 37% share in the Deep Water Tano/Cape Three Points (DWT/CTP) operated by Aker Energy and a 70% stake in the South Deep Water Tano (DWT/CTP) field operated by AGM Petroleum.
The deal, according to the Ministry of Energy, will result in the formation of a joint operating company with Aker Energy, AGM, and GNPC Explorco, the operating subsidiary of the state oil company, as partners.
The GNPC is counting on Norway’s Aker and the United States’ AGM to build the muscles of GNPC Explorco, to become a profitable operator–exploring and drilling oil.
GNPC has already secured Cabinet approval and is seeking a $1.65 billion loan.
In view of this deal, the Alliance of civil society organizations working on Extractives, Anti-corruption and Good Governance has warned that Ghana will be short-changed if the government goes ahead to fork out $1.65 billion for shares in two oil blocks.
The company has justified the deal, asserting such a partnership with the two entities is crucial due to the exiting of oil majors from the country.
GNPC indicated it needed to build its capacity and take up a substantial part of the exploration activities before Ghana’s oil reserves hit a level of terminal decline.