Yes Energy Experts and other Interest Groups like IMANI and PIAC have opined that Ghana stands to lose over $10billion dollars in this rip off Petroleum Agreement.
Well let me bring you a summary of the revenue losses and why we believe it could be more.
1. ITLoS Arbitration Cost
Between 2015-2017 Ghana was at the ITLoS over a territorial boundary dispute which Ivory Coast was claiming territorial powers over SDWT area(where the AGM block is)
Ghana had to put together a legal team of about 20 Lawyers led by the Attorney General and other experts from GNPC.
It also had to constitute an international legal consultant and other known international experts in the field of territorial litigations.
It is estimated that between the 3 years arbitration period, Ghana spent over $5million on this litigation.(the cost of 40 highly specced ambulances)
So we spent the Country’s money to fight for the resources only to give it away freely to an external entity?
2. Explorco Carried interest Losses of $30million
When Aker AS was leaving Ghana in 2015, they were compensated for the seismic and well data development by GNPC with $30million.
This was carried in the 24% stake given to Explorco in the AGM block.
Now if the government is downgrading Explorco’s interest to zero, then the least Aker Energy should be paying before negotiations even start is $30million.(Mind you Aker AS is the same as Aker Energy)
Failure to retrieve the $30million will constitute a financial loss of about $30million to State.
3. Revenue Potential of the Oil rich SDWT basin.
These wells being dished out to Aker freely are the most oil-rich wells we have currently as a Country according to geophysicists.(why do you think Ivory Coast was claiming that area as part of their boundaries)
The SDWT basin has huge oil and gas potential and has the potential to fetch GNPC over $300million annually for a period of 15years before production declines.( that is if the current stake of GNPC and Explorco is maintained)
Any smart government seeing this revenue potential will want to increase it’s interesting so that they can get more money to fund the Free SHS program and not to reduce the interest rather.
4. Act 919 waiver Losses
The New Petroleum law Act 919 gives specific indications to the Exploration and Production Companies in a Petroleum Agreement to pass all their revenues through the bank of Ghana before onward redistribution into the accounts of the various entities.
This huge supply of dollars regularly to BoG was to improve the liquidity of BoG and also to shelve our exchange rate.
ExxonMobil fought and this clause was waived for them in another shambolic deal which Ghana is likely to loose over $5billion dollars within the contract period.
Now we have waived this clause for Aker also.
The exchange rate losses alone on this particular deal cannot even be quantified over the contract period.
This is really shameful…
But i don’t understand ooo, how can Parliament approve a deal and ask the minister to go and renegotiate?
Couldn’t Parliament have asked the Minister to go and renegotiate the deal and bring it back before approving it?
What was the rush?, what’s the emergency in selling the nation off?
Ei Ghana Parliament paa de3…Rubber stamp paa..
If Ghana was their private company would they approve this deal before they see any proper amendment of this rip off deal?
What do you think about the current Parliament?
Feel free send me a feedback on info.thompson.live@gmail.com
Mensah Thompson
Executive Director
ASEPA
0542120628
