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According to him some of the figures the CSOs are quoting to back their disapproval of the deal is erroneous and very unfortunate.
In an exclusive interview on Accra based Citi TV, Dr. Sarpong said the deal is in the long-term best interest of Ghana.
“We are not buying the two blocs at US$ 1.3billion. We have not said so. What the Minister requested was the mandate that he can go and negotiate within that limit. But parliament after consideration said it will give a limit of US$ 1.1billion for acquisition. Even that is not conclusive; maybe they can beat it and see if people will play ball", he said.
“So we have to correct that impression that a price has been determined. That is not the case, we are in the process to go and discuss and negotiate and agree on the price. Parliament in its wisdom has set the cap that we should not go beyond. I want to commend parliament for giving the Minister a threshold. So that perception that a price has been determined is erroneous."
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GNPC has sought parliament’s approval for a loan of US$ 1.65 billion to acquire a 70% stake in the South Deep Water Tano (SDWT) operated by AGM Petroleum Ghana Limited and a 37% stake in the Deep Water Tano/Cape Three Points (DWT/CTP) operated by Aker Energy Ghana Limited.
The move when finalized will mean GNPC will possess significant stakes in the offshore oil blocs, with Ghana’s shares in Aker Energy increasing to 47% while that in AGM blocs goes up to 85%.
Dr. Sarpong also lashed out at the critics of deal by saying many oil rich countries in the world have similar deals.
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Dr KK Sarpong and Freddie Blay
"I don’t think that Aker Energy and AGM are in a hurry to leave. If you look at the time profile set for this energy transition – that is the movement from fossil fuels to renewables, we are talking about a 30-year period to get to that level. It is a long way to go, so over time you will see that there is the movement of investment into the extraction and production of fossil fuel and shift capital to fossil fuel. Are they telling us, we should leave our oil in the soil, I think there is hypocrisy there.”
“Indeed, the Western Countries have extracted oil in their backyard and our fields, and they want us to leave ours there. This is something that, as someone from a developing country, I find it very difficult to accept. It is this realization and kind of position which dawned on me which really necessitated my push for this agenda. All that I am saying is that within this time frame, production should be going on now and if they shift investment from us, it means we cannot develop our fields and our oil will remain in the soil”, he added.
15 Civil Society Organizations (CSOs) working in the extractive industry have petitioned parliament to stop GNPC from going ahead with the agreement.