Government of Ghana to refund $47 million meant to be used to buy shares in an oil company

The money according to the minority was supposed to be used to acquire 10 per cent shares in an oil block in Ghana’s Deepwater Tano Cape Three Point (DWT/CTP).

In 2014, the GNPC requested to acquire an additional 10 per cent through its subsidiary Explorco, though it already holds 10 per cent interest in the oil block discovered by Hess. It subsequently signed a 44 million-dollar agreement with Hess in 2015.

According to the minority, parliament approved 47 million dollars to GNPC and the same was released by the government in GNPC’s annual programme of activities for the two years.

They said the GNPC was after September 2017, expected to effect payment for the 10% shares but failed, hence, forcing Hess to reclaim the 10 per cent it had allocated to GNPC through Explorco.

In a statement released by the minority and signed by Ranking Member for Mines and Energy Committee, Adam Mutawakilu, today, January 14, 2019, “It was planned that after the ITLOS ruling, payment would be made for the 10%.” But that was not done.

This hence has left the GNPC with a paltry 10 per cent in the entire oil block leaving Hess with 50 per cent, Lukoil 38% and Fueltrade 2%.

Hess Ghana’s shares have since 2018 been taken by Aker Energy.

It opted to sell its 50% shares to Aker Energy in 2018, and the then Minister of Energy, Boakye Agyarko proceeded to approve the transaction upon several warning from the minority.

They said they had advised the government to acquire the 10% paying interest to minimize the effects of the flaws in the fiscal package. This too they said the government refused.

They have then termed the move as an “act of negligence and incompetence” adding that, “this has made Ghana to lose 10% more shares in the block. The benefits that would have accrued to Government by taking the 10% share would have been enormous.”

Meanwhile, the government has said it has discovered a new oil of about 550 million barrels. It said the discovery was made by Aker Energy.