Exxonmobil’s exit from Ghana is bad for petroleum sector - Kofi Buah

The Ellembelle lawmaker said there will be dire consequences for the sector.

Speaking to the media in parliament, Mr Buah who is also the MP for Ellembelle said the government failed to provide favourable conditions to the oil giant hence the decision to exit.

“Is Ghana losing its place as the preferred destination for investment in the upstream sector? Does this generally has to do with how our sector has been managed? What is the next production and what efforts are the government making to attract more investment to make sure that when these three producing fields are dried up, there is another production coming, other than that this country is really going to face serious consequences.”

Exxon Mobil Corp. is pulling out of a deep-water oil prospect in Ghana just two years after the west African nation ratified an exploration and production agreement with the U.S. oil titan.

The company relinquished the entirety of its stake in the Deepwater Cape Three Points block and resigned as its operator after fulfilling its contractual obligations during the initial exploration period.

Emmanuel Armah Kofi Buah, former Energy Minister Pulse Ghana

The former Minister also bemoaned what the decision will mean Ghana’s finances.

“You also have to know that oil revenue is key to our whole revenue streams and we have to be very worried. What is also worrying is that Exxon Mobil is like the biggest thing of all and anytime they leave your country other Oil companies will also be asking questions- why has Exxon Mobil left us and what does that mean for the upstream sector?”, he said.