The New Patriotic Party (NPP) Members of Parliament have fired salvos at the $7 billion Offshore Cape Three Points (OCTP) Sankofa Gas Project sponsored by Italian oil firm ENI.
William Owuraku Aidoo, MP for Afigya Kwabre South who spoke on behalf of the minority MPs at a presser said: “As has been stated earlier by the communications directorate of the NPP, it does appear that the contract is bloated by between 2 and 3 billion US dollars to the disadvantage of Ghana.”
“In doling two billion dollars out, God knows how much somebody in government will be taking as kickback… The agreement stinks, it is a rip off and cannot be allowed,” he added.
The NPP, through it communications director called on the Italian Prime Minister, Matteo Renzi, to review some terms in the ENI-Sankofi deal to maximise mutual benefits from the project during his visit to Ghana.
The party said: "The negotiated gas price of $9.8/MMBtu for gas from the Sankofa fields is too high by world standards, of between $5-7/MMBtu. It is even higher than the price of gas sold to Ghana from Nigeria, which stands at $8.3/MMBtu, delivered at Takoradi. It is even more expensive than our own Atuabo Gas price of $8.8/MMBtu delivered at Takoradi."
Government denied any wrong doing in the contract in a press statement issued by the Petroleum Ministry.
Matteo Renzi during his visit to Ghana gave assurance that the OCTP Sankofa Gas Project will continue despite tumbling crude oil prices.
Addressing Parliament in Accra Tuesday 2 February, 2016, Matteo Renzi said "We know this is a moment very difficult for oil prices, but I’m here and I host in the delegation, the CEO of ENI… to give a message of continuation and presence of Italian investors in this country."
"Let me be very clear, ENI has a historical connection to Ghana, but this project, a new project will be a game-changer for power generation in the country, bring benefits from here to 2086," he added.
The OCTP Integrated Oil and Gas Project includes the combined development of the Sankofa Main, Sankofa East,Gye Nyame, Sankofa East Cenomanian and Sankofa East Campanian fields.
The former three are non-associated gas fields while the latter two are oil fields. The development of the fields started in January 2015.