Minority wants AGM petroleum arrangement withdrawn

The Minority in Parliament is demanding the immediate withdrawal of the controversial AGM Petroleum Ghana Limited agreement which has seen the country’s stake in the oil contract reduced from 43% to a paltry 18%. The agreement was signed in 2013 but in 2018 attempt to review the contract was rejected by then Energy Minister, Boakye Agyarko, who then said it was not in the interest of government. But curiously, his successor, John Peter Amewu has okayed the renegotiation of that agreement which the Minority claims will lead to a potential loss of about $10 billion to Aker Energy. AGM Petroleum is owned by a Consortium, AGR Gibraltar, comprising of Minexco (OGG) Inc. (“Minexco”), AGR Energy AS (“AGR”) and MED Songhai Developers Limited. Approval of the amendment by Parliament would mean the AGM Petroleum block covering the South Deepwater Tano contract area will be handed to Aker Energy. But at a press briefing Friday, Minority Leader, Haruna Iddrisu questioned the essence of the renegotiation and why government was not engaged in acts that will be beneficial to the country and its interests. “…and to demand that the President, Nana Addo Dankwa [Akuf-Addo] withdraws the petroleum agreement as presented to parliament between GNPC Ghana and AGM and AGER, we say because it is not in the national interest and would not be in the long term national interest of the country. “Indeed the state of Ghana is likely to lose a whopping 10 billion US dollars to Aker Energy.”

The 3,482 km2 SDWT Block is located in deep to ultra-deepwater part of the Tano basin, with water depth ranging from 2,000m to about 3,500m.It is in close proximity to the Hess-operated Deepwater Tano – Cape Three Points block, where seven discoveries were made, and the Vanco/Lukoil Deepwater Cape Three Points block.

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The new arrangement  as assessed by the Minority presents a “more worrying and compelling” reasons why the deal should not be allowed to hold. “We in the minority believe that, this negotiated agreement is a complete sell off, particular that there is evidence that GNPC invested over 30 million in acquiring data and reducing exploration risk over the block,” the Minority Leader argued. Haruna Iddrisu said members of the minority would “need adequate time and sober mind” to study the contract to ensure that they secured the best contract for Ghana. According to the minority, government is putting undue pressure on Parliament to approve an agreement of such nature in record time of one week, and questioned government’s “indecent haste”. Mr. Iddrisu also raised concern about the “introduction” of a new local company, Quad Petroleum, that was only incorporated in April 10, 2019 and has been given “5% equity interest” under the new contract. Read: Gov’t accused of siding with ‘big’ businesses in AGM petroleum deal Source; 3news.com | Ghana]]>