Ghana’s Finance Minister Ken Ofori-Atta has revealed that the government was ready to amend the Aker Energy and AGM Petroleum deal.
Mr. Ofori-Atta explained that the terms and conditions of the loan for the acquisition of the shares will be brought to the House for consideration.
According to him, he has officially written to Parliament indicating the modifications to the 2022 Budget Statement and Economic Policy of the government.
“Relating to the Aker Energy transaction, we shall amend paragraph 829 of the 2022 Budget on the acquisition of a stake from Aker Energy and AGM Petroleum by Ghana National Petroleum Corporation (GNPC), to reflect the resolution of Parliament dated 6th July, 2021.
“the terms and conditions of the loan for the acquisition of the shares shall be brought to Parliament for consideration pursuant to article 181 of the Constitution,” he added.
The government, acting through GNPC, has initiated the process to acquire a 37% stake in Deepwater Tano Cape Three Points and a 70% stake in the South Deepwater Tano block.
The purchase agreement, once finalised, will result in the establishment of a joint operating company between Aker Energy, AGM Petroleum Ghana Ltd and GNPC Explorco.
The planned acquisition, which has received cabinet approval, was laid before Parliament on Monday 2 August 2021 for the input from the House and its approval to mandate the ministers responsible for energy and finance to commence negotiations and agree on a purchase price with Aker Energy and AGM.
The government through the Energy Ministry had explained that the transaction offers significant benefits to Ghana in its quest to develop its petroleum sector. Among other things, GNPC gets to build operator capacity at a critical moment in history to ensure that Ghana’s hydrocarbon resources can be fully developed.
Other expected benefits are that Ghana’s crude oil production will increase by 140,000 to 200,000 barrels per day within three to nine years; and the oil produced may be exported or refined in Ghana for domestic use, thereby reducing imports of refined products, which in turn will conserve foreign exchange. Moreover, a local content agenda can be set effectively by GNPC, and a GNPC with operator capabilities will provide enhanced value creation for Ghana.
By: Rainbowradioonline.com/Ghana
