Five-hundred fifty million barrels of oil discovered off Ghana coast
Five-hundred fifty million barrels of oil discovered off Ghana coast

Energy think tank Africa Center for Energy Policy (ACEP) urged government of Ghana here on Monday to review 13 out of 14 Petroleum Agreements (PAs) signed with International Oil Companies (IOCs).

The think tank which is affiliated with the ruling New Patriotic Party (NPP) explained that these 13 contracts entered into since 2013 had not been performing bringing into question the capacity of the IOCs to deliver on their promises.

The investment requirements for all 14 Pas came up to 923 million US dollars. Out of this the partners were required to have spent at least 750 million dollars in exploration activities.

“The evidence of inactivity pointed to a less than two percent of the required minimum expenditure over the period,” Benjamin Boakye, Executive Director of ACEP noted during a press briefing.

Although the exact financial cost of this was to Ghana was not yet ascertained, Boakye argued that “the opportunity cost of possible early oil and gas discovery on these blocks defers potential revenues to the country, and consequently developmental outcomes from revenues.”

He cautioned that if care was not taken and new discoveries were not made, the West African, cocoa, gold and oil exporter could start seeing its output in oil production diminish.

“Government should immediately review existing PAs and their deliverables to ensure that those who are not complying with their minimum work obligations are sanctioned,” the Executive Director urged.

ENI, the lead operator of the country’s offshore Cape Three Points (CTP) Block 4 announced a nw oil and gas discovery last Thursday. Enditem

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