The Ghana National Petroleum Corporation is seeking to purchase 37% stake in Aker Energy’s oil block and 70% stake in AGM Petroleum’s oil block.
This follows a request tabled before Parliament by Energy Minister, Dr. Matthew Opoku Prempeh.
Additionally, the Energy Minister has separately asked for the mandate of Parliament to go ahead with the negotiation of the purchase price.
GNPC, through its GNPC Explorco, is allowed to participate in the upstream petroleum sector.
It said in its memoranda that it is seeking approval to purchase a 70% stake in the South Deep Water Tano (SDWT) operated by AGM Petroleum Ghana Limited and a 37% stake in the Deep Water Tano/Cape Three Points (DWT/CTP) operated by Aker Energy Ghana Limited.
The company will form a joint operating company with the two entities and acquire the said stakes at different agreed prices.
“Provision of a loan not exceeding US$1.65 billion to finance the acquisition at a price to be negotiated which might not exceed US$1.3 billion and GC Explorco share of capital expenditure (CAPEX) to Pecan Phase 1 First Oil of US$350 million.”
The state oil exploration firm argued that entering such a partnership with the two entities is critical because prevailing situations such as the exiting of oil majors from the country required that it builds its capacity and take up a large part of the exploration activities before Ghana’s oil reserves hits a level of terminal decline.
“With the shift away from investments in oil and gas into renewable, Ghana faces the risk of stranded assets and dwindling proven reserves if GNPC is unable to undertake exploration, development, and production alone. A declining industry undermines growth, diminishes revenue expectations for Ghana and makes redundant the stock of skilled labour in the industry which Ghana has rapidly built up over the decade.”
Within four to five years, GNPC believes that the partnership will help the country produce an extra 200,000 barrels of crude oil.
The deal has already been approved by Parliament.
Latest Stories
-
Elon Musk to spend election night with Donald Trump
28 mins -
UCL: Real Madrid lose to AC Milan in second straight home defeat
39 mins -
Accusations fly in Spain over who is to blame for flood disaster
52 mins -
Economy is growing below potential – IEA
55 mins -
UCL: Gyokeres hat-trick as Amorim’s Sporting thrash Man City
59 mins -
Equatorial Guinea VP warns against office sex after viral videos
1 hour -
Netflix Europe offices raided in tax fraud probe
1 hour -
UCL: Diaz nets hattrick as Liverpool beat Leverkusen
1 hour -
Israel PM Netanyahu fires defence minister Gallant
2 hours -
From Arizona to Pennsylvania, Americans embrace calm before election’s storm
2 hours -
Sam Jonah calls for urgent action against ‘pervasive’ corruption in Ghana
2 hours -
‘Pawn’ movie premiere ends with great reviews
2 hours -
Gospel musician Afia Ayiwah out with ‘Jesus Reigns’
2 hours -
We’ve made significant strides in judiciary – Akufo-Addo
2 hours -
West African School on Air Quality and Pollution Prevention to enable air quality forecasting in Ghana
3 hours