GOIL Company Ltd says it is going to invest about $25 million in a Joint Operating Agreement with multinational oil exploration firm ExxonMobil for the Deep-water Cape Three Points Area Oil exploration in the next five years.
This the company said will be done through its wholly owned subsidiary, GOIL Offshore Company Ltd, in its exploration activities in the Deep-water Cape Three Points Area.
Speaking at GOIL’s 50th Annual General Meeting (AGM) in Accra on Thursday, CEO of GOIL Company Ltd Patrick Akorli said: "When we access the partnership it will cost us $25 million for the next five years and Exxon looked at our financials and realized we were capable."
He added, “Assuming oil is not found, that is likely money to be lost and we looked at our balance sheet, ExxonMobil looked at its balance sheet and they thought that we are capable of carrying that risk but we are assuring the shareholders that there is a very great chance.”
Mr Akorli assured shareholders the investment will be a profitable venture and will also lead to capacity building for its staff and Ghanaians in the oil upstream sector.
“Oil exploration is always a risky business but there’s a good chance of ExxonMobil striking oil in Ghana…it gives GOIL workers and engineers the chance to be trained for the upstream business because the upstream business is expanding but the local content is not being felt so we as indigenous marketing company we thought well it’s out time to try it,” he added.
Shareholders’ approval
Meanwhile, shareholders have given approval for GOIL to own a five per cent stake in the operations of Exxon Mobil.
“Exxon Mobil came they did their due diligence and they found out that GOIL was capable of partnering them to fulfil that local content law. So luckily the President agreed and Parliament has approved and all that it entails is that we are also bearing because equity is risk-bearing funding. So we are holding ourselves to 5% of any risk,” Mr Akorli added.
In November 2018 GOIL signed a Joint Operating Agreement with multinational oil exploration firm Exxon Mobil for Deep-water Cape Three Points Area Oil exploration.
The agreement between GOIL and ExxonMobil followed the completion of an elaborate and rigorous due diligence done by ExxonMobil for a local partner.
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