A former Minister for Energy and Petroleum, Emmanuel Armah-Kofi Buah, has blamed the government for the decision of global oil giant, ExxonMobil, to fold up its operations in the country.
According to him, the Akufo-Addo administration has not done enough to maintain Ghana’s enviable position as the best destination for petroleum sector investment in the sub-region.
Addressing the press, the MP for Ellembele said the government has a lot of questions to answer on the state of the upstream petroleum sector.
“We must be very concerned. What has brought about this development? Is Ghana losing its place as the preferred destination for investment in the upstream sector? What is the next production, and what efforts have the government made to ensure that the sector runs if the three available fold up?”
“There is a lot that this government has to do. Under the NDC government, every license was monitored. That is why we established the Petroleum Commission, and I’m proud to announce that this has saved the country over 10 million dollars by policing and ensuring that right things are done.”
“Our upstream sector is at risk; and if we do not take action, the three productions left will also dry up. It is very possible that the company exited because the atmosphere here is not enticing enough. It is also true that not much has been done by the government to make it attractive enough,” he added.
ExxonMobil withdraws interest in Ghana’s deepwater Cape three Point
The American multinational oil and gas corporation, ExxonMobil, formally withdrawn its interest in the Deepwater Cape Three Point oil bloc in Ghana.
In a letter to Ghana’s Energy Minister, Dr. Matthew Opoku Prempeh, and other stakeholders including the CEO of the Ghana National Petroleum Corporation (GNPC), Dr. KK Sarpong and the CEO of the Petroleum Commission, Egbert Faibile Jnr, the company said it is unwilling to extend its contract, originally signed in 2018.
“EMEPGL hereby notifies the Republic that it has determined not to enter into the First Extension Period, and hereby voluntarily surrenders and relinquishes one hundred percent (100%) of its rights in and to the DWCTP Contract Area. EMEPGL also confirms that it hereby resigns as Operator of the DWCTP Block and that it has fully performed the relevant Minimum Work Obligation under the Petroleum Agreement. The above is without prejudice to the EMEPGL’s accrued rights,” excerpts of the letter read.
ExxonMobil did not give detailed reasons for its decision.
ExxonMobil acquired rights in 2018 to explore the ultra-deepwater block Deepwater Cape Three Points.
The associated petroleum agreement was ratified in April 2019, with ExxonMobil opening a venture office in Accra in June 2019 to progress exploration activities.
The deal was the first to be signed by Ghana after the International Tribunal for the Law of the Sea drew an ocean boundary favoring Ghana in a dispute with the Ivory Coast.
The Deepwater Cape Three Points bloc, is located 57 miles (92 kilometres) off the coast of Ghana. It measures approximately 366,000 acres (1,482 square kilometres) in water depths ranging from 5,085 feet to 9,350 feet (1,550 meters to 2,850 meters).
