CEO of Ghana Upstream Petroleum Chamber urges Government to respect agreements with sector players

CEO of Ghana Upstream Petroleum Chamber urges Government to respect agreements with sector players

David Ampofo, the Chief Executive Officer of the Ghana Upstream Petroleum Chamber, has called on the government to respect the provisions and tenures of agreements with upstream petroleum sector players. Ampofo’s comments come in response to civil society organizations and others calling for the government to review its agreements with the upstream players after they recorded large windfalls.

Ampofo argues that such calls for premature reviews of contracts are unrealistic and could harm the country’s reputation in the investor community. Instead, he emphasizes that the government has a duty to attract new investment into the sector if it expects to generate more revenue. He further adds that the market always dictates the terms of such agreements, and any attempt to prematurely review them may drive away investors.

Ampofo notes that Ghana is dealing with an asset that is not there forever, and the country is going through an energy transition. The risk is that if Ghana is not careful, it can end up with stranded assets. Therefore, he advises the government to wait for the tenure of the agreement to end before reviewing these contracts.

While Ampofo recognizes that agreements are time-bound and have provisions for reviews, he believes that the government should respect the provisions and tenures of such agreements. He cautions against a situation where the government would abruptly decide to review agreements without any regard for the time-bound provisions.

Ampofo emphasizes the importance of respecting agreements with upstream petroleum sector players, stating that it is crucial for the country’s reputation and its ability to attract investors. The government should wait for the right time to review agreements and respect the provisions and tenures of such agreements.