GNPC’s planned acquisition of stakes in Aker Energy and AGM Petroleum rejected by CSOs
Plans by the Ghana National Petroleum Corporation (GNPC) to buy stakes in oil blocks of Aker Energy and AGM Petroleum Ghana, have faced stiff opposition from a group of Civil Society Organisations (CSOs) in the country.
The CSOs numbering fifteen (15) and working in the extractive industry, have called on Parliament to reconsider the planned acquisition stating the country will be shortchanged in the transaction.
Adding the transaction poses threats to the country’s fiscal outlook.
“We are clear in our minds that the transactions if approved will shortchange Ghana, the transactions cannot be a guise for poor decisions that threaten the country’s economic and fiscal outlook.”
“Therefore we request Parliament to intervene given that the deal has already gone through all the relevant branches of the Executive ostensible glossing over important threats of the transaction to the country’s fiscal situation,” argued the group of CSOs noting that its members are not opposed to the government increasing its stake in natural resource ownership but that the deal is not in the interest of Ghanaians.
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GNPC, through its GNPC Explorco, is allowed to participate in the upstream petroleum sector and it plans to purchase a 70 percent stake in the South Deep Water Tano (SDWT) operated by AGM Petroleum Ghana Limited and a 37 percent 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.
GNPC has already secured Cabinet approval and is seeking $1.65 billion loan.
The company has justified the deal saying such a partnership with the two entities is critical because of the exiting of oil majors from the country.
It said it needed to build its capacity and take up a large part of the exploration activities before Ghana’s oil reserves hit a level of terminal decline.
