The Ministry of Energy is reviewing what it calls dormant petroleum agreements.
According to a Deputy Energy Minister, William Owuraku Aidoo, 14 oil blocks were awarded between January 2009 and December 2016, but none of the companies has fulfilled its minimum obligations within the exploration period.
Answering questions in Parliament, Owuraku Aidoo said the Ministry together with the Petroleum Commission will decide whether to abrogate the agreements or not based on the outcome of the ongoing review.
“The Ministry of Energy is reviewing dormant petroleum agreements and depending on the outcome a decision will be made on whether to abrogate the contract or not.”
The Minority in Parliament has already raised red flags over some of these petroleum agreements including the Exxon Mobil deal, describing it as a bad precedent and a financial loss to the State.
Parliament ratified the agreement a few days ago between Government and the US oil giant ExxonMobil and its local partners, Goil Offshore Ghana Limited, for deep water oil exploration in the Cape Three Points Block.
The Agreement, which is effective for 25 years, will however expire after 7 years if the exploration yields no commercial discoveries.
But the Minority Spokesperson for Finance, Cassiel Ato Forson, said the exemptions granted will deny the country the right revenues.
“Whoever did that negotiation for Ghana has indeed caused financial loss to this country. He has indeed messed us up big time. If Cabinet approved this, I beg to say that they should bow down their heads in shame because they have destroyed the revenue base for this country.”
“I am very surprised that the Ministry of Finance supports this. These are the very things we oppose. They came to government and within the first six months, they have approved it. Unfortunately, I am sad. Today is a sad day for Ghana. They have lost so much,” he added.
By: Marian Ansah| citinewsroom.com| Ghana