The Minority in Parliament is demanding justification from government over the proposal to reduce government’s stake from 43 to 18 percent in the AGM Petroleum agreement.
The call follows the laying of a document in Parliament for the amendment of a petroleum agreement between government and AGM Petroleum over the Deepwater Tano Contract Area.
According to a letter sighted by Citi News, a similar proposal for a review to this agreement was rejected by Former Energy Minister, Boakye Agyarko but the amendment was laid in the House on Monday.
Ahead of a crucial meeting this afternoon by the Joint Mines and Energy and Finance Committee, Ranking Member for the Mines and Energy Committee, Adam Mutawakilu said the nation will lose billions of dollars in potential revenue if the amendment is not rejected.
“GNPC has already acquired 3D size data on this bloc and paid $30 million for this data and you are giving it [for] free. Reducing the term instead of it helping us boost the terms. We think that President Nana Akufo-Addo is on an agenda to rob Ghana so we Ghanaians must stand up against the move by President Nana Akufo-Addo to deny us billions of dollars potentially. We the Minority are waiting for the Minister to come and convince us.”
Parliament ratified the agreement in 2013.
The ratification grants the two parties the exclusive right and authority to carry out all petroleum exploration, development and production activities in the South Deepwater Tano Block (SDWT).
The ratification followed the approval of the Petroleum Agreement by Cabinet and a review by the Parliamentary Select Committee on Mines, Energy and Petroleum.
The 3,482 km2 SDWT Block is located in deep to ultra-deepwater part of the Tano basin, with water depth ranging from 2,000m to about 3,500m.
It is in close proximity to the Hess-operated Deepwater Tano – Cape Three Points block, where seven discoveries were made, and the Vanco/Lukoil Deepwater Cape Three Points block.
The agreement incorporates a significant commercial interest accruing to GNPC, through its subsidiary, Exploration and Production Company Limited (Explorco).
The agreement gives Ghana through GNPC a stronger position in exploration and production activities than the country has held in past oil and gas agreements.