CSOs demand political intervention in Ghana's petroleum sector - call for transparency in Aker Energy and JOHL operations
The alliance of Civil Society Organisations (CSOs) Working on Extractives Governance have expressed concerns over the recurring controversies surrounding Aker Energy and AGM operations, as well as the sale of 50% of Jubilee Oil Holding Limited's (JOHL) interest in the Deepwater Tano block to PetroSA.
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The CSOs in a jointly signed statement issued today said the two pressing issues require immediate political intervention to save the country from financial loss. The statement was read by the Coordinator for the Economic Governance Platform, Abdul Karim Mohammed at a press briefing today in Accra.
The CSOs include the Africa Centre for Energy Policy (ACEP), the Centre for Extractives and Development Africa (CEDA), the Integrated Social Development Centre (ISODEC), CSOs Open Licensing Monitoring Group, the Citizen's Movement Against Corruption (CMAC), the Civil Society Platform on Oil and Gas (CSPOG), Penplusbyte and Oil Watch Ghana.
The rest are the Institute of Democratic Governance (IDEG), the Centre for Democratic Development (CDD), the Natural Resources Governance Institute (NRGI), Publish What You Pay (PWYP), the Centre for Public Interest Law (CEPIL), IMANI Ghana and Women Aspire.
Concerns
Regarding the controversies surrounding Aker Energy, the CSOs raised questions about the transparency and value for money in the company's operations.
They criticized the government and the Ghana National Petroleum Corporation (GNPC) for attempting to purchase offshore petroleum blocks at an overpriced value of $1.65 billion.
The CSOs said despite their objections, Parliament authorized the GNPC to borrow $1.1 billion for the transaction.
However, recent developments revealed that one of the blocks, SWDT, has been returned to Ghana for free, while the main block, DWT/CTP, is now controlled by AFC Equity Investment after Aker defaulted on a $200 million loan.
The CSOs demanded accountability for the mismanagement of public funds and called for transparency in the approval of Aker's Plan of Development (PoD) for the Pecan field. The CSOs also expressed concerns about the reported sale of JOHL's interest in the Deepwater Tano block to PetroSA.
They criticised the Ghana National Petroleum Corporation (GNPC) for allegedly initiating the sale of 50% of JOHL, despite its significant revenue potential for the state.
The CSOs deemed the pre-emption claims illegal and highlighted the risks posed to Ghana's interests in petroleum operations. They called for the removal of GNPC's CEO, Opoku Ahweneeh Danquah, and the Board Chairman, Freddie W. Blay, as well as the immediate transfer of JOHL's assets from offshore jurisdictions to GNPC.
Related: CSOs demand removal of GNPC Board Chair and CEO over controversial stake sale
The CSOs further demanded complete information on the AFC transaction, including a full audit of the expenditure of the $200 million loan, justification for using a 14-year-old FPSO in a field with a 25-year production period, and the disclosure of Aker's Plan of Development (PoD).
They also called on the Norwegian Government to pay attention to Aker's behaviour in Ghana to protect the country's reputation as a host of the Extractive Industries Transparency Initiative (EITI).
The CSOs concluded their statement by emphasizing the need for prudent management of Ghana's resources to benefit the citizens, especially during challenging times. They urged citizens to demand accountability in the petroleum sector and called for urgent political action to address the pressing issues raised.