The stage is almost set for the world’s biggest deepwater oil company, ExxonMobil, to begin full-scale exploration for the black gold in Ghana’s West Cape Three Points in the Western Region
Although not officially confirmed, some experts have confirmed to the Daily Graphic that the entry of ExxonMobil, which is said to have the world’s best and sophisticated equipment to undertake deepwater exploration, will help the country drastically boost its oil production from the present 180,000 barrels per day to about 1.5 million in about three years, hitting a peak of about 3.5 million barrels per day
A letter signed by the Minister of Energy, Mr John-Peter Amewu, on October 19, 2018 to that effect and sighted by the Daily Graphic in Accra said: “I refer to your letter dated October 8,
“The selection of an indigenous Ghanaian company as a partner in a petroleum
The letter further stated: “I have taken note that the Ghana Oil Company Limited is one of your preferred companies, having met the requirements of your very rigorous due diligence. The LI 2240 further provides in Regulation 4(4) that ‘For the purposes of Sub-regulation (2), the
“In exercise of my mandate, therefore, I wish to inform you that I have no objection to the selection of GOIL as your indigenous Ghana partner in the Deepwater Cape Three Points Block. I am hopeful that you
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Exxon Mobil Corp signed a deal with Ghana towards the end of January this year to explore for oil in the Deepwater Cape Three Points (DWCTP) oilfield.
The signing followed direct negotiations between Ghana and ExxonMobil without an open competitive tender due to the nature of the field, where the depth ranges from 2,000 to 4,000
The ExxonMobil deal is the first to be signed after the International Tribunal for the Laws of the Sea (ITLOS), in September last year, drew an ocean boundary
ExxonMobil, the lead operator in the field, holds an 80
Meanwhile, the entire agreement is subject to approval by Parliament. which resumed sitting last Tuesday, and it is expected that the agreement will be considered to enable Exxon to start exploration this year or early next year, as earlier projected.
Major benefits to Ghana
At the signing, it was announced that 15
The state-owned company does not pay for its initial 15
ExxonMobil will pay for the shares of the GNPC and, therefore, ExxonMobil will not make any cash calls on the GNPC in respect of its stake.
That, many experts believe, is much better than most of the agreements in which production is expected to last for 30 years.
Payment of royalty
The government is given 10
Payment of income tax
The state shall levy
Meanwhile, there are some few concerns raised about the deal, with particular reference to GOIL as the local partner, since it is not a player in the offshore petroleum business.
Some experts who spoke to the Daily Graphic on grounds of anonymity said with the experience of the GNPC, it would have been a better local indigenous company, as per the law.
They maintained that GOIL, a listed company, would have to hold an emergency annual general meeting for shareholders to approve of the deal.
Again, being a listed company, ExxonMobil could buy out the shares of GOIL by offering a juicy share price to existing shareholders to enable the company to assume full ownership without a local partner in