Aker Energy backs gov’t decision to amend agreement covering DWT-CTP And SDWT oil blocks

by Johny

Aker Energy, a Norwegian oil and gas firm which is operating the Deep Water Tano Cape Three Point (DWT/CTP) oil block in the Republic of Ghana, has backed the government’s decision to amend the Petroleum Agreement covering Aker’s oil block.

According to sources within Aker Energy, the amendment is in the right direction, adding that the amendments are in line with international best practices and would reinforce Ghana as an attractive place to invest.

“The main beneficiaries of the project is Ghana due to tax revenues, employment and local content,” a source at Aker Energy said.

The Akufo-administration, through the Ministry of Energy, requested the country’s Parliament to amend the Cape Three Points-Deep Water Tano (CTP-DWT)(Aker) petroleum agreement and South Deep Water Tank (SDWT) (AGM) Production Agreement.

The decision did not sit well with the Minority MPs in Parliament, who accused the President of presenting a ‘Christmas gift’ to the Norwegian oil and gas firm.

According to a statement by Minority, “The amendment of the petroleum agreement would impose certain critical obligations on the sector Minister, which are regulatory in nature, limit the Minister’sdiscretion in approving plan of development(POD) contrary to Act 919 for example, by compelling the Minister to use FPSO technology as the only option for producing the resources of the AGM Block even before the appraisal of the field in which the technology must be deployed, compelling the Minister to accept the contractor’s delineation of the area to be included within a Development and Production Area in the Aker block, allow Aker within a year of its Final Investment Decision to unilaterally vary the approved development plan without reference to the Minister contrary to Section 27(12) of Act 919, give contractor’s unfettered discretion over oilfield procurement without recourse to petroleum commission or any other governmental authority, thus, weakening the role of GNPC in joint Management Committee.

However, reacting to the Minority’s claims, sources at Aker Energy said Ghana rather stands to benefit immensely from the oil block, saying thedevelopment of both blocks are needed to achieve Ghana’s oil production target.

Source: BusinessZone Online

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