Aker Energy Petroleum Agreement
In the last few days before Christmas, the Ghanaian government worked to get Parliament to make significant changes to the upstream oil sector regime. The Minister of Energy reportedly presented a legal opinion on the constitutional and legal implications of the proposed amendment to the oil agreements. While it is fair to note that the PDO stabilisation provisions have the consequence that the legal and regulatory changes do not affect the activities of the upstream operator, it is absolutely not fair to say that there is a constitutional and contractual obligation not to make legislative, regulatory and regulatory changes affecting the activities of international oil companies. The duty of the State is to restore the economic equilibrium of the agreement. The other partners are Lukoil (38%), Fueltrade (2%) and Ghana National Petroleum Corporation (10%). The Tano Basin off Ghana is a productive oil region and the DWT/CTP block is located in the center of this basin. Seven successful exploration drillings and eight evaluation drills on the block proved to be a significant resource base and high upside potential. Mr Buah, a lawmaker from Ellembele, told reporters in Parliament on Tuesday (February 25th): “They [the government] are just coming to Parliament to change laws to favour foreign companies against local companies. The declaration also clarifies that section 12.1 of the Petroleum Act provides that the State or a political subdivision of the State may not impose on the Contractor, its subcontractors or related enterprises any taxes, customs duties, royalties or other taxes not provided for in this Article. This “Christmas gift” is the most radical political attack on Ghana`s upstream oil sector since the beginning of the Fourth Republic. The direct impact of the proposed changes will be to disengage public policies, state regulation and state commercial participation in the upstream oil and gas (O&G) sector and collapse in the development of local content. “The renegotiation of AKER Energy, AGM Petroleum-Accord has watered down the local content policy in the agreement. It has weakened the Petroleum Commission, which is the regulator.
The upstream sector was destroyed by this government. According to Yinson, the termination is due to Aker Energy`s decision to postpone until further notice the activities of the DWT/CTP Petroleum agreement and the development of the project in the midst of the COVID-19 pandemic. The cumulative medium- and long-term effect of all these promotional gifts will be a loss of national control over our precious oil resources, which will result in one of the consequences: he said that the initial agreement had given Ghanaians the opportunity to participate in this sector. The renegotiation by the current government, however, has killed local participation.