Accra, Jan. 18, - The Government
of Ghana has signed a petroleum agreement with ExxonMobil, for exploration and
production rights for the Deepwater Cape Three Point (DWTP) block.
The agreement, which is however,
subject to Parliamentary ratification, was initialled for Ghana by Mr Boakye
Agyarko, Minister of Energy and Dr Kofi Koduah Sarpong, the Chief Executive
Officer, Ghana National Petroleum Corporation (GNPC), while Ms Pamela Darwin,
the Vice President - Africa ExxonMobil, signed for her Company.
Under the agreement, ExxonMobil
would carry out work programme as operator, and holds 80 per cent interest
whereas GNPC holds 15 per cent interest.
Furthermore, ExxonMobil would
work with the Government of Ghana to identify a Ghanaian company to potentially
hold up to five per cent interest.
Exploration activities, including
acquisition of seismic data and analysis, are expected to commence later in
2018.
The DWCTP block, located 57 miles
(92 kilometres) off the Coast of the Western Region, measures approximately
366,000 acres (1,482 square kilometres) in water depths ranging from 5,085 feet
to 9,350 feet (1,550 metres to 2,850 metres).
ExxonMobil is a renowned global
leader in the oil and gas industry and the world's largest publicly held oil
and gas Company.
Mr Boakye Agyarko said the terms
of agreement were amongst the best compared to other petroleum agreements
signed in the past.
"In many respects it is a
culmination of key lessons we have learnt as an industry in just over 10 years
since Ghana first discovered oil and gas in commercial quantities," he
said.
He said it was also a testament
to the dynamism and commitment of the Government to transforming the economic
fortunes of the nation using industry as a critical catalyst.
The Minister said ExxonMobil's
presence in Ghana presented opportunities for considerable technology and
skills transfer to Ghanaians through the structures provided for in the
petroleum agreement.
He said the Company's exemplary
track record in petroleum exploration in frontier provinces was particularly
welcomed in the already prolific Tank basin where the contract area is
situated.
He said ExxonMobil's willingness
to invest resources in undertaking exploration activities offshore Ghana also
reflects the growth and attractiveness of the nation's industry.
Mr Boakye Agyarko said this was
particularly important following the final ruling of the International Tribunal
for the Law of the Sea (ITLOS) in favour of Ghana; adding that, the DWCTP
Petroleum Agreement was the first agreement signed following the ruling.
"In this respect, the
arrival of ExxonMobil sends a strong positive signal to potential investors
around the world that Ghana is truly open for business and has exciting
commercial opportunities available in a well-secured maritime
environment," he stated.
He said as a total package, the
fiscal terms of this Petroleum Agreement were an improvement over past
agreements signed before the commercial discovery of oil in 2007.
The Minister said this
progression had been greatly supported by an enabling institutional and
legislative environment.
He said the comprehensive legal
provisions which had been promulgated and redefined since the discovery,
include the Petroleum (Exploration and Production) Act, 2016 (Act 919) and the
Income Tax Act, 2015 (Act 896).
Mr Boagye Agyarko noted that the
agreement marks the first implementation of the mandatory 15 per cent carried
interest held by GNPC in line with the provisions of Act 919.
He said alongside royalties,
taxes and other payments, bringing significant financial benefits to the nation
and a higher quality of net oil than in a number of previous agreements.
Dr Sarpong said the agreement to
be executed was innovative in addressing the shortcomings identified in
previous agreements.
He said two key examples were the
introduction of the Development Loan Agreement and the Default Loan Agreement.
He explained that these
innovations were aimed at securing GNPC's financing arrangements during the
development to give comfort to the contractor party.
Dr Sarpong said: "GNPC is
excited to work with ExxonMobil, a global oil and gas industry leader. Partnering
with ExxonMobil presents a great opportunity to GNPC to acquire the requisite
knowledge to assist it in its journey to become an upstream operator in the
future."
He said GNPC was committed to
ensuring a smooth implementation of the agreement once it was ratified by
Parliament.
Ms Darwin expressed excitement
over the agreement; adding that, they were looking for the best for both
parties.
She said the agreement was a
significant milestones in the history of ExxonMobil.
At the event were Mr Robert P.
Jackson, the United States Ambassador to Ghana and Mr Freddie Blay, GNPC Board
Chairman.
GNA
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