Petroleum Agreement Approved By Parliament

Parliament has approved a Petroleum agreement among the Republic of Ghana, the GNPC, Vanco Ghana Limited and Lukoil Overseas Ghana Limited for the exploration and production of Petroleum in the Offshore Cape Three Points Deepwater Block which covers about 5,146 square Kilometers. According to a report of the committee on mines and energy on the agreement which was presented to Parliament for adoption, the agreement provides for an exploration period of 5 years divided into: i) Initial Exploration period of 3 years ii) (ii) First Extension Period of 1 year and iii) iii) Second and Final Extension period of 1 year. The Agreement also makes the state (Ghana) the sole owner of any associated gas produced from the contract area and gives GNPC the right to Off-take all associated gas for its own use. Presenting the report of the Committee of Mines and Energy On the agreement to the House, the chairman of the Committee, Hon. Moses Asaga said the agreement makes adequate provisions for accounting for Oil revenues in the event of any commercial discovery. However the minority and majority sides of the house were divided on the issues of a likely conflict of interest regarding the appointment of Nana Boakye Asafo-Adjaye as Chief Executive officer of GNPC.The minority insisted that Nana Boakye Asafo-Adjaye’s appointment will raise issues of conflict of interest in view of his background as former consultant to Vanco Ghana Limited, to which the majority disagreed.