ExxonMobil deal will attract bigger players-Agyarko

Energy Minister, Boakye Agyarko has described the entrance of ExxonMobil into the country’s petroleum industry as an enormous move that will attract global industry players for the development of the sector.

“Such an agreement would offer Ghana an opportunity to accelerate exploration activities with the view to making a discovery and increasing the reserve replacement rate. The agreement also gives Ghana the opportunity of attracting other majors,” he stated at last week’s EOBS Conference organized by Africa Business Media.

The world’s largest petroleum company, Exxonmobil Corporation recently signed an exploration contract with government to explore for oil in the Deep Water Cape Three Points offshore (DWCTP) oilfield.

According to the contract, ExxonMobil holds 80 percent of interest while government holds 15 percent. The remaining five per cent will be assigned by ExxonMobil to a local partner of their choice, through the Ghana National Petroleum Authority, (GNPC).

“The direct negotiation was the best way to go considering that there are just a few oil companies in the world who have the wherewithal, in terms of equipment and financing, to undertake such ultra-deep-water exploration. In all, however, as we await Parliament’s ratification, I wish to assure all Ghanaians, that Ghana is the better for it,” added Agyarko.

He further reiterated government’s commitment to providing a conducive environment which will attract more investors into the sector.

“We will continue to develop mechanisms that will enable us continue to attract partners of this caliber into the country to further dig the ultra-deep water potential and benefit from cutting edge technology.”

ExxonMobil joins Tullow Oil, Kosmos, and ENI in oil exploration in Ghana to increase daily production from the 200,000 barrels a day currently being produced.

Meanwhile the Ghana National Petroleum Corporation, (GNPC) says plans are far advanced for exploration works to begin in the Voltaian Basin.

Government has tasked the corporation to work with local companies in exploring prospects of oil in the area following traces of oil there and GNPC is expected to submit its work plan by the end of this year.

By Nana Oye Ankrah