Oil And Gas Agreement In Ghana

The introduction of an anti-corruption guarantee clause in recently negotiated oil agreements is expected to pave the way for further transparency reforms in the granting of oil rights. The clause requires contracting parties to certify compliance with the anti-corruption laws of Ghana, their founding countries, as well as the Convention on the Corruption of Foreign Officials in International Trade Transactions, the United States of America Foreign Corrupt Practices Act 1977 and the United Kingdom Bribery Act 2010. An important provision of the regulations is the requirement for a 5% stake in oil agreements49. However, it depends on the negotiations and the minister`s agreement. Service providers in this sector must own at least 10% of Ghanaian ownership.50 Other provisions include the obligation to develop and approve local content plans that include at least sub-plans for employment and training, research and development, technology transfer, legal and financial services.51 With respect to legal services, oil companies are required to provide the local content committee that has been created: In order to monitor the implementation of the legislation and to ensure measurable and continuous growth of local content in the oil sector, to submit regular reports on their compliance.52 Oil companies are required to provide to the local content committee that was created to monitor the implementation of the regulations. 53 In 2019, Aker Energy and AGM Petroleum Limited successfully negotiated the first modification of an oil agreement in Ghana. The result is an amendment to the oil agreement between Aker Energy, the Government of Ghana and GNPC for the Deep Water Tano Cape Three Points (DWT/CTP) contract area and the oil agreement between AGM Petroleum Ghana Limited, the Government of Ghana, GNPC and Quad Energy Limited for the South Deep Water Tano Contract Area (SDWT). Both amendments to the oil agreements were ratified by Parliament in December 2019. The law requires the Minister to draw up a reference map showing areas of potential oil deposits in Ghana, divided into numbered zones (blocks). Subject to the rights granted to other companies under the oil agreements under the oil agreements, the GNPC has the right to conduct oil exploration, development and production through blocks that the Minister has declared open to oil development.

Before the exploration activity, the GNPC or contractor must present to the Minister an urban planning plan for an oil field that must be developed directly by the GNPC or by the contractor. The law also imposes specific conditions that must be set out in oil agreements. In 2018, TRG, a company owned by Kjell Inge Rkke, Aker`s largest shareholder, acquired a stake in south Deepwater Tano Block (SDWT). Through its interest in Petrica Holding, TRG has repurchased all shares issued by AGM Petroleum Ghana Ltd of AGM Gibraltar. Following the recent ratification of the amendment of the oil agreement for the SDWT block, the stake in the bloc is currently held by the GNPC (15 per cent), AGM Petroleum (85 per cent, 5 per cent of this 85 per cent is planned, transferred to a Ghanaian partner). Keywords: contracts; Policy-making Agreements oil exploration and production; Ghana. With the exception of the GNPC, anyone intending to participate in oil exploration, development and production can only do so in accordance with an oil agreement between that person and the Government of Ghana and GNPC. Under the law, an oil agreement can only be concluded after an open, transparent and competitive public auction procedure.

Comments are closed.