Energy Minister, John Peter Amewu has been ordered by Parliament to re-negotiate government’s amended deal with AGM Petroleum for oil exploration in the Deep South West Tano oil block.
The controversial deal was approved on Friday, May 3, 2019, but the directive to re-negotiate follows concerns by the Minority members on the Energy Committee of Parliament, about the decision to reduce the 3% total interest of Ghana National Petroleum Commission (GNPC) in the block.
They Minority also questioned the basis for which a company which was registered only last year, Quad Petroleum was being given a 5% stake as local partner.
“Who is benefiting from this 5% local content,” Minority Leader, Haruna Iddrisu demanded to know at a news conference on Friday.
The company, the Minority found, only came into existence barely a month ago, incorporated on April 10, 2019.
The Energy Minister, John Peter Amewu, has been given six months to return to parliament and update members on steps taken to re-negotiate the amended agreement.
“We recommend that the Minister of Energy, together with Patrica [mother company of AGM Petroleum and AKER Energy], should facilitate the resolution of the issues…and it’s consequential interest, Energy Committee chairman, Emmanuel Gyamfi, stated on the floor.
The erstwhile John Mahama administration first entered into an agreement with AGM Petroleum in 2013 but not without calls by ACEP to have the deal suspended.
But government has explained, a review has become necessary because Petrica Holding AS in 2018, acquired some shares in its parent company, AGM Petroleum and also owns Aker Energy.
AGM Petroleum is owned by a Consortium, AGR Gibraltar, comprising of Minexco (OGG) Inc. (“Minexco”), AGR Energy AS (“AGR”) and MED Songhai Developers Limited.
Approval of the amendment by Parliament means the AGM Petroleum block covering the South Deepwater Tano contract area will be handed to Aker Energy.