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General News of Thursday, 15 April 2010

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Ghana's Oil Leases Follow the Law and Are Transparent

Ghana is certainly not beating up on foreign investors, big or small, as your editorial "_Why Africa Is Poor_ (http://online.wsj.com/article/SB10001424052748704804204575069511746613890.html) " (Feb. 18) suggests. Ghana merely insists that all investors operate lawfully.

As far back as June 2009, the Ghana National Petroleum Corporation (GNPC) notified Kosmos Energy that its distribution of valuable data belonging to GNPC to numerous companies around the world (without even notifying GNPC), breached both statute law and the agreements Kosmos operates under in Ghana.

Esso Exploration International, a subsidiary of ExxonMobil, was one of the companies that gained illegal access to GNPC data through Kosmos. Since June 2009 ExxonMobil has ignored GNPC's requests to regularize its access to, and use of, GNPC data. The Journal nevertheless argues that ExxonMobil now has a "right" to acquire Kosmos's assets, and that the government of Ghana and GNPC are obligated to put the Exxon-Kosmos agreement above Ghana's laws and to approve the transaction.

In rejecting ExxonMobil's bid for Kosmos's stake and refusing to reward illegality, Ghana's Energy Minister Joseph Oteng-Adjei acted lawfully and ethically. In indicating support for GNPC acquiring the Kosmos stake at "fair market value," the minister also acted lawfully and commendably in the interest of the people of Ghana, as the constitution of Ghana requires him to do.

Your analysis of the situation omits that advanced negotiations for exploration acreage with two reputable U.S. companies were terminated when they refused, citing the U.S. Foreign Corrupt Practices Act, to give a 5% carried stake to an individual nominated by Kufuor officials. The NPP then awarded the block to Aker which was apparently willing to comply with this demand. Your Vodafone Group analysis does not mention that many independent observers believe that the agreement should simply have been abrogated following findings of a public inquiry that President John Kufuor personally negotiated the transaction without technical advisers; that Vodafone was not the highest bidder; and that he gave Vodafone additional assets not published in the bid. President John Mills decided to re-engage Vodafone and protect the national interest.

President Obama called in Accra for transparent public service. The government of President Mills is providing this, and is rejecting corruption and ensuring the protection of the interests of the Ghanaian people.

John Tia Akologu Minister for Information Accra, Ghana