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Business News of Monday, 19 February 2018

Source: Myjoyonline.com

ExxonMobil agreement not the best ever - Analyst contests Minister's claim

A policy analyst and Member of the Public Interest Accountability Committee Dr Steve Manteaw has debunked claims by the Energy Minister that the ExxonMobil agreement is the best ever agreement signed in the petroleum sector.

Outlining the stake of government in contracts signed with previous companies Dr. Manteaw said ExxonMobil agreement cannot be said to be the best.

“The ENI agreement which was signed ahead of ExxonMobil has Carried and Participating Interest totalling 20% while ExxonMobil said to be the best has 18% Carried and Participating Interest,” he noted.

Dr. Manteaw made this assertion at a two-day workshop on the Ghana-ExxonMobil Petroleum Agreement organised by the Institute of Financial and Economic Journalists (IFEJ) and sponsored by the German Development Cooperation (GIZ) at Akosombo in the Eastern Region.

The workshop, among other things, was to take journalists through the details about petroleum agreements, particularly the one signed recently between the government of Ghana and ExxonMobil.

Despite the obvious disparities in the figures, the policy analyst believes the obligation put on ExxonMobil to upgrade the operational capacity of GNPC within the next four years is something worthwhile.

LI 2204 reinforces the need for local content in all petroleum agreements in order to provide employment for Ghanaians and to ensure oil resources benefit Ghanaians as well.

Mr Manteaw believes an upgrade of GNPC by ExxonMobil will not only be a fulfilment of the local content obligations but improve the human and institutional capacity of the local petroleum industry.