Aker Petroleum Agreement

  • Posted on: September 10, 2021
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These changes have significant consequences and serious repercussions on Ghana`s upstream oil industry beyond AKER. These changes will have the effect of obliging contractors across the line to review their current contractual conditions in order to obtain equal treatment. “It`s easy to smear the potential benefits of trade participation, but the risk of trade participation can have a negative impact on the country`s fiscal position,” he said. CAPE said, given its financial situation, that GNPC should be cautious with commercial bonds in oil blocks, especially when companies with deep pockets, like Hess, have pulled out. Although Ghana possessed petroleum resources in its jurisdiction as long as private capital was needed to exploit the resource, the government owed citizens the duty to be fair and determined in the interpretation of laws and agreements. The cumulative effect in the medium and long term of all these promotional gifts will be a loss of national control over our precious oil resources, which will have the consequence: the former Minister of Energy under the Mahama government, Emmanuel Armah Kofi Buah, found that the renegotiation of the Aker Energy and AGM oil agreements broke the local content policy in the initial agreement. The explanation is that if a cash call is made by partners, GNPC Explorco is legally required to find the money for the shares and could lose the late bet. As a result, the ministry believes that the government should opt for an agreement that frees up resources for GNPC in order to develop the oil block allocated to it. The Minister of Energy reportedly presented a legal opinion on the constitutional and legal implications of the proposed amendment to the oil agreements. While it is fair to note that the PDO stabilisation provisions have the consequence that the legal and regulatory changes do not affect the activities of the upstream operator, it is absolutely not fair to say that there is a constitutional and contractual obligation not to make legislative, regulatory and regulatory changes affecting the activities of international oil companies. The duty of the State is to restore the economic equilibrium of the agreement. Agreement renegotiated by the government led by nuclear power plants In accordance with the renegotiated agreement ratified by Parliament, Ghana`s 10% royalties have been maintained.

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