The New Patriotic Party, NPP has accused government of poor negotiations in its contract with ENI and Vitol Ghana for fiscal and security support, with respect to the development of the Sankofa and Gye Nyame Oil and Gas project.
According to the Member of Parliament of Afigya Kwabre South William Owuraku Aidoo, the negotiators for the state did not have the requisite competence to deal with the contractors. He opined, that given the enormity of the matter, government had entered into a bad deal or the deal smacked with corruption.
Giving the facts of the case, the Afigya Kwabre South MP noted that in December 2014 and during the consideration of the 2015 budget statement and Economic Policy of Government, space was created for the consideration of the agreement between government and the GNPC on one side and ENI Ghana and Vitol Ghana on the other side for fiscal support and security package in respect to the development of the sankofa and Gye Nyame Oil and Gas Project.
According to the MP, parliament was made to act swiftly on the contract with the view that Ghana could lose out on the contract following the fact that ENI had made some oil discovery in Mozambique which was more significant than the potential yield from the Gye Nyame and Sankofa fields.
William Owuraku Aidoo however expressed grave concern that the deal had serious financial repercussions for the state.
“GNPC is required to take off 90% of total quantity of gas produced by the contractors at a guaranteed price of $9.8 million per British thermal unit. Nigeria gas to Ghana is about $9 per British thermal unit after it has been transported over 670km. this price of $9.8 per British thermal unit is guaranteed over a 20 year period. The $9.8 price per standard measure excludes transport cost over the 63km distance. This makes the gas to be produced in Ghana the most expensive in the world. The tragedy of the agreement is that there is no flexibility, say for a review of the price downwards in the event of the collapse of the world gas price”
The contract according to the NPP has been bloated by between $2 billion and $3 billion to the disadvantage of the state.