Home Ghana News Mines and Energy C’ttee, Parliament fail to reach consensus on AGM deal

Mines and Energy C’ttee, Parliament fail to reach consensus on AGM deal

Mines and Energy C’ttee, Parliament fail to reach consensus on AGM deal 1

The Joint Mines and Energy and Finance Committee meeting of Parliament over the amendment to the AGM Petroleum Agreement ended inconclusively last [Thursday] night.

The Minority has been demanding justification for the decision to reduce the government’s stake from 43 to 18 percent in the agreement.

This follows the laying of a document in Parliament for the amendment of a petroleum agreement between the government and AGM Petroleum over the Deepwater Tano Contract Area.

According to Citi News sources, a consensus could not be reached on the provisions of the amendment pushing the decision to a vote which was postponed.

Earlier, the Minority had demanded justification for the review which it says will reduce the country’s stake in the agreement from 43 percent  to 18 percent.

Another meeting of the Joint Committee is expected to be convened.

Mines and Energy C’ttee, Parliament fail to reach consensus on AGM deal 2

The Minority in Parliament had demanded justification from the government over the proposal to reduce government’s stake from 43 to 18 percent in the AGM Petroleum agreement.

According to a letter sighted by Citi News, a similar proposal for a review to this agreement was rejected by Former Energy Minister, Boakye Agyarko but the amendment was laid in the House on Monday.

Parliament ratified the agreement in 2013.

The ratification grants the two parties the exclusive right and authority to carry out all petroleum exploration, development and production activities in the South Deepwater Tano Block (SDWT).

The ratification followed the approval of the Petroleum Agreement by Cabinet and a review by the Parliamentary Select Committee on Mines, Energy and Petroleum.

The 3,482 km2 SDWT Block is located in deep to ultra-deepwater part of the Tano basin, with water depth ranging from 2,000m to about 3,500m.

It is in close proximity to the Hess-operated Deepwater Tano – Cape Three Points block, where seven discoveries were made, and the Vanco/Lukoil Deepwater Cape Three Points block.

The agreement incorporates a significant commercial interest accruing to GNPC, through its subsidiary, Exploration and Production Company Limited (Explorco).

The agreement gives Ghana a stronger position in exploration and production activities than the country has held in past oil and gas agreements.

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