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Mon, Dec

GOIL, ExxonMobil SIGN PARTNERSHIP AGREEMENT ON OIL EXPLORATION

Business & Economy

Ghana Oil Company Limited (GOIL) has signed a joint operating agreement with ExxonMobil of the United States for oil exploration in the Deepwater Cape Three Points area.

Ghana Oil Company Limited (GOIL) has signed a joint operating agreement with ExxonMobil of the United States for oil exploration in the Deepwater Cape Three Points area.

The agreement between GOIL and ExxonMobil follows completion of elaborate and rigorous due diligence by ExxonMobil.

The agreement is being sealed after no-objection approval from the Government of Ghana, represented by the Ministry of Energy.

The deal fulfils the Local Content Law, which stipulates a 5 per cent stake reserved for a local entity.

Confidence

The signing ceremony was attended by Patrick Kwame Akorli, GOIL group executive officer, Alex Josiah Adzew, chief operating officer, and other senior members of GOIL’s management as well as board members, led by Kwamena Bartels, board chairman.

Ms Randi Cruz, director and venture manager for ExxonMobil E&P Ghana Deepwater Ltd, led a five-member team to witness the signing of the partnership agreement.

The GOIL group executive expressed the company’s deep appreciation to President Nana Addo Dankwa Akufo-Addo, Minister of Energy John Peter Amewu and the Petroleum Commission for the positive role they played and, importantly, for the confidence reposed in GOIL.

GOIL said it was excited at the development because the agreement paves the way for Ghana’s entry into the upstream sector.

“Technically proficient”

“As the biggest indigenous oil marketing entity in Ghana, GOIL is optimistic the agreement will also pave the way for enhancing training opportunities for employees and importantly, opening up more opportunities for employment,” Mr Akorli said.

“We are particularly excited at this agreement because it is an endorsement of our diligent and technically proficient work in the downstream sector over the years.”

He said GOIL therefore intends to fulfil its part of the agreement to become a strong, vibrant and competitive player in the upstream petroleum sector of Ghana’s burgeoning oil industry.

“We think that the company is well structured and strong enough to be able to partner an international firm like ExxonMobil in undertaking exploration and production activities within the country,” Mr Akorli said.

The company is financially sound and therefore to venture into the upstream space, he said. “We are very much prepared financially to invest in the sector, and that is why we have got the commercial interest in this petroleum agreement after months of rigorous due diligence done by our partners.”

Direct negotiations

For her part, Ms Cruz said the company was excited about the partnership and looked forward to Parliament ratifying the agreement for real work to begin.

ExxonMobil secured the block through direct negotiations with the government to explore and produce oil in the field, which is between 2,000 metres and 4,000 metres deep.

In 2013, Ghana passed a legislative instrument, the Petroleum Local Content and Local Participation Regulation 2013 (LI 2204) to provide legal backing to the Local Content and Local Participation Policy Framework, designed in 2011.

An important aspect of the local content policy is that it targets a minimum 90 per cent local participation in all areas of the oil and gas value chain by 2020.

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