AFAG commends government on “amicable” EO Group-Tullow shares resolution

Accra, Aug. 2, GNA – The pro-opposition pressure group, Alliance for Accountable Governance (AFAG), on Tuesday congratulated the government on its “amicable resolution” of the protracted legal battle with the EO Group, a partner of KOSMOS Energy of the US.

“AFAG wishes to state in principle that government has shown a high sense of responsibility, which enhances the confidence of indigenous businessmen and the private sector at large,” it said in a statement issued in Accra.

“This would boost entrepreneurship which would help grow the energy sector. AFAG urges government to encourage other entrepreneurs in all sectors of the economy,” it added.

AFAG, however, said it was urging the government to “eschew political high handedness” as a means of achieving an economic goal.

“Rather government should open up avenues to all and sundry to propel the nation forward.”

AFAG said this notwithstanding, government should see to the prudent and effective maximization of revenues from the oil discovery.

Tullow Oil plc (Tullow) has acquired the interests of EO Group Limited for 305 million dollars.

This acquisition, with an effective date of December 1, 2010, will increase Tullow's interest in the West Cape Three Points license offshore Ghana by 3.5 per cent to 26.4 per cent and increase the Group's interest in the Jubilee field, which Tullow operates, by 1.75 per cent to 36.5 per cent.

In an official statement issued last week, the Government of Ghana said it had become aware of reports in sections of the media suggesting that Government had abandoned its on-going investigations of the EO Group and that in exchange Government had received reparation from the EO Group.

The Energy Minister, Dr. Joe Oteng Agyei, categorically denied the reports and explained that what had taken place was government’s consent for Tullow Oil to enter into contractual arrangements with the EO Group for an eventual takeover of the latter’s shares in the Jubilee Oil Field.

Mr. Oteng Agyei added that the transaction did not in any way indemnify the EO Group from on-going criminal investigations which can lead to possible criminal prosecution.

The statement said the Government of President John Evans Atta Mills would not undermine the national interest and remained committed to the fight against corruption.