ExxonMobil to get 80% interest in exploration contract – Boakye Agyarko

The Minister for Energy, Boakye Agyarko has disclosed that multinational oil and gas corporation, ExxonMobil will rake in 80% interest from the recently signed exploration contract with government.

He added that the Ghana National Petroleum Corporation (GNPC) will receive 15% of the remaining 20%, with ExxonMobil deciding which local company will receive the 5%.

Boakye Agyarko argued that the agreement between ExxonMobil and government was necessary since only few international oil companies have adequate logistics to undertake deep water exploration.

“For purposes of the record, in the deal, Exxon Mobil holds 80% interest while Ghana National Petroleum Corporation holds 15% carried interest the remaining 5% will be assigned by Exxon Mobil to a local partner of their choice. The direct negotiations in our candid opinion was the best way to go considering that there are just a few oil companies in the world who have the wherewithal in terms of equipment and financing to undertake deep water exploration”, the Energy Minister explained.

He added that “Such an agreement would offer Ghana an opportunity to accelerate exploration activities with the view to making a discovery and increasing the reserve replacement rate. The agreement also gives Ghana the opportunity of attracting other mergers and super mergers”.

ExxonMobil recently signed a deal with Ghana to explore for oil in the Deepwater Cape Three Point offshore (DWCTP) oilfield.

The signing followed direct negotiations between Ghana and ExxonMobil without an open competitive tender due to the nature of the field, where the depth ranges from 2,000 to 4,000 meters.

ExxonMobil’s investment in the oil sector becomes the first major one in Ghana following the landmark ruling by ITLOS in the maritime border dispute between Ghana and Ivory Coast, in September last year.