GNPC proposal for Aker questionable – Energy & Associates

Think-tank, The Energy & Associates has raised questions with the proposal by the Ghana National Petroleum Corporation (GNPC) to acquire a 70 percent stake in the South Deep Water Tano (SDWT) and a 30 percent stake in Deep Water Tano/Cape Three Points (DWT/CTP) operated by Aker Energy Ghana Limited.

These were contained in a motion presented to Parliament by the Energy Minister, Dr. Matthew Opoku Prempeh.

GNPC is requesting a loan not exceeding $1.65 billion to finance “the acquisition at a price to be negotiated which might not exceed US$1.3 billion and GC Explorco share of capital expenditure (CAPEX) to Pecan Phase 1 First Oil of US$350 million”.

But a statement issued by the energy think-tank last week described the move as shocking.

“As to what valuation this amount is based on is yet to be known,” it said.

“Our sources at the Petroleum Commission explain that valuations in the books of the Petroleum Commission are a little over $400mil, however, we are told Aker’s valuation is some $800mil.”

It is also described as “quite worrying” the government’s decision to go ahead with the proposal when the valuation report that precipitated the decision to acquire this stake is not ready.

It noted how about $1 billion allocated GNPC over the past 10 years as the total amount in its exploration in Exploreco is yet to “yield any prospects”.

“Increasing GNPC reserves and producing through GNPC Exploreco by principle is laudable, however, this proposed deal with Aker is questionable and must be looked at for public interest purposes.”