Adomako-Mensah credits Akufo-Addo administration for groundwork behind new oil discovery

The Deputy Ranking Member of Parliament’s Energy Committee and MP for Afigya Kwabre North, Collins Adomako-Mensah, has credited the previous New Patriotic Party (NPP) administration with laying the groundwork for Ghana’s newly announced oil and gas discovery in the Deepwater Tano Cape Three Points (DWTCTP) block.

He said key contractual, administrative and regulatory processes that enabled the exploration project to proceed were completed under the administration of former President Nana Addo Dankwa Akufo-Addo.

His comments follow President John Dramani Mahama’s announcement on Tuesday, November 10, of an oil and gas discovery in the Deepwater Cape Three Points block in the Tano Basin.

The discovery was made by Planet One Oil and Gas Limited in partnership with the Ghana National Petroleum Corporation (GNPC), following the drilling of the Nya Gyidie-1X exploration well.

The find contains gas and condensate, although its estimated size has not yet been established.

In a Facebook post on Wednesday, November 11, Mr Adomako-Mensah outlined the sequence of decisions and approvals that facilitated Planet One’s entry into the contract area and its subsequent appointment as operator.

He traced the process to May 2021, when ExxonMobil, the then operator of the DWTCTP contract area, communicated its decision to relinquish its interest in the block.

Following ExxonMobil’s exit, the Ministry of Energy approved the transfer of its 80 per cent participating interest to GOIL Offshore in May 2022. GOIL Offshore, which already held a five per cent stake, consequently increased its interest to 85 per cent, while GNPC retained 15 per cent.

According to the MP, the Ministry subsequently directed GOIL Offshore to secure a strategic partner to enable it to meet its obligations under the petroleum agreement.

The process resulted in the Ministry’s approval on February 14, 2024, of GOIL Offshore’s request to transfer 75 per cent of its participating interest to Planet One.

Planet One was subsequently nominated by the partners as the operator of the contract area, a decision also approved by the Ministry.

Mr Adomako-Mensah further pointed to the extension of the Initial Exploration Period, which he said provided the companies with additional time to complete outstanding studies and prepare for exploratory drilling.

He said the Petroleum Commission granted a two-year extension, comprising an initial six months and a further 18 months, ending on January 2, 2026.

The extension, he explained, was intended to allow the companies to undertake additional studies and drill an exploration well.

“Thus, by January 7, 2025, when the Akufo-Addo-Bawumia administration handed over to President Mahama, all the background work from the side of the state culminating in the just announced discovery had been sealed,” he wrote.

The MP called for recognition of the previous administration’s contribution to the discovery, particularly acknowledging former Energy Minister Matthew Opoku Prempeh for his role in the process.

“Let us give credit when necessary!!!!” he said, adding: “Dr. Matthew Opoku Prempeh You played a key role. Thanks, sir.”