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

The Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako-Mensah, has credited the former New Patriotic Party (NPP) administration for laying the foundation for Ghana’s latest oil and gas discovery in the Deepwater Tano Cape Three Points (DWTCTP) block.

The Afigya Kwabre North MP says key contractual, administrative and regulatory processes that paved the way for the exploration activities were completed under the government of former President Nana Addo Dankwa Akufo-Addo.

His comments follow President John Dramani Mahama’s announcement on Tuesday, November 10, of a new 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.

Although the discovery contains gas and condensate, its estimated size is yet to be determined.

In a Facebook post on Wednesday, November 11, Mr Adomako-Mensah outlined the series of government decisions and approvals that facilitated Planet One’s entry into the contract area and its eventual 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 in May 2022 approved the transfer of its 80 per cent participating interest to GOIL Offshore, which already held a five per cent stake.

The transaction increased GOIL Offshore’s interest to 85 per cent, while GNPC retained its 15 per cent stake.

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

The process eventually led to 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 Oil and Gas Limited.

Planet One was subsequently nominated by the partners as the operator of the contract area, a move that also received ministerial approval.

Mr Adomako-Mensah further pointed to the extension of the Initial Exploration Period, which he said was granted to allow the companies to complete outstanding studies and prepare for exploratory drilling.

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

The extension, he said, was intended to enable 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 is therefore calling for acknowledgement of the previous administration’s contribution to the discovery, particularly the role played by former Energy Minister Dr Matthew Opoku Prempeh.

“Let us give credit when necessary!!!!” he said.

He added: “Dr. Matthew Opoku Prempeh You played a key role. Thanks, sir.”