Gov’t prepares to allocate new oil blocks
Adnan Adams Mohammed
As part of preparedness to deepen transparency in the
allocation of oil blocks, the Ministry of Energy has inaugurated a committee to
oversee the allocation of nine new oil blocks to local and international
companies through proper evaluation and negotiation.
The committee is made up of 23 members, drawn from the
Ministry of Energy, Ghana National Petroleum Corporation (GNPC), Environmental
Protection Agency (EPA), Ghana Revenue Authority (GRA), Ministry of Finance,
Attorney-General’s Department, Petroleum Commission and the Ghana Maritime
Authority.
Known as the Licensing Bid Rounds and Negotiation (LBRN)
Committee, it will have three sub-committee and will be chaired by the Chief
Director of the Ministry of Energy, Mr. Lawrence Apaalse, with the Director of
Upstream Petroleum, Mr. George Okley, as the vice chairman.
Speaking after the members of the committee had sworn the
oath of office and secrecy, the Minister of Energy, Mr. Boakye Agyarko, said
the setting up of the committee was in line with preparation for the allocation
of more oil blocks in accordance with the Petroleum Exploration and Production
Act (Act 919).
The minster reiterated a statement he made during the 50th
Offshore Technology Conference (OTC) in Houston, Texas, in the United States of
America (USA), earlier this month that nine oil blocks had been mapped out in
the Western Region for allocation to companies interested in oil exploration.
Out of the nine blocks, he said six would be allocated this
year while the remaining three would form the basis for the second bidding
round next year.
Giving further details Mr. Agyarko said three would be
allocated through open competitive tender; two would be given through direct
negotiations; while one would be reserved for the national oil company, Ghana
National Petroleum Corporation (GNPC).
The GNPC is expected to explore its block in partnership
with a chosen strategic partner with the view to developing its technical
capacity and becoming an operator.
To increase the nation’s number of blocks, Mr. Agyarko said
work would continue to identify further prospects in the eastern, central and
onshore Voltaian Basins.
He said this year’s licensing would focus on the western
Basin because of the existence of infrastructure, including two gas pipelines
to the shore, three production facilities (FPSOs) with a fourth FPSO in the
offing by 2021, that could facilitate the development of any discovery made in
the area.
“These assets will ensure a quick development of
hydrocarbons, maximizing value and minimizing cost. The overall effect is
increased revenue to the state and development benefits to the people,” he
said.
Per the terms of reference of the committee, it is to
prepare all the necessary documentation for a successful bid round, access and
package all data on the acreages and set up an online data room where all the
data could be accessed by prospective bidders.
It is also to run promotions and road shows in collaboration
with the Petroleum Commission; invite bids from prospective applicants in line
with the applicable regulations, evaluate qualified bids and select winners in
line with transparent criteria. It will also negotiate with the winners and
provide recommendations to the minister with regard to signing of petroleum
agreements.
According to its timelines, the committee will have to
complete all preparatory work by August and start invitation of prospective
bidders between November and December 2018.
It is expected that by the end of April 2019, oil blocks
will be awarded to bidders.
The committee chairman, Mr. Apaalse, on behalf of the
members, pledged their preparedness to ensure the prudent management of Ghana’s
oil resources.
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