29 CSOs demand answers, accountability over controversial GNPC, Aker Energy deals

Some 29 Civil Society Organizations concerned with good governance in Ghana's extractives sector have demanded answers and accountability from government over two controversial deals involving Aker Energy and PetroSA.

At a press conference held in Accra on Tuesday, May 23 at the Africa Center for Energy Policy's (ACEP) office, the CSOs raised concerns about the Aker Energy deal where government through the GNPC almost paid $1.6 billion in 2020 for stakes in two oil blocks, Nyankom and DWT/CTP, which have now been giving out for little value.

The groups expressed outrage over Aker Energy’s attempt then to get from the country a whopping $1.65 billion for shares in the two offshore oil blocks that have now been taken over freely by AFC Equity Investment, a subsidiary of Africa Finance Corporation (AFC), Aker's main creditor.

Abdul Karim Mohammed, Coordinator of the Economic Governance Platform, who read the coalition's press statement, said "After nearly throwing away $1.6 billion for stuff that Ghana could simply have waited and gotten back for free, the people responsible for such reckless decision-making are still taking strategic decisions for the country and refusing to account for any aspect of their stewardship."

The groups also objected to a proposal for GNPC to sell 50% of its stake in the Deepwater Tano offshore oil block to PetroSA, a deal they said could deny Ghana revenue from the $290 million the block generated last year.

They further described the proposed sale “bizarre” and “illegal” — accusing GNPC officials of failing to properly oversee the block’s revenues and governance. The group demanded that the stake be transferred back to GNPC from the Cayman Islands where it is currently domiciled.

Some of the demands made by the CSOs include the immediate removal of the GNPC’s CEO, Opoku Ahweneeh Danquah and the Board Chairman, Freddie W. Blay, full disclosure of details around Aker's Plan of Development and the transfer of Jubilee Oil Holding's interests to Ghana.

The group also demanded transparency and accountability around oil deals, including the details of Aker’s sale of its stake to the other company and its plans for developing the Pecan oil field; justification for using a 14-year-old floating production storage and offloading (FPSO) vessel for additional 25 years to come; and disclosure of Aker’s development plan for the field.

The groups called on government, parliament and official oversight bodies to take action to regulate oil companies, safeguard the public interest, and ensure the country derives full benefit from its natural resources.

The coalition spokesperson warned that "a country micromanaged by the IMF cannot be seen to engage in fiscal recklessness that undermines its recovery."

The CSOs represent organizations working to promote transparency, accountability and good governance in Ghana's extractive industries.

They include Africa Centre for Energy Policy, Integrated Social Development Centre, National Coalition on Mining, IMANI Centre for Policy and Education, Institute for Democratic Governance, Centre for Extractives and Development Africa, Civil Society Platform on Oil and Gas,Public Interest and Accountability Committee, CSOs Open Licensing Monitoring Group, Ghana Anti-Corruption Coalition, Centre for Democratic Development, Natural Resource Governance Institute, Chamber of Petroleum Consumers Ghana, Citizens Movement Against Corruption, WACAM, Oil Watch Ghana, Penplusbytes, Publish What You Pay Ghana, SEND Ghana, The People’s Project, Women Aspire, Centre for Social Impact Studies, Obuasi, Friends of the Nation, Takoradi, TAMA Foundation, Ghana Integrity Initiative,Centre for Public Interest Law, ACT Africa, Economic Governance Platform,Citizen Aid Africa, KASA Initiative and iWatch Africa, Revenue Mobilization Africa.