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22.07.2004 Business & Finance

Govt, three others sign oil exploration agreement

Govt, three others sign oil exploration agreement
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Accra, July 22, GNA - The Government on Thursday signed an agreement for oil exploration with three organisations in the Cape Three Points area.

They are Kosmos Energy of USA, Ghana National Petroleum Corporation (GNPC) and E.O. Group of Companies.

Dr Paa Kwesi Nduom, Minister of Energy, signed for the Government; Mr Douglass G. Manner signed for Kosmos Energy and the Mr Sekyere Abankwa, Chairman of GNPC Board, signed for his corporation. Mr Derick Oppong-Agyare of E.O. Group of Companies, signed for E.O. Group of Companies.

The agreement, which was reached within a record time of three months, was based on previous seismic data provided by the GNPC and valued at an initial 30 million dollars.

It is expected to run for seven years with operations in five basins.

Dr Nduom asked Kosmos Energy to move away from the previous trend where companies granted acreage failed to utilise them because they did not have the financial strength or the technical know-how.

"I hope that with your experience in Equatorial Guinea and other major oil producing countries, Ghana will in no time strike oil and bring the long-awaited smiles onto the faces of all her people," he said.

He expressed the hope that others would follow in the wake of Kosmos Energy to create an active oil and gas industry in Ghana. Dr Nduom said the agreement had been ratified by Parliament and Cabinet and had undergone due diligence by the GNPC.

Mr Abankwa said the GNPC had trust in Kosmos Energy's ability to deliver and expressed the hope that oil would be found with the involvement of Kosmos Energy in Ghana's oil industry.

Mr Manner expressed his Company's commitment to the exploration project and promised to work assiduously to make the investment worthwhile.

He noted that the GNPC seismic data had rich information and everything would be done to ensure that drilling begins by the middle of next year.

"We are very excited about the size and nature of the seismic data available," Mr Manner said.