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Dec 2, 2015 | Feature Article

Mr. Mahama, Tear Up NPP-Cute "Hybrid System" Contract For Ghana's Oil!

When your country is entitled to 100 million barrels of your own oil but your country receives just 27.2 million barrels, (27% of that 100 million barrels of oil), that is an economic hit job on your country...That is not Pro-Growth. That is predation.

Mr. Mahama should not bless the NPP-cute "Hybrid System" contract by signing any agreement with those concession provisions...Instead, Mr. Mahama should rubbish that Hybrid "Contract on Ghana"...Mr. Mahama, shred it all and toss them into the trash can where they belong...".

The so-called "Ghana Hybrid System" contract for Ghana's oil, an NPP-era contract, is a dangerous contract on Kwame Nkrumah's Ghana!

It is not Fair-Trade!

It is anti Fair-Trade Oil Share!

It is economic predation masquerading as pro-growth!

It is an economic hit job, a scheme to prolong robbing Ghana of its fair share of oil proceeds.

PROBLEM: When your country is entitled to 100,000,000 barrels of your own oil but your dear country receives just 27,169,710 barrels, (27% of that 100,000,000 barrels), that is an economic hit job on your country.

Mr. Kuffour's and his NPP started it all. But, in 2015, we might be able to forgive Mr. Kuffour because at that time , back in 1998-2003, Ghana's Oil reserves were not as proven).

That is not the case today about Ghana's Oil and Gas reserves. Today, Ghana's Oil reserves are estimated to be a big as Nigeria's, when size of the population is considered!

And Ghana has non-extreme, 24/7/365-day weather, too!

Location is a huge cost factor in these things, you should know.

But, things have gone awry.

Mr. Mahama, stop dead in its track the NPP-cute "Hybrid System" contract. It is a "Contract on Ghana".

Dear Reader,

You see, in case you missed all of that, just yesterday (Monday, 30th November), 2015, we published "Open Letters" to Mr. John D. Mahama, the President of Ghana, the Speaker of the House in Parliament, (with copies to Chairman of the Select Committee on Energy and Mines and responsible ministers). Before that, we mailed letters and a Power Point Brief to their offices, separately. We pleaded with Mr. Mahama and his government to adopt to the Production Service Contract Agreement (PSA), the gold standard oil contract for sovereign oil today. We asked that:

".... the Government of Ghana, in the interest of "Fair-Trade Oil Share-Ghana", true Growth-and-Development, and accountability, suspend all efforts to force through Parliament the so-called Ghana Hybrid System for Ghana's oil contracts..."

We now understand that the package has been sent to Mr. Mahama for review and his signature.

PROBLEM: Mr. Mahama should not sign the so-called "Ghana Hybrid System" for Ghana's Oil if indeed that package is in the office of the President. (Ghana has, since 2010, lost over $6 billion in Oil because of the "Ghana Hybrid System, a type of concession contract unique to Ghana in Global/International Trade).

If Mr. Mahama signs the agreement in its current form, Ghana will be on a fast-track to losing no less that another $6 billion during 2016 through 2020, assuming same production schedule as the last 5 years.

Instead, Mr. Mahama should ask his Ministers, the Leader of the House, and the Chair of the Select Committee on Energy and Mines to go back and re-do the Agreement consistent with current customary Sovereign Oil agreements, and lessons from Ghana's peers, among them these 33 (thirty-three):

1 Brazil

2 Angola

3 Niger

4 Chad

5 Tanzania

6 Kenya

7 Egypt

8 Libya

9 Croatia

10 Cameroon

11 Cote D'Ivoire

12 Ethiopia

13 Gabon

14 Liberia

15 Mali

16 Senegal

17 Sierra Leone

18 Namibia

19 Uganda

20 Zambia

21 Mozambique

22 Republic of Benin

23 Equatorial Guinea

24 Madagascar

25 Mauritania

26 Guinea

27 Zaire

28 Algeria

29 Democratic Republic of the Congo

30 Malaysia

31 Belize

32 Togo

33 Nigeria

Mr. Mahama should not bless the "Hybrid System" concession contract by signing any agreement with those provisions, versus the PSA, the demonstrated global standard for sovereign Oil and Gas.

To the point, Mr. Mahama should rubbish that NPP-cute "Hybrid Contract on Ghana".

Mr. Mahama should shred all of it and toss them into the trash can where they truly belong.

Then, Mr. Mahama should ask the Ministers, the Speaker of the House in Parliament, and the Chairman of the Select Committee on Energy and Mines, to come back with a PSA contract that allows Ghana to lift its "Fair-Trade Oil Share" according to current international standards.

Mr. Mahama, Nkrumah's Ghana deserves a Production Sharing Agreement (PSA) for Ghana's Oil, just like its peers!

Please tear up the so-called "Ghana Hybrid System" contract for Ghana's Oil.

So it goes, Ghana!


1. Ghana Institute for Governance and Security and GhanaHEro.Com. Fair-Trade Oil Share – Ghana (FTOS-Gh) , PowerPoint Briefing Presentation. Available at www.GhanaHero.Com/Productions, 30 November, 2015.

2. Madaki O. Ameh. The Nigerian Oil and Gas Industry: From Joint Ventures to Production Sharing Contracts.

3. International Institute for Environment and Development. How to Scrutinise a Production Sharing Agreement, 2012.

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Mr. Mahama, Tear Up The NPP-Cute Hybrid System Contract for Ghana's Oil!

Brought to you courtesy©1 December, 2015.

Professor N. Lungu
Professor N. Lungu

The author has authored 179 publications on Modern Ghana.
Author's column: ProfLungu

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