We Must Probe Further Into US$165 billion Aker-AGM-GNPC Transaction -Honourable Kofi Buah Tells Parliament
According to the deputy minority leader, the National Democratic Congress (NDC) minority in parliament stood up when AKER tried to sell the AGM south deep water Tano block, insisting that it was not of value and was risky.
Freeman Koryekpor 
Former Minister of Energy and Petrolatum who doubles as the Member of Parliament (MP) for Ellembele Constituency in the Western Region, Honorable Emmanuel Armah Kofi Buah,has called for a further probe into the AGM, a sister company of Norway-based Aker Energy US$1.65 billion transaction with the Ghana National Petroleum Corporation (GNPC).
According to the deputy minority leader, the National Democratic Congress (NDC) minority in parliament stood up when AKER tried to sell the AGM south deep water Tano block, insisting that it was not of value and was risky.
He however added that they feel vindicated for standing against the AKER/AGM Oil block deal which the NPP Government nearly paid over $1 billion for.
“The minority in parliament stood up when Aker tried to sell the AGM south deep water Tano block, we stood up and spoke and we will never betray the people of Ghana.
“…we want to basically let the people of Ghana know that we stood up. We continue to stand up, when it came to the issue of Aker basically coming to parliament to water down our take as a country and to reduce the power of the regulator the Petroleum commission, we spoke about it. We insisted it was wrong and today we know it; AKER has basically been dilly dallying the people of Ghana and has not developed our fields. Sadly, we have three development fields,” Mr. Kofi Buah said.
The National Democratic Congress MP who is an energy expert demanded accountability of the money being spent so far in the transaction by Aker Energy and its partners.
Speaking on the floor of the parliamentary, on Wednesday March 22, 2023, Mr. Kofi Buah stressed it is important for the MPs in the parliament to think about the Aker Energy-AGM-GNPC deal, saying that the Aker Energy has bought these resources from heirs.
The MP added that "we known the company has done a lot of work but don't let them forget that the company spent US$100 million to buy the Aker Energy parts of the blocks.
"More importantly, l thinks that the points that we have been raised here to be considered that what are the value of the asset on the grounds, how has it been valuated, how does the valuation has been done," the MP noted.
He stressed that he thought that "we know how many oil drilling that heir did about twelve drilling campaigns and that we know that Aker Energy did five.
"So the amount of the money that Aker Energy claimed it has spent which is about US$ 800 million is something that we must probe and so when we are pushing that this must be looked at not only the financial negotiation but we must probe further into how much works the company has done and how much money it has spent," he suggested.
He pointed out that it is very critical to look at one of the discussion that we are having in the area of the operator.
He noted that in the Aker Energy agreement we have Aker Energy, Lupe Oil and that Aker Energy in its own contractual agreement, it has 50 per cent and in the new agreement, the Aker Energy shares value would be completely reduced to the 13 blocks.
"Lupe Oil has 38 per cent even in this new agreement, the question must be asked between Aker Energy and Lupe Oil who has the technical capacities to be the operator, the former Energy Minister rethorically asked.
He indicated that how long is the Minister advice on the GNPC, saying that the Minister has huge responsibility to value this important decision.
He asked that are we satisfied with ourselves the Aker Energy who is now have a bigger state in this agreement would be the operator,
"adding that Is it something that we can monitor if you we are going to let Aker Energy who is basically which is not going to have to much interest be an operator."
The MP stressed that it is important that we strengthen the regulator to ensure that we minimize the cost other that we cannot guarantee that the company that doesn't have the highest interest would be a fair operator.
He noted that the other immortal aspect of the issue in the agreement that must be critical looked were the issue of the two blocks that they have put together.
He added that "We have Aker Energy block, South Deep-water Tano (SDWT) block,. We know that the first block have discovery and have proven oil reserves, we know the second block which is South Deep-water Tano (SDWT) block three thousand mitres deep and the the technology to develop is frankly not even available. We know that in that block there were only two drilling one discovery and that discovery in its commerciality is also questionable.
"We need to really ask ourselves in the two transactions we could have be better off basically focusing on the Aker Energy transaction. And the other one interestingly we are buying 70 per cent of the riskiest of the block. These are questions that were important in these transactions that we must be asking. It is very very important. Because we have to fight in the interest of the republic of Ghana," the former Energy Minister tells the House of the Parliament.
