The Board Chairman of the Ghana National Petroleum Corporation (GNPC) Freddie Blay has described as regrettable, calls by CSO’s for him to resign over a decision to sell a 50% stake in Jubilee Holdings Limited (JOHL) to PetroSA.
According to him, the call for his resignation is detrimental to the public good, and the national interest, as he has taken due note of the libelous statements against him by his detractors including the said CSOs.
Reacting to this, Mr Blay expressed his decision and right to take legal action against these organizations and anyone engaged in this “diabolic exercise” of destroying his name and reputation.
“The call for my resignation, as well as that of the CEO, in relation to this matter is deeply regrettable and unfortunate. CSOs are expected to protect the interests and rights of civil society, and seek the public good and national interest. Instead, the 29 CSOs that have called for my resignation, chose to engage hastily in this matter without seeking the facts, and rather misinform the public, in pursuit of ulterior motives and vested interest.”
Freddie Blay
Mr Blay revealed that Ghana’s media landscape has recently been inundated with unfounded and malicious allegations surrounding him and these baseless claims, propagated through statements attributed to a purported group of 29 Civil Society Organizations (CSOs). These statements, he explained, have gone so far as to demand his resignation as Board Chairman.
The Board Chair of GNPC indicated that his detractors, without verifying the facts with GNPC, make baseless claims suggesting his involvement in a supposed “scandalous” transaction aimed at offloading 50% of GNPC’s existing stake in the Deepwater Tano Contract Area (DWT).
Furthermore, he noted that these organizations assert that this action constitutes a divestment of the State’s beneficial interest.
“Interestingly, there are others who assert, quite sadly, that they have uncovered a secretive and covert endeavour by GNPC and its board chairman to sell the 7% shares acquired by the Republic of Ghana from Anadarko West Cape Three Points Company (Anadarko) to Petroleum Oil and Gas Corporation of South Africa (Petro SA). To present the truth, I provide the following information for those seeking accurate insight.”
Freddie Blay
Commenting on the sale and Divestment of 7% “Shares” Acquired from Jubilee Oil Holdings Limited (JOHL), Mr Blay stated that Ghana is a country of law, and there are laws and procedures governing the sale and transfer of shares, under Ghana’s Companies Act 2019 (Act 992), even for private companies.
To this end, he encouraged all his “accusers”, and the public to Google “what is the procedure for share transfers in Ghana”, to educate themselves, and draw their own conclusions on the veracity or duplicity of the allegations.
Justifying his stance, Mr Blay explained that shares of a company are not a “pack of cigarettes anyone, and for that matter, the Chairman of GNPC can keep in his or her pocket and vend by the street!”
“The allegations surrounding the supposed ‘surreptitious’, ‘clandestine’, and ‘scandalous’ sale of so called GNPC shares are unequivocally false. There is no intention by GNPC or me as its Chairman, to divest 7% shareholding in JOHL nor has there been any claim by PetroSA to acquire shareholding interests in JOHL. Such claims can only stem from an uninformed and malevolent mind.”
Freddie Blay
GNPC implicated in PetroSA saga
On the Matter of The Petroleum Oil and Gas Corporation of South Africa (“PetroSA”), Mr Blay recounted that in March 2006, the Government of the Republic of Ghana represented by the Minister for Energy, the Ghana National Petroleum Corporation, executed a Petroleum Agreement (PA) in respect of the Deepwater Tano Contract Area (“DWT”), with Tullow Ghana Limited (“Tullow”), Sabre Oil and Gas Limited (“Sabre”), Kosmos Energy Ghana HC (“Kosmos”) and Anadarko Offshore Holding Company, LLC (“AOHC”).
These companies, he stated, were collectively referred to as “Contractor” and GNPC as is mandatory in the PA holds a 10% carried interest in DWT.
Subsequently, he revealed that PetroSA, in July 2012, completed the acquisition of the shares of Sabre after receiving the consent of the Minister of Energy, the Honourable Joe Oteng-Adjei, earlier in February of the same year. By the acquisition of the assets and liabilities of Sabre, he highlighted that PetroSA legally assumed the equity interests of Saber as a Contractor in the PA relating to the DWT.
“Specifically, PetroSA bought out Sabre’s interest in three assets i.e., the producing Jubilee field (1.7%), the Deepwater Tano Block at (4.05%), and the West Cape Three Points Block at (1.854%). Also, and by virtue of becoming a Contractor under the PA, PetroSA also, became a party in the Joint Operating Agreement (JOA) relating to the DWT.”
Freddie Blay
As a party to the DWT JOA, the GNPC Board Chair indicated that PetroSA like all other parties in the Agreement, is entitled to the benefits and rights granted in the said agreement, which includes the ability to exercise a right to pre-empt any divestments to any unidentified third party for any intended transfers of all or a portion of and Participating Interests, whether directly or indirectly by assignment, merger, consolidation, or sale of stock or shares or other conveyance.
In 2021, Mr Blay stated that AOHC created and incorporated a new Company i.e., Jubilee Oil Holdings Limited (“JOHL”), in Cayman Islands. JOHL, and Anadarko assigned to JOHL (“JOHL Transfers”) a 7% Participating Interest in the DWT JOA and a 5.95% interest in the DWT Petroleum Agreement.
Additionally, he opined that it also entered into a sale and purchase agreement with Kosmos Energy for the sale of Anardarko, and with the GNPC for the sale of JOHL.
“Post the acquisition of JOHL by GNPC, after serving a notice to pre-empt rights to purchase the 7% Participating Interest in the DWT JOA currently held by JOHL, PetroSA has since engaged GNPC to acquire said Interests. As a compromise solution, we have proposed the option of a 50:50 split of the 7% shares GNPC was holding. It is important to note that we have yet to outline specifics for the finality on the matter, and this compromise is subject to confirmation, and subsequent advice of the Minister. We are still in the stage of ongoing discussions.”
Freddie Blay
Despite the calls for resignation, Mr Blay emphasized that GNPC’s doors remain wide open to all Civil Society Organizations and individuals alike, and further extended an invitation to investigate and ascertain the facts before “succumbing to orchestrated and futile frenzies”.
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