The Ghana National Petroleum Corporation (GNPC) has indicated that a successful delivery of the Pecan Phase 1, Nyankom and Pecan Phase 2 to be operated under the 37 per cent stake agreement with Aker Energy’s DW/CTP assets can boost up to more than 10,000 jobs in the wider economy.
The National Oil Company (NOC) made this assertion in response to questions raised by some civil society organizations (CSOs) on the prospects of the acquisition only creating relatively few jobs for citizens. While also stressing that the biggest benefits are likely to be “a relatively small group of people—for instance, those who work for companies that receive ‘local content’ subcontracts on projects.”
Anticipating the success of operations, GNPC noted that some of the job creation will come from the oil sector with the majority coming from the tax revenues, royalties and profits from the oil fields being circulated back into the economy, thus, highlighting the impact of the wider economy.
In line with these assertions, GNPC has assured that the nature of the agreement with Aker Energy enjoins both parties to “discuss and agree on the full details of knowledge and skills transfer arrangement.” Thus, allaying concerns that Explorco will only act in the capacity of a passive joint operator with limited opportunity to learn by doing.
Considering the proposed structure of the agreement, GNPC’s Explorco will own 40 per cent of the shares in Aker Energy Ghana Limited, which will then allow GNPC to sit on the board of Aker Energy Ghana Limited, beginning from the effective date of the transaction until the first oil. Therefore, GNPC will be involved in operational decisions.
Furthermore, assuming ownership of 33 per cent of Deep Water Tano/Cape Three Point (DWT/CPT) and 66 per cent of South Deep Water Tano (SDWT), Explorco will be party to the JOAs for both blocks and will be directly involved in project decisions.
Meanwhile, Aker Energy will be under an obligation to deliver training to the Operator JV (through subcontractors) to enable the operator manage the project as is required of an operator of an oil field.
Knowledge and Skills Transfer under the agreement
According to GNPC, there will be a robust knowledge transfer program structured around the core competencies required for the operator function currently being performed by Aker Energy staff. As such, the training will be by secondment of GNPC personnel into Aker Energy.
GNPC asserted that these considerations are in line with the model used by Statoil and Equinor to develop skills to become operators. They all developed their capacity by riding along the skills of predecessor international oil companies, GNPC averred.
Moreover, GNPC holds that this transaction carries significant strategic value for the government, in that, it could acquire the necessary capabilities to enable it manage existing fields as a stand-alone operator in the case where they are abandoned by international oil companies in the future.
Specifically, the total valuation of the Aker Energy and AGM Petroleum Ghana assets is pegged at US$2 billion. GNPC believes that the request of US$1.3 billion for the purchase will save the country approximately US$700 million.
Considering the foregoing, this is not the first time a decision has been hatched to support GNPC become an operator through the allocation of portion of oil fields. Therefore, there is need for an in-depth analysis of the transaction and utmost due diligence to ensure the country’s interests are prioritized.
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