Energy expert, Dr Yussif Sulemana, has expressed the need for the country to gravitate towards considering stand-alone operatorship when it comes to management of its oil resources.
According to him, if the country keeps on dissipating its shares, by diluting whatever it owns, in the long run, it poses a very big disadvantage to the nation. He revealed that the best way to ensure Ghana’s interest is protected in the deal is to ensure that it doesn’t lose as much as it gains.
“So, if you can get a partner with a financial wherewithal and technical capability to partner with you, to be able to commercialize the wells or productions, I think it’s a way to go. But my number one priority is for Ghana to gravitate to become a stand-alone operator and to become a stand-alone operator means that you need to hold substantial number of shares – we haven’t done that over the years. So, I get a bit disturbed and worried if I see that we are beginning to dissipate our shares or dilute our interest in whatever we are already holding.
“However, if you look at the industry, the industry considers certain things to survive – the technical know-how and financial wherewithal. I think the financial wherewithal, that’s paramount, if you have the financial without the technical know-how, you can always go and buy it and so, let’s give them the benefit of the doubt to see whether we can get substantial amount of oil coming out of this.”
Dr Yussif Sulemana
Commenting on PetroSA announcement that production of first oil in Ghana is scheduled for next month, Dr Sulemana expressed elation over the prospect. He however called for transparency in the operation of PetroSA during the entire process.
“Indeed, that should be a very welcoming news, though when this whole thing started, it was shrouded with a lot of controversies and my understanding is that it is beginning to cool off and probably the energy ministry, they’re now trying to understand what’s going on… Our oil price is around 84 now, assuming we had majority shares, and we are able to commercialize that, that is going to be a huge benefit to the state. I always want to give them benefit of the doubt in the sense that, there’s no need holding shares when you can’t commercialize it…”
Dr Yussif Sulemana
Prospects of oil deal with PetroSA
Touching on the good side of the deal, the energy expert stated that the move between the two African countries bodes well for the continent. He however iterated that partnerships of such nature shouldn’t inhibit the country from striving to attain the status as “stand-alone operatorship”.
To achieve this, Dr Sulemana advised that the country must make sure that whatever commercial quantity comes from production, there must be concerted efforts to re-invest to build a robust oil resource towards becoming a stand-alone operatorship. This, he highlighted, will guarantee how much the country’s earnings or returns are going to be at the end of the day.
“Apart from we trying to develop ourselves, intercontinental-wise, there’s a huge benefit we can harness our resources together. So, if PetroSA is from a continent in Africa, and can actually partner with GNPC, our national oil company, it’s a win-win game; then there’s nothing wrong with that. However, I always say that let’s make concerted efforts to gravitate to stand-alone operatorship…”
Dr Yussif Sulemana
Touching on PetroSA confidence in the partnership with GNPC in yielding mutual benefits, Dr Sulemana emphasized the need for the South African company to be very transparent. This, he noted, is because the terrain is capital-intensive, and with the stake being quite high, thorough work is required to ensure fairness.
“… So, if a deal of such mammoth measure is emanating, and people don’t know much about it, it is only natural that people will conjecture. But if you come out very clear, to state the benefit Ghana is going to gain in this situation, then everybody will buy into it…”
Dr Yussif Sulemana
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