From: wolda002@umn.edu
Date: Tue Nov 17 2009 - 01:54:34 EST
Ghana's Oil In Danger
Kosmos Energy, the conglomerate which finally ushered Ghana into the
threshold of oil production after many years of futile attempts by others,
has been slapped with an accounts and assets freeze by the government, as
the fossil energy discovery gets more political, thus jeopardizing the
investment climate in the country.
The order, DAILY GUIDE learnt, was passed through the Bank of Ghana, as a
raging disagreement between the energy giant and government takes a further
dip.
When DAILY GUIDE contacted a deputy Minister of Information, James
Agyenim-Boateng, he said he was not aware.
“Where is that coming from? I have no idea,” James said.
However, a source said the directive might have come from the United States
Department of Justice who are said to be investigation Kosmos for some
undisclosed reasons.
The assets and bank accounts freeze include those of the former Chief
Executive Officer (CEO) of Kosmos Ghana, George Owusu; the EO Group, the
company that facilitated the entry of Kosmos to Ghana; and a minority
shareholder in Kosmos Ghana, Kosmos LLC and other companies, George Owusu.
, MP for Adansi Asokwa and former deputy Energy Minister, asked government
to immediately explain the reason for such capricious act, in order to
protect the investment climate in the country.
Government and Kosmos have locked horns in recent times over the ceding of
the latter's interest in Jubilee 2 Field offshore to Exxon Mobil, the
American oil giant, without the approval of Ghanaian authorities.
The argument, which appears to be favouring Kosmos, is that a two and a
half month notice was served on government through the Ghana National
Petroleum Corporation (GNPC) and the Ministry of Energy, about the
arrangement, but with no response forthcoming, Kosmos went ahead to
consummate the deal with the US oil giant, Exxon Mobil.
No clause in the contractual deal with Ghana suggests that under such
arrangements Kosmos should give preferential treatment to the country, a
catch which could open a chapter on a protracted legal battle.
What also worsens the case of Ghana is that the deal entered into with
Exxon Mobil is irrevocable and steeped in international law.
Should Ghana persist in its resolve to scuttle the Kosmos/Exxon Mobil deal,
a diplomatic row could break out between the US and the country. It is
doubtful if the Ghanaian government would be ready for the repercussions of
such a diplomatic/business confrontation.
The Mills Administration is longing to have a Chinese group replace Exxon
Mobil and ironically, it was the same Asian company which some time back
condemned Ghana as not bearing oil.
With no offshore oil exploration and drilling experience, the Chinese
appear to be a mismatch for the US company, whose mastery of complex
deepwater oil drilling is legendary.
The National Democratic Congress (NDC) government is trying various
manouvres, with a view to possibly reversing the Kosmos/Exxon Mobil deal
but with the irrevocability of the contract, Ghana might be preparing to
jump into a complex international legal minefield.
At a time the country is about to join the league of oil producers, the
unfolding legal drama could be presenting her as an investor-unfriendly
nation, according to , former deputy Energy Minister who was part of the
negotiating team at the inception of the oil prospecting contract with
Kosmos.
Another aspect of the murky development has to do with the abbreviation
E.O. Group (Edusei and Owusu), which the government is not comfortable
with.
When all hopes had been dashed about discovering oil in the country in
commercial quantities, it was the E.O. Group which encouraged Kosmos to
come to Ghana.
Kosmos had earlier discovered oil in commercial quantities in the
Equatorial Guinea, and the E.O. Group thought the conglomerate could spring
a surprise in Ghana too.
Ever suspicious about a possible former President John Agyekum Kufuor
linkage with the Kosmos operations, the NDC government is fighting tooth
and nail to make things impossible for the E.O., which company was
established long before the country's oil discovery.
DAILY GUIDE has reliably learnt from a source that government thinks that
the E.O. Group is fronting for former President Kufuor, hence the
harassment of George Owusu in the past few months.
Matters got to a head for George Owusu last week when the freeze order was
relayed to him, after a siren-blaring police convoy had picked him up and
drove him to his office and home for a thorough search.
The two locations were searched and the hard-drives in his personal
computers and documents removed to perhaps isolate tell-tale data which
could buttress the suspicion of a Kufuor/Kosmos deal.
Hon. has sneered at the unfolding development, describing it as inimical to
our quest to attract investors to the country.
“It has a potential of causing massive friction and if it happens, Ghana
will be a big loser,” he said.
According to him, for Kosmos' entry into the oil industry, Ghana would
still be wandering in search of oil.
It would be recalled that when he headed the Ghana National Petroleum
Corporation (GNPC), Tsatsu Tsikata had on the payroll about 700 personnel.
When the New Patriotic Party (NPP) took over power, it moved to reduce the
number to, as it were, get GNPC to concentrate on its core task of
exploring for oil and nothing else.
This was the time when George Owusu, who has worked with respectable
international oil firms for many years, decided to convince Kosmos to pitch
camp in Ghana and try the offshore exploration approach.
There is a touch of vindictiveness and arm-twisting in the unfolding
development, political observers have whispered.
, in a continuation of observations on the subject under review, queried
what GNPC is doing in Sierra Leone, having been spotted in this West
African country in recent times.
By A.R. Gomda
Source: Daily Guide
Story from Modern Ghana News:
http://www.modernghana.com/news/249465/1/ghanas-oil-in-danger.html
Published: Monday, November 16, 2009
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