Mr. Victor Anku Tsede, Managing Consultant at Excel Legal Consultancy, has called for a comprehensive review of Ghana’s petroleum agreements, arguing they have not delivered sufficient benefits to the nation.
Speaking at an Institute of Economic Affairs (IEA) forum on the theme “Reviewing Petroleum Agreements for the Good of Ghana”, Mr. Tsede said that while previous agreements suited their time, future contracts must reflect current realities.
He stressed the need for Parliament’s involvement to ensure constitutional safeguards and proper stewardship of natural resources.
His comments follow the signing of a Memorandum of Understanding (MoU) by the Government of Ghana and oil partners including Tullow Oil, Kosmos Energy, PetroSA, the Ghana National Petroleum Corporation, and Explorco, extending the West Cape Three Points and Deepwater Tano licenses—covering the Jubilee and TEN fields—from 2036 to 2040.
The MoU allows for the drilling of up to 20 additional wells, representing an investment of $2 billion, and is expected to boost Ghana’s long-term energy prospects.
However, civil society groups have raised concerns about the premature extension, questioning the urgency and transparency of the deal.
Mr. Tsede urged the formation of a review committee to re-examine existing contracts, citing international examples.
He cautioned politicians to avoid direct involvement in negotiations and let technocrats lead.
“In my experience working with the investors, I found that the technocrats working with the GNPC, Petroleum Commission… were very knowledgeable people… focused, and knew what was expected of them,” he stated.
Justice Sophia Akuffo, Distinguished Fellow at the Institute of Economic Affairs (IEA), raised concerns over the government’s decision to extend the petroleum agreement with Tullow Oil, which still has 11 years before expiry.
She questioned the rationale behind the move, noting: “It’s as though Tullow has been an exemplary business partner, and yet for the last couple of years the country has been caught up in arbitration with them concerning the payment of taxes… they challenged it using all kinds of reasons.”
Justice Akuffo pointed out that the disputed sums, amounting to millions of dollars, have not been remitted to Ghana, and the country is now liable to pay “costs or damages of over a million pounds.”
She further queried: “And then in the middle of all that, we’re extending the agreement, which is not dead yet, and which was made under a different law, a law which is different from what we have now.
“So, when they say they are extending, what is being extended, just the time?”
Justice Akuffo also criticised the lack of public disclosure on the MoU and questioned the logic of extending agreements that have not yet expired.
“We need to take a pause and review everything, review the experience, review the terms, review where we want to go… and how it fits into the President’s vision of resetting the nation,” she said.
Source: GNA
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