Ghana's upstream/midstream activity

AGM Squelches GNPC's Operating Capacity in New Petroleum Agreement

Parliament's approval of the request by the Minister of Energy to amend the Petroleum

agreement with a Contractor Party, namely AGM, is in effect a squelching of potential of GNPC

as an operator. AGM, which has now been bought over by Petrica Holdings, the parent

company of Aker Energy, had prayed the Minister, John Peter Amewu, to change the terms of

agreement in respect of the South Deepwater Tano (SDWT) Block, which it signed with the

government in 2013. The key prayers, which Mr. Amewu granted, were for the reduction of the

Ghanaian government's equity from 43% to 18% and the annulment of the participation of

GNPC Explorco, the operating subsidiary of the state hydrocarbon company, which was

expected to have used its equity in the block as a means of building its capacity as an operator.