After two years of negotiations, the way is now paved for Norwegian oil firm, Aker Energy, to start crude oil exploration and production in the Deep South West Tano oil block.

The $4.5 billion project is expected to start before the end of this year.

Speaking to the media after a meeting with the management of Aker Energy in Oslo, Norway, President Nana Akufo-Addo said the government has cleared all outstanding issues for Aker to begin crude oil exploration and production activities.

“Now, all the various issues that had to be determined to enable Aker to make the final decision had been done. The Parliament that rose in Accra in December [2019], completed the process of giving Parliamentary approval and support for the entire package that has been drawn between Aker and the Ministry of Energy.

“We are anticipating that within the quarter of the next month or two that final decision will come that will then lay the foundation to begin work and begin the exploration,” the President said.

The deal, however, faces criticism from the Minority National Democratic Congress (NDC) Members of Parliament who insist the agreement greatly short changes Ghana.

According to the Minority, the current deal reduces Ghana’s stake in the oil block from 48 to 18 per cent.

Alex Mould against Aker deal

Former Chief Executive Officer of the Ghana National Petroleum Commission (GNPC), Alex Mould, has been a fierce critic of the oil exploration and production deal.

According to him, the current administration has bestowed on all Ghanaians “massive historical damage to our oil and gas sector.”

He said the consequences of the current deal include:

- Strangle state policymaking, state regulation, and state commercial participation in the upstream oil and gas (O&G) Sector;

- Collapse local content development;

 - Impose certain critical obligations on the Minister which are regulatory in nature, among others.

Read his full submission on the oil deal below.