Government has hinted of plans to call for a renegotiation of the Sankofa-Gye Nyame Oil and Gas deal signed early this year to commence production of oil and gas at the Offshore Cape Three Points.

This according to the Deputy Minister for Petroleum Benjamin Dagadu has become crucial to ensure the country derives the maximum benefit from the project.

The $7 billion project was signed in spite of calls by some watchers for a re-look at the financial terms in respect of Return on Investment, and the negotiated gas price of $9.80 per million British Thermal Units (MMBtu) for gas from the Sankofa fields.

It would be recalled that the GNPC just last week secured a $700 million guarantee from the World Bank paving the way for production to start.

But Mr. Dagadu tells JOY BUSINESS the conditions that informed the earlier signing has changed significantly.

"They have made some savings. We signed the agreement under some terms, all prices and other, at that time, the drilling cost was also very high, some $650,000 per day. But when the oil prices went down, everybody has to squeeze themselves as all the service companies would have to have a haircut," he said.

He said once they had the haircut, they would have to also benefit from it, stressing that would be considered later as the Petroleum Commission approves every contract that the oil companies sign.

"They know whichever contract they want to sign the Commission is following up on all of them, the reductions and re-negotiation, they have to go through us," he said.

He said a revisit of some of the contract will give the Commission some 10 percent to 20 percent reduction in the contract but the values will depend on the individual contracts.