Gov’t Accused Of Siding With ‘Big’ Businesses In AGM Petroleum Deal

Former Minister of Energy and Petroleum, Emmanuel Armah Kofi Buah has accused government of siding with big business at the expense of the Ghanaian.

His remark follows government’s decision to reduce its stakes in the AGM Petroleum Ghana Limited agreement.

He made this observation while speaking to the media after parliament sat on Wednesday, where he said government is seeking to favour some big businesses with that deal.

“This government is developing a pattern of being on the side of big business at the expense of the individual Ghanaian. And it is a pattern that we have to be concerned about,” he warned.

According to him, the Minister of Energy, John Peter Amewu must explain to Ghanaians why he wants to further reduce the state’s 48% stake in the oil venture to 18%.

“From my initial calculation, they are reducing Ghana’s stake under this amendment from 48% to 18%.

“Now, somebody has to come and explain to the people of Ghana, our stake, why a country that is struggling so much for money, will reduce its stake from 48% to 18%,” the former petroleum minister wondered.

According the Ellembelle MP, Ghana signed a petroleum agreement with AGM and in the terms of the agreement, Ghana will still get 10% in royalty.

Moreover, he said, the carried interest under the amended deal is 15% as against 10% for the old agreement.

The lawmaker further pointed out that the additional interest, which assures a fixed percent of additional stakes the government could buy in the event that the exploration is successful had been reduced from 15% to 3%.

Again in the old agreement, GNPC had a 24% stake, but with the amendment, GNPC had no shares.