Ghana signed one of the worst Oil Deals under President Kufuor – Mould

The former Ghana National Petroleum Corporation CEO, Alexander K. Mensah Mould has emphatically declared that the petroleum agreements negotiated, agreed and signed by the government of former President John A. Kufour, Jubilee Oilfield, was one of the worst deals Ghana ever signed.

In a rejoinder to an article published by an online portal, which gave a serious misleading headline, trying to fabricate words for the renowned energy and financial expert after he made a presentation on the oil and gas industry last week in United Kingdom at the University of East London. The article which could best be described as politically immatured propaganda targeted at courting the disaffection of the NDC members towards Mr Mould stated that, “Mr. Alex Mould has heaped praises on the former president, John Agyekum Kufour for giving Ghana a very good oil deal during his tenure as president of Ghana.”

However, Mr Mould in his rejoinder to the said article expressed that, nowhere in his presentation did he mention former President Kufuor’s name, let alone heaping praises on him.

“For the avoidance of doubt, I wish to clearly state that I never said what has been attributed to me. Nowhere in my presentation did I mention former President Kufuor’s name, let alone heaping praises on him”, he said. Adding that, “at the said forum, I made it categorically clear that the Jubilee agreement is one of the worst agreements I have ever seen.”

Consequently, Mr Moulds comment at the Conference was rather on Additional Oil Entitlements (AOEs). Which outlines how the windfall profit is shared between Contractor and the State if the partners experienced higher oil prices than was used in the projections of the economics for the approval of the Plan of Development (PoD).

Below is the full rejoinder statement:

RE: KUFUOR GAVE GHANA THE BEST OIL DEAL – ALEX MOULD

My attention has been drawn to a misleading news report published online, following my presentation last Tuesday at the University of East London’s maiden oil and gas conference in London on the subject “Can Ghana Avoid The Oil Curse?”

The said report, which claims that I had heaped praises on former president John Agyekum Kufuor for signing good oil deals during his tenure as president of Ghana, is nothing but fanciful conjecture of the author. It should therefore be disregarded.

For the avoidance of doubt, I wish to clearly state that I never said what has been attributed to me. Nowhere in my presentation did I mention former President Kufuor’s name, let alone heaping praises on him.

At the said forum, I made it categorically clear that the Jubilee agreement is one of the worst agreements I have ever seen.

My comment was specifically in relation to Additional Oil Entitlements (AOEs), that is how the windfall profit is shared between Contractor and the State if we experienced higher oil prices than was used in the projections of the economics for the approval of the Plan of Development (PoD).

The discussion was on Greater Jubilee Full Field Development (GJFFD) economics from the POD submitted in 2017 which sought approval to expand the Jubilee field development to include the Mahogany, Twenebuah, and Akasa (MTA) fields in the Kosmos operated West Cape Three Points (WCTP) Block.

The GJFFD POD approved by government in 2017 had projected Additional Oil Entitlements of only $35 million for the life of the project, although we should be expecting something close to $500 million – $1 billion over the life of the project if average oil price exceeded $70 per barrel versus a Plan of Development projected price of $50 per barrel.

***END***

ALEX MOULD

MONDAY, 4TH NOVEMBER 2019.

ACCRA

Source: Adnan Adams Mohammed