Ghana is Seeking Parliamentary Approval For Borrowing

Ghana is seeking parliamentary approval to borrow $1.65 billion to hasten oil and gas exploration by acquiring and developing assets. The investment push comes after Exxon Mobil Corp. pulled out of an offshore prospect in the West African country in May, dealing a blow to its burgeoning oil and gas sector.

There are increasing concerns that the push for lower-carbon energy may reduce the value of Ghana hydrocarbon resources over time. The nation calculates it will need $1.3 billion to buy a 37% stake in the DeepWater Tano/Cape Three Points asset operated by Aker Energy AS and a 70% stake of the South Deep Water Tano field operated by AGM Petroleum Ghana Ltd.

The time has come for Ghanaians to become masters of our destiny when it comes to our oil and gas resources. There will be an increase in demand for fossil fuels in countries outside of the West that will continue to use diesel- and petrol-fired cars and consume power generated from fossil fuels for the foreseeable future. The stakes would be acquired through the Ghana National Petroleum Corp. subsidiary, GNPC Explorco if the proposal is accepted.

Aker Energy is also in protracted talks with authorities to reduce the development cost of its Pecan oil field, for which Ghana is now seeking to borrow $350 million to cover capital expenditure, bringing the total funds required to $1.65 billion.Ghana Finance Minister Ken Ofori-Atta warned last week that the country could be left with stranded assets. If it didn’t accelerate exploration amid the transition to renewable energy. The world’s largest international oil companies sold $198 billion worth of assets from 2015 to 2020 in a bid to decarbonize for the long term.