Ghana oil


At the end of November 2011 there were panicky headlines saying Ivory Coast Claims Ghana’s Oil Fields. This was not the first time. The claim had been published much earlier in the year and on examination it appeared more alarmist than serious at that time.

Map of Dzata oil field off Cape Three Points Ghana and Ghana offshore oil.

The more recent November reports in the newspapers were based on actions and claims made by Ivory Coast at the 18th Africa Oil Week conference in Cape Town between Nov. 2-4, and reported in Africa Energy Intelligence #663 in November. Africa Energy Intelligence requires a subscription. The report was repeated in Connectionivoirienne.net.

What follows is a google translation that includes the information from Africa Energy Intelligence N°663:

The oil war between Ghana and the Ivory Coast will she be?
Posted by The Editor · Connectionivoirienne.net
November 10, 2011 at 22:30

Tension mounts for the control of the offshore –

Read for yourself in the Intelligent d’Abidjan –

The 18th edition of the Africa Oil Week in Cape Town (from 2 to 4 November was an opportunity for the director of oil from Ivory Coast, Ibrahim Diaby, and the CEO of Petroc, Daniel Gnangni to present the new map of oil blocks in the country. A notable change has been introduced: five new licenses, ranging from CI 540 to 544, were drawn to the east of the Ivorian waters. These boundaries are superimposed on several blocks in Ghana, including Deepwater Tano, where Tullow Oil has made significant discoveries in 2008 and 2009, with Tweneboa and Enyenra. These two fields are already in a phase of development. Ghanaian ministers, including that of justice, march in Abidjan since September to try to clear the record. A document from the Ministry of Petroleum and Petroc was sent in early October to fourteen opéraeurs in territorial waters and the main Ivorian embassy to explain the position of the country. Requested by Africa Energy Intelligence, executives Ivorian Ministry of Energy indicate that for several decades, Côte d’Ivoire Ghana tries to associate the delimitation of the maritime boundary, but no agreement has never been reached. In Abidjan, Accra took advantage of the political crisis that has prevailed in Côte d’Ivoire since 2002 to allocate blocks in the disputed area of ​​the offshore, particularly in Tullow. After trying to open talks, the president Alassane Ouattara now wants to force his neighbor to negotiate as soon as possible, that is to say, before Tweneboa and Enyenra come into production. Source: Africa Energy Intelligence

In the reports that came out the beginning of March, the oil companies dismissed the Ivory Coast claims.

Dzata 1 oil well is within Ghana’s boundary – Vanco Oil


The Chief Operating Officer of Vanco Limited, J.L Mitchell, operators of the Dzata- 1 Well, located offshore Ghana, in the Tano basin of the Cape three points Deep Water Block, has told Citi News that their block is well within the maritime boundaries of Ghana.

According to him, Vanco has no concern at all over reports that neighboring Ivory Coast is making claims for some parts of Ghana’s maritime Boundary.

… the Dzata Well is over 200 kilometers away from Ghana’s maritime boundary with cote-d’Ivoire.

“It’s very far; 200 kilometres away from the maritime boundaries and it doesn’t affect us one way or the other…It is well within the Ghanaian maritime boundary,” he said.

Jubilee field is the closest oil field to the Ivoirian border, and it is still 60 miles east of that border.

My conclusion then was that if the oil companies were not worried, there was no reason to worry. They would have determined these issues for themselves, to secure their investment before drilling.

More recently, in November it sounded as if the oil companies might be saying something different.

Ivory Coast Claims Ghana’s Oil Fields November 30 2011


Texas-based oil explorer, Kosmos Energy has expressed fears about the development. The oil producer says the future of a portion of its license in the Deepwater Tano Block is uncertain as the issue remains unresolved. Kosmos fears that if changes are made to the maritime boundary demarcation between Ghana and Ivory Coast, it may lose some of its license. It has 18% stake in the Deepwater Tano block in the Gulf of Guinea.

The Dzata-1 well and the Deepwater Tano fall within the same boundary. Currently Ghana is the rightful owner of the area, but Ivory Coast has petitioned the United Nations to demarcate the Ivorian territorial maritime boundary with Ghana. Even though the two countries met in April 2010 for negotiations on the matter, Kosmos says the results of the meeting were not announced and the issue remains unresolved at present.

“Uncertainty remains with regard to the outcome of the boundary demarcation between Ghana and Côte d’Ivoire and we do not know if the maritime boundary will change, therefore affecting our rights to explore and develop our discoveries or prospects within such areas”, the Warburg Pincus and Blackstone Group (BX) backed company said in a filing form to the US Securities and Exchange Commission on April 25, 2011.

I wondered if the oil companies were leaning on Ghana in order to extract more profit. And I wondered if the US government might be behind that as well. As the wikileaks have shown us, most US diplomacy seeks to advantage US corporations. I was also certain Sarkozy was supporting Ouattara’s attempts to claim Ghana’s oil.

Sarkozy and Ouattara puppet

In looking for more news of the oil and border issue I found nothing new. So I checked the financial news associated with the oil companies going back through 2011, Tullow and Kosmos.

Barclays upgraded Kosmos in December 2011.
Ghana Jubilee oilfield partners buy FPSO vessel in January 2012.
Tullow aims for 120,000 bpd from Ghana early 2012 in December 2011.
These were the recent financial stories concerning Ghana, no worries here about boundary disputes with Ivory Coast. If the border dispute was a threat to the companies, it would show up in the financial news. The fact that there is no mention of the border issue leads me to think it is mostly a non-issue. At this point I believe Ouattara would like to stir up trouble in Ghana for President Mills (Ouattara holds a grudge for his perception of post election events) and both he and Sarkozy are greedy for oil. But Ghana does not really have much to worry about on this score. There is not that much to dispute about the border that will cause any problems with oil companies and oil licenses, though the border agreements do need to be finalized.

oil

In February 2010 the USGS published: Assessment of Undiscovered Oil and Gas Resources of Four West Africa Geologic Provinces (USGS Fact Sheet 2010-3006)

Four geologic provinces located along the northwest and west-central coast of Africa recently were assessed for undiscovered oil, natural gas, and natural gas liquids resources as part of the U.S. Geological Survey’s (USGS) World Oil and Gas Assessment. Using a geology-based assessment methodology, the USGS estimated mean volumes of 71.7 billion barrels of oil, 187.2 trillion cubic feet of natural gas, and 10.9 billion barrels of natural gas liquids.

Figure 1: Locations of four assessed geologic provinces located along the northwest and west-central coast of Africa.

Table 1. West Africa Provinces assessment results for undiscovered, technically recoverable oil, gas, and natural gas liquids.
Largest expected mean field size in million barrels of oil and billion cubic feet of gas; MMBO, million barrels of oil. BCFG, billion cubic feet of gas. MMBNGL, million barrels of natural gas liquids. Results shown are fully risked estimates. For gas accumulations, all liquids are included as natural gas liquids (NGL). Undiscovered gas resources are the sum of nonassociated and associated gas. F95 represents a 95 percent chance of at least the amount tabulated; other fractiles are defined similarly. AU, assessment unit; AU probability is the chance of at least one accumulation of minimum size within the AU. NGL, natural gas liquids. TPS, total petroleum system. Gray shading indicates not applicable.

West Africa Provinces assessment results for undiscovered, technically recoverable, gas, and natural gas liquids

The entire document is 2 pages, linked from here: Assessment of Undiscovered Oil and Gas Resources of Four West Africa Geologic Provinces. Due mostly to the odd way they have handled fairly simple graphics, the 2 page document is 7.5MB. I’ve made the map and the chart into web graphics here. You can click on them here to enlarge.

When you read about US foreign policy in West African countries, or about US Africa Command activities in West Africa, keep the map above in mind.

________

NOTE: The figures above refer only to undiscovered oil. They do not include fields that have already been discovered and whose size is known, and do not include fields already in production.

The areas marked on the map do include fields that have already been discovered, and fields already in production, since many discoveries and production are in those same geologic provinces where there are estimates of undiscovered oil.

Dec. 15, 2010 marked a great day in the lives of many Ghanaians because Ghana joined the list of countries producing oil on a commercial basis. The question on most people’s minds is: How does this benefit us (Ghanaians)?

Ghana's President John Atta Mills turns on the valve to allow the first barrel of crude to flow from the Jubilee offshore oil field on Dec. 15. Ghanaians welcomed their country's first oil on Wednesday, optimistic they can enjoy the economic benefits without the troubles that oil wealth has brought other African countries. CTM Communications/Tullow Oil/Reuters

His Excellency John Atta Mills, President of Ghana, was in Sekondi-Takoradi, where he was flown offshore to the FPSO Kwame Nkrumah to open the valves to make way for the flow of first oil. Jubilee Partners, which include Tullow Oil plc (34.7 percent), Anadarko Petroleum Corp (23.49 percent), Kosmos Energy (23.49 percent), Ghana National Petroleum Corporation (GNPC) (13.75 percent), Sabre Oil and Gas (2.81 percent) and E.O. Group (1.75 percent) participated in a formal celebration to commemorate the first oil, hosted by the president at the Takoradi Air force base.

The first phase of production at the Jubilee oilfield has begun, ramping up to 55,000 barrels of oil per day (BOPD) this month and 120,000 BOPD during the first half of 2011 as additional wells are completed. This marks the beginning of Ghana’s first significant commercial oil production and will allow the country to join the ranks of sizable West African oil exporters.

Estimates on the quantum of Ghana’s oil wealth vary hugely. The common starting point is that Jubilee will produce about 120,000 barrels per day and some $1.2 billion in government revenue a year for 20 years.

Map of Ghana offshore oil fields including Jubilee, Tweneboa, and Dzata

The adjacent Tweneboa field is reckoned to be as big as Jubilee’s, but industry experts forecast the biggest finds will be onshore in the Keta basin. With companies like Exxon Mobil, BP, ENI and Sinopec vying to buy equity in the Jubilee field, the assumption is that Ghana has several billion barrels of reserves.

Location of the Keta basin study area, wells and proximity to other fields in the Gulf of Guinea Province.

David Throup of Online Africa Policy Forums Blog points out that:

Ghana urgently needs to improve its infrastructure: it needs new sewers and water pipes and ring-roads in Accra, a revamped electricity grid, improved generating facilities at Akosombo, improved rail-links from Accra to Kumasi and Tamale and on to Burkina Faso, and a renewed and extended network of secondary and tertiary feeder roads through the rural hinterland. Others will argue for improving educational and health facilities. Such development spending would generate employment in construction and ancillary services, and hopefully promote sustained economic activity and growth. In a society where 60-70 percent of the population depends on smallholder agriculture for their livelihoods and 90 percent of the population in urban areas depends on the informal sector, such job-generating spending could be beneficial. But the money must be spent wisely and over a number of years if it is not to exacerbate inflation and exceed Ghana’s capacity to absorb the spending.

Ghana enters new era with oil field launch

TAKORADI, Ghana, December 15 – Ghana joined the ranks of Africa’s oil exporters on Wednesday, pledging to work to ensure lucrative new revenues further bolster one of the continent’s rising star economies.

John Atta Mills, the president of Ghana, wearing safety gear and blue overalls, opened the valves in a televised ceremony at the 330-metre-long floating platform some 40 miles (60 km) off the west African country’s Atlantic coast.

Initial production of around 120,000 barrels per day will rank Ghana as sub-Saharan Africa’s seventh largest producer, with output set to double within three years.

The start of commercial production came just three years after discovery of oil at the field, named Jubilee to mark the timing of the find 50 years after independence in 1957.

“After a long wait, the day has come,” Mr Mills said.

“But … it means that we are assuming a very serious responsibility. And especially for those who are in leadership positions, we must ensure that it becomes a blessing not a curse,” he warned.

Aside from state-owned Ghana National Petroleum Corporation (GNPC), top players in Jubilee include UK-listed operator Tullow Oil, US producer Anadarko Petroleum and privately held US energy firm Kosmos.

The event underlines the importance of the Gulf of Guinea as a growing source of energy to consumers such as the US, where some see it supplying a quarter of US oil by 2015.

The region already counts Nigeria, Equatorial Guinea, Gabon and Congo Republic as exporters and others such as Liberia and Sierra Leone are hopeful of joining the club.

Ghana has taken advice in how to manage its oil sector from countries including Norway, and is anxious to avoid the strife and corruption which nearby Nigeria’s oil has brought.

“It will be a blessing because we are all jobless and poor,” said Brian Salmon, a 17-year-old small-holder in the western region coastal town of Takoradi.

“Normally when oil comes everybody is fighting to get their daily bread, but we Ghanaians have an understanding and will avoid conflict,” he added.

Ghana is the world’s second largest cocoa producer after neighbouring Ivory Coast and Africa’s number two gold miner. It has a $750m eurobond currently yielding about 6.4 per cent.

Ghana expects Jubilee’s oil and gas to help double its growth rate to more than 12 per cent next year, funding projects to boost infrastructure and laying the foundation for new industrial sectors. New data on Wednesday showed inflation running at 18-year lows.

Analysts say that while two decades of multi-party politics have led to a level of governance others in the volatile region can only dream of, Accra has dragged its heels on drafting the legal framework needed to manage the oil revenues.

Total revenue from oil into the 2011 budget is put at only 1.9 per cent of GDP. Although this is due to rise over the years, the initial impact on the economy is seen as modest.

Many are concerned a complex petroleum revenue management bill has yet to be voted by parliament and note the current draft allows 70 per cent of revenues to be used as collateral against loans, a possible incitement to excess borrowing.

“As a country we have a fairly terrible track record of hedging our commodities,” said Emmanuel Gyimah-Boadi of Ghana’s Centre for Democratic Development.

Ghana failed to tuck away proceeds from its assets in time to cushion it from a price slump in 2000, forcing it to seek $3.7bn debt relief two years later. Its budget deficit is set to finish 2010 just under 10 per cent of national output.

In a saga that unnerved some potential investors, Kosmos in August called off what sources close to the deal said was a $4bn pact to sell its stake to ExxonMobil after resistance from GNPC, which wants to raise its own holding.

Ghana Pumps First Official Oil

History was recorded yesterday in the Western Region when President Atta-Mills turned the valve on the FPSO Kwame Nkrumah to signify the beginning of the production of crude oil in commercial quantities in the Jubilee oil field.

It was a memorable occasion for all Ghanaians many who stayed glued to their TVs at home and work places to watch the programme live. The function itself took place at the Takoradi Air Force base and was graced by two former Presidents, Jerry John Rawlings and John Agyekum Kufuor as well as Ministers of State, members of the diplomatic corps, Members of Parliament, Chiefs and Ghanaians from all walks of life.

Also present were the jubilee partners; Tullow Oil plc, Anadarko, EO Group, Cosmos, Sabre and GNPC who are the shareholders of the Jubilee field.

At about 10 am, President Mills arrived on the FPSO in a helicopter and went through the safety briefing before being led by a Tullow official to the pipeline where he turned open the valve to open the pipes for the crude oil to gush through.

Ghana’s oil is the light sweet crude kind that is much sought after in the international market. The Jubilee Field will produce an initial 55,000 barrels of oil per day, but with the development of more wells, production is expected to hit 120,000 barrels per day.

The first export of oil will be in the first week of January 2011 to the United States of America and other European countries with the rest being used for domestic purposes. President John Evans Attah Mills, after turning open the valve, went ahead to interact with some Ghanaian engineers and doctors working in the vessel. Dr. Claudia Donkor and trainee engineers Emmanuel Kojo Dei and Francis Antwi were part of those the President interacted with. They expressed their joy at being part of the historic occasion.

Addressing a large gathering at the Takoradi Air Force base later on, President Mills paid glowing tributes to Former Presidents Rawlings and Kufuor for their immense contribution towards the production of crude oil in commercial quantities in Ghana.

He said former president Rawlings “clearly laid a massive foundation for what we are witnessing today. President John Agyekum Kufour continued from where President Rawlings left off. He also devoted attention to the oil.”

President Mills also paid special homage to Former GNPC boss, Tsatsu Tsikata under whose watch great strides were made towards the discovery of crude oil in commercial quantities in Ghana.

The President also applauded the efforts of the Jubilee partners in concluding Ghana’s odyssey to crude oil production in commercial quantities but reminded them on the need to respect all the agreements signed especially the fact that local content in the production process must be a priority.

Touching on the concerns raised by Chiefs in the Western Region about the need to use 10% of the oil revenue to develop the region, the President assured them that the region would be given priority.

“The Western Region where the oil and gas is located will be given the pride of place as far as development is concerned. Indeed there will be a massive development within the Western Region in the next few months,” he said.

With production beginning, Ghanaians are hoping that the under development that has been the lot of the country for years would soon be a thing of the past.

I spoke with Ghana. Everyone was watching on tv and feeling some pride. We are all watching with hope and trepidation in our hearts. In all too many cases we are watching with greed in our hearts as well. May we protect ourselves from the ill effects of our own greed and the immense greed from outside Ghana’s borders. And may all Ghanaians share and enjoy the benefits and positive opportunities the oil offers.

Oil Companies Impose Foreign Policy On Ghana

“Some of the oil companies operating in the Jubilee Field have taken an unprecedented step to control Ghana’s foreign policy and reduce the country to nothing more than an instrument of US hostility against other countries.

In a proposal to the Government of Ghana, the Companies are insisting that Ghana should automatically apply US sanctions against Iran, Cuba and Sudan.

Map of Ghana offshore oil fields including Jubilee and Dzata

The exact proposal is contained in the “Jubilee Field Unit Crude Oil Lifting Agreement” which is scheduled to be discussed in London next week.

It states that “All export tankers owned, technically managed or commercially operated by a company headquartered in, or flying flags of US sanctioned countries shall be automatically rejected.

“At present these countries are, Cuba, Iran and Sudan.

“TGL reserves the right to specify certain further flag states to be subject to this section 1.7 if they have been found not to comply with TGL vetting procedure.”

The proposal is calculated to undermine relations between Ghana and Cuba, Iran and Sudan and does not take account of the strategic interest of the people of Ghana.

Ghana has excellent relations with Iran which spans the fields of Health, Agriculture, Education and Culture.

Last month Iran gave Ghana a grant of US$1.5 million and tractors for the agricultural sector.

Iran has also established a University and a Clinic in Accra.

Every year, Cuba gives Ghana at least 200 health workers who keep the country’s health delivery system alive.

Cuban experts are also currently working on a malaria eradication project in Ghana and other West African States.

Over the last 30 years, Cuba has provided scholarships to thousands of Ghanaians to study in different fields.

If the Government of Ghana accepts these demands it will turn Ghana into a poodle of the US and undermine her credibility in the African Union and the Non-Aligned
Movement.”

Kwesi Pratt, The Insight Newspaper comments at GhanaWeb

Deja vu all over again

Differences over Ghana’s foreign policy caused the US to engineer and support the coup that overthrew Nkrumah.

What new kind of interference may we be looking at?

With whom is the US Africa Command partnering?

US Embassies are actively engaged in spying on African countries and citizens, collecting:

-- Biographic and biometric data, including health, opinions 
toward the US, training history, ethnicity (tribal and/or 
clan), and language skills of key and emerging political, 
military, intelligence, opposition, ethnic, religious, and 
business leaders.  Data should include email addresses, 
telephone and fax numbers, fingerprints, facial images, DNA, 
and iris scans.
09STATE37561

It seems like US foreign policy can be summed up with a line I heard in a cartoon this week: A friend is just an enemy who has not attacked yet.

Axim, western end of Cape Three Points from s e b on Flickr

There were stories yesterday and today on GhanaWeb about militant groups organizing in response to the oil drilling activity near Cape Three Points, Militant group emerges at Cape Three Point, and Militia reports on Cape Three Points are unnecessary fear mongering – Ablakwa.

Yesterday’s story, Militant group emerges at Cape Three Point, alleges:

A group calling itself The CAPE MILITIA has emerged as the militant group posing as the official mouthpiece of mostly unemployed youth of the area who believe a large chunk of the oil proceeds should be used to develop first, the oil find area before the larger Ghanaian society.

They also claim their action will be the only way to mitigate the likely environmental hazards and other forms of casualties that inhabitants of the oil find areas are likely to encounter when the oil drilling starts.

According to the leader (name withheld), they hold their daily meetings at Agona Nkwanta, where they engage in the training and the use of fire arms at a village near the Ghana Rubber Estates Plantation at Nkwanta.

The group leader disclosed that they have identified some pipelines under the seabed and will soon start attacking them and threatened to start targeting rig and non-oil facilities, like bridges, buildings belonging to oil companies in the area if they are not assured of equal e opportunities.

“We will give a fore-warning to avoid casualties as our intent is to only bring down a those symbols of oppression and injustice,” the rebel leader noted. “My brother this is the only way we can press home our demands: Western Region has suffered from decades of neglect, pollution, and underdevelopment,” he blurred out with a choked voice.

The group leader said their concerns are corroborated by evidence of destruction of fishing nets of fisher folks of the area and the pollution of their source of drinking water since preparation for the oil find began.

Indeed the leader also recalled how the recent dumping of drilled mud in the sea caused by operators of the Jubilee field has created lots of environmental problems for the people living along the coast.

A fisherman, Opanyin Mbere, was sure that his children had joined the group because they had seen and felt the atrocities meted out to them by the find of the Black Gold.

“Now when I go to sea I have no catch because all the fishes are attracted by the lights from the rigs; then we are told not to fish along the rigs, how should I feed my family, if the cause of my children can bring some hope, huh am in full support,” Opayin Mbere noted.

The first thing that strikes you on meeting members of CAPE MILITIA is the ease with which they communicate their problems and how they identify some probable solutions.

It was amazing, at least those elected to respond to questions, are articulate, well-educated, and conversant with the latest political developments at home and abroad.

There are a number of things that strike me as odd about this report. However it is true that the western region has not been reached by much development.

There was certainly not much about “probable solutions” in the article. The last two paragraphs seem somewhat at odds with the rest of the story. I don’t doubt the possibility of educated and articulate militants, it is just that the rest of the story does not seem to support this. If the supposed militants have such good ideas, it seems some ought to be mentioned as suggestions or examples. Many of the comments are interesting as well. Comments on GhanaWeb are not moderated. So there are always tedious insult wars going on, as well as timely and targeted opinions. You can mouseover the comments to get some sense of what is there.

The second article, Militia reports on Cape Three Points are unnecessary fear mongering – Ablakwa, is a refutation of the story in the first article:

A deputy Minister of Information says reports of Militia groups springing up in the oil rich Cape Three Points in the Western Region of Ghana are untrue and must be discarded.

Samuel Okudzeto Ablakwa told Joy News the reports are of no substance, adding “those who want to give credence to it just want to engage in unnecessary fear mongering.”

Residents in the area have been quick to dismiss the story but Security Analyst Dr. Kwesi Aning insists the situation could even be worse and have cautioned national security to be vigilant.

Speaking to Joy News’ Dzifa Bampoh the Deputy Information Minister Samuel Okudzeto Ablakwah says government has done enough checks and is convinced no such militia group exists in the Western Region.

He said government is rather guarding against circumstances that will engender people to lure the youth to take up arms in the oil rich area.

“At the end of the day what will make militias thrive or give people with evil intentions the opportunity to lure young persons and co-opt them to form militias as we have seen in other parts of the world is to what extent we are able to manage the oil resources so that everybody benefits including the people of the Western Region. That is our safest cure to all of [these] reports of insecurity,” he said.

Here again a number of comments to the article are interesting.

There is no question the Western Region has been neglected. And there is poverty there, and the devastating lack of opportunity that accompanies poverty. But this story sounds like fear mongering with underlying political motives as well. And the security expert quoted may have his own political agenda. The words of the Deputy Minister Samuel Okudzeto Ablakwa sound a bit more politically expedient than informed. But then Joy News is owned by a strong opposition party supporter. I don’t know anything about Today, the source of the first article. The story of the militants may be a fear mongering political ploy.

Ghana’s National Security Coordinator, Gbevlo Lartey, is a tough no nonsense guy, and I’d be interested to know what he has to say on any such matter as this before forming an opinion.

Both the environment and the people in the gold mining areas have been ruthlessly exploited, and so far as I know there are no reports of insurgent militants in those areas. You can see some of the exploitation of the environment and the neglect of local citizenry in this photoessay Ghana Gold Not Benefiting its people !

You can also view more images of Cape Three Points from the photo gallery of Trinity School.

The US Embassy in Accra refused a visa to the Ghana Minister of Energy in March and refused a visa for the Chairman of the GNPC, Ghana National Petroleum Commission, to visit the US.

US and Ghana are in a diplomatic row in which it appears … that the US government is consciously targeting some key government officials for standing in the way of American interests in Ghana.

[An official of GNPC] is reported to have told insiders that a consular officer at the US embassy told him that GNPC was “Anti- American”

Map of Ghana offshore oil fields including Jubilee and Dzata

Of course the job of the GNPC is to enable Ghana to make the best use of Ghana’s petroleum resources for the benefit of the Ghanaian people, not the American people. It is trying to correct some unethical deals involving Kosmos, the EO Group, and Exxon, that would have caused financial loss to Ghana. If the US acknowleges the sovereignty of sovereign nations, it needs to respect Ghana’s sovereignty. If the US does not respect Ghanaian sovereignty, and it appears that it does not, its motives and methods are a clear and obvious throwback to colonialism.

The US has a very bad record when it comes to undermining and destabilizing governments that are not doing what the US wants, or when they are perceived by some as standing in the way of American interests. In this case, as in most, it is American corporate interests. Exxon wanted to buy the Kosmos share of Ghana’s oil. This move by the US Embassy in denying visas to Ghanaians who are critical to the Ghana oil industry is very worrisome. In what other ways is the US Embassy working against the interests of the Ghanaian people and the current Ghanaian government? This is a grave and dangerous development.

Ghana is generally very pro American. But Ghanaians do not wish to be pushed around. And most Ghanaians are familiar with the fact that the US Embassy and the American CIA played a major role in the events leading to the overthrow of Nkrumah. The destructive ramifications of that action still reverberate throughout the continent. Ghana would not welcome this kind of interference again. I doubt other countries would look on it favorably.

In addition the US Africa Command has been very active and very controversial in Ghana. Most Ghanaians think that AFRICOM is in Ghana and in the rest of Africa to secure oil and other natural resources for the United States. Since that is the reason the command was created, there is some justification for this view. The US Africa Command maintains a local headquarters in the US Embassy in Accra, and is deeply involved in what it calls partnering with a variety of Ghanaian military activities.

You will find some more background on Kosmos and Ghana oil here, EO -Kosmos Rip-Off Exposed with a list of links bottom that provide more background and context .

While the Ghana National Petroleum Corporation (GNPC) toiled over the years in pursuit of a vision that others described as a mirage, their critics were quietly lining up to plunder ‘the spoils.’

As the controversy over how the E.O. Group a Ghanaian company, came by 3.5% carried interest in US-based Kosmos Energy’s initial 90% stake in the West Cape Three Points (WCTP) rages on, it has emerged that the Kufuor administration lowered the finishing tape for Kosmos Energy and EO Group at the expense of our beloved Ghana.

As part of its vision of ensuring that Ghana maximized its earnings from harnessing the country’s hydrocarbon potential, GNPC, since the 1980s, evolved a model petroleum agreement, which has served as a blue print for preparing petroleum agreements to license its blocks of oil fields to oil companies that came to explore for the ‘black gold’ in Ghana.

Whereas under previous petroleum agreements, royalties had been pegged between 10% – 12.5%, this was slashed to 5% under the Petroleum Agreement the Kufuor Government and GNPC signed with Kosmos Energy, and their E.O. partners. GNPC participation interest, a provision in petroleum agreements, which allows GNPC to acquire additional stake in the event of a commercial find, used to be 10%-15%, under previous petroleum agreements. However, this was also slashed down to 2.5%, under the petroleum agreement signed with Kosmos-E.O. Group, leaving it standing like a sore thumb, when matched against all other petroleum agreements, including those subsequently signed with other companies under the Kufuor regime.

The Managing Director of the Ghana National Petroleum Corporation (GNPC) Nana Boakye Asafu-Adjaye, has said the corporation’s decision to acquire the Kosmos Energy stake in the Jubilee Field, is necessary and critical to ensuring that Ghanaians derived the maximum benefits from the country’s oil resources. According to the GNPC boss, the state oil corporation, has already secured the necessary funding to acquire the stakes, and were in discussions with Kosmos Energy, who voluntarily decided to sell their stakes.

GNPC’s Chief Economic Evaluation and Monitoring Officer, Mr. Kwame Ntow Amoah … emphasized the need for GNPC to acquire the Kosmos Energy stake in Ghana’s oil fields and explained that apart from the 10% initial carried interest, GNPC has exercised its right of acquiring additional interests in the Jubilee field. He explained that apart from these, royalties and income tax earnings from the oil sale would leave the nation with over 50% of the profits from the oil.

This is a much better deal for Ghana.

Here is the full article about the denial of US visas to Ghanian officials.

US & Ghana In Diplomatic Row

…Energy Minister & Atto Ahwoi denied visa.
..Govt. Fingers oil Politics

There is a growing nerve racking diplomat anxiety between some top ranks of the Ghana government towards the US Embassy in Accra, resulting in suspicion that the US government is consciously targeting some key government officials for standing in the way of American interest in Ghana.

On the controversy scale, the row has reached almost showdown levels, with some key government officials threatening to boycott travels to the US.

There are serious murmurings within the corridors of the Ministry of Energy and GNPC that their insistence on exercising their right of first purchase of the oil interest of Kosmos Energy as against the company’s attempt to sell it’s oil interest to a fellow American company -Exxon Mobil (albeit through the backdoor) appears to have angered the US Embassy who are allegedly employing “embarrassing” diplomatic retaliatory tools targeted at key personalities in the energy sector.

According to The Enquirer’s deep throat sources, The Minister of Energy, Dr. Oteng Adjei, who was leading a government delegation to the USA to attend a meeting with Blackstone and Warburg Pincus the financiers of Kosmos Energy was on March 27th, this year denied visa.

The Energy Minister had applied for the visa with his diplomatic passport. Sources say, the embassy’s actions angered Osu Castle, the seat of Ghana’s Presidency, and that it took the personal intervention of the usually quiet and genteel Chief of Staff of Henry Martey Newman to secure a travelling visa for the Minister.

On May 7th, 2010, Mr. Atto Ahwoi, Board Chairman of the Ghana National Petroleum Corporation (GNPC), who returned from the USA last March, was refused visa by the embassy. Mr. Ahwoi has travelled to the US about 20 times and attended Harvard University in the United States, so many years ago.

When The Enquirer contacted Mr. Ahwoi, he confirmed that the embassy had refused him a Non Immigrant Visa and expressed his surprise at what he called the surprising attitude of the embassy to certain key government people.

When he was asked the reason for the refusal, he read out a letter given to him and signed by an unnamed consular officer which among other things stated that: “You have been temporally refused a visa under INA Section 221G, as you lack certain documents or information needed to reach a decision in your case. For further instructions please refer to the Checked Box below” he read out.

He continued that the checked box read “We need to verify certain documents you have given us or statements you have made. We will contact you at the telephone numbers you provided us as soon as investigations are completed. There is nothing else you need to do at this stage”

When asked whether he shared sentiments that his refusal had anything to with his position on the Kosmos-Energy deal, he said that could be the only reason. “This is about the 20th time I have been to the US, I schooled in the US, I attended Harvard University, At my age, I will not be migrating to the US, why this sudden change” he said.

Early this year, a top officer of GNPC working within the Human Resource Department was also refused travelling visa whilst attempting to travel to US on official assignment.

The official is reported to have told insiders that a consular officer at the US embassy told him that GNPC was “Anti- American”

US EMBASSY RESPONDS

When The Enquirer contacted the US Embassy for comments, Mr. Benjamin East, Information Officer stated that the embassy had no comments to all the issues raised above.

In a telephone and email response the embassy said “The response at bottom applies to the three parts of your question, as I understand it, ie:

1. That the Embassy refused a visa to the Minister of Energy in March, which was issued eventually due to intervention by the Chief of Staff.

2. That the Embassy refused a visa for the Chairman of the GNPC.

3. That the visa cases cited above are a response by the U.S. Government to recent actions/decisions taken with regards to Kosmos’ sale of its Jubilee stake to Exxon”.

RESPONSE:

“U.S. law prohibits the Embassy from commenting on individual visa cases.” Mr. Ahwoi, told The Enquirer that “I have decided I wont go there again, any American who wants to do business with us, must come here”

Ghana’s Western neighbor Ivory Coast is reportedly laying claims to portions of the huge oil wealth in the deep waters of the Western Region.

Map with Dzata oil field and Jubilee field off Cape Three Points Ghana (click to enlarge)

In a move to save the situation, Ghana has begun an urgent move to pass a new law that seeks to establish the Ghana Boundary Commission to undertake negotiations to determine and demarcate Ghana’s land boundaries and de-limit Ghana’s maritime boundaries.

The news of Ivory Coast’s claim to parts of Ghana’s oil fields comes just days after United States operator Vanco struck oil in the deep-water Dzata-1 well, off Ghana’s Cape Three Points near Ivory Coast, further boosting the oil wealth in Ghana’s booming offshore Tano basin.
However the Hon Collins Dauda said he is confident Ghana and Ivory Coast will be able to resolve the matter without any conflict due to the good relations between the two countries. (GhanaWeb)

I surely hope the Hon. Collins Dauda is correct.

[UPDATE: Added March 5, from MyJoyOnline, see below for the rest of the article
Ivorian authorities are only calling for a negotiation of the maritime border between the two countries.]

The Vanguard tells us:

Industry sources say the crude found off Ghana is of a quality even easier to refine than the light, sweet crude found in Nigeria, one of the world’s largest oil producers.

Revenue derived from oil will be invested in the national power supply, with improvements to the road network and water supply, construction of a deep sea oil port and revamping railway lines, Atta-Mills said.

“These projects will not only create significant employment themselves but will also support the growth of other industries,” he told the parliamentarians

My Joy Online has a bit more detail on the dispute:

Head of Research at the Kofi Annan International Peace-Keeping Training Centre, Dr Kwesi Aning, says Ivory Coast’s claim to portions of Ghana’s oil fields exemplifies “a failure of the state institutions to protect our national interest.”

Dr Aning said there is a general lack of seriousness in ensuring the country’s boundaries are protected.

Ivory Coast has sent the government of Ghana a correspondence expressing outright disrespect for an existing “median line” that divides the two countries.

The Francophone country consequently served the United Nations with a similar correspondence saying it does not respect a temporary boundary between the two countries.

The Ghana Government is expecting Parliament to quickly deliberate on a bill that would establish a boundary commission to negotiate Ghana’s maritime boundaries with Ivory Coast.

The Ghana Boundaries Commission Bill has been sent to Parliament under a certificate of urgency, Lands and Natural Resources Minister Collins Dauda told the Super Morning Show on Thursday.

“A national boundaries commission will be put in place that would engage our neighbours in La Cote d’Ivoire with a view of negotiating our maritime boundary between ourselves and our brothers in Ivory Coast,” he said.

Dr Aning said the bill must be given a strong bi-partisan urgency to ensure that the country derives the most out of its oil resource.

The security expert is also recommending a solid technical documentation studied by lawyers with expertise on petroleum matters.

Diplomatic implications

The Lands and Natural Resources Minister says the emerging claim from Ivory Coast for portions of the oil fields in the Western Region is a very delicate matter.

Collins Dauda said the issue has serious international and diplomatic repercussions.

“We have not been able, as a country, to determine our boundary with Ivory Coast and there is the need for us to now determine the maritime boundary between Ghana and Ivory Coast,” he said.

Mr Dauda however said both countries have, for years, respected “a median line” between them that cannot be trespassed.

“All of a sudden, with the oil find, Ivory Coast is making a claim that is disrespecting this median line we have all respected. In which case we would be affected or the oil find will be affected,” he said.

Baseless claim

The Lands and Natural Resources Minister said the claim by Ivory Coast is baseless.

This, according to him, is because the claim by the Francophone country is rather parallel to certain internationally acceptable standards of determining maritime boundaries.”

Collins Dauda said, last year, Ghana appealed to the United Nations to extend its maritime boundary by 200 nautical miles.

As a precondition, the UN directed the country to negotiate boundaries with its neighbours, he disclosed.

Disrespect for ‘median line’

The latest turn of events may even be more surprising as Ivory Coast has already sent a correspondence to the Republic of Ghana, expressing disrespect for the median line the two countries have agreed upon for years.

Consequently, Ivory Coast has made a submission to the United Nations laying claim to portions of the Ghana’s oil find.

Drilling on the Dzata-1 well began almost a year ago, the map and photo, above and below, accompany this article from April 2009:

ACCRA, Ghana–(BUSINESS WIRE)–The Government of the Republic of Ghana, the Ghana National Petroleum Corporation (GNPC), Vanco Ghana Ltd. and LUKOIL Overseas Ghana Ltd., signed a new Petroleum Agreement, covering the Cape Three Points Deepwater block. This agreement will replace the existing Petroleum Agreement which expires at the end of April 2009. The new agreement provides Vanco and LUKOIL with the opportunity to continue the exploration of the area, during which new 3D seismic and additional drilling activities are planned. The new agreement also provides GNPC and the government of Ghana with significant commercial benefits, including higher royalty and increased GNPC participation. The new Petroleum Agreement also gives ownership of Associated Gas to the State.

The Aban Abraham drillship mobilized to Ghana to drill the Dzata Prospect. (Photo: Business Wire)

The Cape Three Points Deepwater block encompasses an area of 5,146 square kilometers in water depths ranging from 200 to 3,000 meters in the Tano Basin. Vanco (Operator) holds a 28.34% participating interest in the Cape Three Points Deepwater block with LUKOIL holding a 56.66% participating interest. GNPC, the state oil company, holds a 15% carried interest, with the option to acquire up to an additional 5% in any commercial discovery.

The new agreement comes as the Aban Abraham deepwater drillship departs Cape Town, South Africa after completing final retrofit operations to enable the unit to drill in water depths of up to 2,000 meters. The Aban Abraham will mobilize to Ghana to commence the Dzata-1 exploratory well by the end of April 2009.

Situated in 1,874 meters (6,148 feet) water depth, the Dzata Prospect is a large anticlinal structure with numerous Upper and Lower Cretaceous potential reservoir horizons and distinct direct hydrocarbon indicators, including flat spots and a “gas chimney.” The well will be drilled to a total depth of approximately 4,786 meters, or 2,912 meters below the mud line.

“The Aban Abraham drilling unit is finally ready to drill this exciting prospect where we are hopeful of a significant discovery,” says Vanco President, Gene Van Dyke. “Vanco and LUKOIL appreciate the assistance and support of GNPC and the Ministry of Energy in completing the new Petroleum Agreement which will allow the partnership to continue the aggressive exploration of the Cape Three Points Deep Water block.”

Vanco is a leading deepwater independent with activity in Côte d’Ivoire, Ghana, Equatorial Guinea and the Ukrainian Black Sea.

——–

Added March 5:

Dzata 1 oil well is within Ghana’s boundary – Vanco Oil

The Chief Operating Officer of Vanco Limited, J.L Mitchell, operators of the Dzata- 1 Well, located offshore Ghana, in the Tano basin of the Cape three points Deep Water Block, has told Citi News that their block is well within the maritime boundaries of Ghana.

According to him, Vanco has no concern at all over reports that neighboring Ivory Coast is making claims for some parts of Ghana’s maritime Boundary.

The Dzata 1 discovery is the latest in addition to the Jubilee and other oilfields where significant hydrocarbons have been found.

There are speculations that the Dzata 1 discovery which is close to the Ivory Coast boundary may be a contributory factor to Cote D’Ivoire’s claims.

But Mr Mitchell told Citi News from his base in the US that that may not be the case since the Dzata Well is over 200 kilometers away from Ghana’s maritime boundary with cote-d’Ivoire.

“It’s very far; 200 kilometres away from the maritime boundaries and it doesn’t affect us one way or the other…It is well within the Ghanaian maritime boundary,” he said.

Meanwhile, Security Analyst Dr Kwesi Aning says Ghana must take a firm stance as it seeks to enter negotiations with the Ivorians and desist from using the humanitarian approach.

“More often than not, when these problems arise, there is a certain naivety on the Ghanaian side, a certain humanitarian approach, saying we are all brothers and all that – we are not brothers”.

“The Ivorians have a rationale choice attitude to this, they have made their calculations and they are willing to push this demand as far as possible to get what they want and I think it’s crucial that this bill is passed under the certificate of urgency and hopefully, the team that will be put together should be a bi-partisan group of technical experts with the requisite knowledge to ensure that this issue does not become a problem.” He told Citi FM.

He hinted that the Ivorians are better structured and coordinated; making them miles ahead of Ghana as far as the struggle for the demarcation is concerned

He, therefore, advised Government to ensure the passage of the law immediately and provide the requisite resources for a bi-partisan group to promote Ghana’s interest in the matter.

Dr Aning warned that if the right steps are not taken to deal with the situation immediately, Ghana and Ivory Coast may replicate the conflict that ensued between Nigeria and Cameroun over the Bakassi peninsula.

France may support Ivory Coast in Dzata oil debacle – Fellow
By Citifmonline.com | Fri 05th March, 2010 12:55 GMT

A Fellow at the Legon Centre for International Affairs, Dr Ken Ahorsu says the current scramble between Ghana and its neighbor Ivory Coast over the Dzata oil well is not irresolvable.

He has warned however that the French Government could support Ivory Coast against Ghana in the eventuality that the issue blows up beyond the sub-region.

He says the situation could be handled satisfactorily to avert a repeat of the Bakassi Peninsula incident as pertained between Cameroon and Nigeria.

Dr Ahorsu told Citi News that the African Union must first come into the fray before the matter is taken to other international platforms if possible. Ivory Coast has already made a complaint to the UN laying claim to the Dzata well discovered by Vanco oil recently in the Cape Three point fields.

“Ghana really has to do its home work because the Francophone countries have a very firm supporter in France. If you follow the court ruling of the Bakassi Penninsula between Nigeria and Cameroon, internationally everybody believed that France had a huge role to play that influenced the final outcome.

“I don’t want to suspect but I have this uneasy feeling that Ivory Coast might have started stirring the International waters, given the knowledge that they believe they have a supporter in the International system but…I have looked at it from the internet, I have looked at where the new oil is found by Vanco and I don’t think it’s within Ivorian waters.” He said.

According to him, the Government of Ghana has done the right thing by putting together a Border Commission to deal with the issue. Dr Ahorsu believes delimitation of the maritime boundaries between the two countries should not be a difficult task to carry out.

Vanco Ghana dismisses threat to Ghana’s find
Story by Fiifi Koomson/Myjoyonline.com/Ghana

Petroleum exploration firm, Vanco Ghana Limited, has dismissed suggestions that its oil field in the Western Region is at the centre of a possible boundary dispute between Ghana and the Ivory Coast.

The company says its oilfield, known as Gyata 1, is so far away from the maritime boundary between the two countries that it cannot be the subject of any dispute.

Country manger of Vanco Limited, Kofi Afenu, says the Ivorian authorities are only seeking negotiations with Ghana over the Jubilee oilfield, which is owned by Kosmos.

Several miles away

“The distance between the boundary line and then the Gyata 1 well is more than 200 miles…quite far,” Mr Afenu told Joy News’ Sammy Darko.

The Vanco country manager is amazed at news making the rounds in some sections of the media that Ivorian authorities are demanding portions of Ghana’s oilfield.

According to him, the closest well to the Ivorian border is the Jubilee field which is some 60 miles away.

Under no circumstance will Ivory Coast lay claim to the Gyata 1 well which is several miles away, Mr Afenu indicated.

Confusion

The media may have blown the issue out of proportion or perhaps the minister sent the wrong impression to Ghanaians that Ivory Coast is demanding a portion of Ghana’s oil fields.

The facts as discovered by the Myjoyonline.com indicate the Ivorian authorities are only calling for a negotiation of the maritime border between the two countries.

La Cote d’Ivoire has not laid claim to any portion of Ghana’s maritime space, authorities indicate.

Meanwhile, Parliament is expected to quickly deliberate on a bill that would establish a boundary commission to negotiate Ghana’s maritime boundaries with Ivory Coast and other neighbouring countries.

The Ghana Boundaries Commission Bill has been sent to Parliament under a certificate of urgency, Lands and Natural Resources Minister Collins Dauda has said.

“A National Boundaries Commission will be put in place that would engage our neighbours in La Cote d’Ivoire with a view of negotiating our maritime boundary between ourselves and our brothers in Ivory Coast,” Mr Dauda said.

A map of the area in contention shows no part of Ghana’s oil field is in danger of a seizure.

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