GNPC Seeking $1.1bn To Buy Aker Shares Worth Less Than $200m …ASEPA

Civil society group, Alliance for Social Equity and Public Accountability (ASEPA) is accusing the leadership of the Ghana National Petroleum Corporation (GNPC) of overpricing the 27% share that it seeks to acquire from AGM/Aker Energy’s oil bloc by over 600%.

In a statement signed by its Executive Director, Mensah Thompson, ASEPA says GNPC’s receipt of US$1.1 billion to purchase the piece is by no means justifiable because the value of the whole block is not even up to US$200million.

“Even if we add a profit of $50Million to Aker’s share of the bloc, it still brings the value of the bloc to $195Million. How then is GNPC asking for $1.1billion to acquire just 27% of the 50% of Aker’s share whose current value including Profit is only around $195Million?” ASEPA asked.

The recent decision by GNPC t re- acquire more stakes in the AGM/Aker oil bloc and to form a joint operating company with Aker to become a major player in the local oil industry has courted serious controversy over the price tag that GNPC quoted to Parliament.

GNPC had requested US$1.6billion from Parliament saying it intends to spend some $1.1billion on the acquisition.

This had immediately raised eyebrows because the very oil bloc in question had only a few years ago, been acquired from another oil company, Hess, by Aker Energy at a price of some US$100million.

Questions have subsequently been raised as to how the country could require 27% of an oil bloc for US$1.1billion when the whole bloc had been acquired at US$100milllion a few years ago.

But GNPC boss, Dr. K.K Sarpong, has taken to radio-trotting to defend the position claiming that subsequent acquiring the oil bloc from Hess, AGM/Aker has spent some US$500million to develop it.

ASEPA says that claim is dubious and works out the math in its statement to support its position.

“We have therefore taken a critical look at the AGM/Aker bloc, the acquisition cost and the cost incurred so far by Aker and we have come to the conclusion that there is no way Aker has spent more than $200Million on this bloc since it acquired its 50% from Hess Corp,” ASEPA said.

It points out that the current bloc in question was previously owned by Hess Corporation and consists of 2 oil fields namely; Deep Water Tano Cape 3 points(DWT Cape 3) and the Deep Water Tano South(DWT South).

ASEPA said if Aker says it has spent $500Million on the bloc so far, it must be able to justify that expenditure by answering to questions, including queries about how many wells it drilled; what Vessel they used; how many days of drilling they did and What the cost of Cementing and casing was.

Also, they must provide details on which Company did the cementing and casing and how many kilometers of Seismic survey they did.

“These are the major cost components of the work Aker has done on the bloc, they should provide all these information so that we can all do the costing together in a more transparent manner, until then we still maintain that per information available to us and our independent valuation and verification, Aker has not spent up to $200Million on this bloc,” ASEPA said.