Aker’s SDWT/ DWT/CTP 70% Stake Offer To GNPC Is Overpriced By 100% …think tank

An Energy sector think-tank, Energy & Associates, has questioned the controversial decision by the Ghana National Petroleum Corporation (GNPC) to acquire a 70% stake in the South Deep Water Tano (SDWT) and a 30 percent stake in DeepWater Tano/Cape Three Points (DWT/CTP) for some US$1.6 billion.

The group says the oil blocs operated by Aker Energy Ghana Limited should be at an asking price not more than US$800million.

In a statement on the controversy, Energy and Associates suggests that even US$800million is an overkill, as the real value of Aker’s offer is some US$400million.

The think tank says that it has seen a valuation from the Petroleum Commission and that it shows that what Aker Energy is offering is worth half of what they may be asking for.

“Our sources at the Petroleum Commission explain that valuations in the books of the Petroleum Commission is a little over $400mil, however we are told Aker’s valuation is some $800mil.”

It also expressed questions that Energy Minister, Mathew Opoku Prempeh’s valuation is not clear, “as to what valuation this amount is based on is yet to be known.”

GNPC is requesting a loan of up to $1.65 billion to finance the acquisition at a price to be negotiated which might not exceed US$1.3 billion and GC Explorco share of capital expenditure (CAPEX) to Pecan Phase 1 First Oil of US$350 million.

The request was contained in a motion presented to Parliament by the Energy Minister, Dr Matthew Opoku Prempeh.

But it has since raised eyebrows around the country because GNPC’s deal to buy the stake is more of a juggle to the disadvantage of Ghana. The fields from which the 70% stake is being offered by Aker, were awarded to Aker a few years ago by Ghana at half the price being quoted now.

Experts have said that since the offer was made to Aker, little development has taken place so that if Aker is offering to sell 70% of it back to Ghana, the price should not exceed US$500million.

But a hard-nosed Energy Ministry and GNPC are bent on seeing the controversial re-acquisition through.

Energy and Associates described as, “quite worrying” government’s decision to go ahead with the proposal when the valuation report that precipitated the decision to acquire this stake is not ready.

Meanwhile, it points out that $1 billion allocated to GNPC over the past 10 year as the total amount in its exploration in Explorco is yet to “yield any prospects”.

“Increasing GNPC reserves and producing through GNPC Explorco by principle is laudable, however, this proposed deal with Aker is questionable and must be looked at for public interest purposes,” the energy think-tank pointed out.