Kufuor breaks silence on Kosmos/EO Group

Former President Kufuor is certainly not happy about how his successor is scrutinizing deals his government signed Former President Mr. John Agyekum Kufuor has for the first time commented on the Kosmos/EO Group saga, praising the Texas-based Energy Company for its extra-ordinary effort to strike oil in commercial quantities in Ghana, and rejected claims that his government was too relaxed in negotiating a better deal for the country. "Kosmos made the difference to strike oil. Hut no preferential treatment was given. No, it is not so," the former president was expatiating on the issue in an exclusive interviewed by Mr. Fred Chidi , a journalist, at the former president's residence on a TV Africa evening programme, “Matters Arising” on Monday. He said Kosmos took a high risk in undertaking exploration of the country's offshore oil reserves, pumping in a lot of money which most oil companies would not risk to do. Mr. Kufuor noted that the current world attention on Ghana as a future market force in the oil industry must be credited to Kosmos, "because the country was previously not attracted to any of the now oil companies that have stormed in to take shares of the oil find". According to the former Head of State, "Nobody knew Ghana has oil, but after Kosmos' exploration everybody wants to come here." He stated categorically that it was untrue his government did not enter a competitive agreement with Kosmos, stating that the Government of Ghana share of 10 percent in the deal was arrived at after careful negotiations to ascertain the country's worth in the oil find. The interview centered on many issues such as the health of Ghana's economy, politics, Nigeria, his current position as Chairman of Alliance Against Poverty and the thorny issue of the non-payment of his ex-gratia. When asked by the host of the programme as to whether his ex-gratia had been paid, the two-term president, who is mostly referred to by his admirers as the 'gentle giant' said, "No, this is a matter I personally don't want to talk about." But, the subject seemed to have ignited his emotions when he added that "the provisions of the Constitution must always be respected" and that it was a bad precedence for a committee to be set up by the Constitution and its recommendations be treated with contempt. Source: New Crusading Guide/Ghana

GHANA:Former President Kufuor’s Boys Demanded 5% Kickback …On Oil Deals

NO WONDER GHANA IS STILL DEADLY POOR 52 YEARS AFTER INDEPENDENCE

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US oil giant, Anadarko International Oil Company, has blown the whistle on the shape of how oil exploration licenses were awarded under the NPP government, saying they and their partners, Hess, were asked to part with 5% of their stake to, ‘an unknown Ghanaian party,’ as a condition for being awarded the South Deepwater Tano block for oil exploration.

“We were informed that if we made such a strong bid, it would overcome a previous demand by then Chairman of GNPC, Stephen Abankwa, that we carry an unknown Ghanaian party for five percent (5%) something neither Hess nor Anadarko can do, given that we are both subject to the US Foreign Corrupt Practices Act and other related US legislation,” Anadarko revealed.

Anadarko, who had put up an individual bid, alongside Hess and others, stated in a protest letter to the Minister of Energy, Dr. Joe Oteng-Adjei that the above demand, was made of them after they were encouraged by GNPC to combine their individual bids for a joint one.

The revelation was contained in a confidential letter dated February 24, 2009 and signed by Ian J. Cooling, Vice President, Business Development of Anadarko.

According to Anadarko, together with Hess, they subsequently submitted a combined bid, “but were shortly thereafter informed by Chairman Abankwa that if we did not accept the third-party carry of five percent (5%) another company, the Norwegian company Aker, had already agreed to do so and would be awarded the block.”

Anadarko said it was later informed by the then Minister of Energy, under the John Kufuor administration that the block had been awarded to another company, without telling them about how the bids fared.

“There was no transparency whatsoever in the entire bid process,” Anadarko charged, adding that “We never received a formal written notification that our bid had failed, and it was to our dismay that we learned later that Aker, had indeed been awarded this extremely complex, deepwater block.”

It was from the press and other sources, according to Anadarko, that they “learned that the Aker bid also included a third party for five percent (5%).”

ELECTIONS The US oil giant asserted that “We were upset and seriously considered at that time alerting the highest levels of the US Government and asking their intervention, but the Ghanaian Presidential election was upon us and we decided that this issue might perturb the democratic process, which we strongly support.”

The license for the block was awarded to Aker under a petroleum Agreement signed on October 24, 2008 about six weeks to the presidential and parliamentary elections. On the same day, a Service Agreement was signed between Aker ASA and CHEMU Power Ltd., a company owned by an offshore company called CHEMU Capital BVI.

Martinus Brandal, Senior Partner and President, signed on behalf of Aker ASA, while Nik Amarteifio, Executive Chairman of CHEMU, signed on his company’s behalf.

Anadarko called on the new minister to review the bid procedure and processes for the award of the block, which they believed would turn the tide in their favor.

“Now that the election is over, we are confident that you, Mr. Minister, will wish to review the bid procedures and processes of the award of Ultra Deepwater Tano Block. After such review, you will undoubtedly notice that the combined bid of Hess and Anadarko, two world-class deepwater operators with such a strong combined bid, would have been in Ghana’s best interest,” Anadarko asserted.

The company that had the five percent carried interest was Chemu Power, owned by Nik Amarteifio and Dr. Charles Mensa, both close pals of former President John Agyekum Kufuor.

DR. CHARLES MENSA

Dr. Charles Mensa was appointed by the President to serve as Chief Executive Officer of Volta Aluminium Company (VALCO) during his tenure as President. Charles Mensa sparked controversy some years back when as Chairman of the University of Cape Coast Council, he conferred an Honorary Law Doctorate on then President Agyekum Kufuor, at a time when the University had no Law Faculty.

Dr. Mensa is a founder of the Institute of Economic Affairs, a governance think- tank.

NIK AMARTEIFIO Nik Amarteifio is a bosom friend of former President Kufuor, he is also the man who brought Telenor to replace Telekom Malaysia. Telenor, according to a recent government investigation criminally run down Ghana Telecom.

Kufour’s government paid Telenor a whopping $600,000 for the business plan they used to secure a Ghana Telecom management contract in response to an international advertisement inviting strategic investors to partner Ghana Telecom. Eventually, Telecom Malaysia sued the government in an international arbitration and walked away with a handsome compensation.

Nik was appointed by former President Kufuor to serve on the board of Bank of Ghana, and was rumoured to be the President’s ear on activities at the Central Bank of Ghana.

Nik’s offshore investments, which stretch from Channel Islands in the UK to his equity stock option in Canada are under investigation by The Enquirer.

STEPHEN SEKYERE-ABANKWA Mr. Stephen Sekyere-Abankwa, who was appointed by President Kufuor to serve as GNPC Board Chairman, remains a very close pal of the former President Kufuor. He is rumoured to have served as a quiet financial advisor to the former President.

Mr. Abankwa, is currently the Managing Director of Prudential Bank Ltd in Ghana.

During the Ghana@50 celebrations, the Office the President guaranteed about $10 million for him and his partners to secure a loan facility from the Social Security and National Insurance Trust (SSNIT) to construct residential accommodation. By press time yesterday, Mr. Abankwa and his group had still not been able to pay up the loan they took from workers pension contribution. Interest on the loan has reached about 4 billion Cedis.

MOSES BOATENG When Energy Minister, Dr. Joe Oteng-Adjei, referred the Anadarko letter to the then Managing Director of GNPC, Mr. Moses O. Boateng for his response, he gave the minister what could at best be described as half-truths in a letter dated March 9, 2009.

Mr. Boateng stated, for instance, that “In terms of financial and technical capabilities the two companies were found to be almost at par and GNPC would be indifferent as to which of them was eventually awarded the block.”

This assertion is not supported by the facts as a cursory glance at the track record of Aker ASA, Anadarko, Hess and Chemu, would leave no one in doubt that the two US companies, Anadarko and Hess are streets ahead of their Norwegian and Ghanaian counterparts in their technical and financial capabilities as well as all other departments of the oil industry.

Again, in a table that purported to compare the terms of the Hess-Anadarko and Aker ASA applications for the Tano Deepwater, Mr. Boateng was not forthright with the minister. He actually, matched the raw bid of Hess-Anadarko against the negotiated terms under the Aker ASA – Chemu Power agreement.

This obviously was to misrepresent to the new minister that the bid of the latter was better.

However, a review of the Petroleum Agreement signed with Aker ASA, revealed that contrary to the requirements of the Petroleum Exploration and Production Law, PNDC Law 84, the company neither registered nor incorporated a company under the laws of Ghana.

That Agreement was ratified by Parliament on November 5, 2008. But Aker ASA, got Aker Ghana Limited incorporated on October 29, 2008 with certificate of incorporation number, CA-51,646, to commence business on October 30, 2008.

Aker ASA sought to assign its interest to Aker Ghana Limited, as a means of regularizing the agreement. However, by a letter dated December 30, 2009 the Energy Minister, declined the request, since the original agreement was invalid.

According to him, “The assignment you have requested is legally impossible in view of the underlying failure of compliance with the law.”

The minister, by a copy of that letter advised GNPC to reimburse Aker ASA with costs incurred in acquiring data, since such data acquired belonged to GNPC. He notified Aker ASA that it was going to reactivate negotiations which had commenced previously with the Anadarko/Hess application.

The relevant clauses under Section 23(15) of the Petroleum Exploration and Production Law PNDC Law 84, states that a contractor (foreign company):

“which is not an incorporated company in Ghana under the Companies Code, 1963 (Act 179) shall (a) register an incorporated company in Ghana under the provisions of the Companies Code, 1963 (Act 179) to be authorized to carry out solely petroleum operations in respect of which a petroleum agreement or petroleum sub-contract has been entered into under this Law and such signatory shall be a signatory to any petroleum agreement;”

“(b) maintain an office or establishment in Ghana to carry out petroleum operations and shall have in charge of such office or establishment a representative with full authority to act and to enter into binding commitments on behalf of the contractor or sub-contractor, as the case may be; and, continues with subsection (c) that:

“In respect of such petroleum operations, open and maintain an account with a bank in Ghana.”

Companies, such as Kosmos Energy, Tullow Oil, Anadarko, Sabre Oil and Gas Holdings have all registered their companies under Ghana’s Companies Code, to facilitate their compliance with the law before entering into petroleum agreements for their blocks.

THE NORWEIGIAN CONNECTION

One shocking revelation from the GNPC boss to the Minister was that in awarding the South Deep Water Tano block to Aker ASA, they were influenced by factors such as “The Norwegian Government’s Support to Ghana in restructuring the oil and gas industry together with their support for training of Ghanaian staff” The GNPC boss further noted that “the keen interest of the Norwegian Ambassador in GNPC affairs became a plus in favor of Aker”

According to Mr. Boateng, one other consideration for awarding the field to Aker ASA was the fact that “.there were relatively too many American companies in the basin namely, Kosmos, Hess, Anadarko and Vanco,” but “There were only two European companies - Tullow and Vitol, the decision was to spread and therefore favored Aker.”

The above has generated a geo-political controversy as to whether the Norwegian government twisted the arms of the previous government in awarding the field to Aker.

Observers say the mention of the interest of the Norwegian Ambassador is akin to the controversial role played by the British Ambassador to Ghana in the sale of Ghana Telecom to Vodafone, a British telecom giant.