Energy Minister reports GNPC Board Chairman’s attempt to reduce Ghana’s stake in Anardarko Deep Water Tano to Akufo-Addo

The Energy Minister, Dr. Matthew Opoku Prempeh, has accused Freddie Worsemawu Blay, the Board Chairman of the Ghana National Petroleum Corporation (GNPC), of engaging in a “scandalous” attempt to diminish Ghana's 7 percent interest in Anardarko Deep Water Tano (DWT) and transfer it to the Petroleum Oil and Gas Corporation of South Africa (PetroSA).

Dr. Opoku Prempeh reported Mr. Blay to President Nana Akufo-Addo after previously cautioning him, the GNPC management, and other board members to cease any negotiations with PetroSA due to his objectionable conduct.

The Energy Minister revealed that his ministry had received a letter dated April 23, 2023, from the Chairman of the GNPC board to PetroSA. In this letter, the Chairman proposed that PetroSA preempt the 7 percent interest recently acquired by the Ghanaian government from Anadarko West Cape Three Points Company (Anadarko) and suggested an equal split of the DWT portions, thereby reducing the government's interest.

In a letter dated May 16, 2023, the Energy Minister reiterated his directive to the GNPC Chairman and other board members, instructing them to cease all negotiations with PetroSA regarding the preemption of JOHL stakes. He emphasized that the Ghanaian government had purchased these stakes with state funds and had previously informed the South African government, through the Minister of Natural Resources and Energy, that preemption of JOHL stakes would not be sanctioned.

Dr. Opoku Prempeh expressed his outrage that, despite these directives, the GNPC Chairman directed the corporation to offer PetroSA a portion of the government's JOHL interest in the DWT. He ordered Mr. Blay to immediately cease any further violations of the directives and rescind the offer made to PetroSA.

On the same day, the Energy Minister sent a letter to the President's Secretary, highlighting Mr. Blay's “scandalous” behavior and bringing it to the President's attention. The Minister expressed his concern that the Chairman was opposing the government's directives and seeking PetroSA's written consent, which the Minister had already clarified would not be granted.

The letter was also copied to the Minister of Justice and Attorney General, the Deputy Ministers of Energy, the CEO of GNPC, the Director of Petroleum, and the Legal Director of the Ministry of Energy.

The Energy Minister emphasized that any transaction that disposes of approximately 50 percent of the GNPC's already owned DWT stake would require more than the Minister's simple sanction. It would require approval according to the processes outlined in the Public Financial Management Law, the SIGA Law, and potentially parliamentary approval.

Furthermore, the Minister revealed that discussions had already been initiated with LITASCO SA to refinance GNPC's outstanding obligations and support other transactions. He criticized the Chairman for undermining government policy and the government's position regarding PetroSA's attempt to preempt the Ghanaian stake.

The Herald, a local news outlet, obtained a letter addressed to Mr. Blay from the Chairman of the Board of PetroSA, Nkululeko Poya. The letter expressed PetroSA's satisfaction with the resolution reached between the parties regarding JOHL's acquisition of DWT interest.

In response to PetroSA's letter, the Energy Minister's office has taken strong action, highlighting the Chairman's misconduct and urging the President to address the matter urgently.