The Head of communications at the Energy Ministry, Edward Abambire Bawa has debunked allegations raised by the main opposition New Patriotic Party(NPP) that the Government of Ghana was shortchanged in the ENI-Sankofa Offshore Cape Three Points (OCTP) Gas Project.
Bawa said claims that the ENI partners are holding the greater stake of the deal is misleading since government out of the 7 billion dollar project stands to rake in about 50% of the economic price of the deal.
The opposition NPP petitioned the Italian Prime Minister, Mateo Renzi on his visit to Ghana to review some of the terms in the ENI-Sankofa deal to maximize mutual benefits from the project.
The NPP in their petition highlighted that: “the Government of Ghana’s provision of financial terms to ENI and its partners of 20% return on investment, instead of the normal 12.5%, is an unusually high rate for commercial transactions of this nature, especially as GNPC assumes all the risk in the project.”
Commenting on the issue raised by the NPP on Si Me So on Kasapa 102.3 FM, the Communication consultant at the Ministry maintained that the $7billion investment offered on the 20 yr life-span project is arguably the largest so far in the sector.
He also claimed the NPP’s take on 20% return on investment for the state, according to negotiations reached with partners is inaccurate, insisting the “agreement on the rate of return was less than 12.5% within an environment of high oil prices years back, when the crude oil price was 85 dollars per barrel.”
“You peg the rate based on the projected price; At a time when oil price has plummeted to a record of 35 dollars per barrel, the oil glut certainly will boost the deal.”
Meanwhile he said the document has been in parliament over a year now for which reason any deduction could have been made long ago.
“The document has been in parliament, based on which they approved it. How come for solid one year no question was raised until now when the Italian PM visited the country? Bawa questioned.
