Exxon Mobil exit a bad omen for petroleum sector – Former Energy Minister

A Former Energy Minister Emmanuel Kofi Armah Buah is asking government to provide answers over the decision by ExxonMobil to abandon its oil block and pack out of the country after undertaking seismic works.

Speaking to the media in parliament, Mr. Buah argued government failed to provide favorable conditions to the oil giant unlike what prevails for other companies operating in the country hence the decision to exit.

The Ellembele MP painted a gloomy picture for the sector which he argues is on its knees over bad government decisions.

“Is Ghana losing its place as the preferred destination for investment in the upstream sector? Does this generally has to do with how our sector has been managed? What is the next production and what efforts are the government making to attract more investment to make sure that when these three producing fields are dried up, there is another production coming, other than that this country is really going to face serious consequences. You also have to know that oil revenue is key to our whole revenue stream and we have to be very worried.”

“What is also worrying that Exxon Mobil is like the biggest thing of all and anytime they leave your country other Oil companies will also be asking questions- why has Exxon Mobil left us and what does that mean for the upstream sector?” Armah Buah told the journalists.

Exxon Mobil Corp is pulling out of a deep-water oil prospect in Ghana just two years after the west African nation ratified an exploration and production agreement with the U.S. oil titan.

The company relinquished the entirety of its stake in the Deepwater Cape Three Points block and resigned as its operator after fulfilling its contractual obligations during the initial exploration period.

Exxon controlled 80% of the block, with state-owned Ghana National Petroleum Corp. holding 15% and Ghana Oil Company, the remaining 5%. The two partners will now have to search for a new operator for the block.

The work done so far included processing about 2,200 square kilometers (850 square miles) of seismic data, but Exxon didn’t drill any exploration wells, reports say.