Ghana must own its natural resources – IFS

An economist and research fellow with the Institute for Fiscal Studies (IFS), Dr Adu Owusu Sarkodie, has asked the government to yearn to maximize its gains from the extractive sector of the economy.

"All we are saying is that the Government of Ghana must own the natural resources. Deal with the technicalities, but the end result is that Ghana must own the resources," he told host Francis Abban on Starr 103.5 Fm ahead of the IFS's forum on Ghana's domestic revenue mobilization mode.

He intimated that if the GNPC-AKER deal is to make Ghana a greater shareholder of the resources, "we are in support of it."

He continued: "We have to try and renegotiate our oil deals if they're not going to cost us too much. If we cannot renegotiate, then we have to forget about it and look into the new discoveries."

He maintained that Ghana's stake in its oil and gas sector is minimal and must improve going forward.

"Nigeria is earning 51% of their oil revenue, and Botswana is getting 65% while Ghana is getting 16%," Dr Adu Sarkodie noted.

His comment comes on the back of the efforts by the government to push for $1.65 billion shares in two oil blocks.

The Ghana National Petroleum Corporation (GNPC) wants to acquire stakes in two oil blocks—a 37% share in the Deep Water Tano/Cape Three Points (DWT/CTP) operated by Aker Energy and a 70% stake in the South Deep Water Tano( DWT/CTP) field operated by AGM Petroleum.

According to the Ministry of Energy, the deal will result in the formation of a joint operating company with Aker Energy, AGM, and GNPC Explorco, the operating subsidiary of the state oil company, as partners.

The GNPC is counting on Norway's Aker and the United State's AGM to build the muscles of GNPC Explorco, to become a profitable operator–exploring and drilling oil.

By this deal, the national oil company is seeking to position itself for the global energy transition against the backdrop that the national budget is heavily dependent on funds from oil and gas.