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World Bank Group suspends $225m insurance cover for Ghana’s FPSO

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The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group and its partners have suspended a $225 million political risk guarantee contract for the Floating Production Storage and Offloading (FPSO) vessel that will produce and process oil and gas from the Jubilee offshore oil field in Ghana.

In a joint statement issued on MIGA’s website Thursday July 29, 2010, it said the parties agreed to this suspension in order to conduct due diligence into the conditions of a service contract between MODEC and Strategic Oil and Gas Resources (Strat Oil).

“The parties note they agreed on a suspension because of the importance of the project in Ghana and their shared intention to have all issues resolved as soon as possible so that the project can be resumed,” it added.

News in the Ghanaian media says Strategic Oil and Gas, (StratOil) is involved in a $5 million deal with MODEC a Japanese company. According to the reports, the company has been paid part of the amount after it offered consulting services in the preparation of tender for the supply of an FPSO to the consortium involved in developing the Jubilee Field.

By Emmanuel K. Dogbevi

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One comment

  1. Interesting times. I heard this news earlier last week and a denial followed thereafter,. Now we reading a solid confirmation of the earlier story. Just what is going on?