Commercial production of oil in Ghana is due to start in barely two months – in November or December, but a $225 million political risk guarantee contract for the Floating Production Storage and Offloading (FPSO) vessel is still suspended.
The FPSO vessel will produce and process oil and gas from the Jubilee offshore oil field in Ghana.
The insurance cover provided by the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group and its partners was suspended in July following allegations of impropriety against some companies involved in the deal. MIGA suspended the guarantee to investigate the matter.
When ghanabusinessnews.com enquired about progress of the investigation, Mallory L. Saleson Senior Communications Officer of MIGA said in an email response Monday September 27, 2010, “The process of looking into the issues is still ongoing.There is no conclusion yet.”
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).
Adding that “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.”
A section of the Ghanaian media says Strategic Oil and Gas, (StratOil) has been 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