The agreement between GOIL the nation’s foremost indigenous Oil Marketing Company (OMC) and ExxonMobil followed the completion of an elaborate and rigorous due diligence done by ExxonMobil for a local partner.
The consummation ceremony performed in Accra was attended by Mr. Patrick Akpe Kwame Akorli, GOIL Group Executive Officer, Mr. Alex Josiah Adzew Chief Operating Offer and other Senior Management Members as well as Board Members lead by Mr Peter Kwamena Bartels, the Chairman.
Madam Randi Cruz, Director and Venture Manager, ExxonMobil E&P Ghana Deepwater Limited led a five member team who participated in the signing of the partnership agreement.
Mr Akorli who is also known as Togbe Adza-Nye IV, Dutorfia of Ziavi in the Volta Region who signed on behalf of GOIL, said “we sealing the agreement after a no-objection approval from the Ghana Government represented by the Ministry of Energy.
“This fulfils the Local content law which stipulates a five percent stake reservation for a local entity. Management of GOIL therefore expresses deep appreciation to the President Nana Addo Dankwa Akufo Addo; and the Minister of Energy, Mr John Peter Amewu.
“We also acknowledges the valuable contribution of the Petroleum Commission and all other players for the positive role they played and importantly, for the confidence shown in GOIL.
“GOIL is excited at the development because the agreement paves the way for the company’s entry into the upstream sector”.
Mr Akorli noted that “as the biggest, indigenous Oil marketing entity in Ghana, GOIL is optimistic the agreement will also pave the way for enhancing training opportunities for employees and importantly, opening up more opportunities for employment.
“We are particularly excited at this agreement because it is an endorsement of our diligent and technically proficient work at the downstream sector over the years”.
The GOIL Group CEO said the company intended to fulfil its part of the agreement to become a strong, vibrant and competitive player in the Upstream Petroleum sector of the country’s burgeoning Oil industry.
Mr Akorli stated that, “we are particularly excited at this agreement because it is an endorsement of our diligent and technically proficient work at the downstream sector over the years.
“GOIL, therefore, intends to fulfil its part of the agreement to become a strong, vibrant and competitive player in the Upstream Petroleum sector of the country’s burgeoning Oil industry.”
The GOIL Group CEO said the vision in the future was to be a major player within the upstream oil industry – not only the downstream where we found ourselves.
“So, we think that the company is well-structured and strong enough to be able to partner international firm like ExxonMobil in undertaking exploration and production activities within the country,” Mr Akorli noted.
Mr Akorli said GOIL had incorporated a new company named GOIL OFFSHORE LIMITED to undertake the upstream activities for and on behalf of the group.
“The group is expected to support the new company with its balance sheet which then closes the chapter if the company has the financial muscle to play within the upstream space,” he said.
Mr Akorli explained that the company was financially sound to venture into the upstream space; “We are very much prepared financially to invest in the sector, and that is why we have got the commercial interest in this petroleum agreement after months of rigorous due diligence done by our partners”.
He said “considering the amount needed in such areas, we have done some research work and analysis and I can say we are financially sound to participate in the upstream sector, bearing in mind how much we will be exposed to working in the sector.
“We think that GOIL is very strong enough to play that role by partnering any of the well-known exploration and oil producing companies in the world to operate here in Ghana”.
Madam Cruz said the company was excited about the partnership and looked forward to Parliament ratifying the agreement for real work to begin.
ExxonMobil secured the block through direct negotiations with the government to explore and produce oil in the field, which is between 2,000 meters and 4,000 meters deep.
Mr Bartels described the joint agreement was historic, which opens a new chapter in the GOIL Group, “the GOIL Group would take advantage of ExxonMobil enormous experience in the petroleum business to grow and also strengthen its skills in upstream.
In 2013, Ghana passed a legislative instrument, the Petroleum Local Content and Local Participation Regulation, 2013, L.I. 2204 to provide legal backing to the Local Content and Local Participation Policy Framework that was designed in 2011.
An important part of the Local Content Policy is that it targets a minimum of 90 per cent local participation in all areas of the oil and gas value-chain by 2020.
As the biggest, indigenous Oil marketing entity in Ghana, GOIL is optimistic the agreement will also pave the way for enhancing training opportunities for employees and importantly, opening up more opportunities for employment.