Ghana discovers Africa’s biggest oil deposit but could lose at about $4.8 billion

Ghana discovers Africa’s biggest oil deposit but could lose at about $4.8 billion

Information available to YEN.com.gh shows that Ghana could lose about $4.8 billion despite discovering the biggest oil find in Africa.

In a press release, think tank, Imani, disclosed that even with Aker Energy ASA’s oil find of 450-550 million barrels, Ghana stands to gain a paltry 14% of increased equity interest and royalties amounting to $4.2 billion in the short term, representing 10% interest in block and 4% royalty.

Per a Myjoyonline.com report, this is because new oil finds require a new petroleum agreement should be negotiated under the Petroleum (Exploration and Production) Act, 2016 Act 919.

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If this had been done, Ghana could have gained an estimated $9bn, through potentially 25% to 30% increased equity interest and royalties, assuming 5% royalty plus 15% carried interest, as well as 5%-10% additional participating interest in block, in the short term, in addition to any potential corporate income tax and the windfall additional oil entitlements in the long term.

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Source: Yen

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