The Ghana National Petroleum Corporation (GNPC) has responded to a list of claims about underhand dealings and possible corruption by the energy policy think tank Africa Centre for Energy Policy (ACEP).
One of the prominent allegations by ACEP was that the GNPC has housed Ghana's 7% increased stake in the Jubilee Fields, bought from Oxy for $200 million, in an offshore company in the Cayman Islands, a tax haven.
According to ACEP, being a tax haven, Cayman Islands is refusing to disclose shareholder information of the company, Jubilee Oil Holdings.
ACEP states that it is unable to confirm whether Ghana Government owns the company 100%.
ACEP also said its checks revealed that this company is registered with Dr K. K. Sarpong, CEO of the GNPC and Freddie Blay, Board Chairman of GNPC as directors.
READ ALSO: ACEP suspects foul play as Ghana's 7% stake in Jubilee Fields housed in offshore
On the allegation of an offshore company in the Cayman Islands, GNPC said the following in response:
“The Corporation has not set up any offshore company. The facts of the matter are as follows:
- Company (“Anadarko WCTP”) (an offshore company registered in Cayman Islands that holds Anadarko’s interest in Jubilee, Deepwater Tano (DWT) and West Cape Three Points (WCTP)) was to be sold to Kosmos Energy Holdings Ghana Limited (“Kosmos”). The Corporation expressed an interest in acquiring part of Anadarko WCTP’s interest in the DWT and WCTP petroleum agreements and notified Ministry of Energy. The Parties entered negotiations to determine the Corporation’s share, and it concluded with an offer to the Corporation to purchase the 7% commercial interest.
- To enable the negotiations with Kosmos for the sale of Anadarko WCTP to proceed, Anadarko Offshore incorporated a company, Jubilee Oil Holdings Limited (“JOHL”), in the Cayman Islands to hold the 7% commercial interest in the interim while the parties negotiated and finalised the commercial terms of the transaction.
- The parties proceeded to negotiate the commercial terms of the sale and purchase of the 7% commercial interest. The headline purchase price as of 1st April 2021 was quoted as US$199million. This price was adjusted to US$165 million effective 30th September 2021, following adjustments for cash calls, taxes and other expenses incurred as well as sales made by Anadarko WCTP within the period.
- Anadarko Offshore, the Seller, was eventually paid US$164,798,691.00 on 19th October 2021 in full settlement of the acquisition. Anadarko Offshore thereafter assigned JOHL to GNPC, as JOHL holds the 7% commercial interest.
- The Corporation is currently in the process of transferring JOHL to GNPC Explorco. It was never a ploy by the Corporation to ‘live unto itself, not the law and the nation’s strategy for its existence’ as claimed by ACEP.
On the allegation that the said company is registered with Dr K. K. Sarpong, CEO of the GNPC, and Freddie Blay, Board Chairman of GNPC as directors, GNPC responds as follows:
Anadarko Offshore incorporated JOHL with its own directors. At the time of the sale and purchase, the Corporation was required to nominate two directors to take over after the transfer was effected.
The Board of Directors of the Corporation therefore nominated the Board Chairman, Honourable Freddie Blay, and the Chief Executive Officer, Dr. K.K. Sarpong, as initial Board directors to replace the directors of JOHL appointed by Anadarko.
The Corporation holds one hundred percent of the shares in JOHL. The beneficial ownership of JOHL can be ascertained by conducting a general search with the Cayman Islands Registry. Further, the Share Purchase Agreement entered into on 13th October 2021, between Anadarko Offshore and Ghana National Petroleum Corporation show that the shares of JOHL belong to the Corporation as the Buyer.
Below is the full response by GNPC
