Executive Director of Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has hinted that the failure of most companies to deliver on the terms of agreements signed with Ghana was a direct function of non-enforcement of contracts term by the central government.
He made this revelation at a press conference in Accra recently where he exposed the lack of Parliament oversight over contracts and the mad rush of contracts through Parliament as major loopholes oil and gas companies have taken advantage of.
According to him, a 2017 baseline report done by his outfit indicated that most of the companies took refuge in the preliminary ruling of the International Tribunal for the Law of the Sea (ITLOS) which placed an injunction on field operations in the disputed area until the determination of the case between Ghana and Ivory Coast.
He further added that companies outside the disputed area also significantly failed to deliver on their obligations.
According to him, his outfit concluded that the failure was a direct function of non-enforcement of the contracts terms by government.
He further stated that performance data per the various companies were not made available to civil society and interested parties to track the companies’ performance.
Only two companies, he said, were within the compliance bracket while vast majority have blatantly failed to fulfill their obligations of at least drilling a well in the first phase of their respective agreements.
Mr Boakye said the central government upon admitting the companies’ failures to deliver had also failed to treat the matter with firmness to demand compliance from the companies.
According to him, the government’s mere recent pronouncements on the failings of the companies had not been able to attract an action of abrogating contracts on its terms.
Story: Prosper KWAKU SALASSY