Dr KK Sarpong
Ghana’s National Oil Company (GNPC) has rubbished the claims by Energy Think Tank, African Centre for Energy Policy (ACEP) that it has set up an offshore company named Jubilee Oil Holdings in Caymans Island in North America.
The Think Tank alleges that the GNPC has taken up the seven percent interest it recently acquired from Kosmos Energy in the Jubilee and TEN oil fields to set up a new company.
However, GNPC in a statement responding to the claims by ACEP made at a press conference last Thursday, said the Jubilee Oil Holdings was not set up by GNPC but rather Anadarko Offshore Holdings Company LLC.
According to the statement, “The Corporation has not set up an offshore company. The facts of the matter are as follows: Anadarko Offshore Holding Company LLC (“Anadarko Offshore”) sought to wind up its operations in Ghana. Its subsidiary, Anadarko WCTP Company (“Anadarko WCTP”) (an offshore company registered in the 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 into negotiations to determine the Corporation’s share, and it concluded with an offer to the Corporation to purchase the seven percent commercial interest.”
The GNPC clarified that “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 seven percent commercial interest in the interim while the parties negotiated and finalized the commercial terms of the transaction.”
The statement explains further that “the parties proceeded to negotiate the commercial terms of the sale and purchase of the seven percent commercial interest. The headline purchase price as of 1st April 2021 was quoted as US$199 million. 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.”
It added that “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 seven percent commercial interest.”
Explaining the circumstances leading to the CEO of GNPC, Dr. KK Sarpong, and Board Chairman, Freddie Blay becoming Directors of Jubilee Oil Holdings, GNPC said 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, therefore, nominated the Board Chairman, Mr. Blay, and the Chief Executive Officer, Dr. Sarpong, as initial directors to replace the directors of JOHL appointed by Anadarko.
“The Corporation holds one hundred percent of the shares in JOHL,’’ GNPC stated.
The Corporation is currently in the process of transferring JOHL to GNPC Explore. 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,” the statement noted.
Touching on the assertion that Jubilee Oil Holding Limited cannot transact business in Ghana’s oil industry because it is not registered with The Registrar General’s Department, the GNPC said, “The Corporation is in the process of registering JOHL as an external company in Ghana.
“The Corporation continues to operate within the remit of the legal framework and has no intention of flouting any legal requirements and procedures. As the Corporation has always indicated, the Corporation welcomes engagement with any stakeholder in its operations”
“All documents on the transactions are available for scrutiny and inspection,” the statement indicated.
BY Daniel Bampoe