Page 8 - AfrOil Week 44 2022

AfrOil POLICY AfrOil

The West African state has not been producing that the country extracted just 938,000 bpd in
the full amount allotted for some time, even September, marking the first time in more than
though it has made a habit of quota-busting in three decades that its output rates dropped
the past. “Engagement is based on the capac- below 1mn bpd.
ity to produce,” Kyari said, according to Argus Other sources have disputed this figure.
Media. OPEC is “not going to stop you from Argus Media, for example, estimates that Nige-
production, as long as that capacity is there,” he ria produced 117,000 bpd in September, and
continued. “That’s not the issue. The issue is the it has explained the discrepancy by noting the
baseline, and that baseline will change immedi- fact that some observers treat output from the
ately as we bring back more production.” Agbami field as condensate rather than crude,
Nigeria has traditionally been the largest pro- meaning that they do not classify it as oil but
ducer of crude in Sub-Saharan Africa. However, put it instead into the broader category of liquid
Abuja has submitted data to OPEC showing hydrocarbons. ™

POLICY
GNGC official blames Sankofa Gas Project

for Ghana’s decision to seek IMF bailout

GHANA ERNEST Owusu Bempah, the director of public Sankofa gas, or $552mn per year, he said. This
affairs for Ghana National Gas Co. Ltd (GNGC), makes the gas the most expensive in the world,
has alleged that a natural gas supply contract he asserted.
with Eni (Italy) is one of the factors that led the He went on to say that the current govern-
country’s government to seek a financial bailout ment, headed by President Nana Akufo-Addo,
from the International Monetary Fund (IMF) had no option but to continue abiding by the
earlier this year. terms of the Sankofa Gas Project contract with
Speaking to reporters in Accra on Novem- Eni because the terms and conditions did not
ber 1, Owusu Bempah complained that the allow for any changes.
deal signed by the administration of former The Italian company was granted a monop-
President John Mahama in 2015 had been too oly contract for a term of 20-25 years, he
favourable to Eni. remarked, adding that the IMF had raised ques-
To date, he reported, Ghana has paid the Ital- tions about the deal.
ian major a total of $3.6bn for fuel received via “We wouldn’t be going to the IMF but for
pipeline within the framework of the Sankofa some of these reckless, dubious contracts signed
Gas Project. It pays about $46mn per month for by the Mahama administration,” he added.

The World Bank is sponsoring the Sankofa Gas Project (Image: World Bank)

P8 www. NEWSBASE .com Week 44 03•November•2022