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ExxonMobil‘s entry boost for Ghana’s economy

  • POSTED ON: February 8, 2018
  • SOURCE: thefinderonline.com
  • CATEGORY:

 

Analysts in Ghana’s oil and gas space say they are undoubtedly sure of bright economic prospects for the Ghanaian economy, with the recent signing of a petroleum agreement between Ghana and American oil giant, ExxonMobil Corporation.

This is in spite of concerns over the handling of negotiations leading to the signing of the agreement.
Non-profit policy institute and
grant-making organization that promotes the responsible management of oil, gas and mineral resources for the public good in Ghana, the Natural Resource and Governance Institute (NRGI) says the development is a good omen.
The entrance of the supermajor into Ghana, NRGI told this paper “will send a strong positive signal to other potential investors who may want to venture into the country of a good business climate in Ghana with a stable democracy.”

Economist Samuel Bekoe with the Ghana Oil and Gas for Inclusive Growth (GOGIG) told this reporter the American oil giant apart from being equipped with the deep water drilling technology has strategic links with the other big players in the industry whose technological expertise are impeccable.

Ghana, haven for big-ticket investments
Exxon’s entry into Ghana will inspire confidence of the international community in the Ghanaian economy and governance. This will help with attracting more global investors into the country’s economy.
As the world’s largest publicly traded international energy company, ExxonMobil also has a history of investing substantially in the countries where it undertakes exploration activity.

According to NRGI, a case in point is the recent investment of $4.2 billion in the Chad-Cameroun project alone.
Revenues to soar, budget execution to improve

The Institute is confident that should ExxonMobil respond positively to government’s expectation of a replication of its investments in other jurisdictions in Ghana, “it will not only boost the Ghanaian economy and improve the budget balance sheet but will help with providing the much needed infrastructure for diversifying Ghana’s economy.”

Job creation, higher incomes for Ghanaians
The NRGI notes however that depending on how the agreement is structured, executed and monitored, the presence and activities of ExxonMobil will lead to job creation and incomes for more Ghanaian households.

“The medium to long term effect of Exxon Mobil’s presence in Ghana could boost economic growth drastically,” the Institute told this paper.

Policy analyst, Dr Steve Manteaw was measured in his expectations as he indicated that “the Exxon Mobil Deal like many other types of investments, will bring jobs, taxes, more crude, maybe more investments, and maybe economic development.”

Govt bubbles with energy over deal, says it’s the best ever
Ghana’s Energy Minister, Mr Boakye Kyeremateng Agyarko says the entry of ExxonMobil into Ghana’s petroleum industry sends a strong signal to investors around the World that “Ghana is truly open for business and has exciting opportunities in a well-secured maritime environment.”

Government anticipates heightened activity in the coming years from both existing and potential projects in line with government’s strategic vision of building an industrialised nation powered by a robust energy sector.
GNPC upbeat about technology transfer
For the National Oil Company, the Ghana National Petroleum Corporation (GNPC), partnering with ExxonMobil presents a great opportunity for it to acquire the requisite knowledge to assist in its journey to become an upstream operator in the future. This is in tandem with its pursuit of a vision to become a leading global oil and gas company, whose operations have a profound impact on the quality of life of the people of Ghana.

Competition in industry to get keener

Competition for investment into the sector will be keen, and even keener in the sub region.
For the existing players, the new addition will encourage companies to ensure that they carry out their exploration activities with adherence to the highest international standards governing the sector.

ExxonMobil commits to Ghana’s development
President of ExxonMobil, Steve Greenlee at the signing ceremony described the deal as an affirmation of the Corporation’s commitment to pursuing high-quality projects in areas with large resource potential.
“We are excited to partner with the government of Ghana as we employ our significant upstream experience and technological expertise in assessing the exploration opportunities in this block,” he stated.

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