Minority Caucus has expressed apprehension following Parliament’s decision to approve the extension of petroleum agreements in the West Cape Three Points (WCTP) and Deepwater Tano (DWT) blocks until 2040.
The caucus, led by Alexander Afenyo-Markin ESQ (MP), cautioned that renewing contracts well before their original expiry dates of 2034 and 2036 could set a concerning precedent for early concessions.
Afenyo-Markin argued that such extensions might weaken the government’s future negotiating position with oil companies.
“Approving these contracts several years ahead of schedule could limit our ability to secure more favourable terms down the line and may encourage other operators to expect similar early renewals,” he stated.
The government has justified the move by highlighting a US$2 billion investment plan intended to maintain production levels and support operational stability.
Amendments to the Master Gas Agreement were also approved, with officials claiming they will reduce gas prices and improve supply for domestic industries.
Despite these assurances, the Minority warned that the timing of the approvals raises critical questions about transparency, fiscal responsibility, and long-term national interest.
Lawmakers suggested that early contract renewals could inadvertently prioritise short-term gains over strategic oversight of Ghana’s petroleum resources.
The caucus concluded that while investment and energy stability are important, safeguarding the country’s negotiating leverage and ensuring proper scrutiny of agreements must remain a priority.
They emphasised the need for Parliament to carefully weigh long-term implications before endorsing similar extensions in the future.
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Source: www.myjoyonline.com