Ghana's got oil.... now what? [A brief progress report]

Ghana recently (relatively) discovered that it has oil fields off its shore and has since then been preparing to start drilling for a major boost to its economy (hopefully). There has been a lot of buzz about it since it happened. There have been countries all over showing interest in the oil since then (including our former colonizer, Britain as well as China) and companies bidding to be in control of the whole set-up process. Right now it looks like they are getting those formalities worked out. Norway is collaborating on oil and gas management efforts. It is offering its experience in helping over 22 countries in order to make sure international standards and laws are applied as the industry develops.

The World Bank/Afro Global Alliance is mobilizing the locals of the Jomoro District in Western Region (the coastal community that the oil discovery will be affecting the most) to discuss the benefits of the people and to find ways or preventing oil-driven conflicts as seen in other African areas such as the Niger Delta and Angola. These areas have endured many environmental hazards that have been neglected and not benefited from the immense wealth being pumped around them. Some lack basic amenities such as clean drinking water and are exposed to human rights violations.

It is for this reason that the influential players in the affairs of this community such as chiefs, opinion leaders, youth groups, heads of departments and district assembly representatives have been gathered. We must learn from the mistakes of others and build our wealth with the right foundation.

So now the people and professionals of the land have to be trained on exactly how to handle what is coming at them. For this reason a three-day workshop was held at the University of Science and Technology in Kumasi in the Ashanti region to educate engineers and stakeholders in the gas and oil industry. They are doing all they can to beef up the oil and gas technical know-how of local Ghanaians and hope that the infrastructure set-up to support the new oil industry will not only create many jobs but also cater to other industries that are the current backbone of Ghana’s economy such as agriculture and the growing private sector. Hopefully with all this education flying around measures will also be taken to prevent any environmental degradation and employ the technicians being trained to maintain the efficiency of the system.


But amid all of this there are already rumors of foul play with the initial company transactions involving close affiliates of the recently ousted government. The Texas oil company Kosmos was the company that provided the financial input and technical expertise that resulted in the discovery of Ghana’s oil in the West Cape Three Points block. It was able to establish a relationship with the Ghanaian Ministry of Energy (MOE) and the Ghana National Petroleum Corporation (GNPC) for this permission through a company called the EO Group. This company was established by two U. S. based Ghanaians that decided to invest into exploring the coastal waters of their country and ended up getting way more than they expected.

Now that the oil field discovery has been made and all Ghanaians are excited about the prospects involved, the originators of this good news are being accused of corruption. The owners of the EO Group are said to be friends of former president of Ghana, Mr. John Kuffour and are accused of using their access to top Ghana officials (at the time) to ensure that EO Group and Kosmos had the most favorable terms in the agreement. The Ghana attorney-general as well as the US Justice Department is investigating further into the transactions of the two companies and rumors are flying everywhere of what the real truth is.

This oil is a pivotal discovery for Ghana and I hope that it was not founded on fraudulent terms. These are the kinds of things Ghanaians seek to avoid. Being a country that has been applauded on its transition into a growing democracy on a continent known for continuous chaos, many international eyes are observing how Ghana will handle its newly found wealth. U. S. President Barack Obama chose Ghana to be the first African country to visit with his family after winning the presidency.

Ghanaians all over the world bragged to nationals of other African countries that we were the first because we’re such a ‘good example’ for others to follow but stories like this could throw all of that down the sink.

Oil means money and money means people breaking all kinds of rules. I hope Ghana cleans it up and keeps it clean. We have a reputation to protect. The best way to keep things transparent is to educate as many as possible to ensure accountability of all parties. I believe we’re stepping in the right direction.