The Minister for Energy, Peter Amewu has explained why two big oil companies, ExxonMobil and British Petroleum, (BP) pulled out of the competitive bidding process for the 3 oil blocks put on offer by the Government.
The two International Oil Companies (IOCs) had earlier submitted applications for direct negotiations for block 5 and 6 but pulled out at the embers. It is not clear yet why the two multinational companies decided to pull out at the last minute.
The government, through the Energy Ministry, earmarked six oil blocks for exploration.
Three of the blocks-2, 3 and 4-were to go through a competitive bidding process while two blocks-5 and 6-were supposed to be for direct negotiations.
One of the blocks was reserved for Ghana National Petroleum Corporation (GNPC).
Giving reasons for the withdrawal by the two companies in an interview with Joy FM, Peter Amewu said the two companies pulled out to focus on their initial negotiations with the government.
"For instance ExxonMobile withdrew basically on the premises that they wanted to concentrate on what they have now, already you know they have PA, BP wanted to concentrate on Keta because they are already negotiating with us on the Keta but currently we have about sixteen to eighteen of them that have moved from the competitive stage to negotiation, what it means is that most of them are more interested in negotiation than also going into a competitive bidding process."
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