Policy think-tank, The Africa Centre for Energy Policy says the recent decision by ExxonMobil to exit Ghana’s petroleum Industry paints a gloomy picture for future prospects of the Industry. The petroleum exploration firm has recently relinquished its interest and operatorship of the Deepwater Cape Three Points block.

According to ACEP, after painstaking investigations, its industry intelligence points to marginal prospectively of the Cape three points block and its misalignment with Exxon Mobil’s commercial strategy. In a statement issued by Executive Director of ACEP, Benjamin Boakye it cautioned the government to reexamine its upstream strategy to attract investments and align the sector with the global conversation on energy transition

“The exit of the company is a major setback to efforts to attract oil majors to enhance the development of the oil industry”. ACEP said. According to Mr. Boakye, one of the reasons for ExxonMobil’s exit may also include a real or perceived hostile environment

“This understanding should inform the processes and public engagements on the award of petroleum exploration contracts. For example, ExxonMobil endured political and social controversy on the fiscal terms in the company’s Petroleum agreement”. ACEP claims much of the controversy could be traced to poor public engagements on the justification for the fiscal concessions.

Please find below excerpts of ACEPS press statement