Former Speaker of Parliament, Professor Aaron Mike Oquaye, has cautioned the government against the hasty renewal of Tullow Oil Ghana’s operating licence, warning that rushing decisions could expose the country to financial and contractual risks.
Speaking at a policy dialogue organized by the Institute of Economic Affairs (IEA) in Accra, Prof. Oquaye, pointed to Ghana’s recent arbitration loss with Tullow Oil as a lesson. He said, “the recent arbitration award by the ICC in the case of Tullow versus the Republic of Ghana in London should teach us a lot.”
He highlighted that Ghana’s agreements with Tullow contain clauses that can create vulnerabilities, noting, “incidentally, our agreements with them allow for these kinds of things to happen. Having won their case, we are now to pay Tullow’s cost.”
Prof. Oquaye expressed concern that Tullow has already indicated another tax dispute while reporting operational losses.
He stressed that Ghana must be cautious about Tullow’s request for an early contract renewal, explaining that the company has sought a memorandum of understanding despite still having ten to eleven years left on its current licence.
“While doing that, they have suddenly asked government to renew their contract, which will be expiring in some ten, eleven years’ time,” he said.
He warned the government not to move forward hastily and emphasized the need for stronger transparency, better contract management, and a thorough review of Ghana’s petroleum agreements to prevent similar fiscal setbacks. “I will want to plead with government that they should not move any further,” he added.
He called for careful scrutiny of all petroleum agreements to safeguard national interests.
