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Accra,Ghana. si-mail: iiiro@petroteum.gov.gh


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MINISTRY OF PETROLEUM


REPUBLIC OF GHANA




26 October  




THE CHAIRMAN


BRITTANIA-U GHANA LIMITED


P.O. BOX C2444


CANTONMENTS 1 

ACCRA-GHANA



RE: PETROLEUM AGREEMENT IN RESPECT OF SOUTH WEST SALTPOND BLOCK: REQUEST


FOR EXTENSION OF EXPLORATION PERIOD


We write in reference to your letter dated 20 October, 2016, on the above subject matter.





We also refer to recent meetings held between Brittania-U and the Honourable Minister for


Petroleum as well as with other officials of the Ministry, in a bid to resolve the disagreement


in respect of the South West Saltpond Petroleum Agreement (SWS PA)





You will recall that in July 2014, you were informed that during the consideration of the SWS


PA in Parliament, the then Chairman of the Select Parliamentary Committee on Mines and


Energy, requested that in accordance with the spirit of the Petroleum (Local Content and


Local Participation) Regulations, 2013, L.l. 2204, your local content partner, Hills Oil


Marketing Company Limited be made a signatory to the SWS PA and a five percent (5%)


interest holder in the entire Block, and not just a shareholder in Brittania-U Ghana Limited (


Brittania-U).


Based on assurances from the Ministry that the requested amendments would be made to


the SWS PA, the Committee went ahead and recommended the SWS PA to Parliament for


ratification. Consequently, the SWS PA was ratifiecfonT7th July, 2014.





Unfortunately however, when you were notified of the Committee's request, you declined


to comply because the request had not been captured in the Committee's report to


Parliament. You argued further through your solicitors that the ratification of the SWS PA


had not been made subject to any conditions. According to you, as far as you were


concerned, the ratification with Brittania-U as the sole Contractor concluded the process.





This disagreement resulted in a delay in the commencement of petroleum activities in the


Block, in spite of the SWS PA becoming effective on 17 July, 2014 upon ratification.





Further to our meetings in the week of October 17, 2016, we have been advised that the


SWS PA ratified by Parliament on 17th July, 26l6 wilh Brittania-U as sole Contractor should


 be maintained for the conduct of petroleum activities in respect of the said Block. Kindly


therefore find enclosed a copy of the said agreement for your records.








As you well know, Brittania U was granted an Initial Exploration Period of three (3) years


from the effective date of the SWS PA. Currently, there remains only nine (9) months for the


execution of your work programme for this period. In view of the fact that work did not


commence as a result of the disagreement and following the recent resolution of this


disagreement, Brittania-U is hereby granted an extension of twenty-seven (27) months.from


the end of the Initial Exploration Period, to enable you complete your work programme for


the Initial Exploration Period.


iate steps to commence its obligations under the




















MINISTER





CC





THE AG. CHIEF EXECUTIVE, PETROLEUM COMMISSION, ACCRA. V.


THE AG. CHIEF EXECUTIVE, GHANA NATIONAL PETROLEUM CORPORATION, TEMA.