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MINISTRY OF PETROLEUM
REPUBLIC OF GHANA
BRITTANIA-U GHANA LIMITED
P.O. BOX C2444
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 (
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
THE AG. CHIEF EXECUTIVE, PETROLEUM COMMISSION, ACCRA. V.
THE AG. CHIEF EXECUTIVE, GHANA NATIONAL PETROLEUM CORPORATION, TEMA.