Ghana's oil production rig, the North Sea Pioneer (NSP), which was abandoned in Angolan waters for 11 years, has now been relocated at the Sekondi Naval Base.

A news release issued by the Ghana National Petroleum Company (GNPC) indicated that the NSP left Angolan waters on October 29, 2003 and that Sonangol of Angola paid the costs and expenses in connection with the inspection, repairs and towage of the vessel to Ghana.

The arrival of the ship follows government’s fulfilment of its pledge to pay the $1.5 million GNPC owed Acquatic Engineering and Construction BV, a Dutch firm, for the upkeep of the oil rig. The company once had a contract with the GNPC in the 1990s to explore for oil in Angolan waters but later backed out, accusing the then management of breach of contract.

GNPC would, on its part, absorb the cost of maintaining the vessel in Angola, that is to say, to pay the full fees and expenses so far incurred on the vessel by Acquatic Engineering and its Ghanaian counterparts for the purpose of maintaining it in Angolan waters.

It is heartening news, indeed, that the Government of Angola has lived up to its obligations under the April 15, 2003 agreement signed between Sonangol and GNPC in Angola, thereby not only saving GNPC from continuing to find $60,000 each month to keep the NSP and its crew afloat but also delivering to GNPC and Ghana a valuable asset that could be sold later and proceeds used to reduce the stupendous acquisition, refurbishment and maintenance costs that have so far been incurred by the GNPC.

The cost incurred by the Angolans in towing the vessel to Ghana is assessed at over $2 million. The present management of GNPC, on assumption of office, held a series of negotiations with Sonangol on what needed to be done to evacuate the rig which had taken up space at the expense of other rigs.

The NSP is owned by the GNPC, and Acquatic Engineering was contracted to provide services, including the provision of a barge master at the cost of $40,000 a month. Acquatic Engineering has been paying all moneys on GNPC’s behalf for the past three years.

The rig, which was acquired on April 30, 1991, was lying idle in Angolan waters and it was an international obligation to provide a barge master and frequent maintenance services.

At the time of its purchase, the rig was valued at about $10 million but it was not disposed of even at the time when crude oil prices had gone up on the international market and especially when the vessel was not operating.