Opinions of Wednesday, 10 March 2010

Columnist: Bonsu, Akua

Anadarko’s Romance with Tsikata Exposed

*Akua Bonsu*

The formula for chaos is the same. Oil is discovered in a country that has, until then, been struggling to find its economic identity. A foreign company comes in pretending to have the country’s utmost interest at heart. Usually, if that company is genuine, it comes in to do business and minds its own business. It is the crooked ones that try to point a finger at other foreign companies in the same vicinity and other local factions so as to deflect scrutiny. By so doing, these companies pitch local interests against one another. The local interests begin to fight amongst themselves. And as they focus on one another, the greedy company quietly makes money while playing buddies with the warring local interests behind the scenes. In Ghana today, no company is playing that game as masterfully as Anadarko.

The Houston based company came to Ghana in 2006, two years after Kosmos and EO had signed a Petroleum Agreement with GNPC. Kosmos had employed its innovative technology to acquire 3D Siesmic data and needed a drilling rig to drill their prospects. Partly due to scarcity of deepwater drilling rig during the 2007 euphoric period when oil price was matching up to $200/bbl, Kosmos invited Anadarko who at the time had a drilling rig available to be used to partner with them. The move is also a standard industry practice to spread risk. Although Anadarko was initially reluctant, it was impressed by Kosmos’ record of oil discoveries in previously unknown fields. It wasn’t until Kosmos agreed to split its portion evenly with Anadarko that the latter agreed to sign onto the deal.

As evidence of Anadarko’s initial reluctance, not only did its officials not begin their customary due diligence before signing the agreement as mandated by United States laws, they even declined an offer by GNPC to make them the operating partner. In fact, Anadarko wanted drilling to be delayed for 5 years because of its commitment and concentration on other projects around the world, but Kosmos, having only its Ghana operation, and the government not interested in delays in potential oil finds, overruled Anadarko. Furthermore, during the time Kosmos was drilling the first Mahogany well some members of Anadarko technical team were overheard during a Golden Tulip lunch expressing their dismay over senior executive’s decision to come to Ghana. So pessimistic was Anadarko that it met the Government and Kosmos’ announcement of oil find with denial, and like the NDC, publicly ridiculed the government for presumably throwing dust into the eyes of Ghanaians. When the Mahogany- 1 discovery became a reality, however, all hell broke loose.

Consistent with industry trend of major oil companies trying to squeeze out indigenous companies, Anadarko demonstrated an unquenchable greed without any morals, and begun its endless pursuit for the operatorship of the newly discovered field.one characteristic that is common among all oil companies which is the The first step was to team up with Tullow, another partner in the Jubilee field, to squeeze Kosmos and EO out. Tullow refused. Next, Anadarko tried to leverage nationalistic sentiments to join forces with Kosmos and EO to squeeze Britian’s Tullow out, but Kosmos returned Tullow’s favor and refused. Finding itself increasingly falling out of favor with its partners, Anadarko suddenly saw the need to do its due diligence on the two American companies involved in the partnership. The hope was to find an infringement of the United States Foreign Corrupt Practice Act (FCPC) by EO and Kosmos to use as leverage to force them to make Anadarko the operating Partner.

That last ditch effort was enhanced by the unexpected 2008 election results that brought in the NDC. It did not hurt Anadarko that it was the only foreign oil company that courted the NDC when it was in the opposition. It was an insurance move on the part of Anadarko to secretly court the opposition in the event that it comes to power because it was not getting its way with the NPP government.

Anadarko’s quest to find dirt on its partners involved 50 attorneys who looked through eight million documents including a million email messages, countless tax and bank records. The final report by its own hired attorneys indicated that although there were some "red flags, no smoking gun" could be found associated with Kosmos and EO’s dealing with Ghanaian officials.

Meanwhile, some NDC officials have privately conceded that some officials are having "sleepless nights" over the possibility of EO coming into such huge amount of money. Thus the Anadarko investigation of Kosmos and EO was the perfect gift. Use that investigation to make claims that the NPP government gave a sweetheart deal to Kosmos because members of the EO Group are "Kufuor’s Boys" – Ghanaians would buy that. So far it may be working. Like fish on a hook, Ghanaians, especially sympathizers of the NDC have bought and paid for that concocted story. And while that has engaged the Ghanaian, no one is looking as Tsatsu Tsikata cashes in – and boy is he cashing in.

Barely three weeks into the NDC administration, Tsikata flew to Houston with his wife to meet with Anadarko. Unconfirmed reports indicate that his accommodation at the luxury Sheraton Galleria, his medical bills – and we know he was ill when he first came out of prison on President Kufuor’s pardon – his wife’s shopping spree at a famous Houston Galleria Shopping Mall where according to our investigation is reserved for very rich people and celebrities. It is believe that her shopping was all paid for by Anadarko. It would not be the first time that a Business Partner’s trip is covered by a company for tax purposes, and for the purposes of avoiding the Feds’ investigation into an FCPA violation. The romance between the NDC, particularly Tsatsu Tsikata and Anadarko is as undeniable as it is cunning. **

What makes Mr. Tsikata’s trip to Houston immediately after the handover of power from NPP to NDC so suspicious is that:

1. He went to Houston to present himself as the energy czar for the new administration without necessarily having any official title 2. According to our reliable investigative sources, not unlike him, his trip was made rather nicodemously without the knowledge of the president and the energy minister except for his stooge at GNPC 3. Without any official title he and his acquired spouse met with Anadarko executives under very questionable circumstances after which the momentum to the investigation of E.O Group and Kosmos picked up a new life

A little backtrack here. Due to Ghana’s quest to be friendly with reputable oil companies to help develop her oil prospects, GNPC promised Anadarko that a portion of Vanco’s large block would soon become available for bidding and that if Anadarko wanted a block where it would be able to operate, it could do worse than bid for that. Unfortunately, Norway’s Aker had already placed a bid on that block when Anadarko finally did. Aker eventually got the block over Anadarko. You can imagine Anadarko’s frustration then. Thus when the NDC came to power, Tsikata promised to deliver that block to Anadarko. Any surprise, therefore, that the government has kicked Aker out?

Anadarko and Tsikata are the perfect match. Anadarko wants a block very badly, especially now that Ghana’s oil prospect is beyond doubt. It has consequently tried to bulldoze its way and gotten nowhere. Fortunately for the Houston based company, a willing partner emerged – one that has a grudge with anything NPP and Kufuor since, from his perspective, they both are responsible for his imprisonment. As the adage goes, the enemy of your enemy is your friend. There lies the reasons why although Tsikata is hell bent on cashing in on an oil find that proved elusive to him for over 15 years, he simply cannot relinquish the notion that there must have been something wrong with a deals signed under the Kufuor administration. Our only hope is that this overpowering vindictiveness does not plunge our dear nation into the same chaos that has characterized many an oil find in Africa.

And for my friends at Anadarko, they will be well served to get an interpreter to explain to them the all fulfilling Akan adage which goes “The same cane that is used on Takyi will also be used on Baah”. The earlier they recognize that they are in bed with the devil the better it will be for them. Ghanaians have patience and tolerance but it would be risky for anyone to misconstrue such a noble quality as foolishness. Ghanaians are watching with tacit interest.