There is no such thing as an “Oil Curse.” Problems associated with oil discovery have no mystery to them; they are completely man made. Greed and selfishness form the basis of these problems, so Ghana is not immune to them. Fortunately, Ghana has the unique advantage of learning from other countries. If we learn the lessons well, we will avoid conflict; if we do not, we will be embroiled in one.

If this sounds alarming, it is. The greed and selfishness have already begun by characters that are notorious for accusing others of the very ills they themselves are rather guilty of. The strategy is to divert attention from themselves by pointing to others. Then before Ghanaians become aware, they would have stolen what belongs to all of us. Eddie Anna’s Enquirer, Konadu Rawlings’ Ghanaian Eye Newspaper, and the Awhois’ Radio Gold have been deliberately orchestrating blatant lies to the masses that Ghana government has only 10% share of the oil find.

That is why Ghana Oil Watchdog (GOW) was born. This group will train a sharp focus on activities surrounding our government’s handling of what God has blessed us with regardless of which party is in power. GOW will report on factual information to the Ghanaian public because the more Ghanaians are aware, the less likely for any hanky panky.

To this end, let us begin with the agreements that preceded the oil find. Ghanaians must know that Ghana stands to make as much as 50% of the oil profits and possibly more, and we will painstakingly lay the facts out here so that we are not blinded by misinformation. No one knows the reason why it is being put out there that Ghana has only 10% stake. Could it possibly be that some people have “other plans” for the remaining 40%?

First a bit of business basics. Ghana has a stake in the income portion; that does not mean that Ghana has any part-ownership of the company that produces the oil. Rather, it means Ghana invests nothing towards the billions of dollars that it would take to produce the oil. Then after all costs have been paid and profits are realized, Ghana comes in and claims her stake. Here is what Ghana gets from the oil profits: Ghana starts out with $10 from every $100 as her percentage stake. Next, she receives Royalties of $5. That is $15 already from the profits made. Next, Ghana receives $35 as Petroleum tax making Ghana’s total $50 for every $100 profit made. Finally, Ghana can exercise an option written into the agreement for an additional 2.5% to 5% or $2.50 to $5, making her true stake a possible total of $55 for ever $100 made. All other partners walk away with the remaining $45despite the fact that they are the ones who will invest billions of dollars to make those profits possible. Let us repeat: for every $100 made from oil, Ghana receives $50, and can get an additional $5. Please do not take our word for this; verify this information for your own knowledge.

It is true that the deal could have been even better for Ghana. But the reality is that since no one took Ghana seriously, in the oil industry, the government had to start out with an introductory deal to entice explorers who considered Ghana to be an oil ‘graveyard.’ After all, this is the place where more than 80 wells had previously been drilled with no oil find. In the real world, is this the scenario in which Ghana could have bargained for the best oil deal? In addition to the dilemma that Ghana faced, unlike our brothers and sister in Nigeria, our oil is located in the deep seas, making the initial investments that much more pricey. The bottom line is that Ghana made the best deal under the circumstances that we found ourselves in. now that Ghana has been “derisked,” companies coming in to explore should be signed to deals more favorable to Ghana. The risk is simply not as high as it was barely five years ago.

And this deal did not come about easily; it entailed some unimaginable sacrifices by the very people being vilified by this government. God knows there are Ghanaians who cashed in their retirement funds to come to Ghana to pursue what could have been a pipe dream. God knows there are those who left six figure incomes in the United States to move to Ghana and subsist on peanuts because they were driven by what appeared to be a silly belief that Ghana had oil. Fellow Ghanaians, are these the people we are now calling “thieves” because they build in a sweat equity of 3.5% that is not coming from the Ghana end? Would Ghanaians have been more satisfied if no other Ghanaian had a piece of the remaining 45% so that foreigners walk away with all of it? What kind of people are we when we thank those who sacrificed to bring a nation’s dream to reality by subjecting them to impromptu searches of their homes, their bank accounts around the clock?

Fellow Ghanaians, these are the facts. Also factual is the fact that in 2007 when the government announced that we had discovered oil in commercial quantities, the very people who called the government a liar for making that claim are now forming overnight companies to take advantage of the emerging oil business. The very government that could not find a few million dollars to pay for the extra 2.5 to 5% additional stake now claim it will find the money to buy Kosmos’ estimated $4 billion stake so we should not sell that stake to a proven oil producer like ExxonMobil whose track record in the industry is undisputable.

The Chinese were brought in at the early stage during the drilling. They were interested, but they backed out because their technology was not up to the task of exploring in the deep seas. Kosmos and its partners spent $20 to $30 million just to collect data using large ships to assemble seismic data. Then for each well they drilled, they spent roughly $1 million a day on equipments and other resources. Working around the clock, this could lead to $70 million on just one well including information analysis and administrative costs. Finally for the find to be commercially viable, up to 50 wells must be successfully drilled. All told, Kosmos and its partners spent billiong to discover our oil. And for their troubles, they get 45% of the profits with Ghana receiving 55% and investing little or no money at all.

Now to those handling our oil. Why has Tsatsu Tsikata refused to accept any official position even though no decision is made regarding petroleum without his say so? Could it be that he is mindful of the “once bitten twice shy” adage? Could it be that he knows he cannot be probed and consequently jailed again if he is not a government official? This government subjected Ghanaians through untold fuel shortages because it refused to deal with Nigeria’s Sahara Oil. Why would it turn around and allow Tsikata’s Stratoil to position itself as the exclusive lifter of Ghana’s oil, the same position Sahara occupies in Nigeria?

Today there is a real fight going on regarding who gets to buy Kosmos’ stake. It is estimated that the Jubilee field will need $3.5 to $4 billion to begin production. Should we hand that responsibility to a company with a proven record or should we hand it to those with questionable background and inferior technology to seep every drop from the wells?

Ghana Oil Watchdog is a group of independent analysts with decades of experience in the oil industry. We will spare no government, regardless of party, that tries to breed conflict for selfish reasons or mismanage our national treasure.