Identifier
Created
Classification
Origin
05ACCRA553
2005-03-18 14:01:00
CONFIDENTIAL
Embassy Accra
Cable title:  

AMBASSADOR AND NEW ENERGY MINISTER DISCUSS

Tags:  EFIN ENRG ETRD KMCA GH 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

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FM AMEMBASSY ACCRA
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INFO DEPT OF TREASURY WASHDC PRIORITY
CIA WASHDC PRIORITY
USDOC WASHDC PRIORITY 0398
C O N F I D E N T I A L ACCRA 000553 

SIPDIS


TREASURY FOR ALEX SEVERENS, LUKAS KOHLER
PASS TO MILLENNIUM CHALLENGE CORP WASHDC

E.O. 12958: DECL: 03/17/2010
TAGS: EFIN ENRG ETRD KMCA GH
SUBJECT: AMBASSADOR AND NEW ENERGY MINISTER DISCUSS
QUESTIONABLE OIL REFINERY DEAL

REF: ACCRA 552

Classified By: Ambassador Mary C. Yates for Reasons 1.5 (B and D)

Summary
-------
C O N F I D E N T I A L ACCRA 000553

SIPDIS


TREASURY FOR ALEX SEVERENS, LUKAS KOHLER
PASS TO MILLENNIUM CHALLENGE CORP WASHDC

E.O. 12958: DECL: 03/17/2010
TAGS: EFIN ENRG ETRD KMCA GH
SUBJECT: AMBASSADOR AND NEW ENERGY MINISTER DISCUSS
QUESTIONABLE OIL REFINERY DEAL

REF: ACCRA 552

Classified By: Ambassador Mary C. Yates for Reasons 1.5 (B and D)

Summary
--------------

1. (C) During a March 14 courtesy call on new Energy Minister
Mike Oquaye (see Reftel for readout) Ambassador Yates
inquired about the GoG's recent agreement with "Arabian Gulf
Oil Limited," purportedly from Bahrain, on a USD 2.8 billion
oil refinery investment. Oquaye was unable to give details,
despite having signed the agreement himself. End Summary.

Oquaye Fails to Explain Murky Oil Refinery Deal
-------------- --

2. (C) The Ambassador inquired about local press reports that
the GoG and Arabian Gulf Oil Limited (AGOL),of either
Bahrain or Saudi Arabia, signed an agreement on March 10 for
AGOL to build a new oil refinery in Ghana. AGOL
representatives announced to the press that they would invest
roughly USD 2.8 billion (25 trillion cedis) in the refinery,
which would refine 200,000 barrels of oil per day (almost
five times TOR's capacity). The refinery would be located in
the free zone near Takoradi.

3 (C) The Ambassador noted that searches on GOOGLE only
turned up an Arabian Gulf Oil Company from Libya. She also
noted that it seemed strange that the first mention of this
company was the deal signing, in comparison with other
investors like Newmont Mining, who spend months laying the
groundwork with the GoG, Parliament, and public before
signing a deal. Although Oquaye was pictured in the main
dailies (Ghanaian Times and Daily Graphic) signing the deal,
he responded that he did not have sufficient information
about the deal and would have to look into it.

Trade Minister Kyerematen's Perspective on the deal
-------------- --------------

4. (C) The Ambassador also raised this during a March 16
courtesy call with Trade Minister Kyerematen (readout
septel),himself not a stranger to GoG deals with
questionable private parties. Kyerematen said he first heard
of the oil refinery deal from articles in the papers. He
agreed it was strange there had been no prior news about what
would be the largest ever foreign investment in Ghana. He
criticized the free zones for their failure to do due
diligence on prospective investors, and assured Ambassador he
would make inquiries about this deal with other cabinet
Ministers, including Oquaye


5. (C) Embassy will continue to inquire at various levels of
government about the realities of this massive investment,
and will also raise it with private sector contacts (CMS
Energy, Chevron-Texaco) to get their take on this highly
questionable deal.
YATES


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