JOHN AKPARIBO NDEBUGRE v. THE ATTORNEY GENERAL, AKER ASA & CHEMU POWER COMPANY LTD
2016
SUPREME COURT
GHANA
CORAM
- Atukuba JSC
- Anin Yeboa JSC
- Baffoe-Bonnie JSC
- Gbadegbe JSC
- Akoto-Bamfo (Mrs) JSC
- Benin JSC
Areas of Law
- Constitutional Law
- Contract Law
2016
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The case centers around the termination of a petroleum agreement between the Government of Ghana, Aker ASA, GNPC, and Chemu Power Company Limited. The agreement was ratified by Parliament in 2008 but was later terminated by the Minister of Energy citing violations of statutory requirements. The plaintiff challenged the termination, arguing it required parliamentary consent. The Supreme Court held that parliamentary approval is required for both the creation and termination of such agreements unless delegated, and that the payment to Aker ASA for data post-termination was lawful as it was outside the voided contract.
JUDGMENT
ATUGUBA, JSC
I have read, with advantage, the masterly judgment of my able brother Benin JSC. Whilst agreeing with his conclusion I have some views to express on some of the issues in this case.
FACTS OF THE CASE
The 1st defendant’s statement of case dated the 21st day of November 2013 reveals the following:-
2.1. On the 24th of October 2008, the Government of Ghana signed a petroleum agreement (“Petroleum Agreement”) over the South Deepwater Tano block with the Ghana National Petroleum Corporation (“GNPC”), Aker ASA, a Norwegian company, and Chemu Power Company Limited, a Ghanaian company.
2.2. On 29th October 2008, Aker ASA incorporated a wholly owned local subsidiary, Aker Ghana Limited (“AGL”) to conduct petroleum operations in Ghana pursuant to Section 23 (15) (a) of the Petroleum (Exploration and Production) Law, 1983 (PNDCL 84), Chemu Power Company Limited, a
Ghanaian company, was incorporated earlier on 7th February 2008.
2.3. On the 5th of November, 2008, the Petroleum Agreement was ratified by Parliament pursuant to Article 268 (1) of the Constitution 1992.
2.4. In a letter dated 24th February 2009, the Managing Director of GNPC informed Aker ASA of the need to assign its interest in the Petroleum Agreement to AGL pursuant to section 23 (15) (a) of the Petroleum (Exploration and Production) Law, 1983 (PNDCL 84). Aker ASA in a response dated 26th February 2009 noted that in its view Aker ASA could be a co-signatory with AGL to the Petroleum Agreement and did not have to assign its interest to AGL. However, in another letter dated 27th February, 2009, Aker ASA informed GNPC of its readiness to assign its interest to AGL.
2.5. On 17th February 2009 Aker ASA informed GNPC that AGL had entered into seismic contracts and had started performing its obligations under the Petroleum Agreement. Aker ASA again noted its intention to make AGL signatory to the Petroleum Agreement.
2.6. In a letter dated 26th March, 2009, GNPC informed the Minister of Energy that Aker ASA had applied to the Ministry and GNPC for approval to assign its 85% participating interest in the Petroleum Agreement.
2.7. On 30th December 2009, the Minister for Energy wrote to Aker ASA refusing the assignment of its interest in the Petroleum Agreement to AGL. The Minister’s decision was based on Aker ASA’s non-compliance with PNDCL 84 to have a Ghanaian subsidiary as signatory to the agreement and allegations of corruption on the process of awarding the license. The Mi