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MINISTER OUTLINES BENEFIT FROM COMPANIES LICENSED TO EXPLORE PETROLEUM IN THE GAMBIA

IMAGE SOURCE: Gambianews

The Minister for Energy and Petroleum, Fafa Sanyang, has informed members of the National Assembly about the immediate economic benefit the Gambia would derive from the companies issued with licenses for the exploration of petroleum.

In responds to the question asked by the National Assembly member for Serrekunda East, Halifa sallah, Minister Sanyang underscored three short-term fiscal benefits for each of the licenses issued.

Sanyang told deputies yesterday at the second ordinary session of the national assembly legislative year, 2019, that block A1 license , which is held by British Petroleum(BP) and signed in  April  2019, has annual surface  rentals   fees of 250 US Dollars per square  kilometers ,a training and capacity building contribution of 500,00 US Dollars annually and  a signature bonus of  10.1 million US Dollars.

He further said  a joint venture of FAR Gambia Limited and PETRONAS, that  are holding the license of offshore  Blocks A2 and A5 ,have Annual Surface Rentals fees of 50 US Dollars per square  kilometers, a training  and capacity development contribution of 200,000 US Dollars  annually  and a signature  bonus of 1.5  million US Dollars  which was paid by Erin Energy in 2021.

Banjul North Deputy , Ousman Sillah asked the Energy Minister whether they have issued licenses to middle persons who take advantage at the expense of the state by selling license rights to other companies that do not have the capacity to do exploration as recently reported by BBC about BP’s  scandal in Senegal.

Minister Sanyang responded by saying it depends on the contract terms, adding that  if one is able to negotiate the contract terms well “even if other companies come, the same term applies.”

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