This declaration comes after it was previously disclosed that the state had already saved more than GH₵1.2 billion as a result of the cancellation of the main SML contract.

A KPMG audit and an ongoing OSP investigation prevented the contract, which was intended to track profits from upstream oil production and gold exports, from putting into effect.

The OSP characterised the avoided financial burden as significant, considering that Ghana sells more than GH₵5.8 billion in gold and an average of 3.85 million barrels of crude oil every month.

According to the OSP, the State would have paid about US$173 million for crude oil exports and GH₵2.6 billion for gold exports over the course of five years under these contracts, which were based on a variable fee structure tied to crude oil and gold exports.

According to the terms of the cancelled agreement, SML would have made GH₵43.77 million from tracking gold exports and $2.89 million from monitoring crude oil, which would have added up to $34.65 million and GH₵525.27 million year, respectively.

These payments, which the State has now successfully retained, would have amounted $173.25 million and GH₵2.63 billion over a five-year period.

According to the OSP, the government would be able to use the billions of cedis that would have been transferred to a private contractor for debt reduction, development initiatives, and other vital public services.

How the cancellation of the SML deal allowed the government to save an extra $173 million on crude oil and GH₵2.6 billion on gold
How the cancellation of the SML deal allowed the government to save an extra $173 million on crude oil and GH₵2.6 billion on gold

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