Kosmos Energy objects to $35m fine for environmental accident

Oil exploration firm and Jubilee Partner Kosmos Energy is reported to have rejected a 35 million dollar fine imposed by the Science and Environment Ministry for environmental accidents which occurred during its exploration activities.

The fine was imposed for three spills of low toxicity oil-based-mud into the sea. According to the Xinhua News Agency, Kosmos in a letter addressed to the Attorney-General and Minister for Justice, and copied to the President and the sector minister Sherry Ayittey says it will not pay.

The strongly-worded letter is said to have described the fine as "totally unlawful, unconstitutional, ultra vires and without basis."

The company is said to also argue that a minister had no power under the Ghanaian Constitution or any other law of the country to impose a fine on any person in the event of an oil spillage.

Attorney-General Betty Mould Iddrisu however denies that Kosmos has refused to pay the fine. She tells Joy Business the company is rather asking for a review of the legal basis for the imposition of the fine. Betty Mould Iddrissu says she has forwarded the concerns of KOSMOS to the experts, while her outfit is in talks with the Ministry of Environment and Science on the way forward.


Source: Joy Business/Ghana