Ghana’s Petroleum Bill Goes Through 2nd Face In Parliament

The bill when passed will provide for and ensure safe,secure ,sustainable and efficient petroleum and utilization for the benefit and welfare of the people of Ghana.

Chairman of the select committee on mines and energy, Hon Alhaji Amadu Sorogho in presenting the committee’s report on the floor stated that the passage of the Bill would significantly assist the country in maximising benefits from its petroleum resources. This is so because the Bill introduces new fiscal elements in addition to those specified under sections 19 and 20 of PNDCL 84.

Also Clauses 85 to 89 of the bill provide for the new fiscal regime which includes bonus payments. The Bill further seeks to increase the minimum carried interest of the State in every petroleum agreement from the current ten percent (10%) to fifteen percent (15%).

The Bill also provides for a competitive public tendering processes in the award of petroleum blocks. It however the Minister for Petroleum to undertake direct negotiations under two circumstances.

The committee has also scrutinised the Bill after extensive consultation with stakeholders and experts in the upstream petroleum industry on the Petroleum ( Exploration and Production) Bill 2014, which culminated into the new bill.

Source: Theresa adezewa aryeetey//News Ghana