PIAC urges strict compliance of petroleum agreements by IOCs

Petroleum Import

Ghanaian civil society group, the Public Interest and Accountability Committee (PIAC) has urged international oil companies (IOCs) operating in the country to comply with the terms contained in the petroleum agreements signed with the government.

Vice Chair for PIAC, Nasir Alfa Mohammed told Xinhua in an interview over the weekend respect for such agreements promotes co-operation at the international level as well as offer financial benefits to both parties.

His comment follows the termination of the petroleum agreements of four companies by the Ghanaian government last year for not meeting the minimum standards set in their contracts.

The companies include Swiss African Oil Company Limited, UB Resources, Brittania U Ghana Limited, and Sahara Energy Fields Ghana Limited.

According to him, the Civil society body does not, and will not compromise with any IOC that has little or no regard for agreements entered into with the Ghanaian government.

He said, “It is incumbent on these IOCs operating here to comply with the terms of the petroleum agreements. PIAC therefore commends government for terminating the agreement of four companies for non-performance and urges the government to ensure strict compliance with minimum work obligations by IOCs.”

Mohammed observed that there are minimum standards that IOCs must meet in order to operate in the country’s oilfields and stressed the silence of the companies attest to breaching the terms of the petroleum agreement.

“There are certain minimum standards set by the Petroleum Commission for industry players to meet for which the Commission has the power to abrogate the contract of those IOCs who fail to meet the terms. The silence of the four companies whose agreements have been terminated is an admission that they erred,” he added.

The West African country discovered oil in commercial quantities in June 2007 and commenced production in December 2010.

Among the major international oil companies operating in the country currently include Tullow, Kosmos Energy, Vitol, Eni and Aker Energy.

According to the 2021 Annual Report of the PIAC released last month, total revenue Ghana has generated from oil since 2011 amounted to 7.36 billion U.S. dollars. Enditem

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