By Kofi Ahovi
The ministry of energy in collaboration with the Ghana National Petroleum Corporation is set to finish the final draft of the bill by next month and subsequently submit it to parliament for ratification.
The policy will provide government with a clear direction and guidelines to develop Ghana’s emerging oil industry ahead of the expected production in 2010.
Obviously, this underscores government’s touted commitment and efforts to putting adequate measures in place to explore, develop and produce oil in a sustainable manner and at a rate appropriate for the development of Ghana and its economy.
The new policy which is currently being scrutinized by GNPC was drafted under four thematic areas namely Resource Management; Revenue Management; Environmental Management and Security.
Sources close to the ministry have disclosed to BusinessWeek that the policy among other things captures certain key actions that will soon be undertaken by government in collaboration with other stakeholders to maximize the gains from the sector.
In respect of resource management, government shall among other things establish a National Oil Account in which all oil revenue shall be deposited directly. Again, government is expected to review the existing legal framework on petroleum revenue management as well as restructure its tax system and tax administration to optimize revenue recovery and reduce investor risk.
In addition to these, petroleum income and expenditure are to be publicized transparently and captured in the national budget.
Under environmental management, the policy enjoins government to prevent destructive practices against the ecosystems. Government shall further develop a national emergency detection and response capacity for petroleum related incidents, including oil spills, blowouts, explosions and fires among others.
A mechanism for proper consultation and partnership with communities for adequate health, safety and environmental management shall also be developed alongside other actions.
In terms of security, government intends to resource and build capacity of the Ghana Armed Forces to develop formidable forces that would ensure and guarantee the territorial integrity of the country and provide a sustainable environment conducive to petroleum industry activities.
In addition to the establishment of a Maritime Coordination Centre, government is seriously planning to establish a fund to be known as the Oil and Gas Industry Protection and Security Fund to support and fund services in connection with safety and security of the oil and gas industry. Therefore all contractors, sub-contractors, their affiliates and assignees shall be required to contribute to the fund when established.
Following the recent oil discovery, the Government of Ghana has been working to ensure that the mechanism for taxation and total government take supports the development of the sector and secures Ghana’s interests.
The ministry of energy in collaboration with the Ghana National Petroleum Corporation is set to finish the final draft of the bill by next month and subsequently submit it to parliament for ratification.
The policy will provide government with a clear direction and guidelines to develop Ghana’s emerging oil industry ahead of the expected production in 2010.
Obviously, this underscores government’s touted commitment and efforts to putting adequate measures in place to explore, develop and produce oil in a sustainable manner and at a rate appropriate for the development of Ghana and its economy.
The new policy which is currently being scrutinized by GNPC was drafted under four thematic areas namely Resource Management; Revenue Management; Environmental Management and Security.
Sources close to the ministry have disclosed to BusinessWeek that the policy among other things captures certain key actions that will soon be undertaken by government in collaboration with other stakeholders to maximize the gains from the sector.
In respect of resource management, government shall among other things establish a National Oil Account in which all oil revenue shall be deposited directly. Again, government is expected to review the existing legal framework on petroleum revenue management as well as restructure its tax system and tax administration to optimize revenue recovery and reduce investor risk.
In addition to these, petroleum income and expenditure are to be publicized transparently and captured in the national budget.
Under environmental management, the policy enjoins government to prevent destructive practices against the ecosystems. Government shall further develop a national emergency detection and response capacity for petroleum related incidents, including oil spills, blowouts, explosions and fires among others.
A mechanism for proper consultation and partnership with communities for adequate health, safety and environmental management shall also be developed alongside other actions.
In terms of security, government intends to resource and build capacity of the Ghana Armed Forces to develop formidable forces that would ensure and guarantee the territorial integrity of the country and provide a sustainable environment conducive to petroleum industry activities.
In addition to the establishment of a Maritime Coordination Centre, government is seriously planning to establish a fund to be known as the Oil and Gas Industry Protection and Security Fund to support and fund services in connection with safety and security of the oil and gas industry. Therefore all contractors, sub-contractors, their affiliates and assignees shall be required to contribute to the fund when established.
Following the recent oil discovery, the Government of Ghana has been working to ensure that the mechanism for taxation and total government take supports the development of the sector and secures Ghana’s interests.
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