'There is no legal vacuum for oil production'

November 25, 2010 (Page 51)

THE Government has denied claims of non-existence of a law to regulate the production of oil in commercial quantities from December, this year.
According to a Deputy Minister of Energy in-charge of Petroleum, Mr Emmanuel Armah-Kofi Buah said PNDC Law 84 which regulates exploration of petroleum had served the country well since 1984 and was still in existence while the Ghana National Petroleum Corporation (GNPC) had a Model Contract to regulate the activities of oil companies in the country.
The Deputy Minister explained the Model Contract currently tackles issues on exploration, production, disclosure of data, shareholding among a host of other issues as was being practiced in other oil producing countries.
Mr Buah told the Daily Graphic, that there was, therefore, no vacuum in terms of laws to regulate the activities of petroleum companies in the country.
“Production of first oil in December will take place without any hitch,” Mr Buah emphasized and explained that what the government had sought to do now was to amend sections of PNDC Law 84 to cater for issues of national interest.
Mr Buah said a Petroleum (Exploration and Production) Bill had been put together to revise the Petroleum (Exploration and Production) Act, 1984, PNDCL 84 in order to tighten up the existing legal framework.
He said the Bill also intended to create an enabling environment for increased private sector participation and investment in the petroleum sector and to strengthen the regulatory framework for healthy competition and quality assurance.
The Bill, dated July 2, 2010 and signed by the Energy Minister, Dr Joe Oteng-Adjei touches on a wide range of issues including petroleum rights, regulation of petroleum operations, allocation of blocks, rights and obligation of contractors and sub-contractors, fiscal provisions such as payment of royalties, tax, bonus payment, auditing, offences and penalties.
Mr Buah further explained that the government had complied with Article 268 of the 1992 Constitution which required that an independent Commission with powers to regulate and monitor the exploration, development and production of petroleum resources in the country must be established.