Parliament to pass petroleum revenue bill

Parliament is preparing to pass the petroleum revenue management bill after wrangling over key issues delayed its passage late last year. Parliamentary spokesman Jones Kugblenu said on 9th February that the House is “working towards passing the bill on Friday (11th February),” adding that work could be extended into the following week. “They have gone over all the controversial issues now”, he said.

Majority Leader Cletus Avoka said that Parliament would pass the bill before 17th February, when President John Atta Mills is scheduled to address the House.

However, Ghana's Deputy Minister for Lands and Natural Resources Henry Ford Kamel told a 9th February mining meeting in South Africa that he hoped the bill would be passed “by July”.

The government had hoped to pass the bill before first oil production started on 15th December.

For more news and expert analysis about Ghana, please see Ghana Politics & Security.

© 2011 Menas Associates

Ghana: Parliament approves oil revenue accountability committee

Parliament has voted in favour of clause 53 of the Petroleum Revenue Management Bill to establish a Public Interest Accountability Committee (PIAC) despite reservations by the House Majority.

The new committee will ensure transparency in the management of petroleum revenue. Initially, the Majority were not in favour of the PIAC as they felt its duties could be performed by other state institutions. However, after consultation with the Minority, the House unanimously approved the clause.

Speaking during the parliamentary session, Majority leader Cletus Avoka stressed that while he approved the establishment of the committee, the House would have to further examine its functions and composition.

Chairman of the Energy Committee Moses Asaga wants the PIAC's powers to be limited to petroleum revenues only. Dr Anthony Akoto Osei – a member of Parliament's Finance Committee and the opposition Natioanl People Party – said that the PIAC could only function effectively if it is allowed to operate freely with few restrictions.

The House resumed debate on the Petroleum Revenue Management Bill last week after failing to pass it before going on recess.

For more news and expert analysis about Ghana, please see Ghana Politics & Security.


© 2010 Menas Associates

Ghana delivers first oil amid hopes and fears

Ghana has delivered its first barrels of oil from the Jubilee wells, days after President John Atta Mills opened the valves, in a televised inauguration ceremony, at the 330 metre long platform off the country's Atlantic coast. It is estimated that the Jubilee field holds as much as 1.8 billion barrels of crude oil, which could earn Ghana around 50 per cent of its national revenue within the next 20 years.

Ghana has taken steps to ensure that oil revenue is distributed fairly and to the benefit of Ghanaian people. In a speech before the inauguration ceremony, Mills said that Ghana's oil wealth will be a “blessing” rather than a source of strife.

The country's lawmakers have stipulated that a clause, in the new Petroleum Revenue Management Bill, mandates the government to use the country's oil as collateral in securing funds to develop Ghana's infrastructure and economy.


Former Ghanaian president John Agyekum Kufuor has called on Ghana to manage its oil wealth judiciously and for the benefit of the people; further adding that the government should safeguard the country's energy sector with regulation that is transparent and free from corruption.

In an attempt to counter Ghana's fears that oil wealth may bring violence and conflict, Mills said that he intends to see that oil resources are used judiciously to reconstruct the country's roads and build hospitals. Speaking along the same lines, Select Committee's Energy Chairman, Moses Asaga, said that first Ghanaian oil has united the country's political parties as they prepare to develop the nation. He added that the government has also come up with a heritage fund initiative to stabilise Ghana's economy.

President of Nzema Maanle Council, Awulae Annor Adjaye, has expressed concern about the dispensation of Ghana's oil wealth, saying that he thought that meeting the 10 per cent revenue demand made by the Chiefs of Ghana's Western region, may be problematic. The demand has been officialy confirmed by Ghana's Vice President John Mahama.

Sources: Ghana Broadcasting Corporation, Modern Ghana, Peace FM Online

For more news and expert analysis about Ghana, please see Ghana Politics & Security.

Ghana's Petroleum Revenue Management Bill delayed by lack of consensus

Ghana's Joint Committee of Energy and Finance has failed to agree on an amendment while deliberating on the Petroleum Revenue Management Bill, which will delay a reading and the recommendation expected to have been presented to the House on Thursday [11th November].

Committee chairman, James Avedzi, said members were yet to reach a consensus on an amendment proposed by the government limiting how much revenue can be used as collateral for loans. Under that proposal, the 30 per cent of revenues that are lodged in funds cannot be used as loan collateral, leaving only the remainder in the budget for the latter.

"We are unable to submit our report to the house today because we could not reach a consensus at our last meeting," said Avedzi.

It is estimated that Ghana will produce around 250,000 b/d by 2013 which, based on current levels, would make it Sub-Saharan Africa's sixth largest oil producer. President John Atta Mills has been adamant that Ghana's fledgling oil and gas industry will not be fuelled by political corruption and scandal.

"Getting our report to the House this week will not be possible. It is our hope that we'll be able to reach a consensus after tomorrow's meeting so that we can submit our recommendation next week Wednesday," added Avedzi.

Should the committee fail to reach an agreement; the report will be submitted for the House to vote on. Initially, the government had wanted the bill passed ahead of the 2011 presentation of the budget statement and its financial policy to be delivered to Parliament next week, however that is very unlikely to happen.

Source: Reuters

For more news and expert analysis about Ghana, please see Ghana Politics & Security.