Audio By Carbonatix
The Petroleum Commission has hinted of considerations to reduce Ghana's 15% participating interest in oil explorations.
With the discovery of oil in a number of African countries, Ghana faces the risk of losing investments in the capital intensive sector to other African countries.
Chief Executive of the Commission, Egbert Fabile Jnr called for reforms to the country’s legal framework on oil explorations.
In his response to assertions about why Ghana's sector has not developed new oil fields, Egbert Fabile, Chief Executive of the Petroleum Commission bemoaned the regulatory hurdle investors’ face.
"The conversation around that sector is very, very, very commercial, regulatory and also investment related. And the reason is simple, to drill one offshore exploratory Well, a company will have to spend between about 50 to $70 million to be able to bring oil to the surface."
“So when an investor brings their money, GNPC will have to take 15% through exploration, right to production. So if you bring $1, know that 15% of that will never be gotten back.” He added.
He continued by saying that, “In our case, if you look at Section 10, I think sub section four, five thereof, of the petroleum exploration and production act of 2016, it says that in Ghana, the state's constituting interest is 15%”.
This he believes is disingenuous to the quest of making Ghana an exploration hub in the sub-region.
He highlighted the trend across the African continent explaining that “Ivory Coast, Angola, Nigeria, Guyana, and all the rest are hovering around a participating interest of 10% so if you go to the market with these competitors, if you're an investor, where would you want to go?” he quizzed.
He used the opportunity to call on the minister of Energy and other relevant agencies to ensure Ghana remains competitive ahead of the Africa Oil Week conference scheduled to be held in Ghana in September 2025.
The conference will assemble key stakeholders across the oil and gas sector to build partnerships and discuss development of the sector as whole.
Latest Stories
-
Leeds say boos during Ramadan pause ‘disappointing’
39 minutes -
Premier League deletes Vicario social media post
50 minutes -
Real Madrid beaten at home by Getafe for second successive loss
59 minutes -
‘Clubs refused to look at me after my crash’ – Antonio on Qatar move
1 hour -
Mayweather to fight kickboxer before Pacquiao rematch
1 hour -
India and Canada reset ties with ‘landmark’ nuclear energy deal
1 hour -
Mahama should equally credit NPP for economic stability – Economist
2 hours -
Mbappe has knee sprain with no surgery planned
2 hours -
Interior Ministry releases funds to settle 2025 rent allowance arrears for security services
2 hours -
Ghana evacuates diplomatic staff from Iran; embassy shut indefinitely — Ablakwa
2 hours -
France to boost nuclear arsenal and extend deterrence to European allies
3 hours -
Chinese community in Ghana marks ‘Year of the Horse’ with grand new year festival
3 hours -
When regional instability becomes national risk: Ghanaian tomato traders killings
3 hours -
Photos: President Mahama meets Tanzania President Suluhu Hassan
3 hours -
Mahama calls for cessation of Iran-US-Israel conflict, urging return to dialogue
4 hours
