PRESIDENT IS RIGHT- DORMANT PETROLEUM AGREEMENTS MUST GO!

THE President, Nana Addo Dankwa Akufo-Addo, yesterday served notice of his government’s intention to review petroleum agreements that are dormant and possibly terminate them.

“I have charged the Ministry of Energy to review critically existing operations in the industry, with the view to determining oil fields that are sub-optional and Petroleum Agreements that are dormant”.

The Ministry will engage with the operators after the review on the adoption of best methods for increasing oil recovery rate.

For the dormant petroleum Agreements, the President “encouraged the operators to consider inviting stronger partners to join them or risk the termination of these petroleum agreements, should they persist in failing to meet their minimum work obligation”, he said at the launch of the Ghana Oil and Gas Round in Accra on Monday.

The President’s message is clear. All docile Petroleum Agreements should be reviewed and possibly terminated.

The new directive is the latest move from government to ensure an increased production in the oil and gas sector for the country to generate the needed revenue.

Earlier this year, the Sector Minister, John Peter Amewu announced that oil blocks will be allocated through a competitive bidding process.

The new regime, which was a departure from the previous open-door system where petroleum agreements were signed on a first come, first served basis, he said, was in compliance with the new Petroleum Exploration and Production Act, 2016 (Act 919) and the law on local content.

The Ghanaian Times has taken note of these strategies and plans being adopted by the government to ensure an improvement in oil and gas production for essential revenue for development.

We are particularly happy that the government has taken keen interest in operations in the industry and to promote the participation of Ghanaians.

It is satisfying to know that the government is committed to using the country’s oil revenues to create assets for the country.

“We are investing revenues from oil in one of the most ambitious social programmes of our country’s history i.e. the Free Senior High School policy. In the 2018 budget, GH¢455.9 million of petroleum revenues was allocated to the programme”.

“Free SHS is ensuring that our oil revenues are being equitably distributed to our people and not ending up in the pockets of a few. The most important resource of any nation is its people”.

“Investing in our children and in the future of our country is the most appropriate investment any government can make and we are fully committed to continuing this path,” he said.

It is in these light that the Ghanaian Times finds government’s efforts and initiatives to ensure increased production and improvement in revenue as steps in the right direction.

Aside the revenue accrued to the state, increased production and development of more oil blocks would result in employment opportunities for the country’s teeming youths as well as growth in the national economy.

We are hopeful that all companies with Petroleum Agreements would take serious view of the President’s directive to work in line with terms contained in their agreement and build the necessary partnerships for their explorations.

email
Print Friendly

Leave a Comment