President Mahama Agrees: Ghana Oil and Mineral Contracts are Predatory
On this date 6 March, 2025, on Ghana’s 68th Independence Anniversary, the Fair-Trade Oil Share Ghana (FTOS- Gh) Campaign – USA, is thrilled to announce VICTORY. President John Mahama has just declared that Ghana’s oil and minerals agreements are predatory, thus echoing recent statements by former Chief Justice Sophia Akuffo, and building on the work of this campaign, spear-headed by NGO CNREM, and spanning more than a decade:
Although the former Chief Justice Sophia Akuffo, now member of the Council of State, arrived at the correct conclusion – that the foreign oil companies have been taking more than their fair share after expenses, this campaign believes the cure to “earn more” of Ghana’ own oil and minerals wealth absolutely does not require a Constitutional Review. That would be unnecessary, unneeded and avoidable delay given Act 919 was enacted by the same NDC without that benefit and oil industry standards.
FACT: The previous Mahama NDC government did not review the 1992 Constitution before they enacted Act 919, the Garbage Oil Law, same law that was the basis of our 3-part series titled, “Ghanaians Need to Know About Ghana’s Garbage Oil Law”. Rather, it is Act 919 that needs to be quickly annulled or amended by the current Mahama administration before another foreign oil company takes yet another pesewa of Ghana’s oil money that is more than their fair share, considering Ghana also invests, significantly.
THEREFORE, we stand by the solution and proposal delivered back in January to President Mahama and more than 50 public agencies, NGOs, individuals, and opinion leaders, including the Council of State and Mr. Charles Abani, United Nations Resident Coordinator for Ghana, among others. The solution to Ghana’s predatory oil contracts is immediate adoption by the government of the 16 Prescriptions for Standard Minimum PSA Fiscal Regime attached to the memo Mr. Mahama received from NGO CNREM, our FTOS-Gh Campaign partner in Ghana, stamped received by the administration at 8:22AM/20/01/25.
ACTION & SOLUTION: President John Mahama should without delay cause the Ghana Petroleum Commission and the GNPC, in coordination with the PIAC, GRA, and the Council of State, suspend all new oil contracts. The GNPC-leading, should within 30 days publish a revised Model Petroleum Agreement with the minimum prescriptions (per Table below) to guide all future oil contracts, including those under consideration at this time by any government entity, including the Minister(s) responsible for petroleum and energy. The revised/updated Model Petroleum Agreement of Ghana shall be mandatory minimum, not subject to the whim of any single solitary minister whatever the rank, any member of parliament, any judge; surely not any deep-pocketed foreign oil interest or country. The document dated “17/8/2000” on the GNPC website (GET FREE COPY) is not fit for the purpose. It is part of the fraud on Ghana. (GET A E-COPY OF 16 PSMPFR BY FTOS-GH CAMPAIGN DELIVERED TO MR. MAHAMA).
| ITEM | GHANA OIL CONTRACTS: 16 PRESCRIPTIONS FOR STANDARD MINIMUM PSA FISCAL REGIME |
|---|---|
| 1 | Annul/amend Act 919. |
| 2 | Suspend all new oil contracts with immediate effect. |
| 3 | Require transparent, open-competitive bidding. Prohibit minister’s purview to over-rule process. |
| 4 | Require cash bonus for every oil/gas contract/lease, paid into national bank account. Establish MINIMUM $$$/Amount per Block. Add as part of open, competitive bid process. |
| 5 | Require royalty on gross production shall not be less than 12.5%. Peg to progressively increasing number of barrels. |
| 6 | FOC/contractor is entitled to a predetermined share of production, cost oil, for cost recovery, per site. |
| 7 | Profit oil will be shared between government (55%) and IOC (45%) at prespecified levels. |
| 8 | FOC/contractor pays statutory income tax on its share of profit and cost oil combined. |
| 9 | Surface rental income to be accumulated and saved, with interest, for decommissioning and pollution avoidance/mitigation, training, emergency, and public service equipment. |
| 10 | State participation interest shall not be less than 15% for any oil contracts signed during the next 5 years; goes to 20%, thereafter. |
| 11 | Additional Oil Entitlement (AOE) shall be replaced with Domestic Market Obligation (DMO) - government option to buy portion of contractor’s share at a price lower than the market price, and still at profit to FOC. |
| 12 | Ring-fence oil and gas activities. Prevent transfer of costs to or from non-related areas/activities/countries. |
| 13 | FOC/contractor will provide Ghana-specific report about intended CSR projects and actual expenditures, if any, and an annual report for transmittal to PIAC, GNPC, and Parliament on anniversary of the contract/deed. |
| 14 | Publish oil contracts and deeds as part of requirements for Petroleum Register within 30 days of approval. |
| 15 | Publish beneficial owners of oil contracts/blocks, as part of requirements for Petroleum Register within 30 days of approval. |
| 16 | Revise Model PSA and tailor to prescription 1 - 15. Post to GNPC, PC, PIAC websites as statutory minimum requirement for all petroleum contracts within 30 days of approval by Parliament. Post document to Petroleum Register within 30 days of approval. (Review every 5 years - approved by Parliament). |
| FTOS-Gh PSA Campaign, December, 2024 |
AUTHOR: Dr. Kofi Newman (AKA Prof Lungu), J. Y. Fiebor (MBA), for Campaign Fair-Trade Oil Share-Gh/USA/DASG ©2025
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