PIAC Seeks Proper Accounting Of Oil Revenue

The Public Interest and Accountability Committee (PIAC), says the first Oil and Gas licensing Round will not achieve its objectives if government fails to properly account for the revenues accrued from the sector.

President Nana Akufo-Adddo on Monday officially opened the first oil exploration licensing round offering six offshore blocks to permit the allocation of new petroleum rights in the country.

Nine oil blocks have so far been mapped out but only three will be allocated through the open competitive tender process.

Two will be given through direct negotiations, while one will be reserved for the national oil company, the Ghana National Petroleum Corporation (GNPC).

Speaking on the oil exploration licensing, Chairman of PIAC, Dr. Steve Manteaw, cautioned government to put to better use Ghana's oil and gas revenues.

“It doesn't make sense to me that while we open up the [oil] contracting process to public scrutiny we go on a trajectory of not properly accounting for the revenues that are derived from the execution of these contracts, and we are afraid that if we don't take care based on the abuses we've seen so far since we started producing oil in this country, we may produce oil for another hundred years and nothing in our lives, in terms of progress will be effected by these oil revenues.”

PIAC has over the years complained about how Ghana's oil revenue expected to be injected into developmental projects are diverted or misused or not used for the purposes for which they were given.

Oil blocks bidding must be transparent and efficient – Nana Addo

President Nana Addo Akufo-Addo while speaking at the launch of the oil exploration licensing charged the Ministry of Energy, the Petroleum Commission, the Ghana National Petroleum Corporation (GNPC) and the Licensing Rounds Committee to co-operate and ensure that activities under the first oil and gas licensing round are transparent.

“The Ministry of Energy will engage with the operators, after the review, on the adoption of best methods for increasing oil recovery rate. For Petroleum Agreements that are dormant, the Ministry will encourage 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 obligations,” President Akufo-Addo added.