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Petroleum Commission's
"Overview: Ghana’s Oil and Gas Fiscal
Regime"
The FTOS-Ghana Petition/Campaign
Perspective
(Part 1)
Prof. Lungu
February 27, 2016
We, of the Fair-Trade Oil Share-Ghana (FTOS-Gh/PSA)
Petition/Campaign, including GIGS, with the
sole mission of ensuring Ghana receives a
fairer share of its oil revenues, have
reviewed the PowerPoint presentation titled,
"Overview: Ghana’s Oil and Gas Fiscal
Regime: Clarification Meeting with
Parliament". Dated 20th February , 2016, the
document was issued by the staff of the
Ghana Petroleum Commission. That document
was a point of discussion at a meeting held
at Ada, Greater Accra Region, 20 Feb 16.
(Find copy at
http://ghanahero.com/FTOS_GH_Campaign.html).
1. GIGS and the FTOS-Gh/PSA
Petition/Campaign Team are grateful to the
Parliamentary Committee on Energy for the
invitation to listen in to the presentation
by the Staff of the Petroleum Commission,
and to make yet another pitch for adoption
of the PSA for Ghana's Oil and Gas.
2. Even so, we recognize that it is still
the responsibility of Government of Ghana
and its officials, politicians and
bureaucrats, to ensure all perspectives are
fully heard and documented not only for
Ghanaians, but as well, for all funding
partners and sponsors including those
spearheading the "revenue management"
initiatives.
3. As some others who attended the meeting
at Ada, we left more confused as ever about
what the staff of the Petroleum Commission
were intending to communicate given that
they did not present actual oil production
and sales data even though they have had
more than 1 year to prepare. We see the
difficulties not only as the result of
communications and analytical failures, but
also persistence in validating actions
taking in the past that did not adequately
protect the interest of Ghana, and belief by
certain bureaucrats that they can build a
mouse trap that is better than the World
Standard.
4. As a result of these failures, here are
"12 Jubilee Oil Barrel (JOB) Questions" for
the Ghana Petroleum Commission and their
Staff:
1. What does "Sovereign Control", the basic
characteristic of the PSA, mean to you, and
how does it relate to "Accountability" and
"Transparency", and all the important things
you do at the Petroleum Commission?
2. How much in total did Government of
Ghana/GNPC pay to the oil companies during
2010-2015, for oil "development and
production costs"?
3. What is the total revenue paid to
Government of Ghana/GNPC regardless of
source (royalty, tax, oil, etc.)?
4. What is the total revenue kept by the Oil
Companies as profit, after exploration and
production costs were deducted?
5. What is the total Oil Companies
exploration and production costs considered
Petroleum Commission (and the GNPC)? (Is it
still $8.9 billion?)
6. How many barrels of Oil were lifted at
Jubilee during that period?
7. Why is GNPC paying for oil "development
and production cost" when the Petroleum
Commission admits Ghana does not have enough
money to train sufficient number of
engineers, accountants, and oil and gas
professionals, when those payments are not
required under the PSA?
8. Knowing that Tullow is based in the UK,
and Kosmos is based in the US, how is the
Petroleum Commission (and their staff)
neutral parties when (1) the Ghana Petroleum
Commission is being funded by UK's DFID in
the amount of £1,900,000 (USD 2,650,000, and
DFID has thus far paid at least £22,000 (USD
30,5000) to the Ghana Petroleum Commission,
and (2) Ghana is the sovereign owner of the
oil.
9. Why and how can Ghanaians trust that the
Petroleum Commission and its
politician-benefactors, given the conflict(s)
of interest, can, and will in fact fight for
a Fair-Share of Oil and Gas revenues for
Ghana directly from Tullow and Kosmos, a
Fair-Trade Oil share that would also allow
those Oil Companies to "Take" their
fair/economic share, in profit?
10. Even if "Government Take" was 50% (which
is doubtful because the Commission Staff
also did not present any numbers proving
that), what is wrong with a "Take" of 69.3%
(Louisiana, USA) or a "Take" of 89.4
(Malaysia)?
11. Why are "accountability" and
"transparency" so unimportant to Petroleum
Commission staff that the 48-page PowerPoint
presentation neglected to address those
sovereign, democratic values and principles?
12. If some Ghanaians are smart enough to
develop for Ghana, Ghana own "Type of
Petroleum Fiscal System - The Hybrid
System", the World Standard PSA for Ghana's
Oil and Gas be damned, how is it that Ghana
does not now have Team(s) of "highly
professional negotiators", which the
Commission Staff proposes is a "Main
Disadvantages" of the Government of Ghana?
(Belatedly, does the Staff seriously think
there are no other, better, or more
"professional negotiators" outside the
Petroleum Commission who can be of service
to Ghana at low cost, even pro bono?).
5. THEREFORE, in the absence of full and
complete answers to those 12 basic and
essential questions, given the low price of
oil currently in the world market, and
failure to adopt the World Standard Oil and
Gas Fiscal System (PSA) that will better
protect Sovereign Ghana, maybe it is time
Ghana stopped the development, production,
and sales of Ghana's oil until the
Mahama-NDC administration causes:
(1) Answers to our 12-JOB questions
truthfully, completely, and timely, in a
Fair-Trade Oil Share-Ghana (FTOS-Gh) fashion
(2) Introduction of "Transparency",
"Accountability", and "Sovereign Control" as
bedrock "Oil and Gas Development and
Production" principles to better achieve for
Ghana Total, Full Maximum Benefits (TFMB),
in pursuance of Ghana's development goals
and objectives.
(3) By directive, immediate adoption by
Ghana of the World Standard Production
Sharing Agreement (PSA) as the preferred
form of contract for all of Ghana's Oil and
Gas resources, without any adulterations, in
the interest of Fair Trade/Fair Share Oil.
NOTE: This call to cease development,
production, and sales of Ghana' oil until
the 3 specified conditions are met, is also
provided as an update to all those who have
already signed, contributed, and/or are
otherwise supporting the Fair-Trade Oil
Share Ghana (FTOS-Gh/PSA) Petition/Campaign
for Ghana's Oil and Gas.
(In Part II, we will provide our perspective
on other matters referenced in the Petroleum
Commission Power Point presentation,
"Overview: Ghana’s Oil and Gas Fiscal
Regime: Clarification Meeting with
Parliament", dated, 20th February, 2016).
GhanaHero.Com Interest Items:
1. Fair-Trade Oil Share-Ghana (FTOS-GH/PSA
Petition/Campaign):
Read about it, join it, sign it: https://www.change.org/p/ghana-fair-trade-oil-share-psa-campaign-ftos-gh-psa).
2. www.GhanaHero.Com/FTOS_Gh_Campaign, for
more information.
(Join the action! Read mo! Listen mo! See
mo! Reflect mo!).
Prof Lungu & Associates / GIGS / ANON /
FTOS-Gh/PSA /
©Prof Lungu is Ghana-Centered/Ghana-Proud.
@professorlungu - Twitter (#FTOS_Gh)
Prof Lungu is based in Washington DC, USA.
Subj: Petroleum Commission's Overview -
Ghana’s Oil and Gas Fiscal Regime - The
FTOS-Gh Petition_Campaign Perspective(1)
Brought to you courtesy www.GhanaHero.com©27
February, 2016.
(http://ghanahero.com/Visions.html).
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