Electricity Minister John Peter Amewu has claimed substantial info gaps and low info excellent are disincentives to attracting main oil giants in Ghana’s oil and fuel bidding method.
In accordance to Mr Amewu, the the latest bidding procedure for some oil blocks in the Western Region has not been satisfactory as a consequence of difficulties which includes gaps in the legislative devices as very well as very low top quality of knowledge on the blocks.
Mr Amewu reported, “Our basins are mainly not de-risked, significant info gaps and low details high quality continue to exist, and numerous providers continue on to web site our fiscal regime as disincentives. The new success of Ghana’s first licensing round, whilst not satisfactory in phrases of the reaction amount, has verified the fears about a acquiring sector and the possibility related with frontier locations.”
The Minister was talking at the legislative review stakeholder conference held in Accra last Friday.
Interacting with stakeholders Mr Amewu said, “It is very clear to us that you have severe worries about the authorized, regulatory and fiscal environment governing the oil and fuel market. As a region, we also have worries about the operations of field gamers, and thus our insurance policies and polices have been designed to optimize worth for the place and our men and women.”
He included, “However, we are unable to both continue being stuck to our positions while there is fantastic potential for win-get arrangements.”
“As a federal government dedicated to non-public sector enhancement, we are geared up to modify training course. We are determined to formulate and implement industry-friendly insurance policies to make Ghana competitive.”
He included, “This is specially essential due to the fact oil and gas projects have become pretty high priced, upstream investments are not increasing more quickly, and the menace of the eco-friendly revolution to the prospective clients of hydrocarbon-centered economic development, have led us to reconsider our system for the accelerated expansion of our oil and fuel field.”
He, as a result, urged the stakeholders to make input into the evaluation method so that authorities can have a concrete tactic in attracting key oil and gas gamers into the region.
The nonexistence of responsible information and low amount of documentation on exploratory fields carry on to have a unfavorable impression on the quest by the government to discount greater returns from world wide oil exploration providers.
It will be recalled that some 14 oil and gas companies expressed curiosity in the first licensing and bidding course of action for some oil blocks in the Western basin but some of these businesses which include ExxonMobil pulled out as a end result of bad data.
The problem has compelled the Ministry of Vitality to carry out a strategic legislative evaluation for the oil and gas industry.
The assessment system started with stakeholders and market players in search of to look at the government’s new coverage to speed up growth in the sector to aid satisfy its goal of 1 million barrels per day.