Government urged to return to Oil Production Sharing Agreement to rake in oil revenue

FPSO   Nkrumah  File photo of Ghana's FPSO Nkrumah oil vessel

Thu, 5 May 2022 Source: www.ghanaweb.com

Ghana earns US$7.33 billion from oil production since 2011

Ghana still has more potential for oil exploration – Former GNPC CEO

Ghana’s oil-producing agreement is nuisance - Dr. Amos Ofori Quaah

Former Chief Executive of the Ghana National Petroleum Corporation, Dr. Amos Ofori Quaah is advocating for the country to return to the Oil Production Sharing Agreement in order to maximize more revenue from hydrocarbon resources.

The Oil Production Sharing Agreement is a concession between an oil and gas firm and royalty interest owners which allows the company to drill horizontal wells that will cross unit boundaries, and produce from lands and multiple units.

Speaking on Ghana’s petroleum exploration efforts with journalists, Dr. Quaah said the current agreement in place for Ghana is a nuisance to the development of the sector and general economy.

He believes a review of the petroleum law will help improve the sector which is critical for growth and development.

“We went into this hybrid thing which has not helped Ghana because technically the Production Sharing Agreement stood to give Ghana more of the resources than we have at the moment. It’s a very sad reflection of the industry. I think we should go back to the production sharing agreement”, he is quoted by Joy Business.

“Personally, I think we should review the agreement and go back to the production agreement because what we are getting is simply not fair for the efforts, we put in. Is not fair, we could do better”, the former GNPC CEO said.

Touching on the prospects of Ghana’s oil production, Dr. Quaah said he is optimistic that onshore and offshore exploration efforts will bode well hence government needs to be firm when entering into Oil Production Sharing Agreement.

“We have prospects for both onshore and offshore oil discovery. The Voltarian basin stretches from Nkwakaw to Daboya, and at Daboya we have salt and it’s associated with oil. Potentially, we have onshore oil at the Voltarian basin”, he added.

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Source: www.ghanaweb.com
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