Reuters reported Joseph Nojorge, Kenya’s Energy and Petroleum Principal Secretary, as saying that seven new blocks will be put up for licencing as soon as the oil regulations are in place.
“We are still working on the Energy Act,” he said. “We want first of all to get the policy and the Act in place, which will happen before the end of this financial year — that is,before June. And then from there we will he able to know how to move.”
The new regulations include clearly defined policies for upstream, midstream and downstream sections among other things.
What Kenya has done is exactly what Civil Society actors in Ghana have been calling on government to do: hold back any further licencing until the Petroleum Exploration and Production law, which guarantees the country a larger stake in petroleum deals, has been passed.
The government of Ghana has, however, gone ahead to approve two new oil deals in recent times.
The two deals, involving the South Deepwater Tano Contract are and the East Cape Three Points area were endorsed by parliament it December 2013.
The first deal is with AGM Petroleum and the interest structure of the partners under the agreement is a: follows: AGM, 66 percent; GNPC, 10 percent; and GNPC Exploration ant Production Company Limited, 24 percent.
The agreement on the Cap( Three Points Block offshore Ghana is between the government; GNPC; Cola
Natural Resources Ghana Limited, and Medea Development Limited B.V.I
The interest structure of the partners is Cola Natural Resource (Ghana) Limited and Medea Development Limited B.V.I. 90 percent participating interest, and GNPC 10 percent carried interest.
“The E&P Bill is an important oil industry bill anywhere you go around the world. Let’s put everything aside and pass that bill; because if the Keta and Accra Basins and others start production, what will happen without an E&P Bill?” Mr. Kwame Jantuah, a member of the Civil Society Platform on Oil and Gas, told the B&FT recently.
“The E&P Bill is the bible of the industry. The revenue management and the local content Bills come under E&P. At the present moment the only bill we have passed is the Revenue Management Law. If we have an oil-spill today, does PNDC Law 84 cover spillage?” he asked.
When passed, the E&P law will replace the Petroleum (Exploration and Production) Act, 1984 (PNDC Law 84) to make way for a more comprehensive legal regime.
Source: Basiru Adam/ B&FT