The commercial production of oil commenced in Ghana in December, 2010 following the country’s discovery of oil in commercial and producible quantities in June 2007 by the Jubilee Partners namely Ghana National Petroleum Corporation (GNPC), Kosmos Energy, Tullow Oil Plc, Anadarko Energy and Petro SA. Ghana as an oil producing country requires the requisite skills among its citizens especially the youth to tap into the sector or industry in order to advance the frontiers of knowledge.
The expectations of almost the twenty-five (25) million Ghanaians grew or soared up as Ghana led by the Late President, John Evans Fiifi Atta Mills on December 15, 2010 turned the first valve to pump the first oil on the FPSO Kwame Nkrumah MV21 at the Jubilee Field. It was a great day that many Ghanaians including myself will never forget as I sat glued to my television set watching that momentous day from the Western Region of the Republic of Ghana.
Soon, Ghana had joined the many countries producing oil in the world. Ghana has still not officially taking the decision whether to join the Organization of Petroleum Exporting Countries (OPEC) like Nigeria, Angola, Gabon etc in Africa or it would be on its own as some countries have also done. A decision that many Ghanaians including myself is increasingly getting worried about as the days go by. We cannot, but let government decide for us all.
The upstream petroleum industry in Ghana achieved significant successes in boosting the country’s credentials as an oil producer. The Jubilee field which currently holds estimated recoverable reserves of 615 mmbls of oil and 769 bcf of gas is in its second phase of development - the Phase 1A. Work done so far in this phase has helped increase production to the current level of around 104,731 barrels per day as at the end of June 2013. It is worth noting however that the Jubilee oilfield is yet to hit its projected peak of 120,000 barrels per day.
The Tweneboa-Enyenra-Ntomme (TEN) Plan of Development (PoD) was approved on the 29th of May, 2013. The TEN projects will be Ghana’s next producing field after Jubilee Field and has estimated recoverable reserves of 245 mmbls of oil and 367 bcf of gas. The first oil from the field is expected in the third quarter of 2016 and production levels are expected to peak at 76,000 barrels in 2018 and 2019.
Amidst all these developments within the industry, Ghana has taking pragmatic steps to ensure that the oil finds becomes a blessing to its nationals rather than a curse with many laws been enacted. I can confidently comment that Ghana have some of the best laws in the industry today. One of such laws is the Petroleum Revenue Management Act 2011, Act 815.
The Petroleum Revenue Management Act 2011, Act 815 clearly states how all revenues generated from the oil must be allocated and disbursed. The 2013 petroleum revenues were distributed as follows: GNPC equity financing and share of CAPI - US$222.42 million (26.27%), Annual Budget Funding Amount (ABFA) for the national budget - US$273.20 million (32.26%), and Ghana Petroleum Funds - US$351.05 million (41.47%). The Ghana Petroleum Fund is made up of both the Ghana Stabilisation Fund and the Ghana Heritage Fund.
Under the Annual Budget Funding Amount (ABFA), four (4) priority areas are captured and this is where all moneys allocated must go to. These areas include Agricultural modernisation, Roads and Other Infrastructure, Amortisation of Loans for energy sector, Capacity Building.
Within the last four years, all the ABFA have been allocated or disbursed into these priority areas. But with the amount pushed into this priority areas, can we as a nation boast of any significant change where every Ghanaian can be proud of? The answer is a big NO? This is because, the amount allocated are insignificant to cause any serious and major change in this areas for the ordinary Ghanaian. But, there can be a way out.
Considering the expectations of many Ghanaians and their quests to benefit both directly and indirectly from the Oil revenues, the Government of Ghana and those in charge with the oil revenues must pump all into one particular sector of the economy.
In my view, I strongly propose that after the deductions of the Ghana Petroleum Fund (i.e Ghana Stabilisation Fund and the Ghana Heritage Fund), which are also to serve for future use and purpose, all other revenues (moneys) left must be “pumped” into the Housing and Infrastructure needs of the country. The Housing and Infrastructure Development or needs for Ghanaians will seek to advance and propel Ghana to its desire destination as an oil producing country. The country’s Housing Infrastructure deficit is so huge and goes 400,000. This will take not less than 10years to work on it.
As a country, these huge investments in this sector of the economy will help us reduce our housing deficit within the next 10years. Many researches that has been conducted within the last one year out of the 4years that Ghana exported its first oil indicated that, the expectations are not been met by its nationals. They rather would want to see things that will transform their lives that the oil revenue will be “pumped” into.
One can make mention of countries like Qatar, Saudi Arabia, the United Arab Emirates among others who took these bold decisions of investing in one particular sector of the economy and they have really gained much. The huge infrastructures in these countries were all made through their oil revenues. Let me comment again that, these countries are where most Ghanaians rush to for their holidays among others whenever they are on holidays. This will go a long way to affect the lives of the many unborn generations in these oil rich countries. I am convinced that investing in the Infrastructure sector of the economy of Ghana will make Ghanaians see the use of their oil revenues. Yes, physical development is what Ghanaians want to see and this will go a long way to affect the lives when the oil revenue is used very well.
For many years, Ghana has produced many of its minerals and other natural resources and her citizens cannot boast of any significant milestone for the many revenues accrued from them. The government in power has also pushed these revenues into the annual budget and this has really caused the nation hugely. We cannot continue to do same to the revenues pouring in from the oil. We must act now by doing things right.
We, as a country and a people must begin to chat a new path to prosperity. We must take our destinies into our own hands as a nation and a people and this will make us all great and strong.
Boye Nii Lantey Williams,
Student - MBA Petroleum Accounting and Finance,
University of Professional Studies, Accra (UPSA)
williamson20032001@yahoo.co.uk
