A Content Analysis of Upstream Oil and Gas Laws in Ghana

Abstract

The finding of deposits of petroleum resource has adversely been a curse to some countries instead of an opportunity for economic growth and development. Oil-rich countries have striven through strategic legislations and policies to avoid the resource curse hypothesis. This study submits that this unfortunate situation could be avoided through the effective implementation of appropriate laws. Based on exploration research design and purposive sampling methods, a content analysis of Ghana’s upstream Petroleum laws is performed to assess the weaknesses or otherwise in the quest for effective exploration, production and utilization of the oil and gas resources of the country. All respondents confirmed that they have knowledge of and, have worked with and within the confines of the upstream Petroleum Laws. Applying same, however, they were all quick to point out that some weaknesses exist with the exploration and production, health and safety, local content, and petroleum revenue management laws, with overlaps in the way governance institutions operate. The laws and regulatory framework also exclude some key areas that need to be addressed. Mechanism for bidding contracts and environmental reporting were identified to be areas that need amendment to optimize gains from hydrocarbon resources. The Ministry of Energy is advised to appraise existing upstream oil and gas laws. The assessment must identify and include all relevant sectors on exploration and production, environment, health and safety, local content policy revenue mobilization, and utilization to optimize production and maximize benefit.