Public Interest Accountability Committee
Sankofa oil revenue: Analysts advise on past experiences in Jubilee, TEN
News Date : 10th July 2017

As commercial oil production begins on the Sankofa Gye Nyame field, some players in the oil and gas industry have called for stringent measures in the management of the oil revenue.

According to them, the government must work to avert some mistakes witnessed in the exploration of oil and management of revenue from the Jubilee and TEN fields.

The Campaign Co-ordinator of ISODEC and a member of the Public Interest and Accountability Committee (PIAC), Dr. Steve Manteaw remarked in an interview with Citi Business News that government must  be careful not to repeat mistakes.

“We need to expeditiously complete the outstanding instruments that we require to efficiently manage the sector.  Also we need to ensure that we better manage the revenue that accrues to the state from the oilfields.”

President Akufo-Addo today [Thursday] commissioned the FPSO John Agyekum Kufuor Vessel at the Sankofa Gye Nyame field.

The event was marked with a commemorative turning of the valve on the FPSO in the Western region.

Dr. Steve Manteaw believes efforts by the NPP administration to allow transparency and accountability in the allocation and use of oil revenue is commendable.

He, however cautioned on the need to be guided by best practices so as not to misuse the allocated funds.

“When you look at the 2017 budget, the government was very categorical in terms of where it was going to apply the 70 percent of the oil revenue available for spending and so as much as 290 million cedis has been set aside to support the free SHS program…But my only caution is that we try to limit the ghost syndrome that we find on the government payroll so that the monies meant for payment of fees do not end up in private pockets,” he stated.

Dr. Manteaw also a member of PIAC also lauded the proposed investments into the railway sector with proceeds from the oil production.

“Also government has prioritized infrastructure and you see a certain indication that the amount of money set aside for infrastructure will largely go into railway development. Something I find quite commendable because they become easy to track.”

The Sankofa Gye Nyame project is the third major oil production since Ghana started oil production in 2010.

Over all, the Sankofa Gye Nyame field which is being commissioned two months ahead of time is expected to produce 30,000 barrels of oil per day and 180 million cubic feet of gas.

The Sankofa project is expected to deliver an additional 30,000 barrels per day of oil and 180 million cubic feet (5.07 million cubic metres) per day of gas to Ghana.

Gas from the project is expected to help generate 1,100 MW of additional electricity.

Source : Citibusinessnews.com