Petroleum Kicks Off This Week

By J. Ato Kobbie, Managing Editor

[The Business Analyst, Accra – January 18, 2012] T he Petroleum Commission, established under Act 821 of 2011, comes into operation this week, which marks the end of a six-month transitional period, for dealing with the ‘appointments, composition of the Board and other requirements necessary for the effective functioning of the Commission.’

Article 24 of the Act, titled, Transitional Provisions, provides that no Government agency or authority shall “exercise any function in relation to the regulation and management of the utilisation of petroleum resources and the co-ordination of policy in relation to that function.”

The Transitional Provisions, specifically stops the Ghana National Petroleum Corporation (GNPC) hitherto the advisor to the Minister of Energy, in relation to the regulation and management of the exploitation of petroleum resources and policy, from exercising ‘any advisory function.’ “Six months after the commencement of this Act, the Ghana National Petroleum Corporation (GNPC) shall cease to exercise any advisory function in relation to the regulation and management of the utilization of petroleum resources and the co-ordination of policy in relation to that function,” Clause 2 of the Transitional Provision states.

What is not clear, is, whether or not, the newly established Commission, at this early stage of its formation, would have the expertise and capacity to exercise the role it has been given, considering that this is a highly technically specialised area.

Article 12 (2) of Act 821, however, offers some window to the Commission, as it requires the CEO to ‘co-operate with other heads of agencies and organisations involved in petroleum activities,’ while Article 21 (1) states that “Government departments and public agencies shall co-operate fully with the Commission in the performance of its functions under this Act.”

Furthermore, Article 13 of the law, which deals with the appointment of other staff of the Commission, states also that ‘The Chief Executive Officer may engage the services of ad¬visers and consultants subject to the approval of the Board.’

Governing body The governing body of the Commission is a seven-member board appointed by the president in accordance with article 70 of the 1992 Constitution. Prof. Ivan Addae-Mensah, a former Vice Chancellor of the University of Ghana, Legon and also former Chairman of the Board of the National Petroleum Authority (NPA) chairs the Commission, which has Dr. Kwabena Donkor, a former Deputy Minister of Energy, as the CEO.

Other members of the Board are: Daniel S. Amlalo, CEO of the Environmental Protection Agency (EPA), Prof. David Atta Peters, a Geologist, Mr. Kwame Pianim, an Economist, Bishop Akolgo and Mrs. Emefa Hard-Castle, a legal practitioner. The Board is to ensure the proper and effective performance of the functions of the Commission.

Apart from the CEO, who is appointed in accordance with article 195 of the constitution, all other Board members are eligible for only two, three-year terms.

The Commission is to, among other things, promote planned, well executed, sustainable and cost efficient petroleum activities to achieve optimal levels of resource exploitation for the overall benefit and welfare of citizens. It is to, also, monitor and ensure compliance with national policies, laws, regulations and agreements related to petroleum activities, as well as ensure compliance with health, safety and environmental standards in petroleum activities in accordance with applicable laws, regulations and agreements. See pages 8 – 10 for the full ACT 821.

Author: j.atokobbie@yahoo.com, The Business Analyst