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Opinions of Wednesday, 16 March 2016

Columnist: Lungu, Prof.

Petroleum Commission’s hybrid system is $29 million rotten!

It's Official: Petroleum Commission’s Hybrid System is $29 Million Rotten!

By: Prof Lungu


As we've communicated many times, the sole purpose of the GIGS-spearheaded Fair Trade Oil Share-Gh (FTOS-Gh/PSA) Petition/Campaign is to ensure Ghana receives a fair share of its oil revenues consistent with:

(a) Most current and standard business practices in the Oil and Gas business
(b) Sovereign rights
(c) Responsibilities of the Government of Ghana to all Ghanaians regardless of where they live, or where they come from.


Fair-Trade Oil Share means more revenues to manage!
Fair-Trade Oil Share means more revenues and less taxations!
Fair-Trade Oil Share means more revenues and funds for development!
Fair-Trade Oil Share means no longer will Ghana lose over $6 billion in oil revenues over 5 years!


Sadly, the so-called Ghana Hybrid System is $29 million rotten!

The Petroleum Commission's "Hybrid Fiscal System" is $29 million (£17.25 million) rotten because $29 million is the total amount of money several entities including the Petroleum Commission and the Ministry of Petroleum are taking from British and American interests to bamboozle Ghanaians into chasing the GOGIG Revenue Management Trojan Horse ruse, while neglecting to ask for a fair share of oil revenues in the first place.

The agencies, known, and unknown* as of this date, are:

1. Ghana Petroleum Commission
2. Ghana Ministry of Petroleum
3. African Center for Energy Policy (ACEP)
4. Ghana Public Interest Accountability Committee (PIAC)
5. Natural Resource Governance Institute (NRGI)
6. *Various Other Anonymous Entities and Expenses Hidden

So, all their bottom-lines now buffered by $29,000,000, the Ghana Petroleum Commission, Ghana Ministry of Petroleum, ACEP, PIAC, etc., have little incentive to demand a fair share of oil production revenues for Ghana to banish the $6,000,000,000 loss.

You can say the bunch have a "HUGE" Bernie Sanders conflict of interest, to begin with.

The bunch has watched as Ghana has suffered the $6 billion-plus revenue loss under their so-called Ghana Hybrid System the last 5 years, as they scramble for pieces of the $29,000,000-Trojan-Horsey, which is money that belongs to all Ghanaians, if you think about it critically.

Fact is, the standard PSA practice is for the sovereign state to fund all its national training requirements, revenue management and accounting, and process improvements, etc., with the money it collects directly as a share of the oil it receives.

REPEAT: The Petroleum Commission, the Ministry of Petroleum, and the rest of the bunch are plainly not inclined to strongly demand more for Ghana's sake through the world standard Production Sharing Agreement (PSA).

Again, they have that "HUGE" conflict of interest, after all!

When your poor country is entitled to 100 million barrels of oil, and your country receives just 27.2 million barrels, that is an economic hit job on your country!
That is not Fair Trade!
That is not Pro-Growth!
That is predatory!
It is a continuing, profound, and unmitigated risk unaccounted for in all their books!

So, Ghana Petroleum Commission, Ghana Ministry of Petroleum, tell Ghana:

When is the $6 billion oil production revenue loss going to stop?



To be continued!


(In Part 3 of this mini paper series, we will take up the matter of misleading theoretical claims and mis-statements the Petroleum Commission makes in the "Petroleum Commission Overview: Ghana Oil and Gas Fiscal Regime Clarification Meeting With Parliament".


NOTES/SOURCES
1. Petroleum Commission Overview: Ghana Oil and Gas Fiscal Regime Clarification Meeting With Parliament, Presentation

2. PSA Countdown Clock - Our readers can help themselves with "Count-Down FTOS-Ghana/PSA"! Follow, bookmark the Ghana Oil Production Sharing Agreement Countdown Clock at: http://www.timeanddate.com/countdown/generic?msg=Countdown%20to%20Production%20Sharing%20Agreement%20%28PSA%29%20for%20Ghana&p0=4&swk=1&year=2015&month=11&day=30&hour=0&min=0&sec=0.

3. Report: Business Case, Ghana Oil and Gas for Inclusive Growth - October 2013, DFID.

4. Fair-Trade Oil Share-Ghana (FTOS-GH/PSA Petition/Campaign):
Read about it, join it, sign it: https://www.change.org/p/ghana-fair-trade-oil-share-psa-campaign-ftos-gh-psa).

5. For more information: http://www.GhanaHero.Com/FTOS_Gh_Campaign.
(Join the action! Read mo! Listen mo! See mo! Reflect mo!).

Prof Lungu /GIGS/ANON/GUNA/FTOS-Gh/PSA/
©Prof Lungu is Ghana-Centered/Ghana-Proud.
@professorlungu - Twitter (#FTOS_Gh)
Subj: It's Official: Petroleum Commission’s Hybrid System is $29 Million Rotten!
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