Contractual agreements in Ghana's oil and gas industry: In whose interest?

Abstract

This article examines the history, nature, scope and policy ramifications of the production sharing contract as the core contractual agreement guiding the Ghanaian petroleum sector. It discusses the policy linkages between this form of contractual agreement and the management of the country’s oil exploration activities from 2010 to 2014. The article assesses the extent to which Ghana, as a new oil exporting country, has sought to actualize its resource benefits through negotiated contracts and agreements as well as management policies. The article argues that better negotiated contractual agreements ensure maximum State benefits from oil exploration. Again, production monitoring, periodic evaluation and institutional capacity building are effective ways of securing greater profits from oil resources. Finally, better legal and policy frameworks will also guarantee prudent management of the oil revenues.

Keywords: Contracts; policy-making; agreements; oil exploration and production; Ghana.