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OCTOBER 2013
Africa Series
had failed and or neglected to report certain matters to it. These included the submission of daily, quarterly and annual production reports on their operations in the Jubilee Field.
The third category of actions taken by the Commission related to fiscal and or financial matters. In a letter dated May 21, 2012 addressed to “all international oil field service providers”, the Commission alleged that certain companies in the industry had been making payments in external currencies into offshore accounts for payment for goods and services procured in Ghana. The Commission then sought in that letter to draw the attention of oilfield operators to the fact that such conduct breached the foreign exchange laws of Ghana and advised the companies involved to comply with the said foreign exchange laws.
The final category of actions relates to immigration and work-permit matters. The Commission had asserted its power to issue work permits and visas for foreign employees of petroleum companies. In a letter dated June 11, 2012, the Commission drew the attention of the Director of Immigration to the fact that certain foreign nationals engaged by oil and gas operators were without work permits as required under the immigration laws of Ghana.
The challenge with representing oil and gas operators in respect of the above matters was that we were dealing with a new regulator without a history of managing the different interests that are in the industry and who were zealously interested in giving meaning to the letter of the law establishing it. Secondly, because many of the operators were used to dealing with the Ghana National Petroleum Corporation as a quasi-regulator and had developed good relations and offices with them, it was difficult as a practitioner to explain to them that there was a change in guard in terms of regulation in the petroleum industry. However, these challenges were overcome by skillful negotiation between the regulator and the operators. In most of the situations we had to point out to the new regulator that some of the actions it was proceeding on and claiming to be within its mandate
were patently unlawful. It was difficult for them to accept that situation but with time they found reason and backed off. This situation took several months to resolve.
Another recent project that I was engaged in is reviewing Anti-bribery and Corruption legislation in Ghana and advising a major operator on its compliance and regulatory shortcomings in this regard. I realised in this project that Ghana`s anti-bribery and corruption laws are predominantly concerned with the prohibition of public sector corruption and the private sector resource company may only incur liability if its agents offer the bribe. We dealt with the challenge of less regulation for private sector corruption by recommending that the resource company adopt the Foreign Corrupt Practices Act rules and the OECD Guidelines which although are not enforceable in Ghana provide a much better standard.
Is there anything else you would like to add?
Ghana`s energy sector is growing and has the potential to create the jobs and wealth that will send Ghana to an upper middle income country in the next decade. The opportunities are vast
for investment,
and the business climate abounds in opportunities especially in the young petroleum sector. The laws that regulate energy development, although changing to meet
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international best practice also
creates opportunities for resource sector business to thrive. LM
contact:
theodore nsoe adimazoya No 3 Mango Street, Adjacent Lion House, East Legon, Accra P.O. Box AF 2572 Adenta, Accra, Ghana.
Email: theoadimazoya@gmail.com; theodore.adimazoya@ayineandfelli.com. M: +233 (0)242 826643.