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.