It is a known fact that Ghana has earned far less from her Oil and Gas find, than many of her peers in recent history. Much of this has been self inflicted, as those entrusted with negotiating on behalf of Ghana have either willfully or ignorantly chosen to opt for the least beneficial Royalty system as opposed to better options like Production Sharing Agreements (PSA).
Over time, the outcomes of these two fiscal regimes (Ghana’s Royalty / Hybrid system versus Production Sharing Agreement ) are evident. The country’s oil fields generated an estimated $31.2 billion from commercial oil production out of which $6.5 billion of the petroleum receipts accrued to the country (9.97% of 2020 GDP). The question is, could Ghana have achieved better outcomes under PSA?
Elizabeth Allua Vaah of the Ghana Environmental Advocacy Group refers to this as a “dishing away” of our country’s resources in juicy offers to foreign companies under the guise of attracting foreign investment, rather then seek the utmost interest of Ghana and Ghanaians, and called on state representatives to do better. She was speaking with the VaultNews
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