Ministry of Energy By Dr Joe Oteng-Adjei Minister for Energy, Ghana Danida Development Day – 2 nd May 2011 NATURAL RESOURCES TO THE BENEFIT OF ALL – an insider’s perspective on governance

The Country Ghana The Population is 24.2 million with 51% female (2010)

Danida Support to Energy Sector in Ghana Development of a Strategic National Energy Plan which led to the establishment of a vibrant Strategic National Energy Planning Division at Energy Commission. Traditional and the Renewable Energy Development Programmes which led to the development of a road map for renewable energy in Ghana. Support for Rural Electrification through grid extension. Danida pulled out its direct support to the Energy Sector in 2004

Natural Resources in Ghana Mineral resources (Gold, Diamond, Bauxite, Manganese, Salt, Iron Ore) Energy resources (biomass, wind, solar, hydro-power, oil & gas) Forest resources (biomass, timber, game) Fresh water bodies and the sea

TOTAL ENERGY CONSUMPTION

1.Tano (Western Coastal & Offshore) 2.Central (Saltpond) (Central, mostly Offshore) 3.Accra / Keta (Eastern Coastal & Offshore) 4.Voltaian Basin (Onshore) –Total offshore surface area ≈ 50,000 km² –Total onshore surface area ≈ 106,000 km² Sedimentary Basins of Ghana

Current Petroleum Exploration Activity Map

Jubilee: World-Class Development in Record Time 8

Recent Discoveries Mahogany-1/ Hyedua-1 Odum-1 Ebony-1 Tweneboa-1 Mahogany Deep Sankofa Dzata Teak Enyenra 9

Recent Discoveries 10

The different priorities – IOCs vs. Host Governments Host Governments and IOC’s have different objectives / priorities !

THE OBJECTIVES OF RESOURCE MANAGEMENT – 1 st Governance Decision THE KEY TO EFFICIENT RESOURCE MANAGEMENT To convert natural resources into lasting benefits to the society. To attain the maximum net present value for petroleum resources. The objective for the host country is: For oil companies the objective is : Effective cooperation between authorities & licensees

Objectives – Governance & Policy Instruments Objectives – Secure national control – Develop national capabilities – Maximize value creation – Maximize state income – Manage income and wealth to the benefit of people and future generations – High Health, Safety & Environmental standards Policy Instruments – Competition – Diversity – Fiscal system – State participation – License terms and conditions – Regulation and Enforcement MoEn, MoFEP & MoEST (Policies) Petroleum Commission (Regulation & Control) Ghana National Petroleum Corporation (Commercial Operation) Fundamental view: Oil policies should ensure benefits for the whole community! Fundamental view: Oil policies should ensure benefits for the whole community!

Energy Sector Policy Instruments for Parliamentary Consideration The Petroleum Revenue Management Act, to guide transparent and accountable management of revenues from the upstream petroleum sector. The Petroleum Commission Bill which is at advanced state of deliberation by Parliament. This bill seeks to establish an independent upstream petroleum regulatory authority

Energy Sector Policy Instruments for Parliamentary Consideration (cont) Draft petroleum exploration and production Bill which seeks to replace an existing petroleum exploration law which was in place before the commercial oil find Local Content and Local participation Policy for the Petroleum sector to ensure enhanced locally retained value. Draft legislation and regulations to provide legal backing to local content policy.

Significant Achievements Ghana, in September 2010 was declared EITI (Extractive Industry Transparency Initiative) compliant with respect to the mining sector. Second country in Africa, to achieve this feat. Ghana has extended the (EITI) to the oil and gas sector,

Influencing Ghana’s strategy…. President John Atta-Mills outlined his ambitions in the State of the Nation Address 2010  “We are positioning Ghana for a major industrial take-off.  Laying the foundation for: an integrated aluminium industry a petrochemical industry a fertilizer industry to give impetus to agro development consumer products and exports based on oil and gas  Dependence on traditional raw material exports of cocoa, gold and timber should be a thing of the past in 2016”

Strong Policy Drivers 1.Transparency and Integrity - Petroleum Agreements make reference to International Convention on Combating Bribery and Corruption 2.Local Content, Participation & Capacity Development - Petroleum (Exploration and Production) Law, Section 23 (10) and (12), and recent policy document 3.Environmental Protection – Ghana National Petroleum Corporation Law, Section 2 (2)(e) 4.Resource Optimization - Petroleum (Exploration and Production) Law, Sections 3, 9(4)

EDUCATION and TRAINING Petroleum producing countries need institutions and people with a broad range of competencies and skills to enable good sector governance and high value creation from their petroleum resources. We need support!!!!

Conclusion The conviction of President Evans Atta Mills and his Government is that the people of Ghana should be the biggest beneficiaries from the Oil and Gas resources that God has endowed our country with.

Ministry of Energy, Ghana Thank You