Who owns the oil?
Article 257 Clause 6 of the 1992 Constitution of the Republic of Ghana states that “every mineral in its natural state in, under or upon any land in Ghana, rivers, water course throughout Ghana, the exclusive economic zone any area covered by the territorial sea or continental shelf is the property of the Republic of Ghana”. Oil exploration and production like gold is capital intensive and this has necessitated the involvement of IOCs in the oil and gas sector in Ghana. Oil exploration activities in Ghana dates back to the period before independence, however not much was achieved until 2004 when the Government of Ghana through the Ministry of Mines and Energy granted exploration licences to a number of International Oil Companies, including Kosmos Energy (USA), Anadarko Petroleum Company (USA) and Tullow Oil (Ireland). The laws governing petroleum exploration and production give the state owned Ghana National Petroleum Company (GNPC) 10% no carried interest in all oil blocks. In addition, the state company can acquire additional stake by contributing to the cost. In respect of the Jubilee Field, GNPC has 13.8 stakes. Currently, fiscal regime in Ghana is a Concession Agreements - royalty to the state, company tax and additional entitlement as the case may be.