Accra International Conference Centre, Accra, Ghana22-23 April 2015

Petroleum Commission Act, 2010 - Ghana

Petroleum Commission We are pleased to announce that the Petroleum Commission Ghana is officially endorsing the Ghana Summit, taking place in Accra, Ghana.

The Petroleum Commission Ghana is responsible for the regulation, including licensing of the petroleum sector. This means that, any company seeking a permit or licence to operate in Ghana’s petroleum sector has to apply to the Petroleum Commission as stipulated by Act 821, which established the commission.

At the Ghana Summit, you will have a unique chance to meet and network with the Petroleum Commission Board members. Have your voice heard while the Petroleum Commission is laying the foundation to move the industry forward. This may be the most important year for your business in Ghana – contact us today to discuss the details!

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Below is a copy of the Petroleum Commission Act: 

Petroleum Commission arrangement of Sections 

Petroleum Commission Ghana

    1. Establishment of Petroleum Commission Ghana
    2. Object and functions of the Commission
    3. Governing body of the Commission
    4. Tenure of office of members
    5. Meetings of the Board
    6. Disclosure of interest
    7. Establishment of committees
    8. Allowances
    9. Ministerial directives

Administration

10. Appointment of Chief Executive Officer
11. Functions of the Chief Executive Officer
12. Appointment of other staff

Finances of the Commission

13. Funds of the Commission
14. Tax exemption
15. Expenses of the Commission
16. Accounts and audit
17. Annual report and other reports

Miscellaneous provisions

18. Compliance with decisions of the Commission
19. Complaint to the Minister
20. Relationship with other authorities
21. Regulations
22. Interpretation
23. Transitional provisions

MEMORANDUM

A
BILL
ENTITLED
PETROLEUM COMMISSION ACT, 2010

AN ACT to establish the Petroleum Commission, regulate and monitor the management
and utilisation of petroleum resources and provide for related purposes.

PASSED by Parliament and assented to by the President:

Petroleum Commission Ghana

Establishment of the Petroleum Commission

1. (1) There is established by this Act a body corporate with perpetual succession to be known as the Petroleum Commission.

(2) Where there is a hindrance to the acquisition of property, the property may be acquired for the Commission under the State Property and Contracts Act, 1960 (C. A. 6) or the State Lands Act, 1962 (Act 125) and the costs shall be borne by the Commission.

Object and functions of the Commission

2. (1) The object of the Commission is to regulate, monitor and manage petroleum activities and the utilisation of petroleum resources and to co-ordinate the policies in relation to them.

(2) Without limiting the generality of subsection (1), the Commission shall

(a) promote planned, well executed, sustainable and cost efficient petroleum
activities to achieve optimal levels of resource exploitation for the overall
benefit and welfare of citizens;
(b) advise the Minister on matters related to petroleum activities;
(c) recommend to the Minister national policies related to petroleum activities;
(d) monitor and ensure compliance with national policies related to petroleum
activities;
(e) ensure

(i) compliance with health, safety and environmental standards in petroleum activities in accordance with applicable laws, regulations and agreements;
(ii) optimum exploitation of petroleum resources;
(iii) optimal utilisation of existing and planned petroleum infrastructure;
(iv) that contractors, subcontractors and other persons involved in petroleum activities comply with applicable laws and regulations; and
(v) compliance with fiscal metering requirements in petroleum production activities in accordance with applicable laws and regulations;
(f) monitor petroleum activities and carry out the necessary inspection and audit related to the activities;
(g) promote local content and local participation in petroleum activities as prescribed in the Petroleum Exploration and Production Act 1984 (P.N.D.C.L 84) and other applicable laws and regulations to strengthen national
development;
(h) receive petroleum data, manage a national petroleum database and at the
request of the Minister, undertake reconnaissance exploration including data
acquisition;
(i) assess

(i) applications and issue permits for specific petroleum activities as required under petroleum laws and regulations;
(ii) and approve appraisal programmes; Clause 1 to 9 of the Bill deals with the Petroleum Commission.

Clause 10 to 12 deals with administrative matters. Clause 13 to 17 deals with the finances of the Commission. Clause 18, 19 and 20 deal with compliance with decisions of the Commission, complaints to the Minister and relationship with other authorities. Clauses 21, 22 and 23 are on Regulations, interpretation and transitional provisions respectively.

(j) advise the Minister on

(i) field development plans;
(ii) plans for the development of petroleum transportation, processing and treatment facilities; and
(iii) decommissioning plans for petroleum fields and petroleum infrastructure;

(k) issue annually a public report on petroleum resources and activities in Ghana;
(l) receive information from contractors as provided for under applicable laws and regulations;
(m) analyse petroleum economic information and submit petroleum economic forecasts to the Minister responsible for Finance; and
(n) perform any other function related to the object of the Commission or assigned to it under any enactment.

Governing body of the Commission

3. (1) The governing body of the Commission is a Board consisting of

(a) a chairperson,
(b) the Chief Executive Officer of the Commission,
(c) the Chief Executive Officer of the Ghana National Petroleum Corporation, and
(d) four other persons, at least one of whom is a woman.

(2) The members of the Board shall be appointed by the President in accordance with article 70 of the Constitution.
(3) The President shall in appointing a member of the Board have regard to the person’s integrity, knowledge, expertise and experience in matters relevant to the functions of the Board.
(4) The Board shall ensure the proper and effective performance of the functions of the Commission.

Tenure of office of members

4. (1) A member of the Board shall hold office for a period not exceeding three years and
is eligible for re-appointment but a member shall not be appointed for more than two terms. (2) Subsection (1) does not apply to the Chief Executive Officer of the Commission.
(3) A member of the Board may at any time resign from office in writing addressed to the President through the Minister.
(4) A member of the Board other than the Chief Executive Officer, who is absent from three consecutive meetings of the Board without sufficient cause ceases to be a member of the Board.
(5) The President may by letter addressed to a member revoke the appointment of that member.
(6) Where a member of the Board is, for a sufficient reason, unable to act as a
member, the Commission shall determine whether the inability would result in the declaration of a vacancy.
(7) Where there is a vacancy

(a) under subsection (3), (4) or section 6 (2),
(b) as a result of a declaration under subsection (6), or
(c) by reason of the death of a member, the Commission shall notify the President of the vacancy and the President shall appoint a person to fill the vacancy.

Meetings of the Board

5. (1) The Board shall meet at least once every three months for the despatch of business at the times and in the places determined by the chairperson.
(2) The chairperson shall at the request in writing of not less than one-third of the membership of the Board convene an extraordinary meeting of the Board at the place and time determined by the chairperson.
(3) The quorum at a meeting of the Board is five members of the Board or a greater number determined by the Board in respect of an important matter.
(4) The chairperson shall preside at meetings of the Board and in the absence of the chairperson, a member of the Board elected by the members present from among their number shall preside.
(5) Matters before the Board shall be decided by a majority of the members present and voting and in the event of an equality of votes, the person presiding shall have a casting vote.

Clause 1 to 9 of the Bill deals with the Petroleum Commission. Clause 10 to 12 deals with administrative matters. Clause 13 to 17 deals with the finances of the Commission. Clause 18, 19 and 20 deal with compliance with decisions of the Commission, complaints to the Minister and relationship with other authorities. Clauses 21, 22 and 23 are on Regulations, interpretation and transitional provisions respectively.

(6) The Board may co-opt a person to attend a Board meeting but that person shall not vote on a matter for decision at the meeting.

Disclosure of interest

6. (1) A member of the Board who has an interest in a matter for consideration by the Board

(a) shall disclose the nature of that interest and the disclosure shall form part of the record of the consideration of the matter, and
(b) shall not participate in the deliberations of the Board in respect of that matter.

(2) A member ceases to be a member of the Board, if that member has an interest in a matter before the Board and

(a) fails to disclose that interest, or
(b) participates in the deliberations of the Board in respect of the matter.

Establishment of committees

7. (1) The Board may establish committees consisting of members of the Board or nonmembers or both to perform a function.
(2) Without limiting subsection (1), the Commission shall establish a Local Content Committee to deal with the local content and local participation programme.
(3) A committee of the Board shall be chaired by a member of the Board.
(4) Section 6 applies to members of a committee of the Board.

Allowances

8. Members of the Board and members of a committee of the Board shall be paid the allowances approved by the Minister in consultation with the Minister responsible for Finance.

Ministerial directives for the Commission

9. (1) The Minister may give directives in writing to the Board on matters of policy and the Board shall comply.
(2) Directions given by the Minister shall not adversely affect or interfere with the performance of the functions and exercise of the powers of the Commission under this Act.

 

 

Administration

Appointment of Chief Executive Officer

10. (1) The President shall, in accordance with article 195 of the Constitution, appoint a Chief Executive Officer for the Commission.
(2) The Chief Executive Officer shall hold office on the terms and conditions specified in the letter of appointment.
(3) The Chief Executive shall be a person of high moral character and integrity with the relevant qualifications and experience related to the functions of the Commission.
(4) The Chief Executive Officer is secretary to the Board.

Functions of the Chief Executive Officer
11. (1) The Chief Executive Officer is responsible for

(a) the day to day administration of the affairs of the Commission and is answerable to the Board in the performance of functions under this Act,
(b) the implementation of the decisions of the Board, and
(c) the co-operation with other heads of agencies and organisations involved in petroleum activities.

(2) The Chief Executive Officer shall perform any other functions determined by the
Board.

(3) The Chief Executive Officer may delegate a function to an officer of the
Commission but shall not be relieved of the ultimate responsibility for the performance of
the delegated function.

Appointment of other staff

12. (1) The President shall in accordance with article 195 of the Constitution appoint for
the Commission other staff that are necessary for the proper and effective performance of its
functions.
(2) Other public officers may be transferred or seconded to the Commission or may
otherwise give assistance to it.
(3) The Commission may engage the services of advisers and consultants on the
recommendation of the Board.

Finances of the Commission

Funds of the Commission

13. (1) The funds of the Commission include

(a) moneys provided by Parliament;

Clause 1 to 9 of the Bill deals with the Petroleum Commission. Clause 10 to 12 deals with administrative matters. Clause 13 to 17 deals with the finances of the Commission. Clause 18, 19 and 20 deal with compliance with decisions of the Commission, complaints to the Minister and relationship with other authorities. Clauses 21, 22 and 23 are on Regulations, interpretation and transitional provisions respectively.

(b) moneys that accrue to the Commission in the performance of its functions ;
(c) donations and grants to the Commission for its activities under this Act; and
(d) any other moneys that are approved by the Minister responsible for Finance.

(2) The moneys for the Commission shall be paid into a bank account for the purpose opened by the Commission with the approval of the Controller and Accountant-General.

Tax exemption

14. The Commission is exempt from the payment of tax.

Expenses of the Commission

15. (1) The expenses of the Commission shall be paid from moneys provided for the Commission under section 13.
(2) The Commission may invest moneys not required for immediate use.

Accounts and audit

16. (1) The Board shall keep books of account and proper records in relation to them in the form approved by the Auditor-General.
(2) The Board shall submit the accounts of the Commission to the Auditor-General for audit within three months after the end of the financial year.
(3) The Auditor-General shall, not later than three months after the receipt of the accounts, audit the accounts and forward a copy of the audit report to the Minister.

Annual report and other reports

17. (1) The Board shall within one month after the receipt of the audit report, submit an annual report and financial statement to the Minister covering the activities and the operations of the Commission for the year to which the report relates.
(2) The annual report shall include the report of the Auditor-General.
(3) The Minister shall, within one month after the receipt of the annual report, submit the report to Parliament with a statement that the Minister considers necessary.
(4) The Board shall also submit to the Minister any other report which the Minister may require in writing.

 

Miscellaneous provisions

Compliance with decisions of the Commission

18. Subject to section 19 of this Act, a contractor, subcontractor or any other person involved in petroleum activities shall comply with decisions, orders or instructions of the Commission pursuant to its object and functions under this Act and any applicable laws and regulations.

Complaint to the Minister

19. (1) A person aggrieved by a decision of the Commission under this Act may lodge a complaint with the Minister within thirty days after receipt of the decision.
(2) The Minister shall within thirty days after receipt of the complaint take a decision
on it.
(3) In the event that

(a) the thirty days expires without a decision of the Minister, the person aggrieved may pursue the matter in Court; or
(b) a person is dissatisfied with the decision of the Minister, that person may apply to the Court for a review of the decision of the Minister.

Relationship with other authorities

20. Government departments and public agencies shall co-operate fully with the Commission in the performance of its functions under this Act.

Regulations

21. The Minister may, on the advice of the Board, by legislative instrument, make

Regulations

(a) for the exploration and development of petroleum and the carrying on of operations and the execution of works for that purpose;
(b) for the production of petroleum and the carrying on of operations and the execution of works for that purpose; and
(c) to provide for any other matter necessary for the effective implementation of the provisions of this Act.

Interpretation

22. (1) In this Act, unless the context otherwise requires,

“appraisal programme” means a programme carried out, following a discovery of petroleum for the purpose of delineating the accumulation of petroleum to which the discovery relates in terms of thickness and lateral extent and estimating the quantity of recoverable petroleum therein;

“Auditor General” includes an auditor appointed by the Auditor-General;

“Board” means the governing body of the Commission;

“Chief Executive Officer” means the person appointed under section 10;

“Commission” means the Petroleum Commission established under section 1;

“contractor” has the same meaning given to it in the Petroleum (Exploration and Production) Act, 1984, (PNDCL 84);

“Corporation” means the Ghana National Petroleum Corporation established by the Ghana National Petroleum Corporation Act, 1983, (PNDCL 64);

“Court” means High Court;

“data acquisition” includes the process of acquiring geological, geophysical, engineering and economic data for petroleum exploration;

“fiscal metering” means the planning, design, installation, calibration, commissioning, monitoring and inspection of any devices or equipment for the measurement of quantity of petroleum produced;

“local content” means the use of Ghanaian human and material resources, services and businesses for the systematic development of national capacity and capabilities for the enhancement of the Ghanaian economy;

“Minister” means the Minister responsible for Energy;

“petroleum” means crude oil or natural gas or a combination of both;

“petroleum activities” means any activity, engaged in within and outside Ghana related to the exploration for, development and production of petroleum, the acquisition of data and drilling of wells and the treatment, storage, pipeline transportation and decommissioning and the planning, design, construction, installation, operation
and use of any facility for the purpose of the activities;

“petroleum fields” means the geographic area under which one or more petroleum deposits or reservoirs lie and which is or has been operated pursuant to applicable laws, regulations and agreements;

“petroleum infrastructure” means any facility, installation, equipment or device, built or acquired for the conduct of petroleum activities including well, plant, storage tank, intra-field and export pipeline and cable but excluding a supply and support vessel that transports petroleum in bulk;
“petroleum resources” includes

(a) existing petroleum;
(b) discovered petroleum reserves;
(c) undiscovered petroleum reserves;
(d) petroleum produced; and
(e) petroleum under production.

“petroleum reserves” means the petroleum that can be economically extracted from petroleum resources and which is anticipated to be commercially recoverable by the application of a development project to known discoveries from a future date;

“reconnaissance exploration” means the conduct of a survey to generally examine a region to determine its main features usually preliminary to a detail survey for petroleum exploration;

“relevant agencies” means a government entity of the Republic under whose area of competence petroleum activities are conducted; and

“subcontractor” means a third party to whom the Corporation or a contractor has entered into a petroleum contract for the provision of services for petroleum operations.

Transitional provisions

23. (1) The appointments necessary for the effective functioning of the Commission shall
be made within twelve months after the commencement of this Act.
(2) Staff of the Corporation may be transferred to the Commission as necessary for
the performance of its functions.

MEMORANDUM

The purpose of this Bill is to establish a Petroleum Commission to oversee the regulation and management of petroleum and provide for related matters.

In accordance with article 269 of the Constitution, the Commission is being established to regulate and manage the utilisation of petroleum resources and the co-ordination of the policies in relation to the petroleum resources.

Clause 1 of the Bill establishes the Petroleum Commission as a body corporate with perpetual succession. Clause 2 deals with the object and functions of the Commission. The object of the Commission is to regulate, monitor and manage the activities and utilisation of petroleum resources and to co-ordinate policies in relation to them.

The functions of the Commission which are spelt out in the clause, are among other things to promote planned, well executed, sustainable and cost efficient petroleum activities to achieve optimal levels of resource exploitation for the overall benefit and welfare of citizens. The Commission is also to advise the Minister on matters related to petroleum activities and recommend national policies related to petroleum activities to the Minister. Other functions include ensuring compliance with health, safety and environmental standards in petroleum activities in accordance with applicable laws, regulations and agreements and ensuring that persons involved in petroleum activities comply with applicable laws and regulations. The Commission is also responsible for promoting local participation in petroleum activities.

Clause 3 provides for the governing body of the Commission which is a Board of seven persons consisting of the chairperson, the Chief Executive Officer of the Commission, the Chief Executive Officer of the Ghana National Petroleum Corporation and four other persons, at least one of whom is a woman. The standard provisions on the tenure of office of members of the Board, meetings of the Board, disclosure of interest, establishment of committees, allowances and ministerial directives are dealt with in clause 4 to 9.

Clause 10 to 12 deals with administrative provisions. It provides for the appointment of the Chief Executive Officer and the functions of the Chief Executive Officer. Provision is also made for the appointment of other staff. Other public officers may also be transferred or seconded to the Commission. Clause 13 to 17 deals with finances of the Commission. It provides for the funds of the Commission which include moneys provided by Parliament, donations and grants to the Commission in the performance of its functions, clause 13.

Petroleum Commission Bill

Clause 14 exempts the Commission from the payment of tax whilst clause 15 provides for the expenses of the Commission. Standard provisions on accounts and audit, annual and other reports to be submitted to Parliament are dealt with in clauses 16 and 17.

Clause 18 to 23 deals with miscellaneous provisions. Clause 18 provides for compliance with decisions of the Commission whilst clause 19 is on complaints to the Minister. Clause 20 deals with the relationship of the Commission with other authorities. 

Clause 21 provides the enabling power for Regulations. Clause 22 is the interpretation clause. Clause 23 provides that the appointments necessary for the effective functioning of the Commission are to be made within twelve months after the commencement of the Act. The clause also provides for the transfer of staff of the Corporation to the Commission as necessary for the performance of its functions and for the Corporation to cease the exercise of any regulatory function in relation to petroleum exploration and extraction.

DR. JOE OTENG-ADJEI
Minister Responsible for Energy
Date: 10th December, 2010

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