The African Centre for Energy Policy (ACEP) has called for a transparent and competitive process in the granting of petroleum contracts.
ACEP, which is also calling for mandatory disclosure of beneficial ownership information, estimates that developing countries, particularly in Africa, lose about US$1 trillion in revenue each year as a result of illegal cross-border deals by companies operating with unclear ownership.
“ACEP is seeking to ensure that the petroleum contracting process; that is the licensing allocation process is first of all transparent. We agreed the regulation ensures good level of transparency and we’re very proud of that but we’re saying more can be done.
When it comes to direct negotiation, it has to be equally opened and the qualification of the companies must be declared even before they enter so that they know that this is the criteria I have to meet to be able to even start bidding or going into direct negotiation,” Senior Policy Analyst at ACEP, Pauline Anaman said.
She said this at a stakeholder engagement workshop on “Petroleum contracting, Petroleum revenue management and Beneficial Ownership in Ghana”, organised by ACEP and Ghana Oil and Gas for Inclusive Growth, a UK Department for International Development funded initiative.
She said it was important that when negotiations are on-going, Ghanaians know the process, understand the evaluation criteria and be able to access and agree on who deserved it.
“When a company feels aggrieved, the law does not provide for a redress mechanism that will consider the issue and give fair treatment or judgement to the affected company, “she further lamented.
Participants at the event