Ghana Upstream Fiscal and Regulatory Report – Passage of Petroleum Act Creates Regulatory Stability Despite Ongoing Offshore Border Dispute

Pages: 30 Published: December 01, 2016 Report Code: GDGE0104UFR

“Ghana Upstream Fiscal and Regulatory Report – Passage of Petroleum Act Creates Regulatory Stability Despite Ongoing Offshore Border Dispute”, presents the essential information relating to the terms which govern investment into Ghana’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Ghana’s upstream oil and gas investment climate.


Overview of current fiscal terms governing upstream oil and gas operations in Ghana

Assessment of the current fiscal regime’s state take and attractiveness to investors

Charts illustrating the regime structure, and legal and institutional frameworks

Detail on legal framework and governing bodies administering the industry

Levels of upfront payments and taxation applicable to oil and gas production

Information on application of fiscal and regulatory terms to specific licenses

Outlook on future of fiscal and regulatory terms in Ghana

Reasons to Buy

Understand the complex regulations and contractual requirements applicable to Ghana’s upstream oil and gas sector

Evaluate factors determining profit levels in the industry

Identify potential regulatory issues facing investors in the country’s upstream sector

Utilize considered insight on future trends to inform decision-making

Table of Contents

1 Table of Contents

1 Table of Contents 1

1.1 List of Tables 3

1.2 List of Figures 4

2 Regime Overview 5

3 State Take Assessment 7

4 Key Fiscal Terms 9

4.1 Bonuses 9

4.2 Permit Fees 9

4.3 Surface Rentals 10

4.4 Training Allowance 10

4.5 Technology Allowance 11

4.6 Royalty 11

4.7 Direct Taxation 13

4.7.1 Corporate Tax 13

4.7.2 Deductions and Depreciation 13

4.7.3 Ring-fencing 13

4.7.4 Withholding Tax 13

4.7.5 Capital gains Tax 13

4.8 Additional Oil Entitlement 13

4.9 Indirect Taxation 17

4.9.1 Value Added Tax 17

4.9.2 Customs Duties 17

4.10 State Participation 17

4.10.1 Initial Interest 17

4.10.2 Additional Interest 17

4.11 Stability Clauses 18

4.12 Domestic Market Obligation 18

5 Regulation and Licensing 19

5.1 Legal Framework 19

5.1.1 Governing Law 20

5.1.2 Contract Type 20

5.1.3 Title to Hydrocarbons 20

5.2 Institutional Framework 21

5.2.1 Licensing Authority 21

5.2.2 Regulatory Agency 21

5.2.3 National Oil Company 22

5.3 Licensing Process 22

5.4 License Terms 22

5.4.1 Duration 22

5.4.2 Obligations 23

5.4.3 Relinquishment 23

5.5 Local Content 23

6 Outlook 28

7 Contact Information 30

List of Tables

1.1 List of Tables

Table 1: Summary 5

Table 2: Ghana, Exploration and Development Permit Fees (US$), 2016 9

Table 3: Ghana, Production Permit Fees (US$), 2016 9

Table 4: Ghana, Annual Rental Fees (US$ per km2) East Keta Ultra Deepwater Agreement, 2014 10

Table 5: Ghana, Annual Rental Fees (US$ per km2) Deepwater Tano Agreement, 2006 10

Table 6: Ghana, Annual Training Fees (US$), Various Agreements, 2014 11

Table 7: Ghana, Technology Allowance (US$), Various Agreements, 2014 11

Table 8: Ghana, Royalty Rates (%), Southwest Saltpond Agreement, 2014 12

Table 9: Ghana, Royalty Rates (%), East Keta Agreement, 2014 12

Table 10: Ghana, Royalty Rates (%), Deepwater Tano Agreement, 2006 12

Table 11: Ghana, Crude Oil Royalty Rates (%),Offshore Cape Three Points Agreement, 2005 12

Table 12: Ghana, Royalty Rates (%), West Cape Three Points Agreement, 2004 12

Table 13: Ghana, AOE Rates, Shallow Water Cape Three Points Offshore License, 2014 14

Table 14: Ghana, AOE Rates, Deepwater Cape Three Points West Offshore Agreement, 2014 15

Table 15: Ghana, AOE Rates, South-West Saltpond Agreement, 2014 15

Table 16: Ghana, AOE Rates, East Keta Ultra-deepwater Agreement, 2014 15

Table 17: Ghana, AOE Rates, Keta Agreement, 2010 15

Table 18: Ghana, AOE Rates, Offshore Saltpond Agreement, 2008 16

Table 19: Ghana, AOE Rates, Shallow Water Tano Agreement, 2006 16

Table 20: Ghana, AOE Rates, Deepwater Tano Agreement, 2006 16

Table 21: Ghana, AOE Rates, Offshore Cape Three Points Agreement, 2005 16

Table 22: Ghana, AOE Rates, West Cape Three Points Agreement, 2004 17

Table 23: Ghana, GNPC Interest (%), Various Agreements, 2004-2014 18

Table 24: Ghana, Top-Level Minimum Local Content Percentages (US%), 2016 24

Table 25: Ghana, Minimum Local Content (%) of Specific Goods and Services, 2016 24

List of Figures

1.2 List of Figures

Figure 1: Regime Flow Chart 6

Figure 2: Ghana, Indicative NPV10/boe, IRR and Fiscal Take Comparison – Internal, 2016 7

Figure 3: Ghana, Indicative NPV10/boe, IRR and Fiscal Take Comparison – Regional, 2016 8

Figure 4: Ghana, Legal Framework 19

Figure 5: Ghana, Institutional Framework 21


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