Ghana's Fiscal Regime for the Oil Sector under Scrutiny

Under her Model Petroleum Agreement (MPA), Ghana, a newcomer in the global oil industry has adopted the Royalty Tax System to govern the fiscal regime for the country’s petroleum sector. Even before production tentatively begins in 2010 when the agreement would be put to test, critics say that Ghana would obtain greater financial benefit under the terms of a production-sharing contract (PSC).

This paper discusses Ghana’s MPA and contrasts this to the argument that the country would benefit from using PSCs. The paper describes the MPA, the advantages and disadvantages of an R/T system and those of the PSC System. The paper exceeds the argument that form matters, and points to the importance of either systems having to achieve a stable consensus between the main parties involved. more >>>

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