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PETROLEUMREVENUEMANAGEMENT
(AMENDMENT) ACT, 2015 Act 893
ARRANGEMENT
Clause
1.Section
5 of Act 815 amended
2.Section
7 of Act 815 amended
3.Section
10 of Act 815 amended
4.Section
11 of Act 815 amended
5.Section
12 of Act 815 amended
6.Section
16 of Act 815 amended
7.Section
17 of Act 815 amended
8.Section
21 of Act 815 amended
9.Section
23 of Act 815 amended
10.Section
31 of Act 815 amended
11.Section
48 of Act 815 amended
12.Section
54 of Act 815 amended
13.Section
57 of Act 815 amended
14.Section
60 of Act 815 amended
15.Section
61 of Act 815 amended
16.First
Schedule to Act 815 amended
17.Second
Schedule to Act 815 amended
ACT 893
OF THE PARLIAMENT OF THE
REPUBLIC OF GHANA
ENTITLED
PETROLEUM REVENUE MANAGEMENT
(AMENDMENT) ACT, 2015 (ACT893)
An Act to amend the Petroleum
Revenue Management Act, 2011
(Act 815) to provide for the
allocation of funds to the Ghana
Infrastructure Investment Fund
for the purposes of
infrastructure development, the
provision of the composition of
the Investment Advisory
Committee and for related
matters.
DATE OF ASSENT:
PASSED by Parliament and
assented to by the President:
Section 5 of Act 815 amended
1. The Petroleum Revenue
Management Act, 2011 (Act 815)
referred to in this Act as the
principal enactment is amended
in section 5 by the substitution
for subsection (2) of
"(2) In order to preserve
revenue streams from petroleum
and ensure the object of this
Act, there shall not be any
borrowing against the petroleum
reserves.".
Section 7 of Act 815 amended
2. The principal enactment is
amended by the substitution for
section 7 of "Carried and
participating interest
7. Revenue due from the direct
or indirect participation of the
Republic in petroleum
operations, including the
carried and participating
interest, shall be paid into the
Petroleum Holding Fund.".
Section 10 of Act 815 amended
3. The principal enactment is
amended in section 10 by the
substitution for subsection (2)
of
"(2) The object of the Ghana
Heritage Fund is to provide an
endowment to support development
for future generations when
petroleum reserves have been
depleted." .
Section 11 of Act 815 amended
4. The principal enactment is
amended in section 11 by
(a) the substitution for
subsection (2) of
"(2) Subject to section 17 and
the First Schedule, where
(a) the the actual
petroleum revenue net of the
allocation to the national oil
company is equal to or more than
the Benchmark Revenue
(i) not more than 70% of the
Benchmark Revenue shall be paid
into the Annual Budget Funding
Amount;
(ii) not less than 30% of the
Benchmark Revenue shall be paid
into the Ghana Petroleum Funds;
and
(iii) any excess of the
Benchmark Revenue shall be paid
into the Ghana Petroleum Funds;
or
(b)
the actual petroleum revenue net
of the allocation to the
national oil company is less
than the Bench- mark Revenue
(i) not more than 70% of that
revenue shall be paid into the
Annual Budget Funding Amount;
and
(ii) not less than 30% of that
revenue shall be paid into the
Ghana Petroleum Funds; and
(b)
the insertion after subsection
(2) of a new subsection (3)
"(3) Not less than 30% of the
amounts under paragraphs (a)(ii)
and (iii) and (b)(ii) of
subsection (2) shall be
transferred into the Ghana
Heritage Fund and the balance
shall be transferred into the
Ghana Stabilisation Fund."
Section 12 of Act 815 amended
5.
The principal enactment is
amended in section 12 by
(a)
the substitution for subsection
(5) of
"(5) A transfer from the Ghana
Stabilisation Fund shall only be
done for the purposes of
(a)
alleviating shortfalls in actual
petroleum revenue in accordance
with subsection (1) to (4); and
(b)
a transfer into the Contingency
Fund and for debt repayment in
accordance with sections 23(4)
and 23(5); and
(b)
the insertion after subsection
(5) of a new subsection (6) "(6)
Despite subsection (1) to (5), a
withdrawal from the Ghana
Stabilisation Fund for the
purpose of alleviating a
shortfall in actual petroleum
revenue shall not exceed 75% of
the balance standing to the
credit of the Ghana
Stabilisation Fund at the
beginning of the financial
year.".
Section 16 of Act 815 amended
6.
The principal enactment is
amended by the substitution for
section 111 of
"Disbursement from the Petroleum
Holding Fund
16. (1) Disbursements from the
Petroleum Holding Fund shall be
made in the following order of
priority and only:
(a)
to a national oil company for
the purposes of subsection (2);
(b)
to the Consolidated Fund in
support of the national budget;
(c)
to the Ghana Petroleum Funds for
purposes of savings and
investments; and
(d)
for exceptional purposes
according to the provisions of
this Act.
(2) The payment to a national
oil company shall be for the
following:
(a)
the equity financing cost,
including advances and interest
of the carried and participating
interests of the Republic; and
(b)
the cash or the barrels of oil
equivalent of petroleum that
shall be ceded to a national oil
company out of the carried and
participating interests of the
Republic, on the recommendation
of the Minister and approval by
Parliament.
(3) For a period not exceeding
fifteen years after the
commencement of this Act, the
cash or barrels of oil
equivalent of petroleum ceded to
a national oil company shall
(a)
not exceed 55% of the net cash
flow from the carried and
participating interests of the
Republic after deducting the
equity financing cost under
paragraph (a) of subsection (2);
and
(b)
be reviewed every three years by
Parliament but Parliament shall
in each year approve the
programme of activities of that
national oil company which may
include the gas payment or
repayment obligations of that
national oil company in respect
of a loan that the national oil
company may raise to finance the
operations and activities of
that national oil company.
(4) The Minister shall ensure
that the Bank of Ghana transfers
to a national oilcompany, the
relevant portion of the
petroleum revenue due to that
national oil company under
subsection (2) not later than
three working days after the
receipt of petroleum revenue
into the Petroleum Holding
Fund.".
Section 17 of Act 815 amended
7. The principal enactment is
amended in section 17 by the
insertion of the following new
subsections
"(2) The Minister may recommend
to Parliament a revision of the
Benchmark Revenue if it becomes
evident that unexpected
petroleum price movements or
production conditions have
resulted or are likely to result
in a gross over projection or
under projection of the
Benchmark Revenue.
(3) The Minister shall make the
recommendation under subsection
(2) at the time of presenting
the annual budget estimates or
during the mid-year review.
(4) A variation of the Benchmark
Revenue shall not become
effective until the variation is
certified in accordance with
this Act and approved by
Parliament."
Section 21 of Act 815 amended
8.
The principal enactment is
amended in section 21 by the
substitution for subsection (4)
of
"(4) For any financial year,
(a)
a minimum of 70% of the Annual
Budget Funding Amount shall be
used for public
investment expenditure
consistent with the long-term
national development plan and
with subsection (3) to (5),
(b)
a maximum of25% of the amount
allocated for public investment
expenditure under
paragraph (a) shall be allocated
to the Ghana Infrastructure
Investment Fund for the
purpose of infrastructure
development; and
(e)
the amount allocated to the
Ghana Infrastructure Investment
Fund under paragraph (b) shall
be included in the national
budget and approved by
Parliament.".
Section 23 of Act 815 amended
9. The principal enactment is
amended in section 23 by the
substitution for the headnote of
"Transfer of excess petroleum
revenue into the Ghana Petroleum
Funds" .
Section 31 of Act 815 amended
10. The principal enactment is
amended in section 31 by the
substitution for subsection (1)
of
"(1) The Investment Advisory
Committee comprises seven
members, at least two of whom
are women, who shall be persons
of proven competence in finance,
investment,
economics, business management,
law or similar disciplines." .
Section 48 of Act 815 amended
11. The principal enactment is
amended in section 48 by the
substitution for paragraph (b)
of subsection (2) of
"(b) a report from the Minister
(i) describing the stage of
implementation of the programmed
activities funded by and the
expenditure incurred on the
activities covered by the Annual
Budget Funding Amount, and
(ii) indicating the portion of
the Annual Budget Funding Amount
allocated to the Ghana
Infrastructure Investment Fund
in the financial year of the
report" .
Section 54 of Act 815 amended
12. Section 54 of the principal
enactment is amended in
subsection (1) by the
substitution for "eleven members
including" of "thirteen members
comprising".
Section 57 of Act 815 amended
13. The principal enactment is
amended by the substitution for
section 57 of
"Funding and allowances
57. (1) The Accountability
Committee shall submit a budget
on the annual programme of the
Committee to the Minister for
inclusion in the annual national
budget.
(2) Members of the
Accountability Committee shall
be paid the allowance determined
by the Minister.
(3) Subject to subsection (1),
the budget on the annual
programme of the Accountability
Committee shall be a charge on
the Annual Budget Funding Amount
for each financial year.
Section 60 of Act 815 amended
14.
The principal enactment is
amended in section 60 by the
substitution for subsection (1)
of
"(1) The Minister may, by
legislative instrument, make
Regulations for the effective
performance of this Act.".
Section 61 of Act 815 amended
15.
The principal enactment is
amended in section 61 by
(a)
the insertion after
"confidential information" of
" "corporate income tax" means
corporate income tax as defined
by the tax laws of the country";
(b)
the insertion after "disaster"
of
" "equity financing cost" means
the share of a national oil
company of the costs under a
petroleum agreement relating to
the paid participation or paying
interest of the national oil
company in petroleum operations;
and
"gas" means associated and
non-associated natural gas and
condensates of natural gas";
(c)
the insertion after "Ghana
Heritage Fund" of
" "Ghana Infrastructure
Investment Fund" means the Ghana
Infrastructure Investment Fund
established under the Ghana
Infrastructure Investment Fund
Act, 2014 (Act 877)";
(d)
the substitution for the
definition of "petroleum" of
" "petroleum" means crude oil or
natural gas, including
condensates of crude oil or
natural gas or a combination of
both".
First Schedule to Act 815
amended
16.
The principal enactment is
amended in the First Schedule by
(a)
the substitution for "prior to"
in line five of paragraph (1),
of "preceding" ;
(b)
the substitution for paragraph
(2) of
"(2) The expected quantity of
petroleum shall be calculated on
the basis of expected average
government take in gross
petroleum over a three year
horizon, being the
immediately preceding year, the
current financial year and the
one year forward projection
following the current financial
year.";
(c)
the substitution for paragraph
(4) of
"(4) The expected revenue from
gas shall be the product of the
actual and expected average unit
price of domestic natural gas at
which the national gas
aggregator buys
natural gas from the operator of
the petroleum fields and
domestic gas quantity.
(d)
the insertion after paragraph
(4) of paragraphs (4A) and (4B)
"(4A) The expected natural gas
price shall be derived from a
seven year moving average, the
seven years being the four years
immediately preceding the
current financial year, the
current financial year and the
two years immediately following
the current financial year.
(4B) The expected natural gas
quantity shall be determined in
accordance with paragraph (2)"
(e)
the substitution for paragraph
(5) of "(5) Benchmark Revenue is
the sum of
(a)
the expected revenue from crude
oil defined in paragraph (3),
(b)
the expected revenue from gas
defined in paragraph (4),
(c)
the expected dividends from a
national oil company,
(d)
corporate income tax and surface
rental, and
(e)
any other revenue identified
under section 6.";
(f)
the insertion after paragraph
(S) of paragraph (SA) "(SA) For
each financial year,
Benchmark Revenue = Expected
current receipts from crude oil
+ Expected current receipts from
gas + Expected dividends from a
national oil company + Corporate
income tax + Surface rental +
Any other revenue identified
under section 6.";
(g)
the substitution for paragraph
(8) of
"(8) For the purpose of this
section, "quarter" means a
three-month period ending March
31, June 30, September 30 and
December 31.";
(h)
the substitution for paragraph
(11) of
"(11) The forecasts and the
amounts determined in accordance
with the formula in paragraphs
(1), (2), (3), (4) and (S) shall
be certified by a reputable
independent expert
appointed in accordance with the
Public Procurement Act, 2003
(Act 663)."; and
(i)
the insertion after paragraph
(11) of
"(2) For the purposes of
paragraph (11), "expert"
includes an individual or a firm
of individuals".
Second Schedule to Act 815
amended
17.
The principal enactment is
amended in the Second Schedule
by
(a)
the substitution for the title
of the Second Schedule of
"Operations Management Agreement
Template"; and
(b)
the repeal of paragraph (8).
Date of Gazette
notification: 31st July, 2015.
GPCL, ASSEMBLY PRESS, ACCRA.
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