Deputy Minister of Energy and in charge of petroleum, Dr Mohammed Amin Adam, has said as part of measures to support oil companies operating in Ghana in the wake of the coronavirus pandemic, the government is considering extending the period of oil exploration for companies engaging in exploration.
In an interview, he revealed that this is one of government’s responses to the impact of the pandemic on the petroleum sector of the local economy.
“…Another response that we have is the extension of the exploration period for companies that are doing expropriation,” Dr Amin said.
The coronavirus pandemic has no doubt impacted negatively on the petroleum sector around the globe. The pandemic caused crude oil prices to decline drastically, a situation that has gravely affected governments’ budgets around the world.
Ghana not dependent on oil revenue for development
When asked whether Ghana is overly depending on oil revenue for its development, he said our economy and the country as a whole does not solely depend on oil for development.
“I should say that our economy is highly diversified and so we cannot call Ghana an oil dependent country. Because oil revenue is just about 1.2per cent of GDP and so we are not an oil dependent nation, we are very diversified,” he stated.
Recently, the Petroleum Commission of Ghana allayed fears the coronavirus pandemic is going to upset oil and gas production in the country.
According to the CEO of the Commission, Mr Egbert Faibille Jnr., few of the companies operating in Ghana’s Upstream Sector has been hit by the pandemic and he attributed it to the safety protocols been adhered to by the various companies.
“…I think it is because the companies have taken the issues very seriously and are following the protocols” he said.
“There is no effect on production. Production is on course. Just like every other institution, COVID-19 has affected us, but I want to say that it hasn’t stopped us from working. We follow the protocols; we follow the directives from the president and the Ministry of Health and the Ghana Health service.”
Government moves to support oil firms, protect its workers from the virus
Deputy Minister of Energy, however, said that government is supporting oil companies that are operating in Ghana to protect their workers from contracting the virus.
“We have worked with the oil companies to ensure that they adopt the protocols to ensure the safety of their workers in this COVID-19,” he said.
His comment comes after some workers of Tullow oil have tested positive for the virus.
Presently, 50 Tullow oil workers at the company’s exploration site, Jubilee field have tested positive for COVID-19 but the oil company, however, said production is on course and its operations remain unaffected by the situation.
