Ghana is set to implement a more flexible oil royalties regime in 2023, aimed at encouraging investment and mitigating risks for energy companies, according to the CEO of Ghana’s Petroleum Commission, Egbert Faibille Jr.
The proposed scheme, agreed upon by the energy minister, will replace the existing “non-flexible and regressive” fiscal regime, offering a two-tier royalty rate system that considers factors such as water depth, production volume, and crude oil price, according to Reuters.
Ghana’s current fixed royalty regime is 4%-12.5% of gross oil production and 3%-10% of exported gas volume. The new scheme aims to incentivize field development across various parameters without renegotiating fiscal terms.
