Ghana Oil Region Demands Revenues

Ghana Oil Region Demands Revenues

Traditional chiefs of towns in Ghana 's Western Region have demanded a 10 percent share of oil revenues when crude starts flowing out of their homeland.

The chiefs marched into parliament just as a committee was about to read the Petroleum Revenue and Management Bill, which will govern how revenues are managed from Ghana's massive Jubilee oil field, due to come on line next month.

They presented a petition for 10 percent of the revenues to be paid into a development fund for the west.

'' We decided to stand down the presentation in order to look at the petition of the chiefs and, if possible, incorporate it in our report ," James Avedzi, chairman of the committee reviewing the bill, told newsmen after parliament suspended the debate.

Avedzi said the committee will read its report in its next seating after carefully considering the petition from the chiefs.

The chiefs' demands highlight the kind of ethnic and regional conflict that could emerge if a deal is not reached on revenue-sharing before the taps open.

" We should not be seen to be ignoring the concerns of our chiefs, and I will direct that the committee carefully study the petition ," said Doe Adzaho, deputy speaker of parliament.

Sixth largest crude producer

The advent of oil in Ghana has been hailed as a chance for the aid-reliant country to spur economic growth.

Ghana expects to produce 250,000 barrels a day by 2013 , which would make it Africa 's sixth-largest producer of crude based on current output levels.

The West African nation is keen not to let its resource wealth fuel political corruption, undermine other sectors or trigger civil strife.

Debating the oil bill

The Joint Committee of Energy and Finance has been debating the bill since it was put before parliament in July this year.

A reading of its report last week was delayed by an internal disagreement over a clause restricting to 70 percent the amount of oil revenues that can be used as government loan collateral.

Anthony Akoto Osei, a committee member, told newsmen the differences over the amendment remained and that they had agreed to let parliament decide.

REUTERS/Aisha/Yinka