Lies have become an integral part of Ghana's fledgling oil industry

As we get ever closer to drilling the first barrel for sale, the expectations of all Ghanaians are being pumped up to unsustainable levels, and the rumour mill has taken a life of its own – spinning out more ridiculous lies each passing day. The fact that a single barrel has not been drilled, yet the city of Ghana oil is awash with prostitutes, prices of rent skyrocketing, frantic conversion of residential properties to office blocks in anticipation of the golden harvest, is a credible barometer to measure the expectations of Ghanaians. And, this is all fuelled by unsubstantiated rumours and misinformation, which I am not sure whether to categorise as deliberately infused with spite or pure stupidity.
Should you per chance witness the birth of one of such rumours, and muster the courage to question the authenticity of their information, or the veracity of their source, you hear the standard answer: Oh my cousin works for one of the oil companies, or a very good friend of mine works for one of the oil companies – not a legitimate answer that can be verified.

To weather the storm stirred by some of our unscrupulous compatriots, the records need to be set straight for the good of the national psychic. Now, we all know that based on the current world prices, the total revenue for the whole year will be $1.2 billion. The government granting concession rights to the various oil companies means they have property rights over the Jubilee Oil Fields (JOF).

Therefore, JOF is a de facto private property till the duration of the concession. As a result of their legitimate rights to it, they have used their private capital and technology to develop the fields. Besides, let’s hypothetically assume that they were given, in addition, seismic data, though I cannot substantiate. However, in reality, seismic data means nothing when you still need to drill wells to find out the commercial viability of the deposits, and they cost a lot of money, which in the past has ruined a lot of private investors drilling so many dry holes. So, these companies, before agreeing to prospecting for oil, would sign an agreement with the government, which can enable them to recoup their investment, and besides make some profit – hence the $1.2 billion pittance that would come to the government chest.

AllAfrica