Petroleum (Exploration and Production) Law, 1984 (P.N.D.C.I 84)

6. (I) Subject to the provisions of this Law and such Regula- Right to tions as may be prescribed, the Corporation or a contractor or sub- enter land. contractor shall have the right to enter upon any land to carry out petroleum operations. (2) Any pcroon holding 11. title to 01 ;11.1 intc11;sl w land un which the Corporation or a contractor or sub-contractor proposes to enter and to carry out petroleum operations shall, after consulta- tion with the Corporation, permit the carrying out of such opera- tions: ProVJded that, (a) before the commencement of such operations all persons having a title to or interest in the land on which P..N.D,C.L 84. 4 PETROLEUM (EXPLORATION AND PRODUCTION) LAW, 1984 ir.:uf".h n~tions. :ire, to be carried ot1t !.hall hf! notified of the purpose, nature and location of the proposed operations; and (b) any person having a title to or interest in such land who suffers any loss or damage as a result of the petroleum operat.ions shall be enUtled to such com- pensation as may be determined by Law. Compcma• 7. (1) The owner or occupier of any land on which the Corpora- tion. tion or such contractor or sub-contractor as the case may be, has carried out peuoleum ope~ions, shall apply to the Corporation or sub-contractor for compensation for any disturbance, of the owner's or occupier's surface rights and for any damage to the surface of the land, buildings, works or improvements or to livestock, crops and trees as a result of such petroleum operations. (2) Such application for compensation shall be copied to the Secretary and Land Valuation Board. (3) The amount of compensation payable under subsection (1) of th.is section shall, subject to the approval of the Land Valuation Board, be determined by agreement between the parties concetned, or if the parties are unable to reach agreement as to the compensa- tion, the matter shall be referred to the Secretary who shall in oonsu1tation with the Land Valuation Board determine the com- pensation payable. Non-assign- 8. A petroleum agreement entered into under this Law shall m,;nt of not directly or indirectly be assigned, in whole or in part, by the petroleum holder of such agreement to another person whhout the prior agreement. conSent 1n writing of the Secretary. Notification 9. (1) The Corporation or a contractor shall furnish such informa- and tion aa may be requested by the Secretary and submit periodic appraisal of pelrolelml reports on any exploration carried out under a petroleum agreement diSCQ,my. in accordance with such Regulations as may he pus<·riherl. (2) Where a petroleum discovery is made as a result of such eXJ)loration, the Corporation or the contractor, as: the case may be shall notify the Secretary and the National Energy Board within a period of tlurty days after the date of such discovery and shall, in addition, fum~h full patlii,;ular:s in wliting of the discovery to the Secretary and the said Board as soon as practicable thereafter, indicating whether such discovery merif.8 appraisal or not. (3) The Corporation or the contractor, as the case may be, shall, after indicatin~ that the discovery mr.rits ;iptiraisa.I, prepare and. submit to the Secretary and the National Energy Board a programme and time..1able to carry out an adequate and effective 5 P.N.o.c.L. 84. PETROLEUM (EXPWRATION AND PRODUCTION) LAW, 1984 appraisal of such discovery for the purpose of cnabJing a deter- minaLion to be made as promptly as possible whether such uis- covery constitute a commercial field, and the petroleum agreement shaJI specify the period for carrying out such appraisal. (4) Where a commercial field is established, such field shall be developed promptly by the Corporation or the contractor. as the case may be, in accordance with such Regulations as may be pres- cribed and with the best international techniques and practices prevailing in the petroleum industry, in order to ensure the most efficient, beneficial and timeiy use of the petroteum resources concerned. (5) Where a contractor declares a discovery to be non-com- mercial, the area which comprises the geological structure in which the discovery is locared shall be relinquished by rhe contractor.

10. (1) The Corporation or a contractor as the case may be, Develop• mcnt plans, shall submit to the Secretary and the National Energy Board a annual and development plan in respect of any petroleum field to be developed long-term directly by the Corporation or in accordance with th.e terms of a production programme. petroleum agreement and such Regulations as may be prescribed. (2) No opcr(ltion:. i.hall commcni;;c to implement u develop- ment plan unless the plan has been approved by the Secretary. (3) The Corporation or a contractor, as the case m:iy be, shall submit for the approval of the Secretary long-term production programmes in respect of any petroleum field to be developed directly by the Corporation or m accordance with the terms or a petroleum agreement and such Regulations as may be prescribed. (4) The Secretary may direct the Corporation or a con- tractor, as the case may be, to take all necessary and practical steps to increase or rerl11= the, r:i.te at whi~h petrnleutn in ~ing recovereii to such a rate as will enhance the ultimate recovery of petroleum from the field and not to exceed the capacity of existing produc- tion facilities in accordance with such Regulations as may be prescribed. PART II-PETROLEUM AGREEMENTS 11, This Part shall apply to petroleum agreements entered into Application by the Republic, the Corporation and a contractor pursuant to of this Part. subsection (4) of section 5 of this Law.

12. (1) A petroleum agreement entered into under this Law shall Period of be valid for a total period not exceeding thirty years, but such validity of agreement shall terminate at any earlier time provided for in the :'1~::. agreement and in any case if no commercial discovery of petroleum ui made wirh.in ceven yean from the effective dat(, ofsuch agw;mcnt or such lesser period as may be stipulated in such agreement. 6 PETROLEUM (EXPLORATION AND />RODUCI!ON) LAW, 1984 (2) The period commencing from the effective date of a pt::frukum agreemcm until rhe elate of termiI1aliv11 of the agu:i:ment if no commercial discovery is made specified in subsection (1) of this section shall constitute the exploration period and such period shall be divided into an initial exploration period and one or more periods of extension. (3) Where a discovery of petroleum is made during the last year of the time period specified in subsection (1) of this section for termination of an agreement if no commercial discovery is made, the Secretary may grant an extension of such time period in respect of the rr.dncPil area compri-:ing the gen logic.al ur11ct11rr in which the discovery is located on such terms and conditions as the Secretary deems fit for the purpose of enabling a determination to be made within such period of extension whether such discovery of petroleum constitutes a commercial field. Rtvlew of 13, A petroleum agreement shall provide for a review of its terms and terms at any time any significant change occurs in the circum- coooitiom. stances prevailing at the time of the entry into the agreement or the hst review of the agreement. Relinquish• 14. (I) A jJ'l,trnfoum agrccmc:nt lihall pro-vim. for the cdnqufah- ment of ment fo a phased manner of portions of an area to which the portions ol' agreement relates after the expiration of the initial exploration an area. period specified in the agreement or after the extension of a.ay such period. (2) Any area relinquished in accordance with the terms of a petroleum agreement shr,ll, in so far as it is possible1 be contiguous and compact and of such size and shape as will permit the effective carrying out of petroleum operations in the relinquished area and shall b~ in accordance with s.uch Regulations S.() mny he prescribed. (3) The area to be retained at the end of the exploration period shall, in so far as possible, include the petroleum reservoirs for all discoveries of petroleum which may have be.en made in the agreement area and shall be of such size and shape as the Secretary a,hall a.vpruvc, C,>:.l;t::pt ~ may utl1c1wisc be:: ptuvided in aQ.;UnlaUct: with the terms of a petroleum agreement. Minin,i,wn 15. A petroleum agreement shall provide for a minimum work woriand and expenditure obligations to be fulfilled by a contractm during the c~i,endituie initial e,:p)oration period and each subsequent exteti&fon of such ubtipili,1111, period.

16. (1) A _petroleum agreement shall provide that any natural gas Procllldioa of produced in association with crude oil may be used .in petroleum natural gas, o~rations, but such use shaU be in accordance with -such Regula- rions as _may be presClibed. and with good petroleum industry practice and approved production plans, 1 PETROLEUM (EXFLORA.TJDN AND PRODUCTION) LAW, 1984 -(2) Any natural gas produced by a contractor in association with crude oiJ which is not used in petroleum operations pursuant to subsection (I) of this section and all natural gas produced other than in association with crude oil shall be the property of the Cor• rotation excr..pt as may othr.rwi!:t". he asreed upon by the C.orporatiou and the contractor in accordance with the terms of a petroleum agreement. 17, A petroleum agreement shall provide that the C-orporation Participatin2 shalt. within a specified periotl nf time from the date a discovery i& interest. declared to be comniercial, have the option to acquire \JP to such percentage of the interest in the rights and obligations of such petroleum operations on such terms as may be agreed between the Corporation and the contractor in such petroJeum agreement.

18. There shall be payable to the Republic by a contractor such Rencal annual rental charges as may be prescribed by the Secretary except r,aymcnts. as may otherwise be provided in accordance with the terms of a petroleum agreement in respect of the area to which such agreement relates during the initial ex.ploro.tic,n period or any Cll.ttnaion. of au1.h period.

19. A contractor shall, subject to the provisions of this Law, pay Payme11t of company income tax in accordanc.e with the laws of Ghana. except tax. as may otherwi11e bo provided in aQOOraancc with the tcnna of a. petroleum agreement.

20. ( l) There shall be payable to the Republic royaJty in respect Payment of of any petroleum produced in Ghana, except as may otherwise be royalties. provided hi ncx:ordance with the term& of o. ~ttolcum agrccU1\.nt. (2) Petroleum produced by the Corporation carrying out petroleum operations pursuant be subsection (3) of section 5 of this Law shall be subject to tbe payment of royalty at such rates as may be prescribed from time to time. (3) Petro[eum produced pursuant to a petroleum agreement shall be subject to the payment of royalty at such ratA:s as may be specified in such agreement, and the_ Corporation shall be liable for the payment of such royalty as is clue in respect of such petroleum.

21. (l) A petroleum agreement sh.all provide for the transfer to Contratto, the Corporation of aU physical asaeltpu.rcbased, installed.eonatructed to transfer by the contractor for petroleum operations and the cost of which has 0-t, to f _ 1,een included in Exploration B,i.pendituret1, provided that the orpora 1' ,;;ontrftctoi- ohall lmve tile use of such assets for purposes 9f opera~ tions under a petroleum agreement and shall remain liable for main~ leoance, insurance and other costs associated with such use. P.N.D.C-Lk g PETROLEUM (EXPLORATION AND PRODUCTION) LAW, 198..f (2J Without prejudice to subsection (I) of" tlJJs section, aJler termination of petroleum operations in any area, the contractor shall give the· Corporation an option to acquire any movable and immovable assets used for such petroleum operations, and the operation of section 28 of this Law may be modified accordingJy at the request of the Corporation. (3) The provisions of this section shall not require the con- tractor· to transfer to the Corporation equipment or any other assets rented or leased by the contractor which is imported into Ghana for uac; in p,;trolc;wn opcn1.tioP.s and :!iUb:!11.quently 11;;:·expu1tt:d d1.1;;:n::· from~ and which fa of the type customarily leased for such use in acoocdance with petroleum industry practice. PART Ill-RIGH'IS AND OsUGATIONS OF CoNTRACTORS ANt> Sua-c0NTRACfORS .l>ctro!eum 22. A co n t r act o r or sub-contractor shall not assign, either sub- contracts directly or indirectly, his rights and obligations under a petroleum nnt ·oub-co:ntm.ct, in whole or in part, tot\ third p!krty without the- prio.r assipable without written consent of the Secretary. Consent of Secrl:ta.ry. Obligations 23. (l) A contractor or sub-contractor shall conduct petroleum of operatioM under a petroleum agreement or petroleum sub-oontraot, contractor.i and sub- as the case inay be, with due diligence and efficiency and in accor~ contractors. dance with both such Regulations as may be prescribed and with the best jnJemational techniques and practices prevailing in the petro- leum industry, in a workman-like manner, observing sound engineer- ing and t.::chnical practfoc.s and using appropriate; advttni.;c\l (t:chno- (ogy and effective equipment, machinery, methods and materials. (2) All data and information obtained by a contractor or sub-contractor as a result of petroleum operations and all geolo- iical, geophysical, technical, financial and economic reports. studies, JDtetpretations and analysis prepared by or on behalf of a contractor or sub-contractor in connection with such petroleum operations shaJJ be the property of.the. Corporation. (3) A contractor or sub-contractor shall not retain or expo,rt or permit the .ret£.Dtioo or export of any auch da.ta 01 ducuments referred to in su~on (2) of this section without the prior appro- m in writing of thl Cmporation, and where much data or docu.; ments are exporte4, -the contractor or sub-contractor shall, at. the written request of the Corporation, re-export them forthwjth to OhaDL. (4) Where such interpretations or analysis referred to in subsection (2) of this section are done outside Ghana, copies of 9 PEI'ROLEUM (EXPWRATION AND PRODUCTION) LAW, 1984 the reports thereon shaU be forwarded to the Corporation forth~ with by the contractor or sub-contractor responsible for such inter~ pretations or analysis. (5) A contractor or sub-contractor shall keep aU data acquired and any existing data relea8ed to him by the State or the Corporation confidential aod shall not disclose such data to a third party without permission from the Secretary except as may other• wise be providlod in accordance with the terms of a petroleum agreement or -petroleum sub-contract. as the case may be. {6) A contractor or sub-contractor shall maintain in Ghana complete and accurate records of all operations carried out by him and also complete and accurate books of account, records and registers relating to such activities. (7) A contractor or sub-contractor shall furnish to the Corporation at regular intervals reports on petroleum operations being carried ol!t by him and shall also furnish to the Corporation such data, information or reports as the Corporation may request. (8) A contractor or sub-contractor shall furnish the Corpora- tion such performance bonds ar.d guarantees as may be required in accordance v,ith the Regulations and in accordance with the terms of a petroleum agreement or petroleum sub-contract entered into under this law in order to ensure the fulfilment of the obligations undertaken by such contractor or sub-{:Ontractor or the discharge of his liabilities arising out of the operations under such petroleum agreement or petroleum sub-contract and to ensure compliance with this Law and the Regulations. (9) A c:unt.ra.lvloi- u1· isub-coutntctor shall at all times keep the Corporation indemnified against claims arising from the opera- tions of such contractor or sub-contractor brought by third parties. (10) A contrnctor or sub-contractor shall, in accordance with the Regulations and with the terms of a J)etroleum agrf':PmPnt or petroleum sub-contract. as tbe case may be, ensure that opportuni- ties are given as far as is possible for the employment of Ghanaiaqs having the requisite expertise or qualifications in the various levels of the operations. (11) A cotttrador or sub-contra.:.toc .$J:ia.ll uvt cagage Jn dls- criminatol}' practices on grounds of race, nationality or sex in the conditions of service provided for personnel. (J 2} A contractor or sub-c.ontractor sbalJ, as far as practi- cable., jn accordance with the Regulations and the petroleum agree-. ~ent or sub-con~ct use ~ood~ and services produced or provided m <;ihana for his operabons m preference to foreign goods and services. n.c.L. 84. 10 PETROLEUM (EXPLORATION AND PRODUCTION) LAW. 1984 {13) A contractor or sub-contractor shall, in corumltation w_ith the Corporation, prepare and implement, in· accordance with the Regulations and in accordance with the •.erms of any such petroleum agreement or petroleum suh-co,ntract, plans and programmes for training Ghanaians in all job classifications and in all aspects of petroleum operations. (14) A contractor or sub-contractor shall wiule carrying out petroleum operations prepare and implement plans for the transfer to the Corporaliou of auvanced technological know-how and skills relating to petroleum operations but this provision shall not be interpreted to disable the contractor or sub-contractor from protect- ing their comp ctitive position in the petroJeum Utdustry 01 requir ~ ing the Corporation also to take steps to protect such competitive position. (15) Except for such sub-contractors as may be exempted from the requirements of this subsection by the Regulations, a contractor or sub-contractor which is not an incorporated company in Ghana under the Companies Code, 1963 (Act 179) .shall- (a) register an incorporated company in Ghana under the provisions of the Companies Code, 1963 (Act 179) to be authorised to carry out solely petroleum operations in respect of which a petroleum agreement or petro• leum sub-contract has been entered into under this Law and such company shall be a signatory to any petroleum agreement; (b) maintain an office or establishment in Ghana to carry out petroleum operations and shall have in char1?e of such office or establishment a representative with full authority to act and to enter into binding commitments on behalf of the contractor or s1Jb-contractor, as the case may be; and (c) in resp~ of auch petroleum operations, open and maintain an account with a bank in Ghana. (16) A contractor or sub-contractor shall not transfer any share or shares in its incorporated company in Ghana to a third party either directly or indirectly without the written approval of the ~ecretary if the effect of such transfer would be either to give such third party control of such company or to enable such third party take over the interests of a shareholder who owns five per centum or more of the shares in such company. (17) A rnntractor or sub-contractor carrying n\lt petroleum operdtions shall maintain at the work site an establishment capable of dealing adequately with fire, oil spills, blow-outs, accidents or other emergency situations so .as to Pl'.tVent or control such situations and to minimise loss or damage therefrom. 11 P.N.D.C,L. &:I PETROLEUM (EXPLORATION AND PRODUCTION) LAW, 1984 {18) A contractor or. sub-contractor ca_rrying out petroleum operations shall be responsible for any pollution or damage caused by or resulting from such operations as weU as pollution or damage caused by or resulting from petroleum operations undertaken by an agent or employee of such contractor or sub-contractor and shall take all n~cessary measures to remedy any pollution or damage so caused. (19) If at any time a contractor or sub-contractor fails to Cllrry out petroleum operations in a safe manner in accordance with the Regulations and with the best international techniques and practices prevailing in the petroleum industry in comparable circumstances, the Corporation may, after giving thi; contractor or sub-contractor, as the case may be, such notice as may be reason- able in the circumstances, take all measures necessary to ensure safety and may recover the c-0sts and expenses of so doing from the contractor or the sub-contractor.

24. (l) (a) A contractor shall, subject to the provisions of ti,i, Rights of a Law and in association with the Corporation, have a right to carry ~ori<rnctor. out petroleum operations and execute such works as may be expedient in the area, the subject of a petroleum agreement (b) The exercise of such rights of the contractor con• frrred by paragraph (a) of th.is mrL,,cdfun shall be subject tn restrictions in specified areas. '!lhich sha.11 b,;. pR~ribQd in the Regulations. (2) Subject to the provisions of subsection (3) of this section, ii contractor shall be permitted to expon from Ghana any petro- leum which he is entitled undet the terms of a petroleum agreement tu 1:xp,_n t. (3) Where there is war or other emergency affecting energy supplies, the Secretary may require a contractor to sell all or part of the quantity of petroleum produced at the prevailing market prices to the Republic or any agency of the Republic_ PART IV-Mu;cELLANEOlJs

25. Subject to the provisions of this Law. a~y ~ac~on Tl'llll$aCtio1 between a contractor or sul>-cQntractor and an afliliat.e Dl rela.uon between to petroleum operations to be carried out under 9IisLaw shall cootracaor be on the basis of prevailing international competiuve-. prices and such other terms and conditions as would be fair -and teRSOnahfe :iiates • if such transaction had taken place between the contractor or sub- contractor and a non-affiliate. P .N.D,C.L. 84. 12 PETROLEUM (EXPWRATION AND PRODUCTION) LAW, 1984 Auditing. 26. An auditor appointed by the Corporation or any person authorised by the C',arporation shall have the rlght at all reasonable times to inspect, test and audit, as appropriate, the works, equip- ment, operations and financial books of account, records and rei;ister::i rdating: to petroleum operation:, performed by a con- tractor or a sub--contractor under this Law and to make abstracts or copies of any d~ument pertaining to such operations. mspecti()n. 27. (1) The Secretary may authorise any person to inspect a.ny petrc,lcum operntion:i and to cn(luro that ouch petroleum operations are carried out in aC(;()rdance with the provisions of this law and the Regulations and in accordance with the terms a11d conditions of any applicable petroleum agreement or petroleum sub-contract. (2) An)· perwn authorised hy th~ Secretary unrl~r snh,;,><'- tion (1) of this section shall have the right at reasonable times to: (a) enter any area, structure, platform, vehicles, installa- tion, vessel, aircraft, facilities, offices or buildings used by the Corporation, a contractor or sub-contrac- t•J1 fu, p~truleuUJ opciation5", (b) inspect, test and audit, as appropriate, the works, equip- ment, operations and financial books of account, records and registers of a contractor or sub-contractor or the Corporation re!ati11,g to or used in such petro- leum operations; (c) take and remove for the purposes of analysis or testing sample of petroleum, water or other substance from a well; (d) inspect, take extracts from, and make copies of any document relating to such operations; and (e) make such euminations and inquiries as are necessary to ensure that the provisons of this Law and the Regu- hltinns a re being cnmplierl with (3) A contractor or sub-contractor or the Corporation, as the case may be, shall provide any person authorised by the Secre- tary under subsection (1) of this section with all reasonable facilities and assistance to enable the effective and timely performance of the iu:.~tiun fuw.;lious under this section. 1\cstorati9n 28. After the termination of petroleum operations in any area the of a~ed COlp)ration, in the case of operations pursuant to subsection (3) of iaDds; section 5 of this Law or the contractor. in the case or operations pqiKucL';l\. lQ a pelr"?lcum~~ent in aocordam;e with subsecrlon (4) of secllOn 5 of this Law, shall restore the affected areas and remove a:n causes of damage or danger to the environment in .accordance 13 P.N.D.C.L. 84. I'ErROLElfM (J::XrLUKA.TlON ANJJ PRODUl.TlON) LJIW, 1984 with the Regulations. Such restoration shalJ incJude removal of an property brought tntn t11e affel'!ted ttrl".a hut no Jonaer required for further petroleum operations, the pluoing or closing off of all abandont->d wells in such a D1anner as may be provided by the .Regulations; and the conservation and protection of natural resources in such area.

29. (l) The Secretary may, for the purpose of this Law, request seen:ta7 to ,~r:._tf!n. in writing any person to furnish him, within such period as may be 1 $pecified in the reqUC8t, such information and documents as may be specified therein. {Z) Any person requested to furnish any information or document under subsection (1) of this section shaU comply with the request with in the period specified therein.

30. Notwi!hstand!DB the pi:_oyisj~ns of the Inv~~ent Cod~ ;:s:fins°'f 1981 (Act 4J/) reJatmg to the mining mdustry. the p.rov1s1on.s of this ,nDt:d Law or of any petroleum agreement or petroleum sub-tontract under entered jnto therewuier shall not entitle a contractor or sub-contrac· Act 437 · tor-- (a) to the ex.emption from paymcut uf company tax granted under paragraph (2)(b){I) of sub-part B of Part U of the Third Schedule to the Investment Code, 1981 (Act 437); or (b) to the iuarantee of ext.l"nrl.P.rl managemt-nt coniroi granted under par.apph (2)(b)(i.i) of sub.part B of Part JI of the said Third Schedule; or (c) to the exemption from payment of company tax granted under paragraph (2)(b){iii) of sub-11art .B of Parf II of the said "!bird Schedule; or (d) to the benefits granted to approved enterprises generally under sub--pan A of Part II of the said Third Schedule

31. (I) Aoy t,erlllln who-. om.nces (a) undertake!.. petroleum operations otherwise than in accordance with the provisiona of this Law; :!.,ties. (b) unlawfu1ly interferes with or obstructs the Corpora. tion or a contractor or au&.-contra«ot ur their agents or employees in the exercise of any rigltt under this Law: (c) _wilfully obs~ructs, hinde!s or assaults any other person in the txerc:ise of any rieht. power o,: in the petform• ance of any duty undet this Law; or P.N..J).C,L. 84. 14 PETROLEUM (EXPLORATION All/D PRODUCIION) LAW, 1984 (d) otherwise contrave:nes any other provision of this Law, shall be guilty of an offence anti liable ~n con~·ktiou tu a flue nu! exceeding S?J,000,000.00 and, where the offence continues, to a fine not exceeding Sll,000,000.00 for each day on which the offence continues or to imprisonment for a term not exceeding six: months or both. (2) Where an offence is committed by a body of persons- fo) in the case of a body coflX)rate, other than a partner- ship every director or officer of the body shall be deemed also to be guilty of the offence; and (tr) iu the ,;:a.5-e of a P<l,.l·tr:u:·u;Jiip, ,;:vciy pa.rtncr or offi~cl of that body shall be deemed to be guilty of that offence; provided that no person shall be deemed to be guilty of an offence by virtue of this section if he proves that the offence was committed without his knowledge or that he exercised due care and diligence to prevent the commission or the otience, having regard to all the circumstances.

31. (1) The Secretary may, by legislative instrument, make regulations prescribing all matters that by this L1w are required or pc;nuiUi.-d tv bt.0 p1c:,cribGd or arc ncc,;.,:sa,y or ,;:,.mvcnicnt to be prc:.- cribed for carrying out or giving full effect to this Law. (2) Without prejudice to the generality of subsection (1) of this section, the Secretary may prescribe regulations for or with resl')ect to-- (a) ensuring the safe construction, maintenance and opera, tion of installations and facilities used in connection with petroleum operations; (h) the safety, health and welfare of persons employed in petroleum operations and generally for all necessary safety measures ; (c) the prevention of pollution and the taking of remedial action in respect of any pollution which may occur in connection with petro \eum operations: (d) the inspection of areas in which petroleum operations are being carried out and of any plant, machinery and equipment within those areas; (e) the reporting of and inquiries iilto accidents arising out of petroleum operations; (/) the keeping and inspection of records, accounts, statistics and plans with respect to petroleum opera~ tions; (g) the alinquislum:nt of portions uf areas subject to petroleum agreement; 15 P.N.D.C.L. 84. PETROLEUM (EXPWRA.110N AND PRODUCTION) LAW, 1984 (h) the protection of fithins, navigation, . a;1d other activities carried out within or in the vic1mty of any areas in which petroleum operations are being carried out; (i) the making and submission of reports, returns and programmes; (j) the standards for petroleum and petroleum products and transportation thereof; (k} the rates of royalty payable in respect of petroleum productioo, the mc;-tholl.s uf ~1.:ulatiou of lhc a.mounl of coyaJty and the manner and times of payment thereof; (/) the reference map of numbered areas, each of which shall be descnl,ed as a " block ", and guidelines on the maximum number of blocks that may be held under a petroleum agreement by an applicant; (m) competitive bidding procedurea for petroleum agree- ments; (11) determining thi; ntlui.; uf~iudc u.il and na.twal 8"':.; (o) requiring the Corporation and any contractor to sub- mit to the National Energy Board and the Secretary their investment programme; (p) the conservation of natural resoun::es and the nvoid:mcc of waste, whether petroleum or otherwise, of the land to which this Law applies; (q) the accounting procedures to be followed and reporting on all petroleum operations; (r) the minimum conditions of service for workers engaged in petroleum operations; (s) the tenns and conditions of petroleum agreements pursuant to subsection (2) of section 2 of this Law; (1) th~ m.tei: or methods · of &etting the rotes at whi(h petroleum and water may be recovered from any well or petroleum reservoir; (u) the methods to be used for the measurement of petro• leum, water and other substancea from a well; (v) tlte pressure ma.intenanoe in1 or repressuring of, a petroleum reservoir and the recycling of petroleum; (w) the terms and eonditions under which the Corporation shall undertake the exploration, de\>dopment and production nf petroleum not in :.l.8&0ciation with a contractor pursuant to subsection (3) of section 5 of this Law; P.N.D.C.L. 84. 16 PETROLEUM (EXPLORATION AND PRODUCTION) LAW, 1984 (x) the specified areas in which the exercise of rights of a contractor under subsection (l) of section 22 of this Law to carry out petroleum operations shall be restricted; and (y) the penalties for offences against the Regulations. lnterpreta- 33. Tn this Law, unless the content otherwise requires,~ tkm. "affiliate" means any shareholder of a contractor or sub- contractor owning five per cemum or more of the shares in the hrn,ineoss. of snch r:ontr:-ictor or suh~contrndor or any entity which controls, is controlled by or is under common control with, thecontrac.toror sub-contractor; "contractor" means any person, firm, body corporate or other entity which has entered into a petroleum agreement with the Republic and the Corporation pursuant to subsection (4) of section 5 of this Law; " crude oil •• means hydrocarbons which are solid or liquid under normal atmospheric conditions and indudes condem,ates and distillates obtained from natural gas; " development" includes the building and installation of facilities for the production of petroleum and the drilling of deveJopment wells; ·· lliscovery ·• means petroleum nut prcviow,ly known to have existed, recovered at the surface in a flow measur- able by conventional industry testing methods; "exploration" means the search for petroleum by l!;eological. geophysical and other means, and drilling of exploration wells, including appraisal wells, and activities connected therewith; "natural gas" means all·hydrocarbons which arc gaseous under normal atmospheri<: conditions and includes wet gas, dry gas and r-:sidue gas remaining nftcr the extraction of liquid hydrocarbons from wet gas; "petroleum" means crude oil or natural gas or a combina~ tion of both; "petroleum agreement" means an agreement entered into between the Republic, the Corporation and a contractor pursuant to subsection (4) of section 5 of Law this fortltc exploration, development and produc~ tion of petroleum by the Corporation in association with the contractor: " petroleum sub-contract " means any contract between the Corporation and a thiro party or between a contractor and a third party for the provision of 17 P.N.D,C.L. 84· PETROLEUM {t:XPWRAJTON ANO l'RODUC.,7/0JV) LAW, 1984 services for petroleum operations, but does not include ~ pet.-oleum a.gtel!~nt; " petroleum operations " means the exploration. develop- ment or production of petroleum; " petroleum product " means any product derived from petroleum bv any refining or treatment process; " production " means the extraction and disposal of petroleum, including development operations and all other works and services connected therewith; " Regulations " means regulations made pursuant to section JL of this Law or pursuant to section 16 or the National Energy Board Law, 1983 (P.N.D.C.L. 62) or regulations made under the Minerals Act, 1962 (Act 126) in respect of petroleum; " Reptib!ic" me:ins 1he Rermhlic of Ghana; '' State " means the Government of the Republic of Ghana; " sub~contrac;tor" means any third party with whom the Corporation or a contractor, as the case may be, has entered into a petroleum contract for the provision of services for petroleum operations.

34. (1) Except as otherwise provided in this Law, the provision<: A/fected of the Minerals Act, 1962 (Act 126) shall, to the extent that they !egl$!a1lon. apply to petroleum, cease to be operative on the coming into force of this Law, and aC<"ordingly, any reference in that Act to petroleum shall be deemi;:d to have been repealed. (2) Notwithstanding subsection (1) of this section any, regulations made under the Minerals Act, 1%2 (Act 126) in respect of petroleum 5hail, to the cxknt they dr'IC <::onsi"1:c:nt with thtc p.ro-..i• sions of this Law, continue in force until amended or revoked under this Law. (J) The Petroleum (Exploration and Production) Law, 1983 (P.N,D.C.L. 68) is hereby repealed.

35. (1) Notwithstanding section 34 of this Law any oil prospec- Tran5ilional ting licence or oil-mining licence granted under the Minerals Act provi;sions relatin~ to J962 (Act 126) and which is in effect on the coming into force of this prospecting Law shall continue to he in operation in accordance with the terms and mining and ww.Iitions or such licence for a period of six months foDowmg 1\cenu:s. the coming into force of th.is Law or after such Jor..ger period a.s the Secretary may aUow. {2) During such period of operation, the holder of any such licence shall negotiate with the Republic and the Ctirpara.tion for a. petroleum agreement over all or part of the area the: subject of such 18 PETROLEUM (EXPLORATION AND PRODULTION1 LAU'. 1984 li<:cnce, and no petroleum agreement relating to an) part , ,! ,,.d, area shall be entered into with any party other tha1) the holder of such licence prior to the expiration of such period. (3) Where assets have been acquired for pctrokum produc.- tinn 11ncler ,., licence of the ki1ld referred to in subsection i l \ ,:,: t hi;, section, such assets may only be removed from a site At,,·r :rn inspection of the site authorised by the Secretary anJ an appwv,d in writing of such removal has been granted. (4) The petroleum operation relating to any pmduclion well in existence before the coming into force of this Law sii:i ii :wi be tiuminated except with the approval in writing of the Sc'cr:t:' ry.

36. This Law sha11 be deemed to have come into force n11 th: lst day of October, 1983. Made this 1st day of June, 1984. FLr.-LT. JERR'{ JOHN RA WLI~-:c~; Chairman of the Pro1•isiona/ National Ddc'l<'c , ·, ! 1 ·,cil Dal;: of Gazme notification: 29th June 1984. ----·-·--··------·--··· - ·-·{'pltJMTIHG - --·--· ... - .. DIVl~TON) PIQNn;D BY THE GHAN"- PUBLllllBIRG CORPOIUT1011 &CCIIA-TZllO, G ff41U• Gl'C 1A312l4 2'So/6/S4 Price (l 12.00