Following the significant Jubilee discovery, the Ghanaian government has continued to make changes to petroleum agreements with investors. With the increased interest shown by operators in investing in the country, the potential still exists for fiscal changes to become tougher in the near term.
May 28, 2021
Africa - West
All licences in Ghana are governed by concession terms. The main elements are royalty, income tax and an additional profits tax (called Additional Oil Entitlement, or AOE) which is based on rates of return. Specific terms exists for deep-water developments, with lower royalty and AOE rates.
As a result of occasional local Chieftaincy, land disputes and political tension, isolated inter-ethnic violence and civil unrest can occur at any time; specifically but not exclusively in the Greater Accra, Northern, Savannah, North East, Oti and Volta Regions. Localised outbreaks of civil unrest can occur at short notice, and can become violent (sometimes involving weapons). Travel in the Upper West or Upper East regions of Ghana can be problematic, due to unrest in its neighbouring countries as there is often no physical barriers along Ghana’s borders, and so the security situation in border areas can change quickly.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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