IMPROVING PETROLEUM GOVERNANCE: CONTEMPORARY DISCUSSIONS ON GHANA’S PETROLEUM ENVIRONMENTAL LAWS AND REGULATIONS - Part 4

Gaps in the Laws and Regulations and Corresponding Recommendations

4. Venting and Flaring

Natural gas is typically produced as a byproduct of crude oil extraction. To cut costs, petroleum companies tend to waste this resource by either releasing the gas directly to the atmosphere (venting) or burning it (flaring). There is a particular attention being paid to intentional and unintentional venting of associated gas because it is a significant source of methane, a potent greenhouse gas. Flaring is considered a better option in terms of protecting the climate, but this practice emits a range of harmful air pollutants, including hydrogen sulfide, benzene, and poly-cyclic aromatic hydrocarbons. For these reasons, many oil and gas producing jurisdictions have adopted regulations to tightly restrict venting and flaring and also require operators to do a better job of identifying and fixing gas leaks.

Although the Petroleum (Exploration and Production) Act, 2016 (Act 919) generally prohibits venting and flaring without prior authorization, however, the Act only regulates intentional gas releases, and does not impose any requirements that would compel operators to identify and control leakage/fugitive emissions from valves, compressors and other equipment.

The Petroleum (Exploration and Production) Act, 2016 (Act 919) and the Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) are silent on flaring and venting except to address reporting in an emergency situation. Section 33 of the Act 919 and its implementing regulations are inadequate and should be substantially revised to eliminate venting, limit flaring to exceptional circumstances. Under section 27(6) of the Act 919, petroleum companies are already required to design facilities that will avoid gas venting or flaring under normal operating conditions. Section 33 should therefore reinforce this important goal, and not offer an opportunity to backslide. 

Recommendation

At a minimum, Ghana’s petroleum laws should include provisions to achieve the following international best practices:

• Reduce and eliminate intentional methane venting.

• Prioritize gas capture and utilization over destruction (i.e., flaring).

• Require zero-bleed, non-emitting equipment where possible.

• Require vapour collection and recovery.

• Require quarterly leak detection and repair.

• Offer incentives for operators to implement continuous monitoring.

• Require regular replacement of parts known to leak when worn.

• Require regular and transparent inspections, with thorough and transparent record-keeping and public reporting.

My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!

IMPROVING PETROLEUM GOVERNANCE: CONTEMPORARY DISCUSSIONS ON GHANA’S PETROLEUM ENVIRONMENTAL LAWS AND REGULATIONS - Part 3

Gaps in the Laws and Regulations and Corresponding Recommendations

3. Air Pollution

The only provisions in the Petroleum (Exploration and Production) Act, 2016 (Act 919) and the Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) that address air pollutant emissions from oil and gas activities are sections 46 and 149 respectively.  Neither of these provisions imposes limits on air pollutant emissions from oil and gas wells other than minimal safeguards, such as the use of a flare shield in certain topographic conditions and the reporting of the amount of petroleum flared under emergency conditions. 

Recommendation

Government should consider adopting emission standards equivalent to those that apply to onshore petroleum exploration and development operations in the U.S.: 40 C.F.R. (Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution).   The rule is designed to limit emissions of greenhouse gases (e.g., methane), SO2 (sulfur dioxide) and Volatile Organic Compounds (VOCs), which are significant pollutants that adversely impact climate change, air quality and human health.

Compliance with these standards would require operators of onshore oil and natural gas wells with hydraulic fracturing [commonly used in onshore oil and gas extraction to stimulate well production] to capture and recover methane and other VOCs as soon as practicable, but no later than after the initial flow back stage.

The International Finance Corporation (IFC) outlines air pollution control recommendations in its Environmental, Health and Safety guidelines for offshore oil and gas development. The guidelines identify five main sources of air pollution: combustion sources (e.g., boilers, turbines); compressors, pumps, and engines; emissions from venting and flaring; intermittent emissions (e.g., well testing, engine exhaust); and fugitive emissions.  With regard to fugitive emissions, the IFC recommends:

• “All reasonable attempts should be made to implement appropriate methods for controlling and reducing fugitive emissions in the design, operation, and maintenance of offshore facilities. As an example, the U.S. State of California recently adopted methane emission standards that apply to both onshore and offshore oil and gas facilities, imposing various standards for vapour collection and leak detection for both onshore and offshore unit.

• The IFC recommends use of very low sulfur content fuels and/or natural gas to drive machinery and equipment on offshore oil and gas facilities.

• Emissions standards for small combustion facilities are set forth in the IFC’s General Environmental, Health and Safety Guidelines, at pages 6-7.

• For well testing, the IFC states: “flaring of produced hydrocarbons should be avoided, especially in environmentally sensitive areas.” The IFC guidelines advise regulators to thoroughly evaluate alternatives to flaring of produced hydrocarbons during well testing and to document this process.

My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!

IMPROVING PETROLEUM GOVERNANCE: CONTEMPORARY DISCUSSIONS ON GHANA’S PETROLEUM ENVIRONMENTAL LAWS AND REGULATIONS - Part 2

Gaps in the Laws and Regulations and Corresponding Recommendations

2. Water Pollution

The key to protecting water quality in normal petroleum exploration and production activities is proper disposal of large volume wastes, such as produced water, drill cuttings, and spent drilling muds. (Produced water is water that comes to the surface with oil or gas, and it is the largest byproduct of petroleum exploration and development). The general regulatory approach of other oil-producing jurisdictions includes:

•       zero-discharge restrictions that require disposal of these large volume wastes in underground  injection disposal wells co-located in the well field being exploited;
• standards for the design and operation of underground injection disposal wells; and
• encouraging the use of less-toxic (e.g. water-based rather than oil-based) drilling fluids.

There are very few provisions in Ghana’s petroleum and environmental laws addressing disposal of large volume wastes from oil and gas activities. The Environmental Protection Agency Act, 1994 (Act 490) merely directs the Ministry of Environment to make regulations relating to the type, quantity, conditions, or concentration of substances that may be released into the environment. The only provisions in the Petroleum (Exploration and Production) Act, 2016 (Act 919) dealing with the disposal of large volume wastes from oil and gas activities are Sections 50 and 81 and are also very general in nature.

Also, the provisions in the Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) do not encourage petroleum operators to dispose of large volume wastes in a manner that is consistent with international best practices.  None of the provisions impose a zero-discharge restriction for oil and gas wells and the use of less-toxic aqueous (rather than non-aqueous) drilling fluids.

Recommendation

It is important that Ghana’s petroleum environmental laws provide clear parameters for disposing produced water and other wastes.  Ghana should consider adopting the following standards that are applicable to petroleum operations in the U.S.A, which target the primary sources of water pollution associated with petroleum exploration and development.

1.         Effluent standards for onshore wells, including the following zero-discharge restriction: “there shall be no discharge of waste water pollutants into navigable waters from any source associated with production, field exploration, drilling, well completion, or well treatment (i.e., produced water, drilling muds, drill cuttings, and produced sand)”  This standard represents the degree of effluent reduction attainable by the application of the best practicable control technology currently available.
2.       Effluent standards for offshore wells, including a numerical limit on the amount of oil and grease (29 milligrams/liter on a monthly average basis) contained in produced water that is discharged from offshore wells. Compliance with this provision would require the use of oil/water separators and oil recovery devices for treatment of produced water prior to its discharge.

My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!

 

IMPROVING PETROLEUM GOVERNANCE: CONTEMPORARY DISCUSSIONS ON GHANA’S PETROLEUM ENVIRONMENTAL LAWS AND REGULATIONS - Part 1

Introduction

Ghana has enacted some environmental laws and regulations to govern environmental issues in the oil and gas sector. These laws and regulations are contained in the Environmental Protection Agency Act, 1994 (Act 490); the Environmental Assessment Regulations 1999, (L.I. 1652); the Environmental Assessment (Amendment) Regulations 2002, (L.I. 1703); the Petroleum (Exploration and Production) Act, 2016 (Act 919); The Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) among others. However, these environmental laws and regulations to a larger extent have not taken into account some international environmental best practices and have thus not being in tone with globally changing views on petroleum environmental regulations.

The most important areas in the petroleum exploration environmental governance which have not been adequately or insufficiently catered for and are not in accordance with international environmental best practices include: environmental impact assessment, water pollution, air pollution, venting and flaring, well plugging and abandonment, blowout prevention, and decommissioning and decommissioning fund.

Gaps in the Laws and Regulations and Corresponding Recommendations

1. Environmental Impact Assessment

Each phase of petroleum development, from reconnaissance to decommissioning, poses an adverse threat to the environment. Ghana’s Environmental Impact Assessment (EIA) laws are inadequate to ensure that environmental impacts from early-stage petroleum activities are fully identified and evaluated for the benefit of decision makers and the public.

As early as the reconnaissance stage, Ghana’s Petroleum (Exploration and Production) Act, 2016, permits license holders to perform seismic surveys and shallow drilling. Reconnaissance and exploration, which entails more extensive drilling and can span many years, discharge waste and pollution into the environment, threaten biodiversity, and impact local communities. Even shallow drilling is associated with the risk of well blowouts and oil spills.

The Petroleum (Exploration and Production) Act, 2016 (Act 919) declares that reconnaissance activities and exploration drilling may not begin until an operator has complied with the Environmental Protection Agency Act, 1994.  In addition, the Environmental Assessment Regulations 1999, (L.I. 1652) outlines a list of activities for which an EIA is required before the Environmental Protection Agency (EPA) may issue an environmental permit. These activities involve: oil and gas fields development; construction of off-shore and on-shore pipelines; construction of oil and gas separation, processing, handling and storage facilities; construction of oil refineries; and construction of product depots for the storage of petrol, gas or diesel which are located within 3 kilometers of any commercial, industrial or residential areas.

Under the Environmental Assessment Regulations 1999, (L.I. 1652) “oil and gas fields development” is the only provision that could possibly be construed to apply to reconnaissance and exploration activities. However, “development” is not defined in the Environmental Assessment Regulations. Although “development” is defined in Section 95 of the Petroleum (Exploration and Production) Act, 2016, the Act’s definition of “development” is narrow, and refers almost exclusively to activities carried out after a commercial discovery is made. In addition, the Act formally distinguishes early-stage activities by using the term “exploration” which encompasses drilling and other appraisal work necessary to determine whether a petroleum discovery warrants commercial development.

In the L.I. 1652, the distinction between the terms “exploration” and “development” means that an EIA is not absolutely required for early-stage petroleum activities. In practice, EPA only requests preliminary environmental reports for exploration drilling. A worrying situation is that these reports are not subject to public review or hearings.

Recommendation

In light of the environmental and social impacts associated with petroleum reconnaissance and exploration activities, particularly in the offshore environment, public participation and strict environmental review provisions must be incorporated into the process for awarding permits for these early-stage activities. The Environmental Assessment Regulations 1999, (L.I. 1652) Schedule 2 should be revised to include exploration activities. This can easily be accomplished by amending Section 12(a) to read: “Oil and gas field’s reconnaissance, exploration and development.”

In order to amend in EIA regulations to ensure that all phases of petroleum development undergo rigorous scrutiny to identify and minimize potential environmental impacts, EPA should develop a set of sector-specific guidelines for preparing EIAs. This will help improve the overall quality and consistency of EIAs for petroleum development and ensure that the full range of impacts is properly evaluated and disclosed to decision makers and the public.

It is important to note that Section 82 of the Petroleum (Exploration and Production) Act, 2016 (Act 919), which addresses impact assessment, adds uncertainty to the overall interpretation of EIA requirements. It lists six phases of petroleum development, including reconnaissance and exploration drilling, and states that none may be carried out “unless the required environmental impact statement has been conducted or any other relevant environmental statutory requirement” imposed by the Environmental Protection Agency Act, 1994 (Act 490), has been complied with.  The provision is not clearly drafted and suggests that lawmakers may have intentions for broad implementation of EIA from the earliest phases of petroleum development. To fulfill these intentions, Schedule 2 of the L.I. 1652 should be revised to clarify that petroleum reconnaissance and exploration activities may not proceed without preparation of an EIA.

My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!

 

MAKING HEADS TURN: REPOSITIONING IS KEY

Yesterday, I met a group of colleagues who shared with me how much they enjoy my articles. I honestly do not think people realize exactly how much motivation can be imparted to someone through a little bit of appreciation. The purpose of today’s message is to encourage you.

Today is a day of second chances and opportunities to reinvent ourselves. I have always wondered why we stay at the bottom when life hits us very hard. One thing I have come to appreciate about life through my many experiences is that, you can always decide to carve out your path no matter what! As long as you are alive and breathing, you can give life to your dreams. Unless you are no longer passionate about that particular business or relationship, if you truly want to make it, you are the best driver! You can comeback despite the number of times people tell you 'no' or in spite of the number of times it gets very sour. Make a plan that reflects the lessons you have learnt. Review, reflect and make a refreshed plan that will ensure you are not repeating old mistakes and that you are making better choices to influence a different outcome. 

If you ever have to consider holding back for a while to re-energize yourself psychologically and financially, do not approach it with a mindset that you have failed. Consider all the things you are sure to learn if you open your mind and allow the people around you to teach you new things. One thing I always reiterate is the fact that soft skills are important, and they can only be learnt with intention. So, for instance if you always cave under pressure and that causes you to lose an opportunity, consider being intentional this time with self- control, comportment and patience. You will be surprised how much you will learn.

Having to transition and take a step back is not an easy decision at all. In whatever new job or position you find yourself; you must stay present and give a 100%. Be present and do what you will do if it were your own business. There is value to be gained, financial rewards to be earned and a lot of skills to be learnt when we avail ourselves and learn what we should.                                                               

We should not be stuck or distracted looking at other people's success. Instead, let us be motivated and driven to be more focused on ourselves to become the best version of ourselves.

My name is Kofi Anokye. From today, let’s all be extraordinary.

 

AFRICA ON THE RISE, BUT TO WHERE? A 3-POINT INSIGHT FOR AFRICANS

Many people I speak to seem paralyzed by the sheer magnitude and scale of the challenges that face our continent - Africa. The fascination with debt instead of development is becoming untenable, tiresome and boring. The historians of today know different, that given time, the narrative of debt and the cardinal necessity of beautiful statistics will not fill the stomachs of the hungry, give jobs to the unemployed or house the homeless.

The current total worth of Africa, with all its 54 countries, is US$2.4 trillion. Whereas Apple company is worth US$2.56 trillion. Clearly, Apple is wealthier than the entire continent with all its resources put together. In other words, all of Africa’s national incomes combined do not match up to Apple company.

Over the past years, poverty reduction has been accelerating in the poorest countries of the world, but not so fast enough in the so-called continent of wealth, AFRICA. According to recent estimates, the number of deprived people in the region has grown from 278 million to 413 million in the last 25 years, while the average skyrocketing poverty rate of 41% makes Africa the poorest of all time. What is more depressing is that the continent is blessed with some of the rarest minerals on earth and yet more than 300 million Africans are living in extreme conditions with daily wage less than $1.90. Despite the fact that few sub Saharan nations are showing signs of improvement, most are stuck in scarcity.

Does Africa have an excuse?

Japan emerged from the devastation of the atomic attacks on Hiroshima and Nagasaki to become an industrial giant, dominating the auto and electronic sectors. China, India, South Korea and many countries in Asia and South America are now economic giants claiming a fair share of the world's wealth. Where is Africa's share in the global trade? Or is ours to provide the raw materials to make others rich? The past can be a guide but not an excuse for what or where we are.

As the world emerged from COVID-19 in 2022, the Russian-Ukraine war erupted, then inflation, gas price hikes and now a looming recession in 2023. But in the midst of a chaotic world, it is argued that Africa with a current population of 1.4 billion appears to present the next set of blue ocean opportunities. What is the right mindset which will enable Africans to navigate the maze?

Point one: Those of us who seek to be the midwives of an African Renaissance beyond the “easy headline”, the “catchy soundbite” or social media activism, must accept the responsibility to create the condition necessary for Africa to rise. Our inaction will inevitably result in Africa faltering. That means we must, in the words of Albert Arnold Gore Jr., “come to believe in hope over despair, striving over resignation and faith over cynicism.” We must not get trapped in inaction; we must choose to play a meaningful role in line with our skills, capabilities, interests and value system.

Point two: A great Ivorian proverb says: “the outsider does not know the path through the calabash trees.” In order words, we know our continent better than others; it is our responsibility to be the primary movers in the rebirth of our continent, with help and support from others. The future we create must and should be a future of our own making. The inescapable fact is that this is our responsibility; no-one else’s. This time, this moment in Africa’s history, requires what Robert F. Kennedy described in his seminal speech at a Nusas seminar in Cape Town in 1966: “This world demands the qualities of youth; not a time of life but a state of mind, a temper of will, a quality of imagination, a predominance of courage over timidity, of the appetite for adventure over the love of ease”.

Point three: Robert F. Kennedy reminds us of the timeless words of Archimedes: “Give me a place to stand, and I will move the world.” He also pointed out: “The reality is that few will have the greatness to bend history itself, but each of us can work to change a small portion of events, and in the total of all those acts will be written the history of this generation.” Each one of us, in our spheres of influence and in line with our capabilities and interest, can play a meaningful role in our families, communities, societies, countries or across the continent to bring about change. Such change will not come from heroic action by one individual or a chosen few brave souls, change across our continent will come because “it is from numberless diverse act of courage and belief that human history is shaped.

Conclusion

We are nowhere near where we should be, and where we all want to be, but there is a feeling we are all in this together, and we shall get out and prosper together. I urge all those of you who, like me are moved by the plight of our continent, but may feel that your effort would be futile, to start today and focus on one or few areas of change that you can influence.

My name is Kofi Anokye, a development enthusiast, and I write you this in the spirit of purpose, passion, performance and perseverance.