Gaps in the Laws and Regulations and Corresponding Recommendations
5. Blowout Prevention
Most of the exploitable offshore oil and gas deposits in Ghana’s territorial waters are in very deep seas (seabeds of greater than 2000 meters). Preventing catastrophic accidental releases at deepwater offshore wells is technologically challenging. A keystone for preventing accidental releases is the use of Blowout Preventers (BOPs) designed and operated to meet very robust standards, including redundant mechanisms for triggering the BOP to shut down a well in case of an accident. Following the Deepwater Horizon well blowout and oil spill that occurred in the Gulf of Mexico, which was attributed in part to a faulty BOP, petroleum regulators around the world have focused greater attention on technical and safety measures to prevent similar incidents from happening in the future.
The Petroleum (Exploration and Production) Act, 2016 (Act 919) and the Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) relate to accident prevention and containment. The regulations fall short of international standards requiring robust design and operating standards for BOPs, including redundant mechanisms for triggering the BOP to shut down a well in case of an accident.
Recommendation
To remedy these defects, the government of Ghana should consider adopting the U.S. Bureau of Safety and Environmental Enforcement (BSEE) Well Control Rule that imposes design requirements for blowout preventers.
6. Well Plugging and Abandonment
Production wells that can no longer be used must be plugged to prevent oil and gas reservoir fluids from migrating over time and possibly contaminating fresh water aquifers. Well plugging is addressed only briefly in the Petroleum (Exploration and Production) Act, 2016 (Act 919) and corresponding regulations.
Recommendation
Although Ghana’s laws require petroleum operators to abandon wells in a manner that protects underground aquifers and prevents migration of formation fluids, the laws should include specific well plugging standards. An example of abandonment standards for onshore wells is found in Section 319 of the rules and regulations developed by the U.S. State of Colorado’s Oil & Gas Conservation Commission (COGCC).
7. Decommissioning & Decommissioning Funds
Ghana’s petroleum regulations require very little information from operators before they undertake reconnaissance and exploration of petroleum deposits. In particular, there is no provision within the petroleum regime that requires operators to prepare and submit plans for decommissioning and site restoration of areas impacted by early-stage activities, including drilling.
Recommendation
(i) Early planning is crucial
Decommissioning of petroleum installations is costly and complex. Governments in many oil-producing countries do not pay sufficient attention to this key phase of petroleum development, and Ghana is no exception. This approach does not reflect international best practices, which strongly encourage decommissioning planning at the outset of project development.
(ii) Decommissioning plans must be thorough
Section 43 of the Petroleum (Exploration and Production) Act, 2016 (Act 919) provides that a decommissioning plan is to be submitted by upstream petroleum operators to the Minister for approval. The plan shall contain detail proposal for a shutdown of operations and disposal of petroleum facilities, or their further use in petroleum activities. The Act 919 provides scant detail as to the required content for decommissioning plans, stating only that a plan must contain a detailed proposal for “shutdown of operations and disposal of petroleum facilities” or “further use of the facilities in place of petroleum activities.” The required contents for decommissioning plans are to only consider infrastructure removal or reuse, but do not address environmental restoration and the long-term socioeconomic impacts on local communities. In line with best practices, the Act 919 should be revised to clarify that decommissioning plans must not only consider infrastructure removal or reuse, but also address environmental restoration and the long-term socioeconomic impacts on local communities.
(iii) Petroleum companies must bear the full cost of decommissioning
Decommissioning obligations arise when oil field life (and profits) winds down; therefore, it is important to ensure that sufficient funds are available to fully implement and complete decommissioning plans. Section 45 of the Petroleum (Exploration and Production) Act, 2016 (Act 919) merely states that a licensee or contract “shall establish a decommissioning fund as prescribed.” In line with international standards, the Act 919 should be revised to provide mandatory guidance and detail on this matter.
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!
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