IAIA2015 PAPER
Working Together – A Panacea for Environmental Management in
oil and gas Development in Developing Countries
Abbreviations
EPA
GNPC
MESTI
OfD
NMCE
NEA
TCPD
CSO
1
Environmental Protection Agency, Ghana
Ghana National Petroleum Corporation
Ministry of Environment, Science, Technology and Innovation
of Ghana
Oil for Development
Ministry of Climate and Environment in Norway
Norwegian Environmental Agency
Town and Country Planning Department
Civil Society Organisation
Background
Ghana has huge potential to grow and transform its economy through industrialization, creating jobs and
ensuring the equitable distribution of wealth. The fundamental goal of the Government of Ghana’s
development agenda is to achieve macro-economic stability and grow the economy to a middle-income
status by 2020.
In 1990 Ghana developed it first policy on environmental management. The ultimate aim of the National
Environment Policy 1 is to ensure sound management of the environment and the avoidance of
exploitation of resources in ways that may result in irreparable damage to the environment.
It is therefore no surprise that the 4th Republican Constitution of Ghana2 has a provision on environmental
management. The Constitution-Article 36(9) on Directive Principles of State Policy has a provision on the
Environment, which states that:
“The State shall take appropriate measures needed to protect and safeguard the national
environment for posterity; and shall seek co-operation with other states and bodies for purposes of
protecting the wider international environment for mankind”.
To give effect to this Constitutional provision, an Act of Parliament in 1994, Act 490, transformed the
then advisory council on environment, the Environmental Protection Council, to an Agency
(Environmental Protection Agency) with enforcement powers among other things. A subsidiary
legislation under this Act 490, Environmental Assessment Regulations, 1999, LI 1652, adopted the
environmental assessment as a tool for sound environmental management in Ghana and thus prescribed
the conduct of Environmental Assessment in Ghana. The LI 1652 in its definition of an environmental
assessment provides for an integrated approach to environmental assessment by its definition of
environmental assessment, viz:
1
2
Ghana National Environment Policy, 1990
1992 Constitution of the republic of Ghana
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“The process for the orderly and systematic identification, prediction and evaluation of the
likely environmental, socio-economic, and cultural and health effects of an undertaking and
the mitigation and management of those effects”
The constitutional provision and the legislation definition clearly have inherent obligation for all parties
in the environmental management process to collaborate. In terms of oil and gas development, the
industry has to collaborate with national authorities and communities within which it has work. The
authorities also have to set the right regime and provide the necessary awareness and help to industry in
accordance with OECD principles of Good Regulation3.
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The Oil and Gas Industry in Ghana
In July 2007, the Ghana National Petroleum Corporation (GNPC) and its partners discovered oil in
commercial quantities in the Jubilee field in the offshore Tano/Cape Three Points Basin of the Ghanaian
continental shelf. Appraisal work conducted on the Field estimated the oil reserves to be about 800
million barrels with an upside estimate of 3 billion barrels. The Field also has substantial associated
natural gas reserves.
In addition to the Jubilee Field, there have subsequently been discoveries in the Mahogany Deep, Odum,
Tweneboa Enyenra, Ntomme and Sankofa offshore fields. Exploration activities are being intensified, and
it is expected that more discoveries will be made.
Ghana therefore saw the need to develop its human, organisational and institutional capacities to deal
with the challenges of becoming an oil and gas producing nation. The goal is to sustain and optimise the
exploitation and utilisation of Ghana’s oil and gas endowment for the overall benefit and welfare of all
Ghanaians, present and future. To achieve this goal for the oil and gas industry in Ghana, the EPA in
2008 formulated an Environmental Management Health, Safety and Communities Issues (EMHSCI) plan.
The main objective of that plan was to have:
“A petroleum sector that contributes to the present and future needs of Ghanaian while
keeping a balance between economic development, environmental protection, social
responsibility and safe and good conditions of work”.
The environmental management, health and safety, and community issues component of the oil and gas
master plan of Ghana was therefore intended to ensure that the country receives maximum benefit from
its petroleum sector development initiatives without compromising the integrity of the ecosystem and
well being of the people by providing:
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clear strategies for what should and—perhaps more importantly—what should not be done
independent verification of proposed projects to ensure that they are in the national interest
a vehicle to identify barriers to successful development, so that they can be addressed rapidly
guidance for development that takes care of the nature (clean ocean, unspoilt coastline, rich
biodiversity, etc) and traditional resources and industries (fisheries, fish processing, agriculture,
tourism, etc) of Ghana.
In developing this plan, there was recognition of the fact that working together (the authorities, the oil
industry and the communities) would be a panacea for achieving the national goals. The industry players
OECD guiding principles for regulatory quality and performance
(http://www.oecd.org/fr/reformereg/34976533.pdf)
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has to work with the communities and the authorities so as to demonstrate to them that they are not only
interested in their profit but do care about the people’s well being and the environment. The communities
must also learn to live with the new challenge that the oil and gas industry has brought to their doorstep.
Finally, the authorities would not only have to ensure that the oil and gas resources are developed in
accordance with the national laws but also play the role of ensuring that the industry develops in a
thriving atmosphere of tranquillity. To be in position to solve this simultaneous equation Ghana needed
an experienced coach.
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The Norwegian Oil for Development Programme in Ghana
Ghana was therefore interested in learning from Norway’s experience of managing its petroleum sector
development. In 2010 the two countries therefore signed a five-year agreements under the Oil for
Development (OfD) programme for support to the resource and environmental dimensions of Ghana’s
sector development. In April 2014 a review of the programme was carried out, noting the substantial
achievements that had been made and subsequently the Norwegian Government gave an approval for a
second phase of the Programme.
On the Ghanaian side, the Environmental Protection Agency of Ghana (EPA-Ghana) in collaboration
with the Ministry of Environment, Science, Technology and Innovation (MESTI) is responsible for the
development and planning of this Programme, while Norwegian Environment Agency (NEA) is the main
collaborating partner together with Norway’s Ministry of Climate and Environment (NMCE). There has
been a close and continuous dialogue between not only the parties but the industry and the communities.
The key elements here are thus not only a function of Ghana’s policies and priorities, but also based on
what the Norwegian partners have counselled they would be able to support.
The main reference for the development and planning of the Programme has been the National Energy
Policy, and in particular the goal ‘to ensure that energy is produced and utilised in an environmentally
sound manner’ and the commitment to ‘manage Ghana’s oil and gas resource endowment to ensure the
sustainability of the reserves and of the environment.’ The Programme is also meant to reflect provisions
regarding environmental management in the Constitution of the 4th Republic (1992), the National
Environment Policy (1991), the National Environmental Action Plan (1991) and the Environmental
Protection Agency Act (1994).
Information provided by the Norwegian counterparts regarding lessons learned from similar programmes
under the Norwegian OfD programme elsewhere has also been very helpful in the formulation of this
Programme.
The planning of the Environment Component was conducted in parallel with a similar planning process
for the Resource Component which is being implemented by the Ministry of Petroleum in collaboration
with the Petroleum Commission. .
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Achievements 2010-2014
The 2010-2014 OfD Environment programme contained a total of 12 sub-components, for which specific
Outputs had been planned. The achievements by sub-component can be summarised as follows:
Policy, legal and institutional frameworks. The focus was on the EPA, where a separate Petroleum
Department has been established, staff have been recruited and received some training. An old
environmental laboratory was refurbished and has begun doing analyses though the full laboratory is not
in place, and staff need to be trained further to carry out expected analyses. Draft of various guidelines
such as for environmental assessments for offshore and onshore oil and gas development has been
completed.
Environmental data, monitoring and information system. The programme has made major advances,
with the unique marine environmental baseline coming into place, and monitoring survey of the coastline
done. EPA’s data management system is being developed, and its data policy being revised, though the
formatting of data and readiness for use is still not fully in place. Ghana is to reach a cost-sharing
agreement with oil companies for funding of subsequent coastal monitoring surveys.
Environmental assessment and planning. The major achievement is the Strategic Environmental
Assessment that was produced in a three-volume report.
Spatial planning and coastal zone management. The Western Region spatial plan with two district
structural and two local plans included is seen as a model for how Ghana should do its spatial planning in
the future. The programme introduced new technologies, standards and skills, so this results area is seen
as highly successful.
Standards, regulations and permitting. The work in this field is on-going and while it was not able to
deliver all the outputs expected, there was steady progress especially towards the end of the period.
Compliance monitoring and enforcement. Staff were being trained and carried out a first audit of the
Jubilee Field. Also a waste treatment plant in Takoradi has been audited. This is an area that is expected
to be given higher priority in the future.
Waste management. A first visit to a national waste management site was carried out and the work done
there found to be quite good. The regulatory framework for waste management related to oil and gas
activities had not yet been finalised, and like compliance monitoring is quite demanding. There is still
work to be done before standards and performance are in place.
Community issues. Addressing issues of competition over resources (fisheries versus off-shore oil and
gas, for example) and possible negative spill-over effects of the oil and gas industry on local livelihoods
is a challenging task where other donors are also providing support. What has been done so far is
information and sensitisation. The industry is however, engaging the communities in identifying areas for
support and training.
Health and safety. The intention was to institute regulatory framework for HSE issues at production
facilities, including local enforceable standards and mechanisms for regular auditing. This area lagged in
terms of results due to the need for clarification of responsibilities between the Petroleum Commission
and EPA. The main achievement has been training of staff.
Risk assessment and emergency response. The major issues are possible negative effects from offshore
and onshore activities, including transportation of petroleum products. A risk maps (Environmental
Sensitivity Atlas) were developed in 2004 before the discovery of oil and gas in commercial quantities in
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2007. Due to the oil find and increased economic activities in Ghana’s coastal area the risk profile of
Ghana to a potential oil spill risk called for an update of the risk maps. Data required for the update has
been gathered and the process of online access to the risk maps have begun
Programme management. Largely achieved its objectives.
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Conclusion
The overall achievement of OfD in Ghana has been very satisfactory. The factors that contributed to this
good result were:
Working together. Working together in partnership with the Norwegian partners has put the Ghanaian
authorities, especially the Environmental Protection Agency, in a better position to manage its oil and gas
resources and also to work well with the oil and gas industry and the communities including the Civil
Society Organisations (CSOs).
Ghana in driver’s seat: clarity on objectives. Clarity on the Ghanaian side as to what they wanted
allowed them to be in the driver’s seat in terms of identifying priorities and setting the pace for
implementation.
Institutional framework: in place. Institutional clarity in terms of roles, mandates and thus divisions of
labour were in place. Technical bodies like the EPA and TCPD are well established. The EPA expanding
by establishing a new petroleum section thus took place within well-established bodies with routines,
funding, staff and a history of capacities.
Technical skills: largely in place. While Ghanaian staff have required skills upgrading, Ghana has
university educated staff that basically have required professional training in a field that is new to the
country. Further, Ghana has a functioning labour market even for skilled labour so it is possible to find
relevant skills in the labour market in most fields.
Collaboration: partnering working well. The collaboration between the Ghanaian and Norwegian parties
was good, in part because the two sides are structurally quite similar: they have similar mandates and
responsibilities, which makes it easy for Norwegian staff to work alongside their Ghanaian counterparts.
Norwegian partners: cost effective. Most of the Norwegians staff come from public institutions, which is
cost effective since salary costs are lower than if the programme had to buy consultancy services on the
private markets.
Industry contribution. Aside the OfD programme the industry has been responsive to the needs of the
authorities in terms of capacity building and development of local capacity in some of the communities.
CSOs and the media watchdog role. The vibrant media and CSOs in Ghana is helping bringing the issues
that need to be addressed always and thus keeping the industry and the authorities on their toes.
Working together in partnership with experienced countries that have
managed their natural resources well, the oil and gas industry, the
communities, the media and the Civil Society Organisations would therefore
help developing countries to avoid the resource curse.
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