Mr Speaker, I rise to support the Motion ably moved by the Hon Minister for Petroleum and in doing so, present your Committee's Report.
The Budget Statement and Economic Policy of the Government of Ghana for the 2016 Fiscal Year was presented to Parliament by the Minister for Finance, Hon. Seth Terkper under the authority of His Excellency the President on Friday, 13th November, 2016 in accordance with article 179 of the 1992 Constitution.
Consequent to this, the Annual Budget Estimates of the Ministry of Petroleum for the 2016 Fiscal Year were committed to the Committee on Mines and Energy for consideration and report pursuant to Orders 148 and 188 of the Standing Orders of the House.
The Committee met with the Minister for Petroleum, Hon Emmanuel Armah-Kofi Buahand officials of the Ministry to consider the estimates. Officials of the Petroleum Commission and the Ministry of Finance were in attendance to assist in the deliberations.
The Committee is grateful to the Hon. Minister and the officials for their attendance and for clarifying issues raised at the meeting.
The Committee referred to the under- listed documents during its deliberations:
i. The 1992 Constitution.
ii. The Standing Orders of Parlia- ment.
iii. The Petroleum Commission Act, 2011 (Act 821).
iv. The Petroleum Revenue Management Act, 2011 (Act 815).
v. The Budget Statement and Economic Policy of the Govern- ment of the Republic of Ghana for the 2016 Fiscal Year.
Mission of the Ministry
The mission of the Ministry of Petroleum is to sustain and optimize the exploration, development and utilisation of oil and gas endowments for the overall benefit of Ghanaians, through the initiation, formulation, coordination, monitoring and evaluation of innovative policies and programmes.
Strategic Objectives of the Ministry
In line with the above mission, the Ministry has committed itself to achieve the following strategic objectives under the Ghana Shared Growth and Development Agenda II (GSGDAII):
i. Create an enabling environment for sustained exploration, deve- lopment and production of Ghana's oil and gas endowment;
ii. Ensure accelerated and integrated development of the oil and gas industry.
iii. Provide security for oil and gas installations and operation in the upstream, midstream and down- stream petroleum sectors.
iv. Promote value-added invest- ments in the oil and gas value chain.
v. Ensure adequate investment for physical and social infrastruc- ture in communities in the oil and gas production areas.
vi. Maximize local content in all aspects of the petroleum industry value chain.
vii.Ensure adequate availability of petroleum products in the Ghanaian market.
viii. Ensure the development of the needed human resource for the petroleum sector.
ix. Ensure transparency in the management of petroleum resources.
x. Mainstream gender into the oil and gas sector.
Composition of the Ministry
The Ministry of petroleum comprises the headquarters and the under-listed agencies:
i. The National Petroleum Authority
ii. The Petroleum Commission.
iii. The Tema Oil Refinery (TOR).
iv. The Ghana National Gas Company
V. The Bulk Oil Storage and Transportation Company Limited (BOST).
vi. The Ghana National Petroleum Corporation (GNPC).
vii.The Ghana Cylinder Manufac- turing Company (GCMC).
viii. The Ghana Oil Company Limited
The 2016 Annual Budget Estimates of the Ministry, however, relates to the headquarters of the Ministry of Petroleum and the Petroleum Commission.
Expenditure trends for the Ministry for the year 2015
Compensation for Employees
An amount of ten million, three hundred and thirty thousand and ninety- seven Ghana Cedis (GH¢10,330,097.00) was allocated to the erstwhile Ministry of Energy and Petroleum for compensation payment for the year 2015. The then beneficiaries included the Headquarters (GH¢, 462,189.00), the Energy Commission
(GH¢2,502,901.00) and the Petroleum Commission (GH¢6,914,340.00).
As at the end of September, 2015, the amount of one million, six hundred and six hundred and eight thousand, nine hundred and eighty-eight Ghana cedis, thirty-six pesewas (GH¢I,6O8,988.36) had been released to both the Ministry of Petroleum and the Ministry of Power for the compensation of employees.
However, the Compensation Vote approved for the Petroleum Commission could not be released to the Commission during the year.
Goods and Services
An amount of six hundred and sixty- seven thousand, five hundred and sixty- six Ghana cedis, fifty pesewas (GH¢667,566.50) was allocated to the Ministry of Petroleum for the year 2015.
As at the end of September, 2015, an amount of five hundred and sixty-seven thousand, five hundred and sixty-six Ghana cedis, fifty pesewas (GH¢567,566.50) of the Goods and Services Vote had been released to the Ministry.
While an amount of two hundred and fifty thousand Ghana cedis (GH¢250, OOO.OO) was allocated to the Ministry of Petroleum for capital expenditure for the year 2015, the Ministry did not receive any funds under this Vote.
Annual Budget Funding Amount (ABFA)
Out of the seven million, five hundred thousand Ghana cedis (GH¢7,500,000.00) allocated to the Ministry of Petroleum under the ABFA for the Rural LPG Promotion Programme, the amount of two million, nine hundred and fifty-one