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Momodou
Denmark
11739 Posts |
 Posted - 13 Mar 2007 : 12:49:54
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Foroyaa Editorial
PETROLEUM OIL! PETROLEUM OIL! PETROLEUM OIL!
THE FACTS
Where is Petroleum found in the Gambia?
What is the significance of a National Petroleum Act? Are Gambians posing to be a Petroleum rich country very soon? These are questions of interest. Foroyaa is collecting all the information and will publish a special issue on petroleum exploration and potential in The Gambia.
However, for the sake of clarity on the matter, it is important for Foroyaa to give brief background information of the petroleum prospects of the country.
First and foremost, readers would agree that before petroleum or crude oil and natural gas can be produced there must first be exploration to locate where it could be extracted.
Exploration starts with reconnaissance operations, the drilling of exploration wells to appraise potential for extraction in large quantity and the geological risks involved.
Once an area is identified as a potential area for petroleum reserve, a map of the area can be drawn. The area may then be demarcated with each of the divisions being referred to as a block.
Exploration drilling can then be done in each block to appraise the potential for production. Oil companies prospecting for oil reserves usually take interest in those blocks and if the potentials are great they often compete to get licenses to become the sole licensee who can carryout exploration.
In order to identify blocks, issue licenses, prevent conflict in exploration and other abuse, petroleum legislation is needed to create the basis for issuing permits and the penalties for violations.
Herein lies the importance of the Petroleum (Exploration, Development and Production) Act 2004.
Foroyaa is glad that the office of the Attorney General has identified the bad provisions in the Act which the majority in the National Assembly have been allowing to pass. It is a fundamental principle of equity that the degree of retribution must be proportionate to the scale of transgression.
However, not only in the Petroleum Act but also in other Acts, one could discover custodial sentences that make the convict liable to a fine of not less than 10 years, meaning that one could be sentenced for life. One may also read provisions making convicts liable to a fine of not less than ten thousand dollars, meaning such could be asked to pay millions. It is such vague provisions which can lead someone to be sentenced for life for what may be a misdemeanor in many other jurisdictions. Such draconian penalties are unreasonable and unjustifiable in a democratic society.
Laws are meant to be amended when found to be flawed. This is why governments should tolerate opposition and freedom of information, including press freedom. No Nation can progress without critical minds.
As for the actual state of matters relating to petroleum, we can best throw clarity on this issue by referring to what President Jammeh told the National Assembly in 2006. According to him "The Gambia National Petroleum Company is working very hard to attract international investors to come and invest in the Gambia's upstream hydrocarbon resources." This simply means that the reserves that are being explored are offshore or upstream in our waters.
According to the President, Exploration for oil and gas is a high risk investment. "The major players are the international companies which are willing to invest in projects based on their hydrocarbon
potential, geological risk, fiscal and legal terms, as well as potential stability in the country involved." This simply means that the Gambia has enacted the Petroleum (Exploration and Production) Act to attract investors to come and engage in oil exploration.
Finally, the President indicated: "Negotiations are still on going, especially for the Alhamdulilah Block (A1) and Block (A4). On these two blocks, GNPC has succeeded in signing a memorandum of understanding (MOU) with a Canadian International Company called Buried Hill Energy (BHE), the very company that did the interpretation of our 3D seismic Data on A1."
In short, government is at the level of issuing licenses for companies to control blocks and engage in the drilling of exploration wells to determine whether production is feasible or not. This is how matters stand.
Source: Foroyaa Newspaper Burning Issue
Issue No. 029/2007, 12 13 March, 2007
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