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Momodou
Denmark
11740 Posts |
 Posted - 13 Mar 2007 : 13:22:59
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NATIONAL ASSEMBLY ON PETROLEUM EXPLORATION AMENDMENT BILL
By Isatou Bittaye
The National Assembly on Wednesday 7th March, 2007 passed a bill entitled "Petroleum Exploration, Development and Production Amendment Bill 2007."
The motion was raised by the Secretary of State for Justice Kebba Sanyang. Mr. Sanyang indicated that a nation in prosperity is greatly enhanced by the discovery and exploitation of the economically valuable mineral resources, including petroleum. He added that the National Assembly is aware of the discovery of the major petroleum prospect of The Gambia. Mr. Sanyang noted that following this discovery the Petroleum Exploration Development and Production Act
2004 was enacted by the National .Assembly and the government therefore embarked on promoting the petroleum exploration of The Gambia. Mr. Sanyang indicated that the efforts had resulted in the signing of two petroleum exploration development licenses, namely, A1 and A4. He added that the underlying principle is to make sure that petroleum exploration provide maximum benefit for The Gambia and to avoid all the obstacles that others encountered during the negotiation with the international companies.
Mr. Sanyang highlighted that certain clauses of the Petroleum Exploration Development and Production Act 2004 need amendments to make the Act robust, competitive and better able to subscribe to the interest of the nation. Mr. Sanyang further added that petroleum exploration has many uncertainties; therefore, it is necessary to amend it. He indicated that the Bill would build confidence and that would serve as an important element for attracting capital for the sector.
Mr. Sanyang indicated that the government, in collaboration with the Gambia Revenue Authority, Department of State for Justice and other stakeholders have critically looked at the Petroleum Act 2004 to recommend for the necessary amendments.
He indicated that according to the new Bill, the following sections of the petroleum Act 2004 are to be amended.
Section 29 subsection (3) reads "Any license issued on this act shall only be governed by previous Acts", the proposed amendment is to conform to international industrial practice of minimising unnecessary legislative difficulties to investors.
Section 30 provides for a possible extension of license period. The proposed amendment is to give the Secretary of State responsible for petroleum matters the mandate to extend the period indicated in a licence to not more than ten years. Mr. Sanyang highlighted that this section gives a valedictory period of 30 years with no room for renewal or extension of license.
Section (43), this Act provides that licenses shall use goods and services produced in The Gambia while the goods and services are competitive and concurrent with international standard. The modern provision provides that goods and services be used when they are available at prices not more than 10% higher than those offered by international suppliers.
Section (46) of the amendment aimed to provide parties with an option to agree on terms of petroleum products to be sold to the government in case of emergency and also ensure consistency between the parties.
Section (46) the original Act (2004) provided that only in circumstances such as war or state of emergency, the license may be required to sell to the government and section 19.2 modern petroleum license provide for a discount of 0.05 dollars per barrel.
Section (57) aimed to remove the custodial sentences imposed upon offenders and to limit the amount of fine. The proposed amendment is to conform to international industrial petroleum practice and legislation and to build greater confidence in all investors by not subjecting defaulters to higher fines or jail terms. Mr. Sanyang went on to say that the proposed amendments are to build a solid framework for the petroleum sector through the creation of international competitive legislation and regulatory framework.
He highlighted that the main objectives of the amendment are to
1) continue to provide an enabling environment through a suitable and competitive legislative framework and promote local investors of petroleum products and resources in The Gambia;
2) provide higher advantageous incentives in The Gambia present in the modern petroleum licenses but which are absent in the petroleum Act 2004 and;
3) provide greater investment and build greater confidence in the companies to invest in petroleum exploration, development and production in The Gambia.
The motion was seconded by the Majority Leader and member for Serrekunda East, Fabakary Tombong Jatta.
Hon. Tombong Jatta indicated that the Bill is a non-controversial one because the SOS has the reasons for the need to amend the Bill. He gave a brief explanation of the Bill.
Source: Foroyaa Newspaper Burning Issue
Issue No. 029/2007, 12 13 March, 2007
To be continued
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