Petroleum Revenue J\ianagement Act 815

Act, 2011

ARRl\cNGEMENT OF SECTIONS
Section
Preliminatymatters
1. Application
2. EstablishmentofPetroleum HoldLl1g Fund
3. Paymentinto Petroleum HoldingFund
4. Paymentv'lith petroleuminplace ofcash
5. Prohibited use ofPetroleum Holding Fund
6. PetroleumHoldingFundreceipts
Otherpetroleum receipts
7. Carried andparticipating interest
8. Transparencyandaccountability ofpetroleumreceipts
Allocationsanddisbursements
9. Estabhshmentand objectofthe Ghana StabilisationFund
10. Establishmentandobjectofthe GhanaHeritage Fund
II. GhanaPetroleumFunds
12. "\Vithdrawals from the Ghana Stabilisation Fund
D. Vlithdrawals from the GhanaHeritage Fund
14. Finality ofpayments
15. Reconciliations ofPetroleum Holding Fund
16. Disbursementfrom the Petroleum HoldingFund
17. BenchmarkRevenue
18. TheAnnualBudgetFundingAmount
19. Transfers into the Consolidated Fund
20. Consolidation ofGhana Stabilisation Fund and Ghana Heritage
Fund
21. Use ofthe AnnualBudgetFundirlgAmount
22. Extra budgetary activities and statutory earmarking prohibited
23. Transfers into th.e Ghana Heritage Fund and Ghana Stabilisation
Fund
24. Transfers for exceptional purposes
Managementandinvestmentof Ghana Petroleum Funds
25. Obligations ofthe 11:inister
26. J\1:anagement obligations ofthe Bank ofGhana
27. Investmentrules
Act 815
Pctroreurn Revenue IVfana;eremen(
'-'
20ll
28. Reportsonthe GhanaPetroleum Funds
29. EstablishmentofInvestment AdvtSOi"Y Committee
30. Functions ofthe InvestmentAdvisory Committee
31. Appointmentofmemhers ofthe Investm.:::Ht AdvisoryCommittee
32. Tenure ofoffice ofmembers
33. J\.1eetings the InvestmentAdvisoryCommittee
Disclosure ofinterest
35. PublicationofmembershipofLhe InvestmentAdvisoryCcmur;ittee
36 Allowances
37. Secretanatofthe InvestmentAdvISory Committee
38. Absence ofadvice from the Investn1ent Comrniittee
39. Release ofadVICe from theInvestmeElAdvisoryCommitt<,e
An 0 'gh . D 1
-:r:v. verSl
o
t or ana reportrngontne lillanaLctrmeUITI
Encumbnznces, auditing and reporting
41. EncumbrancesontheassetsofthePetroieumHoldingFundand
GhanaPetroleum Funds
Audit ofthe Petroleum Furuis
42. Public funds
d'"
Booksofthe PetroleumFunds
44. Intemal audit

. External audit
46. Ailllual audit
47..Special audits
48. AnnualreportonthePetroleumFunds
49. Transparency as a fundamental
50. Non-compliance vlith an obligation to pubhcise infi:Jrmatlo!,<
51. PublicInterest and ACCQUl1L'lbiliry Committee
52. Objects ofthe Accountability Committ;;e
53. Functions ofthe Accountcbility
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transparency ana' public ,.,,)..",",,'(11,;
Petroleum Revenue Management Act 815
Act, 2011
54. Membershipofthe Public InterestandAccountability Committee
55. Tenure ofmembers andeligibilityfDr appointment
56. Reporting
57. Allowances
Miscellaneous matters
58. Penalties
59. Transitional and fmal provisions
60. Regulations
61. Interpretation
SCHEDULES
3
Act 815
EIGHT HlJ"NDRED AND FIF1'EEl">iiH
ACT
OF PARLIAMENT OF THE REP LIe
OF GHANA
ENTITLED
PETROLEUJVf REVEI\ruE l\1ANAGE!\ffi1\l ACT
r
:D1iH 1
~ ACT to provide the framework for the coBection,
managementofpetroleum revenue m a responsible,
accountable and sustainable manner for the benefit
ofGhanain accordance \vithAn.ide36 of
related matuers.
DATE OF ASSENT: 11th April, 2011.
PASSED byParliamentand assentedtobythePresident:
Preliminary matters
Application
1. (1) This Actshall regulate the collection, allocat!Oll andmanage-
mentbygovelnmentofpetroieumrevenue cie11ved from upstream
midstream petroleum operations.
(2) \>"\!here there is any COlli"lict between the provisions ofthis
and
(a) anyotherenactment,or
(b) the terms, conditions and stipulations in a petroleum
authorisation,
onthe collectlOn, allocation and managementofpetroieum revenue, to.::
provisions ofthis Actshall prevaiL
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PetroleumRevenuelvfanagementAd,2011 Act 815
Establishmentof PetroleumHoldingFund
2. (l) APetroleumHoldingFundisherebyestablishedasadesignated
public fund at the BankofGhana to receive and disburse petroleum
revenueduetheRepublic.
(2) The petroleum revenue shall be deposited inthe Petroleum
HoldingFundforsubsequenttransfersinaccordancewiththeprovisions
ofthis Act.
PaymentintoPetroleumHoldingFund
3. (1) Petroleum revenue due the Republic derived from whatever
source shall be assessed, collected and accounted for by the Ghana
Revenue Authority.
(2) Thepetroleumrevenueassessedasdueineachmonthshallbe
paidbydirecttransferinto thePetroleumHoldingFundbythefifteenth
dayofthe ensuingmonthbythe entities obligedto makethe payment.
(3) TheentityshallnotifytheGhanaRevenueAuthorityin writing
ofthepaymentinto the PetroleumHoldingFund.
(4) Where the liability ofanentity to make a payment1S not dis-
chargedon orbefore the due date, the entityshallpay as a penalty, an
additionalfive percentoftheoriginalamountfor eachdayof defaultor
thedefaultrateestablishedunderanyothertaw, whicheveris higher.
(5) Forthe purposes ofthis Act, petroleumrevenue paidinto the
PetroleumHoldingFundshallnotbe
(aj treatedas partofthe normal tax revenuerorpurposes pro-
videdforinrelevantlawsoftheRepublic; and
(bj used as the basis for the determination ofany statutorily
earmarked funds.
Paymentwithpetroleuminplaceof cash
4. (l) Wheregovernmentelects forpaymentinpetroleuminsteadof
cash,thevalueof thepetroleuminUS Dollarsonthedaythepetroleum
is received by or on behalfofthe governmentshall be reported and
recordedby theGhanaRevenueAuthorityasthepaymentsforthePetro-
leumHolding Fund.
(2) The proceeds ofthe sale ofdie petroleumshallbe credited to
thePetroleumHoldingFundwithinsixtycalendardaysafterthe receipt
ofthe petroleum.
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Act 815
(3) \;llherepaymentsaremadeinpetroleum,theUSDollarequiva-
lentof thepaymentonthe of receiptshallbeshownasa receipt.inw
thePetroleum HoidingFundfor purposeofreporting.
ProhibiteduseofPetroleo:mHoldingFund
5. (l) The amount in the Petroleum Holding Fund earmarked for
transferintotheGhanaPetroleumFunds, shall notbe used
(a) to provide credit to the government, public enterprises,
private sectorentitiesoranyotherpersonorentity, and
(f;) as collateralfor guarantees, commitments or other
liabilitiesof anyotherentity.
(2) In order to preserve revenue streams from petroleum and
ensure objectof thisAct, shailnotbe anybOITO\'\liIlgagainst
Petroleum HoldingFund_
PetroleumHoldingFundreceipts
6. The - shall constitute th.e gross receipts of Petroleum
Holding Fund:
(a) royalties from and additional oil entitlements, sur-
face rentals, other receipts from any petroleum operations
and th.e saleorexport of petroleum;
(b) any amount from direct or indirectparticipation
of governmentin petroleum operations;
(c) corporate inoome taxes in cash from upstream and mid-
stream petrokum companies;
(d) anyamountpayablebythe national oilcompanyas corpo-
rate income tax, royalty, dividends, or any other amount
dueill acoordancewiththelawsofGhana; and
(e) any amollntreceived by government direcdy orh'1rlireccty
from petroleumresources notcoveredbyparagraphs (a) to
(d)i..'1:cludL.'lg\ ~ h e r e applicable,capitaigainstaxdenvedfrom
the saleof0\vnershipof exploration,developmentand
duclloD rights.
Otherpetmleum receipts
Carriedandparticipatinginterest
7. (1) Revenue due from the direct or indirect participationofthe
Republic in petroleum operations, induding the carried and additional
participatinginterests shaH be p;;:id into the Petroleum HoldingFund.
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Petroleum Rel'e11l-ie Manager1'1erttAct, 2011 Act 815
(2) ThepaymentintothePetroleumHoldingFundshailbenetof
(a) (he equity financing cost, including advances and interest
ofthe carried and participating interests ofthe Republic;
and
(b) thecashortheequivalentbarrelsof oilthatshallbecededto
thenationaloilcompanyoutof thecarriedandparticipating
interests recommended by the Minister and approvedby
Parliament.
(3) For a period notexceeding fifteen years after the commence-
mentofthis Act, the cash orthe equivalentinbarrels ofoil ceded to a
nationaloilcompanyshall
(a) notexceed fifty-five percentofthe net cash flow from the
carried andparticipatinginterests afterdeductingtheequity
financing costunderparagraph (aJ ofsubsection(2); and
(b) bereviewedeverythreeyearsbyParliament,butParliament
shallin each year approve the programme ofactivities of
the national oilcompany.
Transparencyandaccountabilityof petroleumreceipts
8. (1) Forthepurposeoftransparencyandaccountability,therecords
ofpetroleumreceiptsin whateverform,shaH simultaneouslybepublished
bythe:Ministerin theGazetteandillat leasttwostateowneddailyne'Nspapers,
withinthirtycalendardaysaftertheendoftheapplicablequarter.
(2) The information required to be made public shall also be
publisbed online on the website ofthe Mmistry and pTesented to
Parliamentonthe date ofthe Gazettepublication.
(3) The Minister shall publish the total petroleum output lifted
andthereferenceprioein thesamemannerasprovidedin subsections(1)
and(2).
Allocationsanddisbursements
Establishmentandobjectof theGhanaStabilisation Fund
9. (1) A GhanaStabilisationFundis herebyestablished.
(2) The object ofthe GhanaStabilisation Fundis to cushion the
impacton or sustainpublic expendit"ure capacity during periods ofun-
anticipatedpetroleumrevenue shortfalls,
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Act 815 201 J
(3) The Ghana Stabilisation Fund shaH receive from the
Petroleum Holding Fund a percentageofpetroleum revenue
determinedbyPariia.rnent as savings torthepurpose ofthis
Establishmentandobjectof theGhanaHerit.ageFund
10. (1) A GhanaHeritageFundis herebyestablished.
(2) Theobject the GhanaHeritageFund is to
(aJ provide an endm",rment to support development for
fiJ!Ure generations \\'hen petroleum reserves have bef:n
depleted; and
(b) receiveexcesspetroleum revenue.
(3) The Ghana Heritage Fundshall receive from the Petroieurn
Hoiding Fund a percentage petroleum revenue which be
detenllmedbyPadiamentas savings forthe purpose ofthis Act.
(4) Despitesection20, Parliamentmaybya resolutionsupported
bytheyotesof a majorityof membersof ParbamentZit intervalsof
years homthedate commencementof this/\<:t, feviev;r the
ontransfersfromtheGhallaHeritageFundandauthorisea transfer
portion ofthe accrued iIlterest on the Ghana Fund mto amy
funa establishedbyorunderthis Act.
GhanaPetroleumFunds
11. (1) TheGhanaStabilisationFlind theGhanaHeritageFU:ld
arccoilectivelyto bekn.owIlastheGhanaPetroleumFunds.
(2) The Ghana Petroleum Funds shaH both receive from
Petroleum Holdh'lg Fund, petro[eum revenue ill excess ofthe Annual
Budget FundingAmount.
'VithdrawaIsfromth.cGhana StabilisationFund
i2. (1) V"'here petroleumrevenuecollectedin 2.ny quarterfalls bdow
one quarter ofthe Annual Budget Funding Amount fOT that financizl
year, withdrawals maybe made from Ghana Stabilisation1
7
und.
(2) Theallmvable amounttobe withdraWTl. shall lesser
(a) seventy-five percent the estimated amount ofthe
fC'ell tho. t , or
(b) nventy-fiw.' ofthe balance standingto the creditof
thcGhanaStabilisationFundatLhcbeginningof fimmci2J
year.
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PetroleumRevenueA1.anagementAct, 2011 Act 815
(3) In the event ofpetroleum revenue shortfalls in the second and
third quarter of the same fmancial year, the amount to be withdrawn at
end of the third quarter from the Ghana Stabilisation Fund shall be
double the allowable amount of the third qualter shortfall.
(4) If there are successive shortfalls in any of the preceding quar-
ters in the same financial year, the fourth quarter withdrawal from both
the Petroleum Holding Fund and the Ghana Stabilisation Fund shall be
enough to meet the Annual Budget Funding Amount approved in the
Appropriation Bill for that fmandal year, subject to section 19 (2)
(5) Transfer out of the Ghana Stabilisation Fund shall onlybe done
for the purpose of alleviating shortfalls in acrual petroleum revenue in
accordance with subsections (1), (2), (3) and (4).
Withdra.wals from the Ghana Heritage Fund
13. \Vithdrawals from the Ghana Heritage Fund shall be in accor-
dance with the transfer procedures in section 20_
Finality ofpayments
14. An obligation to make a payment into the Petroleum Holding
Fund, the Ghana Stabilisation Fund or the Ghana Heritage Fund shall
not be discharged until the entire amount has been deposited in.tegra.liy
and unconditionally into the respective earmarked funds.
Reconciliations of Petroleum Holding Fund
15. (I) Not later than the end of the first quarter ofeach year after the
commencement of this Act, the lviinister shali reconcile the acrual total
petroleum receipts and the Annual Budget Funding Amount of the im-
mediately preceding year and shall submit a written repO!t to Parliament.
(2) The report shall include the following information:
(a) the Annual Budget Funding Amount for the immediately
preceding two years;
(b) the actual inflows and outflows of the Petroleum Holding
Fund for that year;
(c) the balance of actual receipts for the year being reconciled
over the Annual Budget Funding Amount; and
(dJ recommendations for the reconciliations and adjustments
needed to account for any deviations so that the inflows and
outflows related to the Ghana Petroleum Funds match the
9
Act 815
a.ctuals oftheyear.
(3) Tile reportshall published in the Gazetteand atleast t,,,ro
stateowneddailynewspapersnotlaterthanApril30
1
1: ofthe in
the reconcilIation is carried out.
DisbursementfromthePetroleumHoldingFund
16. Disbursements from PetroleumHoldingFund. shall be made
only
((1) 1D the ConsolidatedFundinsupportof national
(b) to theGhana PetroleumFundsforpurposesof and
Investments, and
(c) for exceptional deductions according to the provls1oIlS
this Act.
Bencbm.ark Reveurre
17. TheIVlinlstershallnotlaterthanSeptember1
st
of each estlrrilatc
andcertiJ."'Y theBenchmarkRevenueusingtheformula setOUt in theFiTst
Schedule.
TheiuumalBudgetFundingAmount
18. (1) The Annual Budget Funding Amount from petroleum
revenueshallnotbemorethanseventypercentoftheBendlluarkRevenue.
(2) Theexactpercentageofthe BenchmarkRevenuewhichshall
be allocated annually to ~ e Annual BudgetFunding Arnount shall
guidedbya medium-termdevelopmentsrrategyaiig:!ledwithalongterm
nationaldevelopmentplan, absorptive capacityoftheeconomyandthe
need for prudentmacroecDnomic management.
(3) financial year, the percentage of the Benchmark
Revenue allocated for the Annual BudgetFunding AmountshaH
approvedbyParliamentas partofthe nationalbudget.
(4) Thespendingallocationdeterminedundersubsection(1)ShetH
be rc\'iewed every three years "'lith the first rCV1CV,r to occurbefore L'r-J:C
commencementofthe 2014 financialyear.
(5) The revie'N shall be conducted by the Minister taking into
account developmentneeds as well as the ahsorptiye capacityof
economyandcognisantof needto maintainmacroeconomicstability-
(6) Anyproposedchangesfollowmgthereviewshall subjectto
ratification by a resolution ofParlia.ment supponedby the votes not
less than two-thirds ofthe members ofthe Parliarnent.
10
PetroleumRel}(!nUe A1(magement 2011 Act 815
(7) TheAnnualBudgetFundLngAmountmaybeusedascollateral
for debts and other liabilities ofGovernment for a period ofnot morc
thantenyearsafterthecommencementofthis AcL
TransfersintotheConsolidatedFund
19. (1) Transfer of the Annual BudgetFunding Amount from the
Petroleum HoldingFund into the ConsolidatedFund
(aJ shallbein quarterlyinstalmentsof anamountnotmorethan
one-quarterofthe Arumal Budget FundingAmount; and
(b) shallonlytakeplaceafterpublicationof theAnnualBudget
in the Gazette confirming the appropriation amount
approved by Parliament for thatfinancial year.
(2) The total amount withdrawn from the Petroleum Holding
Fund for budget funding for any financial year shall not exceed the
AnnualBudgetFundingAmountapprovedbyParliamentfor thatfinan-
cialyear.
Consolidationof Gh.anaStabilisationFundandGhanaHeritageFund
lV. (1) \Vithin one year after petroleum reserves are depleted, the
moneysheld inboththe GhanaStabilisationFund and GhanaHeritage
Fundshallbeconsolidatedintoa singleFundtobef-.nown as theGhana
Petroleum Wealth Fundafter which the Ghana Stabilisation Fundand
theGhanaHeritage Fundshallceasetoexist.
(2) Afterpetroleumreservesaredepleted,theAnnualBudget Funding
Amount shall notexceed the sum ofdividends from the national oil
companyandthe earnings onthe GhanaPetroleumWealth Fund.
UseofAnnualBudgetFundingAmount
21. (1) TheAnnualBudgetFundingAmountis partofthe national
budget and its use and expenditure are subject to the same budgetary
processesthatarenecessarytoensureefficientalioc.ation,responsibleuse
and effective monitoringofexpenditure.
(2) TheuseoftheannualallocationoftheAnnualBudgetFunding
Amountshallbe
(a) to maximise the rate ofeconomicdevelopment;
(b) to promote equality ofeconomic opportunity with a view
toensure the well-being ofcitizens;
(c) toundertakeevenand balanceddevelopmentoftheregions;
and
1J
7/1 I i
_,',--, j 1 Act 815 Revenue
(d) guided hy a iurn-ter1:11
with a national
ParLiament.
(3) Vlhcre the iong-term national development plan approved
Parliament is nor inplace, the spending of petroleum revenue wiu'lin the
budget shaH give priority to, but not be limited to or
relating to
(aJ i'lgricuItUfC and industry;
(b) physical infrastructure and senrice delivery in educatior;.,
science and technology;
(c) potable "vater delivery and sanJtatio:n;
(d) mfrasrructure development in telecommunication, road, rail
and port;
(e) physicat infrastrucmre and service delivery 1.'1 health;
(f) housing delivery;
(g) environmental protection, sustaLl1abk utilisation and
protection of natural resources;
(11) mral dcveIoprnent;
(t) developing alternative energy sources;
(j) the strengthenmg of institutions of government concerned
w i t ~ governance and the mamtenance of law and order;
(k) public saJety and security; and
(l) provision of social welfare and the protection of the
cally handicapped and disadvantaged citizeas.
(4) For any fmancial year, a mmimum of seventy percent of the
Annual Budget Funding Amount shall be used for public investmerrt
expenditures consistent \vith the long-term national development plan or
with subsection (3).
(5) In order to maximISe the impact of the use of the petroleum
revenue, the Minister shall pnoritise not more than four areas specifi<:d
ill subsection (3) when submitting a programme of activit:ies for the use
of the petroleum revenue.
(6) The programme shall be reviewed every three years arr.er the
milial prioritisatioIl, except that in the event a national disaster,
f'A:inister may make a special request to Parliament a release of rcy-
Cflue.
12
PetrolewnRevenuelvfanagementAct, 2011 Act 8i5
EX"cra budgetary activities and statutory earmarking prohibited
22. Outside of the allocation of the Petroleum Holding Fund, extra
budgetary activities or statutory earmarking of petroleum revenue for
any consideration is prohibited.
Transfers into the Ghana Heritage Fund and Ghana Stabilisation Fund
23. (1) Commencing in the year 2011 until the year when petroleum
production ceases, the following rules shall apply:
(aJ where petroleum revenue collected in each quarter of any
financial year exceeds one-quarter of the Annual Budget
Funding Amount of the ffiancial year, as determined in
section 18, the United States Dollar equivalent of the excess
revenue conected shall be transferred from the Petroleum
Holding Fund into the Ghana Petroleum Funds, and
(b) a minimum of thirty percent of the excess revenue deter-
mmed in subsection (1) (aJ shall be transferred into the
Ghana Heritage Fund and the balance shall be transferred
into the Ghana Stabilisation Fund each quarter.
(2) The split in subsection (1) (b) of the excess revenue shall be
reviewed every three years, exclusive of the year of revision, with the first
revision to occur in 2014.
(3) Th.c accumulated resources of the Ghana Stabilisation Fund
shall not exceed an amount recommended by the 11inister and approved
by Parliament and the amount shall be reviewed from time to time as
necessitated by macroeconomic conditions.
(4) Once the amount is attained, subsequent transfers into the
Ghana Stabilisation Fund shall be allocated as transfers into t..he Contin-
gency Fund or for debt repayment approved by Parliament.
(5) The transfer and any subsequent transfers shall be made not
tater than the end of the month after the quarter in respect of which the
excess revenue \vas calcuLated.
Transfers for exceptional purposes
24. (1) ,Vhere a transfer is made from the Petroleum Holding Fund
for exceptional purposes to refund tax overpayment and to pay manage-
ment fees, the rransfer amount shall represent a reduction of the Petro-
leum Holdin.g Fund receipts and shall not be considered as part of the
allowable transfer under the relevant Appropriation Act.
13
Act 815
2{)] j
(
2) Vlher'e <onp
r
'7lt-'",""s 0 Clr-
j
<IPd l"l'-t
\, y .... J:UI. 1",,--'1",-- ",-,_"",,"- ..... "_-4-il- "" 'l.-, '--<Ll."'-
priate royalties shaH be paid 111 accor<i<mce relevant laws.
(3) Vthere petroleum operations affect a commun.!tj,
appropriate compensation shaH be paid fiJf the benefit of the corru:nu-
rutyin accordance vfith the rdevant lavvs.
Managemenrandinvestme1!.Iof GhanaPetroleum Funds
Obligations ofthe Minister
25. The Minister shall
(a) develop an investment policy the investment of the
Ghana Petroleum Funds;
(b) be responsible for the overall management of the Ghana
Petroleum Funru and shall eversee the lTansfcrs into ;:uul
disbursements from the Ghana Fetroleum Funds,
(c) make decisions in relation to investment strategy or
management of the Ghana Petroleum Funds after .''-\_<''-J<).4::,
the advice of the Investment Advisory Committee and the
Governor, subject [Q the provisions of section 38,
(d) enter into an Operations Management Agreement \vith
Bank of Ghana for the operationai management of the
Ghana Petroleum Funds, inform and substance simil?,!" to
the format inthe Second Schedule,
'Mwagement obligations of the Bank of Ghana
26. (1) The Bank of Ghana is responsible for the day-to-day
management of the Petroleum Ho!ding Fund, the Ghana
Petroleum Funds and subsequently the Ghan.a Petroleum \Vealth Fund
under the terms of the Operations lvfanagement Agreement.
(2) The Bank of Ghana shall manage the Ghana Petroleum Funds
and subsequently the Ghana Petroleum \Vealth Fund prudently \vithin
the framework of the operational and management strategy prm'ided by
LhtMinister, taking cognisance of
(a) L'1Vestment guidelh'1cS used by the of Ghana for invest-
ments of a similar nature,
(b) established and intemationaUy recognised principles ofgood
governance for the benefit of the Republic of Ghamt, and
(c) the need to support the national currency against ciestabilising
factors in accordance with national and foreign
exchange policies.
PetroleumRevenuelrfanagemenrAct, 201J Act 815
Investment rules
'27. (l) The resources of the Ghana Petroleum Funds and subsequently
the Ghana Petroleum Wealth Fund shall be invested in quahfying instru-
ments prescribed by Executive Instrument.
(2) The range of instruments designated as qualifying instruments
shall be reviewed every three years or sooner by the Minister on the
advice of the Investment Advisory Committee.
Reports on the Ghana Petroleum Funds
28. (1) The Bank of Ghana shall present to the Minister and to the
Invcstment AdvisOfY Commitlee, quarterly reports on the performance
and activities of the Ghana Stabilisation Fund and the Ghana Heritage
Fund. not later than the end of the month follmving the end of each quarter.
(2) The Bank of Ghana shall publish semI-annual reports on the
Ghana Stabilisation Fund and the Ghana Heritage Fund not later than
the 15th of February and the 15th of August of each year and shall present
the report to Parliament and publish it in two state owned national dailies
and on the website of the Bank.
InvestmentAdvisory Committee
Establishment of Investment Advisory Committee
29. There is hereby established an Investment Advisory Committee
to advise the Minister and for the general performance monitoring of
the management of the Ghana Petroleum Funds.
Functions of tbe Investment Advisory Committee
30. (1) The functions of the Investment Advisory Committee are to
(aJ formulate and propose to the Minister the investment poLicy
and management of the Ghana Stabilisation Fund and the
Ghana Heritage Fund and the Minister shall submit it for
approval by Parliament;
(b) advise the Minister on the broad investment guidelines and
overall management strategies relating to the Ghana Petro-
leum Funds and subsequently the Ghana Petroleum Wealth
Fund that the Ivf.inister shall provide to the Governor, taking
cognisance of international best practice of investments of
a similar nature; and
15
lO}}
inister as part the
iil"1eS, the benchmark the desired returns from
the associated risks of the Ghana Petroleum Funds
sequemly the Ghana Peu-oleumWealth Fund taking into
consideration the investment guidelines used by
cf Ghana mvestments of a similar nature.
(2) Any advice given by the Investment AdVl.sory Committee oa
i.nvestment strategy or the management of the Ghana Stabilisation fm-r;d
and ti'1e Heritage Fund shaH take into account:
(a) overaU consideration that the Ghana Peuo[eun1
are funds from the exploitation of non-renewable petroleum
resources and the overall objective that they are for the
benefit of current and future generations of citizens of
Ghana;
(0) the current economic conditions, oppormnitics and con-
straints in investment markets and the constramts
which the Bank Ghana and other key institutions Hl
Ghana op-cra;:e: and
(c) the need to ensure that sunlcient funds are available
needed for transfers to meet unanticipated petroleum
revenue shortfalls.
Appointment of members of the Iuvestment Advisory Committee
31. (1) The Investment AdVIsory Committee cmnplises seven mem-
bers, at least one of 'v{hom is a ""';0man, \vho shall be persons of proven.
C0f11perence in finance, investment, economics, business management or
raw or similar disciplines_
(2) A person is no;: qualified to be a member of L..'1e Investment
Advisory Committee if that person
(a) is not a citizen;
(0) has been convicted a fdony or an offence involvh'1.g dis-

(c) is adjudged to be a person of unsound mind;
(d) in the case of it persOll in possession of a professional quaE-
fication is disqualified or suspended from pranising the pro-
fession of that person by order of a competent authority
made in person.
16
Petroleum Revenue l\fanagement Act, 2011 Act 815
(3) The ivfinister in with the Governor shall noml-
nate tile members of the Advisory Committee for appoint-
ment by the President.
(4) The President shall the chairperson of the Investment
Advisory Committee.
Temn-e of office of members
32. (1) A member of the Advisory Committee shall hold
office for t\vo or three years and is eligible for re-appointment, but a
member shall not be appointed more than t\.vo consecutive terms.
(2) Despite subsection (1), a member appointed for a three-year
term is not ehgibl.e for re-appointment.
(3) A member appointed for a two-year term is eligible for one
re-appointment but only for another tv;ro year term.
(4) The President shall appoint three of the members for three
years and four of the members for two years_
(5) A member of the Investment Advisory Committee may at any
time resign ITom office in writing addressed to the President through the
Minister.
(6) A member who is absent from two consecutive meetings of
the Investment Advisory Committee without sufficient cause ceases to be
a member of Investment Advisory Committee and shall be immedi-
atel.y replaced.
(7) The President may by letter addressed to a member revoke the
appointment of that member.
(8) Where a member of the Investment Advisory Committee is
for sufficient reason, unable to act as a member, the Minister shall deter-
mine whether the inability would result in a declaration of a vacancy_
(9) Where there is a vacancy
(a) under subsection (5), (6), (7) or section 34 (2),
(b) as a result of a declaration under subsection (8), or
(<-j by reason of the death of a member,
the Minister shall notify the President vacancy and the President
shall appoint another persoll to fill the vacancy.
17
Act 815 !
I"feetlngs theInvestmentAd\iso:ryCOfn.. '-nittee
33. (l) TheInvestmentAdvismyCommitteeshat! meeta.t om::e
eveiY quarteras ma.y become rrecessar:v for performanceofits
tions_
(2) Thechairpersonshallattherequestin bythreeorrnocc
membersofthe InvestmentAdvi.sory Committee convene anextraorcL-
nary ofthe InvestmentAdvisoryCommittee withinseven
afterreceiptof request.
(3) The quorum 2.[ a meetingofthe InvestmentAdvisory
mitteeis rIve members ofthe Investment Advisory Committee_
(4) The chalIperson shallpreside at meetings ofthe
Advisory Committee and L.'1 the absence ofthe chairperson, a.
electedbythe memberspresentfrom amongtheirnumbershallpreside.
(5) l\.1atters before InvestmentAdVIsory Committee shall
decidedbya majorityof thememberspresentandvotingandintheevent
anequalityofvotes, thememberpresidingshalthavea casting,rote.
(6) The Investment Advisory may co-opt a
\vithr:devanttechnical expertise to assist in of
tions_
(7) Co-optedmembersshellnotvoteonmattersbeforethe
mentAdvisory Committee_
Disclosu.reof interest
34. (l) A memberorco-optedmemberofthe InvestmentAdvisory
Committee who has an interest in a matter for considerationby
imrestmentAdvisory Committeeshall
(aJ disclose the natureofthatinterest the disdosure
form parrofthe recordofthe consideration ofthe
and
(b) not participate in the deliberations of
Advisory Committeeinrespectofthat matter_
(2) A memberceases tobea memberofthe Advisory
Committee, thatmeITlber hasaninterestin2. matter the
rnent AdvisoryCommittee
(a) fails to disclose thatinterest, or
(b) participatesinthedeliberations the
Committee inrespect ofthe matter.
J8
Petroleum Rewmue A1anagement 201 J Act 815
Publication of membership of the Investment Advisory- Committee
35. (1) The Minister shall cause the names of members of tbe Invest-
ment Advisory Committee to be published ill the Gazette.
(2) The Gazette pUblication shall be updated each time that the
membership of the Investment Advisory Committee changes.
Allo\yances
36. f..1:embers of the Investment Advisory Committee shall be paid
allowances determined by the Minister.
Seaetariat of the Advisory Committee
37. (I) The Ministry responsible for Finance shall provide the
secretariat for the Investment Advisory Committee and any other
administrative support or technical staff required by the Investment
Advisory Committee for the performance of it<; functions.
(2) A designated official of the Ministry responsible for FL"'1anCe
not below the rank of a Director shall be the Secretary to the Investment
Advisory Committee.
Absence of advice from the Investment Advisory Committee
38. (1) Where the Investment Advisory Committee is unable to pro-
vide advice to the Minister within ten working days after a request or
within a shorter period determined by the Minister, taking into account
the nature of the advice sought, the Minister may take a decision in con-
sultation with the Governor.
(2) Despite section 30 (1) (c), the Minister may take an urgent
investment or overaU management decision in consultation with the
Governor where there is insufficient time to seek the advice of the Invest-
ment Advisory Committee.
(3) V.rhere the Minister takes a decision without the advice of the
Investment Advisory Committee, the Minister shall inform the Invest-
ment Advisory Committee 'iNriring within forty-eight hours after taking
the decision.
(4) The Investment Advisory Committee shall advise the Minister
\vithin five days after receipt of the information.
(5) The Minister shall re-examine the decision made within forty-
eight hours having regard to the advice provided by the Investment
Advisory Committee and take the necessary follow-up action.
19
Act 815 ..t4ft, 1
Releaseofadvice Advisor-.r Conunittce
39. (1) The Illfinister Parila.rnemwith zmy advice
by the Invest.rnent Advisory '_,nLeur wIthinsevendays.
(2) The sevendaysafterL.'-le re-examination
ofthe decision 38 (5), inform ParEament
deCision.
Oversightofand ontheGhanaPetroleumFunds
40. (1) The Im'estmentAd.\-isory Committee shall submitquarterly
information reports . on tile pertonmmce and
tbe Ghana StabiLisa.tion Fund the Ghana Heritage Fund to
Ministernotlater than thirty workmgdays <tfter the receiptof quarterly
reports from the Bank ofGhana in accordiUlce with the reponing
requirements of the Bank of
(2) TheInvestmentAdyisoryCommitteeis responsible report-
ing to [he Iv1imster on performance and activities ofthe Ghana
Stabili.sation Fund and the Ghana Fund for th.e purpose of
reponing LT1 theannual budg,:t andfinanclcl statements.
, -
anc1 1<eIJottz-ng
Encumbranceson theassetsof thePetroleumHoldingFundandGhana
PetroleumFunds
41. (1) ThebalanceiII HoldingFundand assetsof
Ghana Petroleum Funds (toci subsequemly the Ghana Petroleurn
'WealthFundshall the ofthe Republic ofGhana.
(2) Anycontract, orarrangement,totheextenttbatit
encumbersO[purportstoencumberLhe asset') thePetroleumHolding
Fund and the Ghana Petroleum Funds \Vhetller by \'itay of
securi.ty, mortgage oranyotherform ofencumbranceis contraryto rins
Actandis null andvoid.
(3) A courtshallnOt a.norderfortheattachmemof
i.n the PetroleumFunds
Alldt Petroleum Funds
Publicfunds
1!2. The PetroleumHokiingFund, the Ghana Petroleum Funds and
subsequentlytheGhanaPetroleum \VealthFundarepublictundsfor
ofarticle 1 COnstittltiorL
PetroleumRevenueManagementAct, 2011 Act 815
BooksofthePetroleumFunds
4.3. The Bank ofGhana shall keep properbooks ofaccounts and
records on the Petroleum Holding Fund, the Ghana Petroleum Funds
andsubsequentlytheGhanaPetroleum WealthFund.
Internalaudit
44.. (1) Thebooks accounts,records,otherdocuments,systemsand
proceduresrelatingtothePetroleumFundsshallbeauditedbytheInternal
AuditDepartmentofthe Bank ofGhana.
(2) The Governor shall submit quarterly reports to the J\1i."1lster
andany otherpersonrequiredbylawto receivethereport.
Externalaudit
45. (1) The Auditor-General is responsible for the external audit of
the PetroleumFundsandshallauditthoseFundseachyear.
(2) TheAuditor-General maydelegateresponsibilityasprovided
forbylaw.
(3) Wherethe Auditor-Generaldelegates theduties, the appoint-
mentofthe external auditor shall be for a period notexceeding three
years andis notrenewable.
Annualaudit
46. (1) TheBankof Ghanashallnotlaterthanthreemonthsafterthe
end ofitsfinancialyear,submittotheAuditor-Generalthefinancialstate-
ments andrelevantdocuments onthe PetroleumFunds for audit.
(2) TheAuditor-General shall, notlaterthan three months after
the receipt ofthe fmancial statements and other relevant documents
referred to insubsection 0), submitthe auditedreportto Parliament.
(3) The j'1."uditor-General shall determine if
(a) theaccountshave beenproperlykept;
(b) thepaymentsduetoanddisbursementsfromthePetroleum
Fundshavebeenmade; and
(e) thePetroleumFundshavebeenmanagedinaccordancewith
the provisions ofthis Act.
(4) TheAuditor-GeneralshallpublishthereportsonthePetroleum
Funds within thirty days aftersubmission to Parliament.
(5) TheAuditor-Generalshalldrawattentionin thereportto any
irregularities orany other matterwhich in the opinion ofthe Auditor-
Generaloughtto bebroUght to the notice ofParliament.
21
Act 8i5
ZOff
SpeciaJ,HHiit
47. In addition to the audit prescribed in seclion 45, the Auditof-
Genera] maycarryout specialaudits or[('\'jewsofthePetrokuIn
LTl thepublicmtcr{'standshallsubmitto reportson
or
li.nnnalreportonthePerroleu.mFunds
48. (1) Ther,1inistershallsubmitanannualreport onthe Petroleum.
Fuads a.s panofthe annual presentation ofthe budget stcu:ement and
economicpolicies to Parliament.
a.nnualrepOlt shallbepreparedin a marmerthat makes; it
easyfor to thepublicandshaH include[hefollowing mfor-
mation the fmanc.i.aI yearfor which the reportis prepared:
(a) auditedfinancial statements ofthe previous year compris-
(i) thereceiptsandtransferstoand thePetroleum
Holding Fund,
(Ii) the dcvClsirs into and wlthdTa\vals from Gharl.il
Stabilisation Fund andthe Ghc.na Heritage Fund,
and
(iii) abalance mdudinga notelisting quaLify-
rng instruments ofthe GhanaPetroleumFunds;
(b) a report from the M:inister describL.11g the stage ofimple-
mentiition ofthe programmed activities funded by and the:
expenditures incurred on the activities covered by the
Annual Budget Funding Amountin the financial year of
Lite report.;
(c) a reportSigned by the h1i.nlster desGibing the activities
thePetroleumFunds in the financial yearofthereport, in-
cluding the advice provided by the Investment Advisory
Committee, anyreports prepared tbe Auditor
drav..-ing attention to particular l.ssues ormatters that
be ofconcernorinterest to Parliament;
(d) the income derived from the inycstment of the Ghane.
Stabi.lisation Fund and Ghana. Fund during the
fmancial year under review compared \vith the mcome
the preYlOUS tvw financiai years;
Petroleum Re.>efiueManagementAct, 2011 Act 815
(e) a of the income in paragraph (d) with
. (i} the benchmark performance indices provided to
Minister, and
. (ii) the income of the previous nvofinanClaI years;
(I) the liabilities of government borrowings; and
(g) alist of persons holding positions required for the opera-
tion and performance of the Ghana Stabilisation Fund and
the .Ghana Heritage Fund, induding
(i) the rvfinister,
(ii) the chairperson and members of the Investment
Advisory Committee,
Oii) the Governor, and
(iv) the investment manager, if any.
(3) The sources of the information described in subsection (2) in
whatever form induding the reports and statements, shall be annexed to
the annual report
Accountability, transparency andpublicoversight
Transparency as a fundamental principle
49. (1) The management of petroleum revenue and savings shall always
be carried out with the highestinternationally accepted standards oftrans-
parency and good governance.
(2) The duties concerned with ancillary matters ofpetroleum revenue
and savings shall be discharged with the highest internationally accepted
standards of transparency and good governance.
(3) Information or data. the disclosure of which could in
particular prejudice significantly the perfonnance of the Ghana Petro-
leum Funds may be declared by die Minister as confidential, subject to
the approval of Parliament.
(4) The declaration of confidentiality shall provide a dear expla-
nation of the reason for treating the information or data as classified,
taking into account the principles of transparency and the right of the
public to information.
(5) The declaration of confidentiality shall not limit access to
information by Parliament and the Public Interest Accountabilir-y' Com-
mittee established under tIns Act.
Act 815
(6) Any is dassified at the
havebeenpublished,as asthereasonforitbeingtreatedas
shaHbe av-ailabk: to tbe publicuponrequestthree years
da'teonWhlCh itcould beenpublished tbereason
dassifiedis stillvalid.
(7) Parliament, the the ofGhauB. and the
Hllent Advisory Committee :m dIe performance oftheu fl.mctions
thisAct,shalltakethe measurestoentrenchtransparencymech,'l'
msms fiee access thepublic to information.
(8) Thel'v'fhfl.ister shallensure til.at this Actana instruc1L'iom;
rdated to the Petroleum Funds, the Operations ManagemcxIr
AgTeement rhe aml11?J reportsare readilyavailableto the
Non-compliancewit"J].anobligationtopaulioiseinfo:rmatl{)H
50. person,,,rho to complyvI{itfl1 anyobligation to publish irc-
f'Ormation provided in. this orcauses another 2.[1
with infonnation, or in any manner hinders or C8..HSeS
personw iundcrtile obligations,conunitsan'-..,;..'c....."",;._"-
andisliableonSmI'iffii.l'.ryconvictiontoa. fine notexceedingt\'i'O hundre.d
andfifty penalty
Pmlb.IicInterestandAcco,uutability Committee
51. A PublicInterest AccountabilityCommitteeis hereby....",;cc"cr
ObjectsoftheAccolfUlti'iluiiityComt:ruttee
52.. objecr.s Accoumabiiity Committeeare:
(aJ LD monitorandcv;:;Juarccompliancewiththis by govenii-
mentandotherreleva.ntinstitutionsinthemana.gement
useofthepetroleum revenuesand irlVest.rtl.ent5 as
in this
(b) to proVIde space platform the public to debate
whether spending prospects and management use
revenues conform to development priorities as provid,:'4i:
section 21 (3); and
(c) toprovideindependentassessmentson(hemanagernent.('(nd
use of m revenues to Parliament and
executiveill rbe andperfonnance f<:"inc-
tions
Petmleum 0'''''''''''''0 lvfanagemenfAct, 2011 Act 815
FunctionsoftbeAccountabilityCommittee
53. (1) To achieve its objects., theAccountabilityCommitteeshall
(a) consultwidelyonbestpracticerelated to management
anduse ofpetroleum revenues; and
(b) determinetherulesofprocedureunderwhichitwilloperate.
(2) TheAccountability Committeeshallhave its ownsecretariat
that will facilitate the performance ofits functions
MembershipofthePublicInterestandAccountabilityCommittee
54. (1) The Accountability Committee consists ofeleven members
including
(a) a member to represent independent policy research think
tanks nominatedby thethink-tanks,
(b) a membertorepresentcivil-societyorganisationsandcom-
munity-based organisations nominated bycivil society,
(c) a membereachnominatedbythe
(i) Trade Union Congress,
(ii) NationalHouseofChiefs,
(iii) Association ofQueenMothers,
(iv) Association ofGhana Industries and Chamber of
Commerce,
(v) Ghana Journalists Association,
(vi) GhanaBar Association,
(vii)InstituteofCharteredAccountants,
(viii)Ghana Extractive Industries Transparency Initia-
tive; and .
(ix) Christian groups namely the National Catholic
Secretariat, the Christian Council and the Ghana
PentecostalCouncilona rotationalbasis,
(x) theFederationofMuslimCouncilsandAhmadiyya
Mission ona rotationalbasis, and
(xi) GhanaAcademyof Arts andSciences.
(2) The members ofthe Accountability Committee shall be
appointedby Llre Minister.
(3) A decisionoftheAccountabilityComnutteeshallonlybebinding
if takenbya majoritywitha quorumofnine members.
(4) Thecommitteemembersshallelecttheir 0 .....'11 chairpersonfrom
amongthe members attheirfirst meeting.
Act 815 Aa, 2{)]I
TenHt"eofmembcl"Sandeligibilityforappointment
55. (1) Thetenure of office ofa memberof theAccountabilityCOin-
minceshaH be rn'oor years. .
(2) A member appointed for a tv.'o year tenure is digible fClf
fe-appoi.ntmentbutnotfor more than twoconsecutive terms_
(3) A memberappomtedforat\'w-yeartermis onlyeligibletobe
apPGinted for anothert\vo yearterm. .
(4) A memberappomted a three year term is noteligible fur
fe-appointment.
(5) A person is noteligible for appointment thatperson
(a) hasbeen adjudgedorothenvisedecLued,
(i) bankruptunderanylav/ m force m Ghanaandhz-s
notbeendischarged; or
(li) tobe unsoundmindoris detainedasanoffender
witb mental disorder under any law in ferree in
Ghana; or
(b) hasbeencmwlctedfor
(i) high crime underthe Constitution or high treason
ortreason or for an h'1volving th(' security
ofthe fraud, dishonesty ormoral turpituru.::
or
(ii) pl1l1lshabie by death or by a
sentence not lessthantenyears; or
(iii) an offence relating to, orconnected with election
undera law inforce in Ghanaatanytime; or
(c) hasbeenfoundbythe reportof acommissionora cOfil.. l1littee
ofinquiry to be incompetent to holdpublic office or is a
person in respect whom a commission orcommittee of
inquiryh.as found thatwhilebeiIlga publicofficeracquired
assetsunlawfuByordefraudedtheSr.ateormisusedorabused
office,orw'ilfuliy ina mannerprejudicialtotheinterest
ofthe State, and the findings hayc notbeen setaside Of;
appeal orjudicial review; or
(d) is under sentence death orother sentence ofimprison-
mentimposedbyanycourt; or
(e) isotherwisedisqualifiedbya la\v lJ1 force atthetime the:
commencement the Constitutionwhich is not
tent with a pWYlsion ofthe Constimcion.
PetroleumRevenue}"fanagementAct, 2011 Act 815
(6) Members appointed to the Accountability Committee have
securityoftenm-eandunlessotherwiseprovidedforbylaw, orformedical
reasons, may notbesuspended, retired orremovedfrom office_
Reporting
56. TheAccountabilityCommitteeshall
(a) publisha semi-annualreportandanannualreportin atleast
two state ownednational daily newspapers bythe 15th of
Septemberand 15thof11archeachyear;
(b) publish the reports on the Accountability Committee's
website;
(c) hold public meetings twice each year to report on its
mandateto thethe generalpublic, and
(d) submit a copy ofits semi-annualreportand annual repon
to the Presidentandto Parliament
i\Uowances
57. Members ofthe AccountabilityCommittee shallbe paidthe
allowances determinedbythe Ministerandapproved byParliament.
lvHscellaneous matters
Penalties
58. (l) A personwho
(a) misappropriates the Petroleum Funds;
(b) defrauds, attempts to defraud or conspires with another
personto defraudthe Republicin relationto the Petroleum
Funds;
(c) uses, attempts to use orconspires with another person to
use information on the Petroleum Funds or documents
relating to the Petroleum Funds for personal benefit or
advantage or for the personal advantage or benefit of
another person;
commits anoffenceandisliableonsummaryconVIctionto a fine ofnot
lessthanfive hundredthousandpenaltyunitsortoatermofimprisonment
ofnotless thanfifteen years ortoboth.
(2) A personwho abetsin thecommissionofanoffence is liable
onsummaryconvictionto a fme ofnotless thantwo hundredandfrfty
thousand penalty units orto a rerm ofimprisonment ofnotless than
sevenyearsortoboth_
27
Act 815 PetrolC'-':m Revenue Act, 20ll
(3) person who unlawfully discloses thecontent doell,
rnentorinf()rmationpertalPingto operationsofthe Funds
commitsanoffenceandis liable onsummaryconvictiontoa ofnot
less than two hundred andfifty thousand penalty liPjts orto a term of
imprisonmentofnotless than seven years ortoboth.
(4) \Vheretheofiencecommittedisbyabodycorporate,that body
corporateisliableonsllmmary toa ftne ofno! thanseven
hundred andfifty thousandpena.lty units.
(5) A penaltyimposed this s e t i o ~ that!s nor when it
is due shaH be subject to the t paymentrate establIshedunder
section3(4).
Transitionalal:ld finalprovisious
59. (1) The appointments for the effectlYc fimctioning of
theInvestmentAdvisoryCommitteeandthe AccountabilityCommittee
shall withinthree months the commencementofthis Act.
(2) The petroleum revenue has accrued to the Republic ill-
eluding any accumulated h'lterest on it shaH atthe commencement of
this Act transferred ordeposited into the Petroleum Holding Fund
established underthisAct.
(3) Thetransferredor revenueshallbe forby
the Ghana Revenue Authority including reconciliations neces-
sary.
Regulations
60. (1) TheMinistermaybe instrument Regulations
forthe performance of
(2) Regulations madebythe Ministershallinclude
(a) reference pricing for purposes of or of
determiningthe obligations to thegovenlment of
thepetroleum licensedoperatorsto the Republic;
(b) measurement ofthe quantity ofpetroleum and
calibratedfor Lhe of deterrninhTlg . afroy-aity
andanyotherpayrnents dueto the Republic; and
(c) operational and management guidelines the manage-
memof the Funds.
Petm/eUtn Revenue Jl,fanagement Act, 2011 Act 815
Interpretation
61. InthisAct unlessthecontextotherwiserequires,
"Accountability Committee" means the Public Interest and
AccountabilityCommitteeestablishedundersection51;
"additionaloilentitlement"meanstheportionofa contractor's
share ofpetroleum produced to which the Republic is
entitled to a share computed onthe basis ofthe after tax
inflationadjustedrateofretumthatthecontractorachieved
,,,ithrespecttoeach field;
"Annual Budget FundingAmount" means the amount of
petroleum revenue allocated for spending in the current
financial yearbudget;
"Auditor" means the Auditor-General;
"basicservices" indudeseducationandhealthcare;
"Benchmark Revenue" means the estimatedrevenue from
petroleumoperationseJ..-pected bythe Governmentfor the
corresponding financial year;
"busmess or worYing day" means any day, except Saturday,
Sundayora publicholidaywhenbanks are openfor busi-
nessin Ghana;
"carried interest" means an Interest held by the Republic in
respectof whichthecontractorpaysfor theexplorationand
development costs without any entitlementto reimburse-
mentfrom the Republic;
"confidential information" means information thatis desig-
natedormarked as "confidential";
"Court" means a Counofcompetentjurisdiction;
"disaster" includes anoccurrence by which there is a serious
disruptionof generalsafetyendangeringthelife andhealth
ofmany people orlarge material interests which requires
co-ordinated actionbyservices ofdifferentdisciplines and
floods, earthquakes, drought, rainstorm, war, civilstrife in-
dustrial acudents;
"GhanaHeritage Fund" means the public fund established
undersection 10;
"GhanaPeu'OleumFunds"meanstheGhanaStabilisationFund
and the GhanaHeritageFund;
"GhanaPetroleum\VealthFund"meansthepublicfund estab-
lishedundersection20;
29
Act 815 Petrole:-tm Revaluelvfatlagen;ent 2011
"Ghana Re\renue Authority" means the Ghana Revenue Auiliolity
estab1i.;;hedunder Ghana Revenue Authority Act, 2009 (Act.791);
"Ghana Stabilisation Fund" means a pubiic fund established
under section 9;
"Governor" means the governor of the Bank Ghana,
"Investment Advisory Committee" rn.cans the Committee
established under section 29;
"investment manager" means the Bank of Ghana or
person or entity appointed as investment or ponfoho
manager fDr purposes of this Act;
"manager of the Ghana Petroleum Funds" means a person
appointed by the Bank of Ghana to act as a financial inter-
mediary for the proper management of the Ghana
1eum Funds induding fund managers, brokers and dealeis:.;
"midstream perroleum company" means a licensed comparry'
engaged hi petroleum operations benveen \veUhead
a refinery, transportation and the storage of petroleum;
"MiniSter" means the 1\1inister responsible for Finance;
"Ministry" means the 11inisuy responsible for Finance;
"National Development Plan" means a plan prepared by the
Nationa1 Development Planning Commission:
"national oil company" means the Ghana National Petroleum
Corporation and any other national oil or gas company
may be established by the government to paI1iClpate du"cctl"r
in petroleum activities;
"non-rene\\rable petroleum resources" means rll1ite and exhaust-
ible petrokum resources;
"participating interest" means the interest held in petroleum
operations by a party to a Petroleum Agreement;
"payer" means any person or entity on "vhom there is an obli-
gation in accordance with this Act or any other Act or
mstrument to make a payment into the Petroleum Holding
Fund;
"petroleum" means crude oil or natural gas or a combination
of both;
"petroleum authorisation" means
(a) an access authorisation whether on-shore or off-
shore, a petroleum contract, a prospecting
authorisation or a seepage authoris2tion, or any
agreement madE' In respect authorisation or
30
PetroleumRevenuej\1anagementAct, 2011 Act 815
contract, granted or entered in under the Petroleum
Exploration and Production Act, 1984 CEN.D.CL.
84) or
(b) an authorisation or production sharing contract,
or any agreement made in respect of an
authorisation or contract, granted or entered into
under the Petroleum Exploration and Production
Act, 1984 (P.N.D.CL. 84)
"Petroleum Funds" means the Petroleum Holding Fund, the
Ghana Stabilisation Fund, the Ghana Heritage Fund and
subsequently the Ghana Petroleum Wealth Fund;
"petroleum operations" means authorised activities under a
petroleum authorisation;
"Petroleum Holding Fund" means the transitory Fund estab-
lished under section 2;
"petroleum reserves" means the petroleum that can be economi-
cally extracted from petroleum resources and which is
anticipated to be commercially recoverable by the applica-
tion of a development project to known discoveries from a
future date;
"petroleum resources" means petroleum in its natural state that
has either been discovered or that has the potential ofbeing
discovered;
"petroleum revenue" includes
(a) royalty in cash or in equivalent barrels of oil or
equivalent units of gas, payable by a licensed pro-
ducer, including the national oil company or a
company under a Production Sharing Agreement
or other agreement;
(b) corporate income taxes payable by licensed up-
stream and midstream operators;
(c) participating interest;
(d) additional oil entitlements;
(e) dividends from the national oil company for
Government's equity interest;
(r) the investment income derived from accumulated
petroleum funds;
(g) surface rentals paid by licensed producers; or
., 1
.J 1
Act 815 Jv1anagementAct, 201I
(h) any other revenue deterrmned by the Minister to
petroleumrevenue;
derived from upstream and midstream petroleum operations,
"publicfunds" hasthemeaningascribedtoitunderArticle 175
ofthe Constjtution;
"qualifying instrument" means
(G) a debt instrument denommated In intemationaUy
convertible currency that bears interest or a
amollnt equivalentto interest,
(i) thatis ofaninvestmentgrade security,
(ii) that is issued by or guaranteed by e
International Monetary Fund, \\'or1d Bank
or by a sovereign State other than the
Republicof Ghana,if theissuerorguaranlO,
has investmentgrade rating; or
(b) aninternationallyconvertiblecuneneydeposir
ora debt mstrument denomL'lated in any inte:m2!
tionallyconvertiblecurrencythatbears L.TlterestOfa
fixed amountequivalentto interestissuedby
(i) the Bankfor InternationalSettlements:
(ii) the European CentTal Bank;
(ill) theCentralBankofasovereign State, other
than the Republic ofGhana, with a long-
term investment graderating; or
(c) a derjyative instrument
(i) that is solely based on an instrument
satisfies the requirements ofparagraphs (a)
and(b); and
(ii) where acquisition reduces the financial
exposure to the risks associated 'with
underlying mstruments prescribed by
Ivfinister;
"realrate ofreturn on investment" means the nominal r t u r ~
onL'1VeSnnent lesstheinflationorpurchasingpmr{er
mentthatis necessaryto preservetherealvalueof theaccu-
mulated
"surfaceremal" means fees paid based on the area of
licenceheld;
Pc:tmleum Revenue A1a:nagement Act, 201 f Act 815
"tax revenue" means any tax or duty imposed by or under an
Act of Parliament;
"upstream petroleum company" means a licensed company
engaged in the exploration, development and production
of petroleum; and
"withdrawal" includes transfers to and from the Petroleum
Holdin.g Fund established under this Act.
SCHEDULES
Act 815 Petroleum Revenue A1anagetnent 1
FIRSTSCHEDULE
(Section 17)
DeterminingtheBenchmarkRevenueandA..c"'lI1ualBudgetFunding
Amountfrom PetroleumRevenues
BenchmarkRevenuefromPetroleumOperations
(1) For the purposes of this sectiun the Annual Benchmli'd:
Revenue tiompetroleum operations shcJl be calculated on the bas!s
actual and expected average unit price crude and natured
derIvedfromaseven-yearmovingaverage, the sevenyears beingthefour
years immediatelypriorto thecurrentfmancialyear, thecurTentfinanciail
yearitselfandtwoyearsimmediatelyfollowingthecurrentflnancial
(2) The expected quantity shall be calculated on the basis ex-
pected average government take in gross oil over a three year horizon.,
the G.'1ree years being tile unmediately preceding, current financi.:;l
year, and the one year ahead projection foliov,'ing the currentfma.Ilciatl
year.
(3) Expectedrevenuefrom Cllldeoilistheproductoftheunitpnces::
and quantitydataofcrude oil defined inparagraphs (1) and (2).
(4) Expectedgas royalty shallbe calculatedon the basis ofantici-
patedroyaltiesonassociatedgasdenvedfrom a seven-yearmovingaverage,
the seven years being the fuur years immediately prior to the current
fmanciai year, the current financial year and nOlO years immediately
foilowffig the currentfinancial yeaL
(5) BenchmarkRevenue is the sumofthe expected revenuefi'om
LTude oildefinedin paragraph(3), expectedgasroyaltiesdefinedin para-
graph(4), andtheexpected dividends from ~ e national oilcompany.
Thatis, for eachfmancial year,
Benchmark Revenue:::: Expected current receipts from oil + Expected
gas royalties + Expected dividends fiom national oilcompany.
AnnualBudgetFundingAmount
(6) The annual allocation to the budget IT'om petroleum revenue
for currentspendingis determined as:
34
Petroleum Revenue n g e m e n t Act, 2011 Act 815
Almual Budget Funding Amount - Predetermined percentage
Benchmark Revenue.
(7) predeterminedpercentageshallbedeterminedonyear-to-
yearbasis.
(8) Forthepurposesofthissection"quarter" meansa three-month
periodendingMarch31, September30 andDecember31.
(9) Assumptions upon which the calculations are made pursuant
toparagraphs 1,2,3 and4aboveshallbeclearlyidentifiedandexplained,
andanychanges made in these assumptions in subsequentcalculations
shallbe clearlypointedout.
(10) Assumptions madeshallbepIudent, reflectinternationalbest
practice ofprice forecasts andbe baseduponinternationally recognised
standards.
(11) Theforecastsandtheamountsdeterminedinaccordancewith
theformulainparagraphs 1,2, 3and4 aboveshallbecertifiedbya repu-
table independentexpertappointed i..n accordance with the Public Pro-
curementAct,2003 (Act 663).
SECOND SCHEDULE
(Section 13, 25)
Operations ManagementAgreement
This Agreement is made on[date] between the Minister ofFinance
and Economic Planning ("Minister") representing the Government of
Ghanaandthe BankofGhanaheremafterreferredto as the "Parties".
\Vhcreas
(1) In accordance with section 25 of the Ghana Petroleum
Revenue Management Act, 2011 (Act ....... ) CLaw), the Minister is
required to enter into an Operations ManagementAgreementwith the
Bank ofGhana for the operational management ofthe Ghana
StabilisationFundandtheGhanaHeritageFund,whichcollectivelyshall
bereferred to asGhanaPetroleumFunds.
(2) TheMinistershallexercisethekeyfunctionsandcompetencies
ofthe Government, whichhas been assigned overall responsibility for
the management the GhanaPetroleumFunds.
35
Act 8i5 Acr, 20j 1
(3) TheBankof Ghanahasbeenassigned theresponsibility
efficientoperational man.itgementofthe Ghana PetTOieum Funds.
Nowthereforeiti.s agreedbetweenthepartiesasfollows:
1. TheBankof Ghanashallundertakethe dailyoperational ma..nage-
ment ofthe Ghana Petroleum Funds and shall be accountable for
operational management to the lviinister..
ObligationsoftheMinister
2. The 1\1inister is responsible for the overall management the
GhanaPetroleum Funds, whichshall include the following functions to
bcexercisedby theMinister:
(aJ toformulatebroadpolicyforthemanagementoftbeGhana
Petroleum fimds;
(b) not less than fili.een days prior to the commencement of
each calendar quarter, to provide a forecast of the cash
requirementsofGovernmentforthatquarter, including the
projectedT::i.mings amountstobetransfencdto andfrom
the Ghana Petroleum Holdmg Fund and rhe appiicabIe
Ghana Pcrwleum Funds;
(c) toprovidebyLegislativeInstrumenttheRegulmionsfor
managementofLhe GhanaPetroleumFunds(ind toconsuit
"\'lith the GovernorandtheInvestmentAdvisoryCommittee
concerninganychangesthatmaybeproposedto the
tory framc\..'ork;
(d) toensure thatrequestsbythe BankofGhanafor guidance
on ad-hoc policy decisions to enable it to impicment the
operational management ofthe Ghana Petroleum Funds
are respondedtodearlyandin a timelymanner; and
(e) to consultwiththeGovernorandtheInyestmentAdvisory
Committee, as appropriate, concerning information to be
released to thepublic;
Obligationsof theBam,;.of Ghana
3. The Bank ofGhana shall be responsible for the operational
mana.gement ofthe Ghana Petroleum Funds, which shaD mclude the
follo\ving functions:
(a) theinvestmentofthecapitaloftheGhanaPetroleum
in financial instruments as set out in this Agreement,
including exercising all the rights and complying \'\'ith
36
Petroleum A1anagementAct, 2011 Act 815
obligationsassociatedwithdlC oVlrnership oftheGhanaPe-
troleumFunds' assets;
(b) receiving and Gtccounting for the investment income and
otherrevenuesofthe GhanaPea'oleumFunds;
(c) maintaining a register ofthe payments made as Ghana
Petroleum Holding Fund's receipts without limiting the
responsibilities ofthe proper authorities for administering
taxandroyaltypayments;
(d) maintainingthebooksofaccountfor theGhanaPetroleum
Funds onbehalfofthe Nfinister;
(e) appointingand dismissing bankingcorrespondents, dealers,
brokers, custodians and other financial intermediaries
necessaryforthe propermanagementof GhanaPetro-
leumFunds;
(f) acquiring and maintaining the information necessary to
constructbenchmarkindices andconstructnotionalPOltfO-
liosfor policydevelopment and reporting purposes;
(g) evaluating the performance ofexternal fund managers
appointed to manage the Ghana Petroleum Funds' invest-
ments;
(h) supplying information to the Minister and the Investment
Advisory Committee necessary for the drafting ofreports
andstatements relevantto the managementofthe Ghana
PetroleumFunds, indudingallreportsrelatingto themanage-
mentofthePetroleumHoldingFundandt.'1e GhanaPetro-
leum.Funds required by law, with the information being
available to the recipients at least fifteen working days
beforeanylegislatedpublicationdateunlessothenviseagreed
behveentheparties;
(i) meeting the operationalexpenses relating to the manage-
mentofthe GhanaPetroleumFunds, whichshallbecom-
pensatedforfi:omtheannualmanagementfee asestablished
2n the Operations l\{anagementAgreement;
(;) implementingsystems, procedures risk managementprac-
ticesanddevelopmentof humanresourcestominimizethe
riskofoperationalloss to the GhanaPetroleumFunds;
(k) advising the Ministerofali significantevents affecting the
value ofthe Ghana Petroleum Funds and other matters
37
Act 815 1
A'-A',_,,-,-,-, to be urgentor unportance the
ofthe
'U'>..HlllA-1 (l) prO\;ding the ofthe publicwith the
concerningthe Petroleum Fundsas: required by
ia\h'-; arid
(m)assisting AdvisoryComwiu:ce
the,Ann:uaI of theGhana FUllds"
4. The implementthe manage-men:
ofthe Ghana Petroleum t'h.rough the adoption ofthe
principles:
(a) the .assets ofthe Ghana Petroleum Funds sball
.. "",, in the name Bar1k of butshaH 2J
Bank of
in such a manflG to allmv the
assets moome with tbose assets to DC
dearlydeterminedatanytime;
(b) thebooksandrecords theGhana
bemaintained fromthe andrecords
Bafl...k ofGhanato the maximumell.."IJ.::m practicable;
(c) theBankof Ghanash,ill booksand rC(:m-ClS [(:tat-
ingto operationalmanagementofthe Perro!eillli
FlL.'1ds availahleat anytimeonrequestto Jvfinister,
authorised in by the 1'.1ulister and the auditors
dl'e GhanaPetrol.eumFunds; and
(d) theBank shaHensurerh.ataUstaff with
the ofthe
bound by a code of
interest-
BankofGhana bepermittedtomvestopJyin
Ll1Stiruments.
6. Theperformanceofu'1c
peri.odicaIIy against the developed the Investrne:H
Juivism),Committee and periodicreports.
PetroleumRevenueManagementAct, 2011 Act 815
7. IViinistershall give the Bank ofGhana at Jeast four weeks' written
before implementing any change to the mandate or benchmark,
and the Bank of Ghana shall advise the Minister as to the anticipated
length of time it will take to effect the new requirements.
8. The remuneration of the Bank of Ghana shall be as recommended
by the Minister and shall be payable mont..bJy instalments from the
assets of the Ghana Petroleum Funds.
9. The Bank of Ghana shall undertake the appointment of portfolio
managers, under the following conditions:
(a) the Bank of Ghana shall undertake the procurement process
in a fair and transparent marmer according to its internal
procedures and relevant laws of Ghana;
(b) the Bank of Ghana shall provide a repon to the Minister on
the appointment of Fund Managers deta iling the services
to be provided, the proposed level of fees, the proposed
benchmark, the levels of insurance cover against exposures
and the information concerning the procurement process
that IS necessary to inform the Minister that the process was
undertaken in accordance with the Public Procurement Act,
2003 (Act 663); and
(c) the Bank of Ghana shall enter into a contract with a Fund
Manager in its m"t'Il name.
10. \Vhere the Bank: of Ghana wishes to terminate the contract of a
Fund Manager, the Bank of Ghana shall consult with the Minister as
follows:
(aJ the Bank of Ghana shall provide a vnitten report to the
Minister on the termination of a portfolio manager's con-
tract, with copy to the chairperson of the Investment
Advisory Committee;
(b) the Bank of Ghana shall define the grounds for termination
of a Fund Manager in the Investment Guidelines; and
(c) the Minister may, within five working days after receiving
the recommendation, the advice of the Investment
Advisory Committee concerning the proposed termination
of a Fund tvfanager's contract.
39