The Energy and Petroleum Minister of The Gambia, Fafa Snayang, said that to endure effective, transparent and good governance, a major step in the country’s reform of the energy sector is the establishment of an Independent Petroleum Commission.
He made this known while reading a motion for the second reading of a bill for consideration and enactment titled “Petroleum Commission Bill 2020.”
He said this is to regulate the activities of the upstream and the midstream petroleum activities in The Gambia, to ensure good governance, transparency and efficiency. He noted that although the Petroleum does all of the aforementioned through the Commission as a unit within the ministry, it is best to separate policy regulation and operation, which is a sign of good governance and in line with the Economic Community of West African States’ (ECOWAS) Hydro-Carbon development policy.
He said the Commission if established will be responsible but not limited to the following:
- Law enforcement, regulation and overseeing of contract terms.
- Advising the Ministry on the effectiveness of policies, as well as law regulations in the upstream and midstream.
- Processing of licenses and facilitating the acquisition of data and sales.
Excerpts from the Minister’s submission:
“In 2019, Cabinet gave approval for my Ministry to undertake reforms that are needed for the development of the petroleum sector, including an autonomous petroleum commission. My Ministry initiated this process, by embarking on a stakeholder consultation that culminated into the drafting of the Petroleum Commission Bill 2020.”
“The Petroleum Ministry provides policy direction as its core mandate and facilitate licenses as well as the regulation of the upstream activities, through the commission as a unit within the Ministry.”
“Since the establishment of a dedicated policy-making body and the Gambia National Petroleum Corporation, there is need to establish an autonomous body to regulate upstream and midstream activities. An independent commission will also manage the social and environmental practices related to oil and gas development.”
“The potential benefits of a well- managed and administered petroleum sector, include immediate direct payments to government in the form of bonuses, medium term tax revenue to longer term potential revenue potentials (royalties and taxes relating to the petroleum operations).”
The lawmakers supported the motion as it is perceived to be in the best interest of the country. The bill was referred to the Assembly Business Committee for further steps to be taken in the consideration and approval.
%20Hydro-Carbon%20development%20policy.He%20said%20the%20Commission%20if%20established%20will%20be%20responsible%20but%20not%20limited%20to%20the%20following:ol%20liLaw%20enforcement,%20regulation%20and%20overseeing%20of%20contract%20terms./li%20liAdvising%20the%20Ministry%20on%20the%20effectiveness%20of%20policies,%20as%20well%20as%20law%20regulations%20in%20the%20upstream%20and%20midstream./li%20liProcessing%20of%20licenses%20and%20facilitating%20the%20acquisition%20of%20data%20and%20sales./li/olExcerpts%20from%20the%20Minister's%20submission:em“In%202019,%20Cabinet%20gave%20approval%20for%20my%20Ministry%20to%20undertake%20reforms%20that%20are%20needed%20for%20the%20development%20of%20the%20petroleum%20sector,%20including%20an%20autonomous%20petroleum%20commission.%20My%20Ministry%20initiated%20this%20process,%20by%20embarking%20on%20a%20stakeholder%20consultation%20that%20culminated%20into%20the%20drafting%20of%20the%20Petroleum%20Commission%20Bill%202020.”/emem“The%20Petroleum%20Ministry%20provides%20policy%20direction%20as%20its%20core%20mandate%20and%20facilitate%20licenses%20as%20well%20as%20the%20regulation%20of%20the%20upstream%20activities,%20through%20the%20commission%20as%20a%20unit%20within%20the%20Ministry.”/emem“Since%20the%20establishment%20of%20a%20dedicated%20policy-making%20body%20and%20the%20Gambia%20National%20Petroleum%20Corporation,%20there%20is%20need%20to%20establish%20an%20autonomous%20body%20to%20regulate%20upstream%20and%20midstream%20activities.%20An%20independent%20commission%20will%20also%20manage%20the%20social%20and%20environmental%20practices%20related%20to%20oil%20and%20gas%20development.”/emem“The%20potential%20benefits%20of%20a%20well-%20managed%20and%20administered%20petroleum%20sector,%20include%20immediate%20direct%20payments%20to%20government%20in%20the%20form%20of%20bonuses,%20medium%20term%20tax%20revenue%20to%20longer%20term%20potential%20revenue%20potentials%20(royalties%20and%20taxes%20relating%20to%20the%20petroleum%20operations)./emThe%20lawmakers%20supported%20the%20motion%20as%20it%20is%20perceived%20to%20be%20in%20the%20best%20interest%20of%20the%20country.%20The%20bill%20was%20referred%20to%20the%20Assembly%20Business%20Committee%20for%20further%20steps%20to%20be%20taken%20in%20the%20consideration%20and%20approval.){kind=link}