TUC cautions government against stability clauses in oil agreements
The Sekondi-Takoradi District Council of Labour on Thursday cautioned the government against inserting stability clauses in agreements with international oil companies that are doing business in the country, because it could create problems in future.
At a meeting in Takoradi, the council said stability clauses lock up parties into agreements, which could last for more than 30 years, and are changeable only on the payment of huge fines.
Mr Kwaku Darko Aferi, Head of Communications of the Ghana Trades Union Congress (TUC) said experience of some oil producing countries had shown that stability clauses prevented them from deriving maximum benefits from oil.
“It is therefore worrying that our government is still signing agreements embodying stability clauses with oil companies and this was not in the interest of the state”, he said.
Mr Aferi said the TUC is disappointed at the manner at which government is handling the oil sector in terms of laws and structures, adding, “usually it takes five years after oil find for production to begin, but Ghana had fast tracked everything and this in the long run may not help us”.
He said Norway, for example, took pragmatic steps to save oil revenue for future generation and did not accept proposals on the use of the resource as mortgage for loans.