The Oil and Gas Revenue Management Policy 2012

The discovery of Oil and Gas provides the country with an opportunity to fast‐track the economic and social transformation process. However, Oil and Gas resources are finite, and the associated revenues can be immense. If not well managed, these revenues have the potential to undermine the macroeconomic, budgetary and governance structures that have been built over the last two decades leading to waste. To sustain the economic and social transformation process beyond the oil and gas era, we will have to manage the Oil and Gas revenues in manner that will encourage other sources of wealth creation.

The 2008 National Oil and Gas Policy required that an appropriate framework be put in place to aid the sustainable management of Oil and Gas revenues. This policy provides details on how the anticipated revenues shall be managed and integrated into the existing Government systems with a view of mitigating the overall impact of these revenues on the economy. The policy requires the highest standards of transparency and accountability in the management of oil and gas revenues and gives the institutional and governance structures to be used to achieve this. Lastly, to promote harmony and social cohesion, the policy provides for a mechanism for the sharing of royalty revenues with the local governments within the oil producing region.