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Fair exchange is no robbery

Overview

A look at the ‘Take-or-pay’ clause in energy sector contracts

The Government of Ghana has begun engaging players in the energy sector to renegotiate all take-or-pay contracts in the sector to take-and-pay contracts. This decision was made on the back of increased demands for a more robust procurement system and efficient management of the nation’s resources. This article examines the take-or-pay clause in energy sector contracts and discusses alternative contract clauses available when negotiating contracts.

 

Oil and gas barrels

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George Arhin

George Arhin

Partner, West Market Area Mining Leader, Assurance Leader, PwC Ghana

Tel: +233 (0) 30 276 1500

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