Ghana, on the verge of an oil boom that could bring billions to the nation's economy, must make significant changes to support transparent, accountable and efficient development of the oil industry and the revenue it will generate, according to Integrated Social Development Centre (ISODEC) and Oxfam America.

The recently discovered offshore "Jubilee" oil field has generated enormous interest in the country's oil production potential and while the discovery is seemingly good news, historically the exploitation of natural resources in Africa has far too often led to increased poverty and conflict, a phenomenon often referred to as "resource curse," the groups said.

In too many countries, oil booms have bred corruption, underdevelopment, social conflict and environmental damage. Ghana's challenge as an 'oil hot spot' will be to ensure that the right institutions and transparent policies are in place before production even begins, said ISODEC and Oxfam officials. The groups are calling for transparent revenue and payment practices, open and competitive contract bidding and active monitoring and participation by civil society.

In a press release, ISODEC and Oxfam America stated: It is also important that the government of Ghana enact a moratorium on signing new licenses, so it can organize an open bidding round and allow the country's legal and institutional framework to "catch up" to the pace of oil development. While these steps are not, by themselves, a simple recipe for overcoming the threats posed by the coming oil boom, it is difficult to see Ghana succeeding without them.

Last year, Africa produced 12.5 percent of the world's oil, but it has yet to translate into tangible benefits for Africa's poor. In fact, resource-rich countries in Africa have actually experienced lower growth rates than countries with scarce resources.

By 2011, estimates are that Ghana will be producing about 120,000 barrels of oil per day, along with significant quantities of gas. (The Jubilee field has 600 million barrels of proven reserves and 1.2 billion barrels of probable reserves.) The International Monetary Fund has predicted that government revenues from oil and gas could reach a cumulative $20 billion over a production period of 2012-2030 in Jubilee field alone. On Feb. 19, The World Bank board will consider $215 million in financing to Kosmos Energy and Tullow Oil in support of the development of the Jubilee field.

ISODEC and Oxfam America see Ghana's enviable record of good governance and stability making this test even more urgent. Oil wealth threatens the growing democratic accountability that Ghana has built in recent history.

With mining law reforms and changes to investment rules in the last 20 years, Ghana has recently experienced a boom in mining investment, but gold mining has led to small government revenues, increased conflict between companies and local communities, and the removal of families from their lands and increased environmental degradation. Coastal communities have seen how this industry has left mining communities, and they fear the same fate.

The problems of resource-rich countries combating the "resource curse" have recently risen to the top of the international development agenda with efforts to increase revenue transparency across the oil, gas and mining industries.

While some progress has been made in the Extractive Industry Transparency Initiative (EITI), ISODEC and Oxfam America are urging the government to be fully committed to extend this work to the petroleum sector.