The government has been given thumbs up for its plan to formulate a framework that will guide the oil industry in accordance with the demands of Extractive Industry Transparency Initiatives (EITI) principles.

The Director of Programmes of the Integrated Social Development Centre (ISODEC), Dr. Zakaria Yakubu, applauded the Prof. Mills-led National Democratic Congress administration for its preparedness to establish the framework to ensure transparency and accountability in relation to oil and gas revenues in compliance with the EITI principles.

Dr. Yakubu, who was speaking in an interview with Public Agenda, said the mentioning of the EITI for the first time in the nation's history of budget presentations is a clear demonstration of government's commitment to maximize the potential of the country's oil and expected revenue.

The Minister of Finance, Dr. Kwabena Duffuor last Wednesday announced to Ghanaians, when he presented the 2010 Budget Statement to Parliament, the establishment of the EITI-based framework as part of the major projects and activities government intends to execute in relation to the development of the Jubilee Oil Field and the production of oil and gas expected to commence in the last quarter of 2010.

Other activities earmarked are the start-up of oil production from the Jubilee field and continued steps of appraisal of the two other fields in the Deep Water Tano and West Cape Three Points Contract Areas with a view to development of those fields. There will also be the establishment of gas gathering and processing infrastructure to ensure optimization of natural gas resources not only from the Jubilee field but also from other fields in the Tano/ Cape Three Points Basin.

Similarly, Dr. Duffuor disclosed that there would be the development of a strategic plan for improving the infrastructure for the benefit of communities near the oil and gas fields as well as the development of the Environmental Protection plans for the oil and gas sector.

According to him oil and gas reserves serve as catalyst for the commercial exploitation of the nation's other natural resources that have either not been exploited, or exploited but not processed into high value products for domestic use and exports.

He further revealed that a national Liquefied Petroleum Gas (LPG) programme would be developed that would ensure improved nationwide availability of LPG at reasonable prices to reduce reliance on fuel wood. He said government would ensure that Oil and Gas revenues were properly managed, utilized and accounted for.

Meanwhile Mr. Ishac Diwan, Country Director of World Bank, Ghana Office is anticipating a striking improvement from oil proceeds, a Reuters' report said at the beginning of the year.

"Ghana today to me feels like Korea in 1970, which means next 10 years are a real opportunity," he observed, adding, "this country is taking off in front of our eyes".

When Ghana won independence from Britain in 1957, its economy was on an even kiln with South Korea.

However, after decades of political instability and mismanagement, Ghana's per capita GDP is around $800 compared to almost $20,000 for the Asian country, the report noted.