Ghana government and agencies owe GNPC $316m

The Ghana government and its agencies owe the Ghana National Petroleum Corporation and amount of $316.38 million. This is contained in the company’s 2022 work report adopted by Parliament.

Mr Samuel Atta Akyea, the Chairman of the Parliamentary Select Committee, who presented the report to the House said the work programme for 2022 of the GNPC was rooted in its 2021 work programme; saying, “as a matter of fact, it is a continuation of what they did in 2021”.

He said the report indicated that the Government of Ghana and its agencies owed the GNPC $316.38 million, and that the Corporation had taken some steps to spread out the collection of the debts over the next three years.

He said the Committee also acknowledged some key achievements of GNPC in 2021 including attainment of reserve target of 1,153 MMboe representing 3.97 per cent above target, 10 prospects across Ghana’s offshore basins and acquisition of commercial interests in Jubilee and TEN Fields.

He said in 2022, GNPC would work with its partners to increase the country’s petroleum reserves, optimize production from the three production fields (Jubilee, TEN and SGN Fields), continue exploration works on the Voltaian Basin and the decommissioning of Saltpond Field.

The report said the Corporation and its partners in 2021 achieved under its petroleum business operations, produced crude oil totaling 55.05 MMbbls and averaging 150,809 bopd from the three producing fields (1.62 per cent above target).

It said GNPC exported a total of 98.90 billion cubic feet (Bcf) of gas, averaging 270.96 MMScf/d (2.55 per cent below target).

Touching on gas business, the report said during the year under review, GNPC developed and executed contract for early works on the Tema City Gate Project but suspended field activities on the project due to land disputes.

It said the Corporation completed 96.3 per cent of the marine works, 90.8 per cent of the offshore pipe works under the Tema LNG Project and completed installation of the offshore pipeline.

It said GNPC signed Interim Gas Sales Agreement (IGSA) with AKSA Energy Ghana Limited for the offtake of 21MMScf/d of gas and concluded IGSA with Early Power to offtake 45MMScf/d of gas.

Concerning capital projects, it said GNPC awarded the contract for the construction of the Head Office Project in Accra and completed 30 per cent of the civil and structural works on its operational office in Takoradi and completed 80 per cent of the civil and structural works on Research and Technology (RAT) Centre at Spintex, Accra.

With regards to corporate social investment programme, the report said in 2021, the Corporation awarded foreign scholarships to 60 applicants and commenced processing of the applications for local scholarships, constructed six-unit classroom blocks for 12 out of 60 selected schools, constructed three out of seven dormitories for selected senior high schools and supplied 30,000 mono-desks to 125 schools across the country.

With the financial performance of the Corporation, the report said $299.99 was approved for the Corporation for the activities for the 2021 financial year, and out this amount, the Corporation received a total of $230.72 million for the year; adding that this represented a negative variance of $69.27 million.

On the outlook for the year 2022, it said the Corporation would undertake some development and projects at Greater Jubilee Field, Tweneboa-Enyenra-Ntomme (TEN) Field, and Sankofa-Gye-Nyame (SGN) Field.

It said the Corporation would also undertake some exploration and appraisal projects in the Voltaian Basin Project and the GNPC Block-1 Project.

Dr Kwabena Donkor, the Ranking Member of the Committee on Mines and Energy, who said he was reluctantly supporting the approval of the GNPC 2022 working programme report, explained that there was the need for the nation to take a second look at the law regulating GNPC; “so that the Corporation does not deviate from its core mandate.”

Dr Matthew Opoku Prempeh, Energy Minister, reiterated it was appropriate that Ghanaians enjoy the benefits of GNPC in other aspects of their lives.

He said there was the need for the country to take a second look at the GNPC law and come out with a new law to enable GNPC do the work that it was supposed to do; saying, “we don’t know now whether it is a national oil company doing exploration and production or it is an institution that is supposed to do everything.”

“Mr Speaker, at the appropriate time, Government will indicate that direction it wants us to go.”

Source: GNA

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