The Public Interest and Accountability Committee (PIAC) has indicated that indebtedness of the Ghana Gas Company Limited has risen to some $942,260,510.63.
This, is according to the Committee’s 2020 semi-annual report on the management of the nation’s petroleum revenues.
In the report, PIAC notes that the amount owed by Ghana Gas Company falls on the part of the Ghana National Gas Company’s (GNGC) shareholders refusing to honor their commitments.
“Cumulative raw gas production increased significantly by 65 percent; the highest recorded half-year volume of gas produced since 2010. Total petroleum receipts in the Petroleum Holding Fund (PHF) for the period stood at $322,571,265.64, indicating a decline of 11.32 percent,” portions of the report said.
“The Ghana National Gas Company (GNGC) received $1.78 million under the Cash Waterfall Mechanism in order to address their indebtedness to the Ghana National Petroleum Corporation (GNPC) for gas supplied, However, there was no payment to GNPC. Consistently, the non-payment of gas revenue denies the PHF of its due entitlement,” the report added.
PIAC also revealed the GNPC spent only 9 percent of its total receipts on Jubilee Fields equity financing.
This is attributed to the re-phasing of work programmes and disagreements surrounding the Cash Calls submitted by the Operator.
PIAC in its new report made a number of key findings some of which are;
- All the three producing Fields (Jubilee, TEN and SGN) recorded an increase in gas production, with the SGN Field recording a 130 percent increase attributable to stable production operations.
- The average unit price achieved by the Ghana Group in all three Fields (US$42.49/bbl) were significantly lower than achieved unit prices in H1 2019 (US$65.08/bbl), representing a 34.71 percent decline.
- Total petroleum receipts in the PHF for the period stood at US$322,571,265.64, indicating an 11.32 percent decline.
- CAPI contributed the highest portion of 40 percent to total receipts.
- Total petroleum funds distributed since inception till end of June 2020 was US$5.32 billion, of which approximately 39 percent went to the ABFA, 31 percent to GNPC, 21 percent to the GSF, and 9 percent to the GHF. This suggests that about 91 percent of the petroleum revenue is available for spending by the current generation.
- For the fourth time, the Ministry of Finance failed to provide ABFA utilisation data for the compilation of PIAC Reports. This makes it difficult to reconcile disbursements and expenditure, and undermines the spirit of accountability as envisaged in the PRMA.
PIAC is the entity established by the Petroleum Revenue Management Act (PRMA) 2011, (ACT 815) to have oversight responsibility over the management and utilization of Ghana’s petroleum revenues.
Find below details of PIAC’s report: