Minority urges immediate halt to Government’s use of TEN Oil field as collateral for $431m loan

Minority urges immediate halt to Government’s use of TEN Oil field as collateral for $431m loan

The Minority in Parliament has issued an urgent call for the government to cease its plans to utilize proceeds from the TEN oil field as collateral for a substantial $431 million loan facility from LITASCO. The Minority contends that this arrangement is legally questionable and raises concerns regarding the commitment for the TEN oil field to deliver a minimum of 3.8 million barrels of crude oil annually to LITASCO under the terms of the loan agreement.

Addressing the press on Wednesday, September 20, John Jinapor, the Ranking Member on the Mines and Energy Committee, emphasized that despite Parliament’s rejection of the Ghana National Petroleum Corporation’s (GNPC) request to secure the loan until detailed terms and conditions were presented, the executive branch has directed GNPC to pursue board approval for the loan without parliamentary consent.

Jinapor remarked, “To our utmost shock, the minority side has become aware that the presidency is using coercive force to compel the GNPC to proceed and execute this loan agreement without parliamentary approval. This is unconstitutional, this is unlawful, and this is a blatant disregard for the directive and resolution of Parliament.”

The Minority also extended its commendation to GNPC board members who have expressed opposition to the loan agreement. According to Jinapor, this principled stand taken by the GNPC board should be lauded.

Jinapor further cautioned that if GNPC proceeds with the loan agreement without the requisite parliamentary approval, it would constitute a breach of constitutional norms and principles. This development underscores the ongoing debate and scrutiny surrounding the management of Ghana’s natural resources and related financial arrangements.