GNPC budgets $1.4bn on critical projects as part of 2023 work programme
State-owned, Ghana National Petroleum Corporation (GNPC) have earmarked US$1.4bn to expend on critical projects aimed at strengthening the country’s oil and gas production and exploration.
This was contained in the report of the committee on Mines and Energy on the 2023 Work Programme of GNPC that was approved by lawmakers prior to Parliament adjourning for recess last Thursday.
GNPC’s finances by law -section 7(3)(B) of the Petroleum Revenue Management Act,2011 (Act 815) as amended are subjected to parliamentary approval before expenditure.
A portion of petroleum revenue is ceded under the PRMA (Act 815) to fund the activities of GNPC. Accordingly, Section 7(3)(B) of Act 815 requires Parliament to approve the activities of GNPC for each year.
These critical projects according to the report entails collaboration with its partners to undertake development and production activities across the Greater Jubilee Fields, Tweneboa Enyenra Ntomme (TEN Field) and Sankofa and Gye Nyame (SGN Field). GNPC will further continue exploration activities in the Voltaian Basin, continue decommissioning of the Saltpond Field alongside its midstream and capital projects.
The Corporation has projected to spend US$1,416.95m against total revenue of US$1,244.13m for the 2023 financial year, which is expected to create a funding gap of US$172.8m.
The report reveals that GNPC intends to finance the gap through estimated cash balance brought forward, collection of government and other related debts and term loans.
Parliament’s Committee on Mines and Energy gave their approval to enable GNPC’s plan to source additional finance, the report maintained, it captured “When GNPC should operate at full throttle, it will positively affect the entire economy of Ghana. Given the International Monetary Fund (IMF) strictures, the loans in mind will significantly improve GNPC’s activities.”
Nonetheless, the support for sourcing additional finance by the Mines and Energy Committee was given on the premise that the Corporation complies with the constitutional imperative to route through Parliament the intended loan facilities, in accordance with Article 181 Section 3 of the Constitution.
The Committee urged GNPC to take immediate steps to transfer its shares in the offshore company, Jubilee Oil Holdings Limited (JOHL) to its subsidiary company, GNPC Explorco.
Outlook for 2023
Greater Jubilee Field: GNPC, and its partners, regarding production activities on the Greater Jubilee Field are expected to among others undertake six liftings; drill three wells, complete three ongoing wells as and work on one existing well.
Also, FPSO Kwame Nkrumah is planned to be shut down to allow for the execution of critical operations and maintenance activities; install subsea and subsurface equipment; and continue with well maturation exercise and reservoir engineering studies.
Meanwhile, other planned activities are also expected to be carried out on the Tweneboa-Enyenra-Ntomme (TEN) and Sankofa Gye-Nyame (SGN) fields drilling of wells and oil liftings within the operational year.
However, the committee was concerned about long-standing debts owed GNPC from government and government agencies to US$165.97m
