Parliament has approved the report of the Committee on Mimes and Energy on the work programme activities of the Ghana National Petroleum Corporation (GNPC) for the 2020 financial year in accordance with section 7(3) (b) of the Petroleum Revenue Management Act 2011, Act 815.
The Ghana National Petroleum Corporation was established in 1984 through the promulgation of the Ghana National Petroleum Corporation Law, 1983 (GNPC Law 64) and is mandated under Section 2 (1) to undertake the exploration, development, production and disposal of petroleum in the country.
The Corporation is enjoined to ensure that the country derives the possible maximum benefits from the exploitation of petroleum resources and to develop national capabilities along the petroleum value chain and also ensure that the conduct of petroleum activities are in such a manner that minimises potential adverse effects of the environment and the people.
The Deputy Minister of Energy William Owurako Aidoo, presented to Parliament for approval, the Corporation’s programme of activities for the 2020 financial year on 3rd June 2020 in fulfilment of the Corporation’s legal objective.
The GNPC, in its 2020 Workplan has undertaken to among other projects, engage in exploration and appraisal works in the Voltaian Basin, capitalization of Ghana Gas, development and production activities at the Greater Jubilee Field, Tweneboa-Enyera-Ntomme (TEN) and Sankofa-Gye Nyame (SGN) as well as the Deepwater Cape Three Points (Aker Energy) and the Decommissioning of the Saltpond Field.
The year’s works on the Voltaian Basin Project alone has been estimated at twenty million four hundred US dollars (USD 20,400,000.00) while a total amount of two million and fifty thousand US dollars (USD 2,050,000.00) has been budgeted for the acquisition of a seismic data using a multi-client approach for exploration and production of its Reserved Block to be led by the Petroleum Commission.
The Chairman of the Mines and Energy Committee Emmanuel Kwasi Gyamfi presenting the Committee’s report on the floor of the House on Tuesday said the Committee has thoroughly scrutinized the Workplan and the associated financial requirements for the financial year and was largely satisfied that the activities outlined fall within the scope of the mandate of the Corporation as stated under PNDCL 64.
The Committee, he added, was informed that the price war between Saudi Arabia and Russia as well as the Covid-19 pandemic led to a crash in oil prices in the first quarter of the year with Brent crude oil dropping from an average of USD 62.00 in December 2019 to as low USD 22.90 as at 30th March 2020.
He disclosed that GNPC is expecting a total revenue of USD 179.79 million from crude oil sales and internally generated funds for the 2020 fiscal year with expenditure in respect of petroleum exploration, appraisal, development and production and other petroleum related activities projected at USD 500.14 million.
The Committee therefore urged the Ministry of Finance to prioritize its obligations towards the GNPC during the year in order to implement its planned programme of activities in view of the fact that the Corporation requires total receivables totalling USD 339.53 million representing 88% of expected funds from the Central Government for meeting the financing gap of its upstream oil operations.
The Ranking Member on the Committee and the Member for Damongo Adam Mutawakilu seconded the motion for the adoption of the report on the work programme activities and assured the Majority of the Minority’s commitment to addressing the challenges facing the Corporation.
The House in view of the recommendation of the Committee subsequently adopted the report and approved the 2020 Workplan in accordance with section 7(3) (b) of the Petroleum Revenue Management Act 2011, Act 815.
