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.
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 Deputy Minister for Energy William Owurako Aidoo, presented the program 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 among other projects and will engage in exploration and appraisal works in the Voltaian Basin, capitalization of Ghana Gas, development and production activities at the Greater Jubilee Field.
The other projects to be undertaken are the 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 Chairman for the Mines and Energy Committee Emmanuel Kwasi Gyamfi presenting the Committee’s report on the floor of parliament on Tuesday said the Committee has thoroughly scrutinized the Workplan and the associated financial requirements for the financial year and was largely satisfied with the activities outlined which falls 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 within 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.
The committee added the Corporation requires total receivables totalling USD 339.53 million representing 88% of expected funds from the Central Government to meet the financing gap of its upstream oil operations.
The Ranking Member on the Committee and the Member of Parliament 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 further made recommendation for the Committee to subsequently adopted the report and approve the 2020 Workplan in accordance with section 7(3) (b) of the Petroleum Revenue Management Act 2011, Act 815.
By Naa Anyema Collison