Parliament approves US$534.77m budget for GNPC

Parliament has approved an amount of US$534.77million for the 2017 programme of Ghana National Petroleum Corporation (GNPC). 


Out of the amount, US$ 83.44 million, US$ 139.12 million, US$ 80.19 million and US$ 4.20 million, have been earmarked for the Jubilee field development and production, Tweneboa-Enyenra-Ntomme (TEN) development, Sankofa -Gye Nyame development and the Saltpond Offshore production projects respectively. 


An amount of US$ 31.97 million has also been budgeted towards the execution of the Voltaian Basin Studies while US$ 70.74 million will be used to fund the Explorco's activities in eight blocks as well as pay for the acquisition of a 10% interest in Deep Water Tano and the Cape Three Point Block operated by Hess Ghana.


Part of the amount is expected to be spent on personnel emoluments, administrative capital, general expenses and maritime boundary special projects.


The House approved the budget on Wednesday after members unanimously endorsed the 2017 work programme of the Corporation before it adjourned sine die.


The Chairman of the Mines and Energy Committee of Parliament, Hon. Emmanuel Kwasi Gyamfi, who moved a motion for the adoption of the committee's report on GNPC's programme for the year, said the expenditure would leave a funding gap of GH₵210.49m which, the Committee observed, “will be financed by cash balance of US$68.03m brought forward from 2016 and US$95m GNPC’s cash collateral with Stanbic bank and Fidelity bank, when Litasco replaces GNPC’s Bank Guarantee under the 450MV Karpower Ship and a loan of US$47.39m”.


He said the Committee was informed that the scope and scale of GNPC’s activities had been broadened with greater involvement in the gas/power sectors under its new Gas Aggregator role, adding that an amount of US$10.00m had been earmarked to support GNGC in respect of capitalization.


He said an amount of US$21.25m had also been earmarked to enable GNPC exercise the option of taking 20% equity in the the Tema LNG project. 


Hon. Gyamfi, who is also the MP for Odotobri in the Ashanti region, said the Committee noted that an amount of US$324.28m was expected to be received by GNPC for the year, 2017, adding that the revenue consisted of US$110.82m, US$172.90m and US$22.00m from the Jubilee, TEN and Sankofa Gye-NyameFields, respectively. 


He said GNPC's additional source of income that the Committee identified would include US$4.13m as Training and Technology Grant and US$14.44m as miscellaneous sources from rentals, interest on short term investment and services to exploration companies.


On the financial performance of GNPC for 2016, he said the Committee was informed that the Corporation received an amount of US$88.50m for the year, which was made up of equity financing (share of development and production cost), 30% share of net proceeds of Jubilee crude revenue and 30 per cent share of Jubilee Gas revenue.


The Minority Leader, Haruna Iddrisu, in a contribution to the motion, urged GNPC and government to take steps to address the findings of the Public Interest and Accountability Committee to ensure efficiency. 


The Minister for Monitoring and Evaluation and MP for Old Tafo, Dr. Osei Akoto, assured the Minority of government’s commitment to addressing challenges facing the GNPC.


Source: ISD (Gilbert Ankrah)