March 25, 2018

Government has saved the nation some $56 million after it renegotiated the $76 million initial cost of the head Office Complex for the Ghana National Petroleum Company (GNPC) to $20 million, Energy Minister, Boakye Agyarko has disclosed as Parliament approves the 2018 Programme of Activities for the company.

According to the Minister, Ghana as an emerging Oil producing country must pay particular attention development and growth of its National Oil Company.

The Minister disclosed that Government has appointed a nomination company as independent to manager to manage Ghana’s Gas accounting system since the sector will soon witness more entrants.
On the Exxon Mobil deal, Mr Agyarko acknowledged that the previous administration initiated the process.

Speaking to the media after the approval, Mr Agyarko explained that the current administration inherited a funding proposal which is expected to cost $ 76 m and has succeeded in scaling down the cost to $ 20 whiles urging the Minority to rather applaud government.

“When we came in, there was a funding proposal on the table for a GNPC headquarters that was projected to cost US$76m, we thought it was a ridiculous amount and so GNPC was instructed to look at the project again.

What we have been able to do, is to scale down the project and also commit US$20m to the project. Obviously at the end of the project we estimate US$20m” he stated.

According to Parliament’s Select Committee on Mines and Energy report on GNPC’s 2018 Programme of Activities, the firm will this year continue its effort at securing a permanent office.

The total estimated cost of the office which falls under GNPC’s non-petroleum capital projects is still being determined and will be made available after the detailed design work is completed.

The report noted that as part of move operational office of GNPC to Sekondi-Takoradi, a provision of US$10m has been made in the 2018 budget towards the construction of the office.

Among the outlook for 2018 is an exploration and appraisal project including the Voltaian Basin project: the Corporation intends to intensify its efforts at discovering oil in commercial quantities in the Voltarian Basin.

In this respect, the Corporation will acquire 600 Line Kilometres of 2D seismic data; process 600 Line Kilometres of seismic data; complete geochemistry data planning report; produce satellite imagery report.

Others are: Petroleum Development and Production Project ; Greater Jubilee Field Development and Production : the Corporation will execute the Plan of Development of the Greater Jubilee Full Field Development (GJFFD) and continue with the implementation of the FPSO Turret Remediation Project(TRP).

Tweneboa-Enyenra-Ntomme (TEN) Development and Production ; the ITLOS having ruled in favour of Ghana in the Maritime Boundary Dispute between Ghana and Ivory Coast on 23rd September 2017, the Corporation intends to continue with its development programme at the TEN field this year. The Corporation will drill and complete two development wells and continue its reservoir surveillance and management of the field as well as its maintenance operations of the FPSO.

Total production from the TEN field for 2018 is expected to be 20MMbbls of oil and 10.95 Bcf of gas export. This translates to expected average daily oil production 55,000 barrels and average daily gas export of 30MMScf.

The Ghana Group is expected to make four liftings from the field. The total amount budgeted for the Corporation’s contribution’s towards the TEN project in 2018 is US$91.15m.

The report also reveals that other midstream and other projects such as Tema and Takoradi projects, Maritime Boundary Secretariat, Ammonia Plant,Gas Evacuation Enclave Roads and PresteaSankofa Gold Limited are all expected to be worked on this year.

For Energy Minister under President John Dramani Mahama who was happy former President Mahama was not acknowledged and invited for the commissioning of FPSO JA Kufuor, said credit must be given to who is deserving.

He called for the protection of Ghana’s territorial boarders with Togo, Nigeria and Ivory Coast in the wake of the successful resolution of the Ghana Ivory Coast dispute.

Chairman of the Finance Committee, Dr Mark Assibey Yeboah commended GNPC for focusing its Cooperate Social Responsibly on education and manpower training as compared to other unrelated ventures in the past.

GNPC requires a total amount of $ 986.13 million for the implementation of its programmes of activities for 2018 however, an amount of $ 356. 43 million is expected to be received leaving a funding gap of US $ 629.70 million.

By Christian Kpesese/ GHANAMPS.COM