Parliament has granted approval for the Ghana National Petroleum Corporation (GNPC) to proceed with its capital expenditure of $1.4 billion for the operational year 2023.
This endorsement sets the stage for the Corporation to undertake crucial projects aimed at sustaining activities within the petroleum upstream sector.
The allocated funds will enable GNPC, in collaboration with its partners, to execute developmental and production endeavors across various fields, including the Greater Jubilee field, Tweneboa, Enyenra, Ntomme (TEN) fields, and Sankofa Gye Nyame (SGN) fields.
Additionally, GNPC will continue exploration efforts in the Voltaian Basin and persist in decommissioning the Saltpond Field, all while advancing midstream and capital initiatives.
The anticipated total expenditure of $1.4 billion against total revenue of $1.2 billion creates a funding gap of approximately $172.82 million.
According to a report from the Parliament’s Committee on Mines and Energy, the GNPC’s 2023 work program received approval prior to the adjournment of the House last Thursday.
In support of GNPC’s plan to secure additional financing, it was emphasized that the Corporation’s robust operations would have a positive ripple effect on the overall economy.
Notably, given the constraints of the International Monetary Fund (IMF) bailout terms, the envisioned loans are expected to significantly enhance GNPC’s activities.
However, the Mines and Energy Committee’s endorsement of seeking additional financing hinges on GNPC’s adherence to the constitutional requirement of seeking parliamentary approval for intended loan facilities, as outlined in Article 181 Section 3 of the Constitution.
The Committee recommended that GNPC promptly transfer its shares in the offshore entity Jubilee Oil Holdings Limited (JOHL) to its subsidiary, GNPC Explorco.
This Committee’s actions align with the Petroleum Revenue Management Act (PRMA), Act 815 as amended, which stipulates that Parliament annually approves the national oil company’s program of activities.
Performance Highlights of GNPC in 2022
During the 2022 operational year, GNPC, in collaboration with its partners, achieved several milestones in its petroleum operations. These included drilling a water injector (J58-W) to enhance oil production, conducting drilling operations on J60-P and J59-W1, and successfully completing operations on J59-W1 at the Jubilee field.
Additionally, GNPC acquired and processed 1265.68-line kilometers of data for the Voltaian Basin Project in the Northern Sector and finalized a contract for the Saltpond Field Decommissioning project, among other achievements.
In its gas business segment, GNPC resolved land disputes at the Tema City Gas Project Site, completed a deed of transfer agreement, and conducted Front-End Engineering (FEED) studies on the Tema City Gas Project.
Regarding capital projects for 2022, GNPC accomplished 97 percent of civil and structural work at the Takoradi Operational Head Office, and also refurbished the existing Head Office (Petroleum House), among other initiatives.
Outlook for 2023
For the upcoming year, GNPC, in conjunction with its partners, plans to undertake various activities on the Greater Jubilee Field, including multiple liftings, drilling of new wells, completion of ongoing wells, and maintenance work on existing wells.
Furthermore, scheduled operations will continue on the Tweneboa-Enyenra-Ntomme (TEN) and Sankofa Gye-Nyame (SGN) fields, encompassing well drilling and oil-lifting activities throughout the operational year.
GNPC’s objectives for 2023 encompass the completion of the acquisition and processing of seismic data in the Tano Basin, in addition to finalizing the authorization process for Block 1 – Saltpond in the Ghana Central Basin.
The Corporation also allocates funds for the construction of gas enclave roads in the Western Region, in alignment with a 2015 Ministry of Finance request. A budget of $20 million has been earmarked to support this project in 2023.
Furthermore, GNPC has allocated $3 million to back the Ghana Petroleum Hub Development Corporation in 2023.
This ambitious project, set to conclude by 2030, encompasses the establishment of four oil refineries, two oil jetties, crude oil storage tanks, and two petrochemical plants.