GNPC to spend US$534.77m this year as Parliament approves its work programme

The Ghana National Petroleum Corporation (GNPC) is seeking to spend US$534.77million for the 2017 financial year, a report on the Mines and Energy Committee of Parliament has revealed.

The state-owned petroleum exploration, licensing, and distribution company is expected to finance its budget with inflows from Jubilee, 110.82million; US$ 172.90million from TEN; and US$22million from Sankofa Gye-Nyame Fields.

Additional source of income would include US$4.13million as training and technology grant and US$14.44million as miscellaneous sources from rentals, interest on short-term investment and services to exploration companies

The approved amount is, however, US$210.49m short of what the state-owned petroleum exploration, licensing, and distribution company needs for 2017.

GNPC officials informed the Committee that: “The funding gap 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.”

These developments came up when Parliament unanimously approved the 2017 work programme of the Ghana National Petroleum Corporation (GNPC) before it adjourned.

GNPC’s operating expenditure for the year includes personnel emoluments, administrative capital, general expenses and maritime boundary special project.

The Corporation has also earmarked US$21.25m to acquire a 20 percent stake in the Tema LNG project.

The scope and scale of GNPC’s activities have been broadened with greater involvement in the gas/power sectors under its new Gas Aggregator role.

GNPC is, therefore, ensuring adequate capitalization of its midstream subsidiary, Ghana National Gas Company Ltd (GNGC), to effectively play the role of gas transportation from offshore to the onshore.

In this regard, an amount of US$10.00m has been earmarked to support GNGC in respect of capitalization.

On the financial performance of GNPC for 2016, 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), a 30 percent share of net proceeds of Jubilee crude revenue and 30percent share of Jubilee Gas revenue.

The cash brought forward from 2015 was US$124.06m, bringing the total cash available for 2016 to US$212.56m.