GNPC seeks parliamentary approval for $1.65 billion loan to purchase two stakes in Ghana’s offshore fields

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The Ghana National Petroleum Corporation (GNPC) is seeking parliamentary approval for a $1.65 billion loan to purchase two stakes in Ghana’s offshore fields.

The Minister of Energy, Dr. Matthew Opoku Prempeh, laid the request before the House. GNPC, through its GNPC Explorco, is allowed to participate in the upstream.

In the memorandum covering the loan, GNPC seeks approval to purchase a 70 percent stake in the South Deep Water Tano operated by AGM Petroleum Ghana Limited and 37 percent stake in the Deep Water Tano/Cape Three Points operated by Aker Energy Ghana.

Minister of Energy, Dr. Matthew Opoku Prempeh’s memo to Parliament said the GNPC Explorco will form a joint operating company with the two entities and acquire the said stakes at different agreed prices.

The Ministry argued that entering such a partnership with the two entities is critical because prevailing situations such as the exiting of oil majors from the country required that GNPC Explorco builds its capacity and take up a large part of the exploration activities before Ghana’s oil reserves hits a level of terminal decline.

With the shift away from investments in oil and gas into renewable, Ghana faces the risk of stranded assets and dwindling proven reserves if GNPC is unable to undertake exploration, development and production alone. The move to buy the stakes is said to be needed and urgent hence the need for parliamentary ratification.

The Speaker of Parliament, Alban Bagbin referred the Ministry’s request to the joint committee on Mines and Energy and Finance for consideration and report to the House.

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