Joint Committee recommends approval of $ 1.45 billion loan for GNPC

Ghana Parliament House

Parliament’s joint finance, mining and energy committee recommended that the House approve a government request for the Ghana National Petroleum Corporation to borrow $ 1.45 billion to acquire significant stakes in two oil blocks and finance investment spending in another area.

The committee’s report on the request says that after diligently analyzing the risks and rewards of the transaction, members agreed by consensus that GNPC, through its subsidiary GNPC Explorco, should acquire a 37% stake. in Deep Water Tano / Cape Three Points (DWT / CTP) operated by Aker Energy Ghana Limited and a 70% stake in the South Deep Water Tano (SDWT) block operated by AGM Petroleum Ghana Limited.

The acquisitions will cost no more than US $ 1.1 billion, while GNPC Explorco will borrow US $ 350 million to finance its share of the capital expenditure to obtain the first oil from the Pecan field.

The committee, however, recommended that the terms and conditions of the loan for the acquisition of the shares be submitted to Parliament for consideration, in accordance with Article 181 of the Constitution.

Likewise, the petroleum agreement between GNPC Explorco and Aker Energy / AGM will be tabled in Parliament for consideration, in accordance with Article 268 of the Constitution and the 2016 Petroleum (Exploration and Production) Law (Law 919).

Among the benefits to be derived from the transaction, the commitment noted, in particular an opportunity for GNPC to strengthen its operator capacity to ensure that Ghana’s hydrocarbon resources are fully explored and developed.

The transaction will also support the actualization of Ghana’s Beyond Aid development program by boosting oil production, creating jobs and generating tax revenues of approximately $ 6.5 billion in face value over 15 years.

Currently, Ghana has 18 petroleum agreements, three of which are producing fields and five are discoveries.

The committee’s report indicates that the national oil company must be supported to develop its operating capacities if Ghana is to benefit from its untapped natural hydrocarbon resources.

The partnership with AKER Energy and AGM, with proven deep-water capacities, therefore offers such an opportunity for GNPC to develop its operator capacities, adds the report.