The Public Interest and Accountability Committee (PIAC) has urged Petroleum Commission (PC) to ensure strict compliance with minimum work obligations by International Oil Companies (IOCs).
This was in relation to four of the eighteen subsisting Petroleum Agreements terminated by the Petroleum Commission (PC) in 2021 for non-performance in their minimum work obligations.
The call was contained in PIAC’s 2021 Annual Report on the management and use of petroleum revenues.
Swiss African Oil Company Limited – SWAOCO, UB Resources, Brittania U, and Sahara Energy Fields Ghana Limited were the companies involved and despite the termination, the companies account for about 73 per cent of an outstanding Surface Rental of US$2,579,170.22.
In the same report, Ghana National Petroleum Corporation (GNPC) said in a letter to the Minister of Finance (MoF) in February 2021, that the Minister for Energy requested the MoF to intervene and assist in the settlement of monies owed GNPC by the Government and Energy Sector Agencies.
However, according to the MoF, it was yet to receive the said letter either from GNPC or the Ministry of Energy (MoEn) to inform the appropriate accounting treatment to be effected in the books of GNPC and MoF.
Again, PIAC has urged GNPC to double up efforts and discontinue granting loans and guarantees until significant recoveries were made for outstanding loans and guarantees owed to the corporation.
“As at end of December 2021, GNPC had still not received payment of the US$50 Million advanced to the Ministry of Finance (MoF) in 2014 for the construction of the Western Corridor roads, in the Atuabo Gas Processing Plant enclave, the money was expected to have been repaid in three months,” the reports states.
In PIAC’s engagement with Parliament over the last two years, Parliament directed that the Ministry of Finance and GNPC, meet to resolve that outstanding issue.
Further, the PIACs’ report highlighted some recommendations to improve on GNPC’s primary mandate which is to serve as Ghana’s National Oil Company (NOC) to undertake the exploration, development, production and disposal of petroleum.
The recommendations included that GNPC needed the right corporate governance structure to operate commercially in its aspirations to become a world-class operator by 2027 are to be realised.
Also, there was the need for an amendment to the Petroleum Revenue Management Act (PRMA) to allow the GNPC Body Corporate to borrow commercially using its net share or entitlements of the Carried and Participating Interest (CAPI) to expand its operations.
Finally, GNPC has to re-prioritise its investment portfolio, because some analysis made has shown that GNPC stakes in several other ventures, unprofitable or not aligned with the corporation’s core ethos.
GTonline
