GNPC asks for $1.65bn to buy 2 stakes in offshore fields

The Ghana National Petroleum Corporation (GNPC) has asked parliament to approve a loan of $1.65 billion for the state oil company to buy two stakes in Ghana’s offshore fields. 

Energy Minister Mathew Opoko Prempeh submitted a memorandum to that effect to the legislature.

In the memoranda, GNPC said it seeks approval to purchase a 70% stake in the South Deep Water Tano (SDWT) operated by AGM Petroleum Ghana Limited and a 37% stake in the Deep Water Tano/Cape Three Points (DWT/CTP) operated by Aker Energy Ghana Limited.

“Provision of a loan not exceeding US$1.65 billion to finance the acquisition at a price to be negotiated which might not exceed US$1.3 billion and GC Explorco share of capital expenditure (CAPEX) to Pecan Phase 1 First Oil of US$350 million.”

Such partnerships, the GNPC noted, were critical.

It explained that it has become even more imperative as a result of the exit of some major oil companies from Ghana.

In the current scheme of things, the GNPC said it has to shore up its capacity and take up a large part of the exploration activities before Ghana’s oil reserves hit 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 document said.

“A declining industry undermines growth, diminishes revenue expectations for Ghana and makes redundant the stock of skilled labour in the industry which Ghana has rapidly built up over the decade.”

It added that the move is “all the more needed and urgent”.

GNPC believes the partnerships, which have the approval of Cabinet, can add extra 200,000 barrels of crude oil to Ghana’s capacity in the next few years.