The Ghana National Petroleum Corporation (GNPC) has denied it overspent its 2015 annual budget.
A statement from the GNPC Communication Department, copied to the Ghana News Agency on Friday, said the information in the Public Interest and Accountability Committee (PIAC) Annual Report alleging that GNPC overspent its 2015 budget were incorrect.
“GNPC actually under-spent its budget for 2015, approved by Parliament,” it said.
“Our forecasted revenue was $228.05 million and our actual revenue was $126.86m. This shortfall was driven by the global fall in crude oil prices. Irrespective of this fall in prices, we were contractually obligated to meet our share of costs in the Jubilee Field. Meanwhile, compared to our budgeted expenditure of $291.90 million, our actual expenditure of $190.01m represented a 35% underspend,” the statement said.
The statement said it was as a result of prudent financial management that the Corporation was able to fulfill its contractual obligations despite the sharp decline in revenue which enabled it to make critical sector interventions to ensure the smooth movement of gas to power plants, in order to stabilise the supply of power for industrial and domestic use.
It said; “This includes the provision of road infrastructure in the oil and gas enclave in the Western Region, the guarantee that enabled Karpowership to bring in power plant to alleviate load shedding, and meeting the obligations as a Joint Venture partner in the Saltpond Offshore Producing Company.”
The statement said issues emanating from the Maritime Boundary dispute with Cote D’Ivoire could have a major impact on the entire oil and gas industry in Ghana if the eventual judgement was not in Ghana’s favour.
“Ghana has a strong case at the arbitration and so we have to ensure that we make the necessary representations to ensure we secure the expected outcome for Ghana. The increase in costs is a result of required increased activity in 2015.
“GNPC recently had a fruitful engagement with PIAC to provide clarity on issues concerning our operations. We welcome and encourage other entities to engage us to clarify areas of our operations so that together we can provide accurate information to Ghanaians,” it said.
The Ghana National Petroleum Corporation was established in 1983 by PNDC Law 64 to provide the institutional framework to support the Government's objective of providing adequate and reliable supply of petroleum products and reduce the country's dependence on crude oil imports, through the development of the country’s own petroleum resources.
Backed by the Petroleum (Exploration & Production) Law 1984, PNDC Law 84, the Corporation started operations in 1985. PNDC Law 84 also grants GNPC the right of entry into any open acreage to undertake exploration activities.
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