The Ghana National Petroleum Corporation (GNPC), has described as “incorrect” recent news from the Public Forum of the Public Interest and Accountability Committee (PIAC) Annual Report, alleging that it overspent on its 2015 budget.
According to the GNPC, it rather under spent its budget for 2015, approved by Parliament.
In press statement sent to The Herald from Petroleum House in Tema dated June 23, 2016, the Corporation explained that “our forecasted revenue was $228.05m 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”.
It added that “compared to our budgeted expenditure of $291.90 million, our actual expenditure of $190.01m represented a 35% under spend”.
This, it said, was “as a result of prudent financial management that we were able to fulfill our contractual obligations despite such a sharp decline in revenue. This is what enabled GNPC 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”.
The statement mentioned, “the provision of road infrastructure in the oil and gas enclave in the Western Region, the guarantee that enabled Karpowership bring in power plant to alleviate load shedding, and meeting our obligations as a Joint Venture partner in the Saltpond Offshore Producing Company”, some of the critical interventions.
The GNPC, also warned that “the 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 judgment is not in Ghana’s favour”.
It stated that “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” therefore “the increase in costs are a result of required increased activity in 2015”.