Ghana: Gov’t To Revoke Four Petroleum Exploration Licences
Ghana’s Deputy Minister for Energy in-charge of petroleum Dr. Mohammed Amin Adam, has hinted that the West African nation plans to revoke four petroleum exploration licences from companies that are not developing the assets.
Amin Adam told journalists at the ongoing Africa Oil Week in Cape Town that the country will take aggressive action to ensure that its petroleum assets are developed.
The licences were identified for termination after a review of 14 license awards that were made in recent years.
“Four of them are lined up for termination,” he said.
The government has not yet notified the companies involved.
Equatorial Guinea: Ministry of Mines and Hydrocarbons Awards Saipem $90m Gas Project
Equatorial Guinea’s Ministry of Mines and Hydrocarbons has awarded Italian firm, Saipem, a $90 million gas pipeline project.
The 70-km gas pipeline will link the Alen Unit, operated by Noble Energy, and the petrochemical complex of Punta Europa.
The Ministry of Mines and Hydrocarbons said the contract, will be strictly monitored to ensure that it benefits the local people.
The Alen gas project is expected to monetize some 600 Bcfe gross recoverable gas resources from the Alen gas and condensate field. The field, located in Blocks O and I, has been producing condensate since 2013.
“We anticipate that this contract, which is being approved exceptionally under the given circumstances, will contribute immensely to improving the performance of local businesses and the creation of employment, as it is priority of the Ministry,” Equatorial Guinea’s Minister of Mines and Hydrocarbons, H.E. Gabriel Mbaga Obiang Lima said in statement copied to energynewsafrica.com.
The final investment decision of the gas monetization project of the Alen-Backfilling unit was signed in Malabo in April.
The “backfill” links producing gas fields in Equatorial Guinea to onshore LNG facilities. It is widely considered the first phase of the Gas Megahub vision, which aims to turn the Island of Bioko into a mega-center of gas processing.
Uganda To Export First Crude Oil To International Markets- Irene-Margaret Muloni Reveals
Ugandan Minister for Energy and Mineral Development, Irene-Margaret Muloni believes the future of the hydrocarbon sector of the East African country is bright.
The Minister who was addressing the 2019 Africa Oil Week currently underway in the South African city of Cape Town, disclosed that Uganda will soon export its first crude oil from its Lake Albert oil discovery to the international markets.
Madam Irene-Margaret Muloni was of the view that the oil export to international markets will make Uganda one of the latest countries to have joined the oil exporting countries after the government came to an agreement with Tanzania that enables it to transport its crude oil through the East African Crude Oil Pipeline (EACOP), a 1,445-kilometre pipeline from Hoima, Uganda, to the port of Tanga in Tanzania as the proposed route.
“It is exciting times for Uganda, we are now preparing for production. It has taken us some time, but we are there,” she said.
The exploration discovered six billion barrels and we have plans to recover about 1.4 billion of these. And now the issue is to get that out of the ground. We’ve already agreed with Tullow, Total and CNOOC the way forward to commercialise that oil, she announced.
“We need two big destinations. One is access to the international markets through the pipeline to add value and ensure security of supply within the East Africa region. Also, we are importers of petroleum products now, so we have a refinery under development.
”That refinery is planned for Kabaale in Western Uganda’s Hoima district, along the eastern shore of Lake Albert, close to the border with the Democratic Republic of Congo.
Once the refinery is completed, expected to be in 2022, it will produce kerosene, gasoline, diesel, heavy fuel oils for Uganda and other local markets. In addition to the refinery an airport, hospital and a 100-megawatt thermal power plant are being constructed.
“For these two big projects the pipeline is more advanced with the FEED signed and an intergovernmental agreement with Tanzania.
She pointed out they currently are negotiating the host government agreements amongst themselves and setting up the private companies that are going to own and operate the pipeline.
For the refinery, she stated “we’ve already approved the configuration of the refinery that will handle 60,000 barrels per day”. Those two projects are ongoing and as a country we are preparing the infrastructure.”
The Minister said with the Lake Albert oil beginning to flow, Uganda has set its sights on further resources and in May this year, announced a second licensing round for additional oil exploration in five blocks in western Uganda that will be announced before the end of 2019.
“It is all about attracting companies to come and join us in the exploration. We have only licensed about 15% of the resources but the appetite is there because the parameters are world class. The success rate when you drill is hovering around 85%, meaning every time you drill a hole there is a good chance of success” Madam Irene-Margaret Muloni explained.
Nigeria: Buhari Signs Oil Contract Amendment Bill Into Law
Nigeria’s President H. E. Muhammadu Buhari, who is on a two weeks private visit to the United Kingdom, has announced that he has signed the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Amendment Bill into law.
The law will significantly increase Nigeria’s share of earnings earned from oil wells offshore the country.
The bill was approved by the National Assembly a fortnight ago and submitted to the president for the final assent into law.
The President announced the signing of the law through a post on his official Twitter handle, @MBuhari.
“This afternoon I assented to the Bill amending the Deep Offshore (and Inland Basin Production Sharing Contract) Act. This is a landmark moment for Nigeria; let me use this opportunity to thank the National Assembly for the cooperation that produced this long-overdue amendment,” the President said.
The Deep Offshore and Inland Basin Production Sharing Contracts Act was enacted on March 23, 1999, with its commencement backdated to January 1, 1993.
However, for some time, there has been disagreement between the government and international oil companies on the need to review the law to reflect current realities.
Section 16 (1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act Cap. D3. LFN 2004 spelt out the conditions under which the PSCs should be reviewed.
The provisions of the Act stipulates that the law shall be subject to review to ensure that if the price of crude oil at any time exceeds $20 per barrel, the share of the revenue to the Nigerian government shall be adjusted under the PSC.
The essence of the adjustment of the sharing formula was to ensure that the Production Sharing Contracts shall be economically beneficial to the government of the federation.
Of late, the Federal Government through the Office of the Attorney General of the Federation and Minister of Justice, Abubakar Malami, has been making a case for the recovery of over $62 billion from the IOCs as arrears of revenues that should have accrued to Nigeria over the years that oil sold above $20 a barrel.
Malami accused the IOCs of frustrating efforts in the past for the government to negotiate the review of the PSC.
Brazil Set To Reap Billions From ‘Mega’ Oil Auction
Brazil is set to hold what has been described as a ‘mega-bidding round’ on Wednesday
In the licensing round for the offshore areas in the ”transfer of rights” (TOR) areas oil companies will be bidding for ownership in Buzios, Sepia, Atapu, and Itapu oil fields.
The Transfer of Rights area round differs from traditional offshore exploration rounds in that the acreage offered has confirmed reserves and low exploratory risk.
The national oil company Petrobras has already exercised its preemptive rights -according to Brazil’s laws – to act as the operator of the Buzios and Itapu areas with a minimum of 30% stake ownership in any winning consortium.
The national petroleum regulator ANP has shared that the signing bonuses for the four areas could bring in around 104,8 billion reals (or $26.2 billion) at a minimum if bids for all four areas on offer are received. The TOR auction is scheduled for Wednesday.
South Africa:Moody’s Downgrades Eskom CFR To B3
Moody’s Investor Services (Moody’s) has downgraded to ‘B3’ from ‘B2’ the long-term corporate family rating (CFR) of South African power utility Eskom.
The zero coupon eurobonds rating has similarly been revised to ‘B3’ from ‘B2’ in line with the CFR and the global medium-term note (GMTN) programme and the senior unsecured GMTNs of Eskom were downgraded to ‘(P)Caa1/Caa1 from (P)B3/B3.
The outlook remains negative.
Moody’s has simultaneously affirmed the Baa3 rating on Eskom’s government guaranteed notes.
Eskom notes with disappointment the ratings decisions implemented by Moody’s.
The current Board and management have worked painstakingly hard to try and resolve corporate governance issues of the past regime.
In a statement, the utility noted that it continues to implement the Generation recovery 9-point plan to stabilise the plant and the security of supply; while the system has been constraint, they have endeavoured to provide a secure and stable electricity supply.
“The company’s liquidity levels remain at low levels, we have, however; seen a considerable amount of support for Eskom paper from the local markets and coupled with the financial support announced by government, we are cautiously confident that our debt obligations are not at risk,” the parastatal noted.
Eskom’s Acting Group Chief Executive and Interim Executive Chairman, Jabu Mabuza said: “We acknowledge the concerns expressed by Moody’s and continue to work closely with shareholder ministries to resolve the current challenges.
“Whichever option gets implemented through the unbundling processes, we will ensure that our creditors will not be compromised and that the execution of these options gets done under acceptable legal frameworks. Our electricity supply system remains fairly constraint; but we are doing everything we can to make sure that the supply is not compromised.”
Lesotho: Electricity Company Seeks Consultancy Services For A Substation
Deadline date: 28 November 2019
The Lesotho Electricity Company (LEC) invites sealed bids from eligible bidders to submit tenders for consultancy services for the undertaking of environment and social impact assessment for Khukhune – Letšeng 132kV line on the following terms and conditions.
- A copy of tender document shall be available at a non-refundable price of LSL2,000 ($132) per copy to prospective tenderers.
- Provide a detailed Environmental, Social and Impact Assessment (ESIA) study and associated specialist studies of all the activities that are going to be undertaken during construction, implementation and operation of the proposed project and resultant Environment and Social Management Plans (ESMPs).
- The successful bidder shall be obliged to enter into a short term contract with LEC.
- Company registration certificate
- Tax clearance certificate
- Traders’ license
Ghana: GNPC’s Ghs 550,000 Donation To EOCO Is Inappropriate – Auditor-General
Ghana’s Auditor-General, Daniel Domelevo, has described decision by the Economic and Organised Crime Office (EOCO) in the West African nation to accept donation from Ghana’s national oil company as very unfortunate and inappropriate.
In his view, EOCO being an oversight institution like the Auditor General’s office, should have rejected the cash donation.
“As an oversight body, you must not only be independent, but you must be seen as independent. So if an oversight body is partaking in the booty and goes back to provide oversight, who will trust them?
“They may do a professional job but who will trust them since they have compromised their independence? This must be avoided…I think that is not a way to go,” he said.
He argued that although the GNPC Board has the right to make decisions, those decisions must fall within the ambit of the law.
“So maybe during an audit, we will interrogate to find out whether the laws of GNPC allow the funds to be used that way. If not then, it may not be the right thing.
“Yes, there are administrative structures like Boards which take decisions but one thing I would like to advise them about is that every time they should try and make sure they are within the law,” he added.
The concerns about GNPC spending heavily on non-core activities have arisen again after details of the financial requests to the Corporation’s Brand, Communication and Corporate Social Responsibility (CSR) committee was approved by the GNPC board.
A memo dated October 25 outlines various sums of money to different institutions.
The memo indicated that approvals have been granted to some supposed requests received with the stated amounts as indicated below:
–2019 Damba Festival Preparation- Dagbon State- GH¢400,000.00
–20th Anniversary of Okyenhene – GH¢500,000.00 over three years totalling (GH¢1,500,000.00) for the environment and greening.
II:GH¢300,000.00 for the organisation of 20th Anniversary celebrations of Okyenhene
–Ghana Journalists Association – GH¢50,000.00
–Ghana Boxing Association – $30,000.00
–Rebecca Foundation – GH¢120,000.00
–EOCO –GH¢550,000.00
Reacting to the news, Mr Domelevo said public funds are meant for the public and the Constitution under article 178 provides how public funds are supposed to be used.
“So the use of discretion is restricted to what the law permits. If the law does not permit the use of the money the way it has been spent, then definitely something is not right,” he said.
The Auditor-General argued that since the supreme law of the country is clear on what to do, so individuals cannot use their discretion to create any anarchy by defining what is in the public’s interest.
“In fact when people are appropriating public funds to their personal use, they see it as serving the national interest which is quite disturbing,” he said.
Egypt: Engie Africa Completes Construction Of 262.5mw Wind Farm
Independent energy producer, ENGIE Africa has announced that construction and commissioning of the 262.5MW Ras Ghareb wind farm in Egypt is complete 45 days ahead of schedule.
The wind farm is now fully connected to the grid and is ready for commercial operation at maximum capacity.
The project company, Ras Ghareb Wind Energy SAE is owned by ENGIE (40%) and its consortium partners Toyota Tsusho Corporation/Eurus Energy Holdings Corporation (40%) and Orascom Construction (20%).
The wind farm is located near Ras Ghareb on the Gulf of SUEZ, an optimal site with about 60% of gross capacity factor.
The energy is sold under a 20-year Power Purchase Agreement (PPA) to the Egyptian Electricity Transmission Company (EETC). The total investment cost of the project is approximately $380 million.
Ras Ghareb Wind Energy is the first wind farm tendered on a Build-Own-Operate (BOO) scheme and is part of the Egyptian government’s drive to increase the share of renewables in the energy mix with a target wind generation capacity of 7GW by 2022.
“There is a huge potential for low-cost renewable energy in Africa. We are honoured that the Egyptian authorities have selected the ENGIE consortium to be part of their strategic energy plan,” Yoven Moorooven, CEO of ENGIE Africa commented.
“ENGIE’s clean energy solutions are based on competitiveness, reliability and safety. Ras Ghareb Wind Energy has been developed with a continuous focus on Health and Safety and is completely in line with ENGIE’s ambition in the zero-carbon transition. We are committed to apply the same standards with the same success for the adjacent 500MW wind farm that is being developed by this consortium.”
The consortium arranged non-recourse project financing from The Japan Bank for International Corporation in coordination with Sumitomo Mitsui Banking Corporation and Société Générale under a Nippon Export and Investment Insurance cover.
Commercial International Bank Egypt is acting as working capital bank and Attijariwafa Bank provided an equity bridge loan for Orascom Construction.
With its global references in areas such as facility management, gas distribution, cold networks or green mobility, ENGIE is also keen to develop its service activities and energy solutions for smart cities in Egypt.
Africa Oil Week: South Africa Minerals And Energy Minister Makes A Case For Gas
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, has urged investors to invest in and help develop South Africa’s gas industry.
Addressing delegates on the opening day of Africa Oil Week in Cape Town today, Mantashe referred to South Africa’s Integrated Resource Plan recently approved by Cabinet and flagged its provision for gas-to-power projects from 2024.
“We intend to establish the first LNG hub in the Coega Industrial Development zone in the Eastern Cape Province,” Mantashe said.
The framework for supporting the gas to power programme would be announced by his department in the near term and linked to this would be an amendment to the Gas Act of 2001, to be tabled in Cabinet soon.
On the upstream, work is under way on a Petroleum Resources Development Bill, which will also be before Cabinet soon.
“Gas to power technologies will provide the flexibility required to complement intermittent renewable energy and meet demand during peaking hours,” Mantashe said.
“While in the short term the opportunity is to pursue gas import options, local and regional gas resources will allow for scaling up within manageable risk levels.
“Indigenous gas like coal-bed methane and, ultimately, recoverable shale and coastal gas are options we are considering.”
Mantashe made specific mention of major gas discoveries in Mozambique and Tanzania, noting “we remain ready to contribute to the development of these recent finds”.
Referring to the hydrocarbon discovery by Total and partners off South Africa south eastern coast earlier this year, he said: “We are confident that this find will spur further interest in the upstream potential of South Africa.”
Africa remains the most energy-deficient continent globally with more than 500 million Africans lacking access to modern forms of energy and affliction by indoor pollution and environmental degradation, Mantashe said.
“Agenda 2063 of the African union enjoins us to develop Africa’s energy infrastructure, where all our countries are connected.
“Our oil and gas must be harnessed to deliver energy services to all households and businesses.
“Our gas must power plants and other petrochemical facilities in our countries as it reaches for export markets. This will ensure that we do not always import beneficiated hydrocarbons.”
Source: www.energynewsafrica.com
GNPC Sponsorship Saga: IES Worried EOCO May Compromise On Its Investigative Mandate
The Institute for Energy Security, an energy think tank in the Republic of Ghana, has raised concern about the sponsorship package which the West African country’s national oil company, GNPC, approved for anti-graft body Economic and Organised Crime body, EOCO.
IES is worried that such acts may influence the investigative body and, thus, prevent them from investigating the wrongdoings of the GNPC.
“The Economic and Organised Crime Office (EOCO) mandated to monitor and investigate economic and organised crime is expected to hold institutions like the GNPC accountable. It must not, therefore, allow itself to be compromised in any form or shape. It is important to note that CSR and conflict of interest are not bed fellows.
“GNPC’s corporate pursuit of social goals must be pursued with ethical considerations. The Board must, therefore, ensure that the corporation takes up initiatives that protect its reputation, and position the ‘Brand GNPC’ to become the operator Ghanaians so much desire,” a statement signed by the Executive Director of IES, Paa Kwasi Anamua Sakyi said.
“The GNPC Board must differentiate good (sustainable) from bad (short-term) self interest in order to stress the genuineness of their approvals given to cultural and investigative issues, ” the statement added.
The call comes in the wake of an internal memo which revealed how the corporation has approved over GHS 2.7m sponsorship package for some institutions including the 20th anniversary celebration of the Okyenhene and Rebecca Akufo-Addo Foundation, a foundation owned by Ghana’s First Lady.
The memo noted that the GNPC’s Brand, Communication and CSR Committee approved GHc120, 000 for the Rebecca Akufo-Addo Foundation, GHc550, 000 for the Economic and Organised Crime Office, US$30,000 for the Ghana Boxing Association, GHc50, 000 for the Ghana Journalists Association, GHc400, 000 for the Samba Festival Preparation and GHc1, 500,000 towards the 20th Anniversary of the Okyenhene for the environment and greening.
Below is the full statement
GNPC’s CORPORATE SOCIAL RESPONSIBILITY (CSR) MUST BE PURSUED WITH ETHICAL CONSIDERATIONS
- In the current approval from the Board of Ghana National Petroleum Corporation (GNPC) to the Chief Executive Officer (CEO) of the entity, you see a clear drift from the strategic path the company has set for itself and pursued over the years as an anchor of its Corporate Social Responsibility (CSR).
- The understanding is that the Corporation has adopted a more definitive approach to CSR by executing fewer, yet bigger and bolder initiatives in the area of health, education, and sport development; aimed at establishing GNPC as an admired brand.
- The Institute for Energy Security (IES) is curious in the decision of the Board, and wishes to understand the factors that are influencing the inclusion of cultural and investigative related issues in the company’s CSR activities. The Board must help clarify and justify the changes to the goal posts, knowing very well that some elements in its approvals are at odds with their own CSR policies.
- It must be noted that political interference have not done any good to especially state owned enterprises (SoE’s) in Ghana’s energy sector, and to Ghanaians in general. If the government has any commitment to any State or Stool, it must not use the GNPC to prosecute that agenda. The GNPC must be seen to be independent when it comes to issues like CSRs, than to be used as a funding source for government’s initiatives and mandates.
- The Economic and Organized Crime Office (EOCO) mandated to monitor and investigate economic and organized crime, is expected to hold institutions like the GNPC accountable. It must not therefore allow itself to be compromised in any form or shape. It is important to note that CSR and conflict of interest are not bed fellows.
- GNPC’s corporate pursuit of social goals must be pursued with ethical considerations. The Board must therefore ensure that the corporation takes up initiatives that protect its reputation, and position the “Brand GNPC” to become the Operator Ghanaians so much desire.
- The GNPC Board must differentiate good (sustainable) from bad (short-term) self interest in order to stress the genuineness of their approvals given to cultural and investigative issues.
South Africa: Energy Minister Worried Over Lack Of Electricity Access To Africans
South Africa’s Minister for Mineral Resources and Energy, Gwede Mantashe has bemoaned Africa’s current status as the most energy deficient continent in the world.
The Minister also expressed sorrow at how over 500 million Africans lack access to modern forms of energy and are afflicted with indoor pollution and environmental degradation.
Gwede Mantashe made the sorrowful disclosures when he addressed participants at the opening ceremony of the 2019 Africa Oil Week, currently ongoing in the South African city of Cape Town.
He said that the African Union [AU’s] Agenda 2063 enjoins member states to develop the continents energy infrastructure where all members are connected.
He, therefore, called for the urgent harnessing of Africa’s oil and gas sectors to deliver modern energy services to all households and businesses.
Africa’s gas, he emphasised must be power plants and other petrochemical facilities in member states as it reaches for export markets.
This, Gwede Mantashe added would ensure Africa does not always import beneficiated hydrocarbons.
South Africa remains ready to contribute to the development of its recent findings in the oil and gas sectors through the importation of gas.
In early 2019, we announced hydrocarbon finds by Total and its partners off the Mossel Bay Coast and that we are confident the findings will spur further interests in the upstream potential of South Africa.
The Minister pointed out that they have taken notes of global industry shifts and that they were encouraged by the visions set by many African nations to enter into the global gas market and promote the development of respective domestic and regional gas markets.
According to the Minister, natural gas can improve the efficiencies of many industries currently using sub-optimal fuel sources in their production processes which would result in a turnaround in the industrial capacity and demand in the region.
He maintained that both the energy and minerals resources sectors are catalysts to economic growth and that lowering the cost of energy is critical to the growth of the extractive and manufacturing sectors respectively.
‘’We remain resolute in our conviction about the importance of all energy carriers in our energy mix and that we intend to exploit our natural resources endowment to our benefit,” the South African Mineral Resources Minister assured.
Source:www.energynewsafrica.com
Ghana: GNPC Justifies GHS 2.7m Sponsorship Package For Okyenhene’s Anniversary, Rebecca Akufo-Addo Foundation, Others
The national oil company of the Republic of Ghana, Ghana National Petroleum Corporation (GNPC), has justified its decision to approved over GHS 2.7m sponsorship package for entities.
The General Manager-in-charge of Sustainability at GNPC, Dr. Kwame Baah Nuako, explained that such expenditures are not new and are in line with GNPC’s vision.
“I can assure you [that], this is not the first time. This is not the first batch of sponsorship requests that have been received this year or have been approved,” Dr. Baah Nuako.
He said the budgeted donations and sponsorships were mostly in response to requests made by various interest groups.
The GNPC has come under public criticisms following the corporation’s decision to sponsor some public functions and activities.
An internal memo sighted by energynewsafrica.com showed that various amounts were to be given to the First Lady’s Foundation, Rebecca Foundation; The Ghana Journalists Association, and the celebration of the Okyenhene’s 20th Anniversary.
The memo, dated 29th October 2019 from the Board Secretary to the Chief Executive indicated that the donations and sponsorship had been approved by the GNPC board upon a recommendation by the Brand, Communication and CSR Committee of GNPC.
Some of the items budgeted for by the GNPC include GH¢400,000 towards the preparations for the Damba Festival and GH¢500,000 towards the environment and greening project as part of the celebration of the 20th Anniversary of the Okyenhene.
The First Lady’s Rebecca Foundation also had GH¢120,000 budgeted for it, while the Economic and Organized Crime Organization (EOCO) is expected to receive GH¢550,000.
But Dr. Kwame Baah Nuarko said the sponsorships are worth it, and the GNPC goes through strict processes before requests are approved.
“There is a very clear process at GNPC in determining what should be approved or not…The figures are huge because the activities involved are huge,” he said.
He explained that the Rebecca Foundation is to receive the funds which will be given to two women’s groups in the Mpohor District of the Western Region for the setting up of an oil palm processing factories, which falls in line with GNPC’s vision of economically empowering people.
Ghana: GNPC Must Be Investigated For Dissipating Our Oil Money-COPEC
The Chamber of Petroleum Consumers, a consumer advocacy group in the Republic of Ghana, is calling on the President of the West African nation, His Excellency Nana Akufo-Addo, to, as a matter of urgency, initiate investigations into the processes leading to what it described as wanton dissipation of the tax payers’ monies by the country’s national oil company, Ghana National Petroleum Corporation (GNPC).
The call comes in the wake of an internal memo which revealed how the corporation has approved over GHS 2.7m sponsorship package for some institutions including the 20th anniversary celebration of the Okyenhene and Rebecca Akufo-Addo Foundation, a foundation owned by Ghana’s First Lady.
The memo noted that the GNPC’s Brand, Communication and CSR Committee approved GHc120, 000 for the Rebecca Akufo-Addo Foundation, GHc550, 000 for the Economic and Organised Crime Office, US$30,000 for the Ghana Boxing Association, GHc50, 000 for the Ghana Journalists Association, GHc400, 000 for the Samba Festival Preparation and GHc1, 500,000 towards the 20th Anniversary of the Okyenhene for the environment and greening.
However, these donations have been met with criticisms from the Ghanaian public.
“This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over-emphasised and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs,” COPEC said in a statement signed by Duncan Amoah, Executive Secretary of COPEC and copied to energynewsafrica.com.
“The priorities of the GNPC should be, going forward, clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravene the posture of the state and Central Government within the economic context prevailing in Ghana,” the statement added.
Below is full statement:
Chamber of Petroleum Consumers, Ghana
Accra
GOVERNMENT MUST HALT AND INVESTIGATE THE BOARD AND MANAGEMENT OF GNPC ON UTILIZATION OF GENERATED OIL REVENUE.
The poor Ghanaian tax payer is once again confronted with another clear case of wanton dissipation of the scarce the nations resources by highly placed persons within the Ghana National Petroleum Corporation (GNPC) which sharply contrasts Government’s earlier reason for increasing fuel taxes as it insisted we needed revenue yet some in same breathe squandering the little available without any solid justification.
Chamber of Petroleum Consumers Ghana (COPEC-GH) has taken notice of an internal Memorandum dated 29th October 2019 from the Board Secretary under the Signature of one Matilda Ohene to the Chief Executive of the Ghana National Petroleum (GNPC) on the subject titled “Board Approval for payment of various sponsorship /Support Requests”.
The said memo indicates the granting of approvals to some supposed requests received with some stated amounts as indicated below:
2019 Damba Festival Preparation- Dagbon State- GHS400, 000.00
20th Anniversary of Okyenhene – GHS500,000.00 over three years totaling (GHS1,500,000.00) for the environment and greening.
II: GHS300,000.00 for organization of 20th Anniversary celebrations of Okyenhene
Ghana Journalists Association – GHS50,000.00
Ghana Boxing Association – US$30,000.00
Rebecca Foundation – GHS120,000.00
EOCO – GHS550,000.00
Our initial reaction was that of disbelief but the said memo has been confirmed by the manager for sustainability of the GNPC with a justification that these are quite normal application of the scarce resources been held in trust for Ghanaians by the corporation.
To this we call on the Government to immediately halt, and investigate the processes leading to wanton dissipation of these monies as contained in the memo, and to further take immediate action and sanctions against the Management and the Board of Directors of GNPC and to further take steps to consolidate all resources being held in trust by the corporation to forestall any further wanton dissipation of same as has been the case over the years with GNPC.
This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over emphasized and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs.
The priorities of GNPC should be going forward clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravenes the posture of the State and Central Government within the economic context prevailing in Ghana.
For the avoidance of doubt we also seek clarity on the following:
Does the Act and laws governing the operations of GNPC permits GNPC to on its own now finance and compromise other state investigate bodies such as EOCO who are expected to hold persons at the top of such corporations to account in the event of abuse of resources?
These state investigative Agencies such as EOCO who currently are expected to be investigating the board chairman of the very same GNPC and all other potential corrupt practices in such public corporations also enjoys government budgetary allocation and funding and as such could attract private support but another huge state funding by GNPC leaves a lot to be desired and confusion in the minds of right thinking society especially at the time EOCO is expected to investigating some highly placed officials of the said corporation.
Further, does such funding provision for Chieftaincy affairs in the country not constitute a pick and choose agenda which can lead to needless tensions and suspicions knowing very well how delicate the institution of chieftaincy is to ethnic and social matters as already, the chiefs and people of the Western Region of Ghana, where a larger chunk of our oil resources are extracted from are on record to have demanded a percentage share of the oil find but have till date not been given any, neither their roads fixed nor infrastructure improved by the oil money yet GNPC in an apparent show of some perceived biases is sponsoring other traditional areas in Northern and Eastern Regions of the Country by way of festivals and to also go green?
Will GNPC be in a position to grant all the traditional authorities same or similar funding upon request? if no, what justification will they provide for declining in the event all other traditional authorities now decide to seek their share of the oil cake?
Dispensing such amounts to individuals and private organizations will sure have a certain effect on the economy and central government funding as these monies could have been easily channeled to other very important needs such social amenities provision in deprived communities to ease the pressures on the central government.
The absence of funding to undertake these development projects often force the central government to now resort to imposing heavier taxes which has often lead to increases in fuel prices at the pumps in the petroleum industry.
We believe that the public funds in the care of GNPC should be prudently invested and managed in building a robust upstream petroleum sector such that GNPC can in the very near future hold and maintain some of our oil wells without any foreign oil company taking a larger chunk of the shares of our own resources. And to complement in defraying incessant debts in the energy sector and ultimately relieve ordinary Ghanaians off these huge tax burdens as prevailing today.
We lastly note with deep concerns, that, this rather headless financial decision by the Board of GNPC to among other things, pay funds to EOCO which already enjoys government budgetary allocation could potentially compromise the investigative responsibilities of the state institution and further open the floodgates for all other traditional authorities within the country to also seek their share of the oil money and must be halted immediately forthwith.
Signed.
Duncan Amoah
Executive Secretary
Source: www.energynewsafrica.com
The memo noted that the GNPC’s Brand, Communication and CSR Committee approved GHc120, 000 for the Rebecca Akufo-Addo Foundation, GHc550, 000 for the Economic and Organised Crime Office, US$30,000 for the Ghana Boxing Association, GHc50, 000 for the Ghana Journalists Association, GHc400, 000 for the Samba Festival Preparation and GHc1, 500,000 towards the 20th Anniversary of the Okyenhene for the environment and greening.
However, these donations have been met with criticisms from the Ghanaian public.
“This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over-emphasised and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs,” COPEC said in a statement signed by Duncan Amoah, Executive Secretary of COPEC and copied to energynewsafrica.com.
“The priorities of the GNPC should be, going forward, clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravene the posture of the state and Central Government within the economic context prevailing in Ghana,” the statement added.
Below is full statement:
Chamber of Petroleum Consumers, Ghana
Accra
GOVERNMENT MUST HALT AND INVESTIGATE THE BOARD AND MANAGEMENT OF GNPC ON UTILIZATION OF GENERATED OIL REVENUE.
The poor Ghanaian tax payer is once again confronted with another clear case of wanton dissipation of the scarce the nations resources by highly placed persons within the Ghana National Petroleum Corporation (GNPC) which sharply contrasts Government’s earlier reason for increasing fuel taxes as it insisted we needed revenue yet some in same breathe squandering the little available without any solid justification.
Chamber of Petroleum Consumers Ghana (COPEC-GH) has taken notice of an internal Memorandum dated 29th October 2019 from the Board Secretary under the Signature of one Matilda Ohene to the Chief Executive of the Ghana National Petroleum (GNPC) on the subject titled “Board Approval for payment of various sponsorship /Support Requests”.
The said memo indicates the granting of approvals to some supposed requests received with some stated amounts as indicated below:
2019 Damba Festival Preparation- Dagbon State- GHS400, 000.00
20th Anniversary of Okyenhene – GHS500,000.00 over three years totaling (GHS1,500,000.00) for the environment and greening.
II: GHS300,000.00 for organization of 20th Anniversary celebrations of Okyenhene
Ghana Journalists Association – GHS50,000.00
Ghana Boxing Association – US$30,000.00
Rebecca Foundation – GHS120,000.00
EOCO – GHS550,000.00
Our initial reaction was that of disbelief but the said memo has been confirmed by the manager for sustainability of the GNPC with a justification that these are quite normal application of the scarce resources been held in trust for Ghanaians by the corporation.
To this we call on the Government to immediately halt, and investigate the processes leading to wanton dissipation of these monies as contained in the memo, and to further take immediate action and sanctions against the Management and the Board of Directors of GNPC and to further take steps to consolidate all resources being held in trust by the corporation to forestall any further wanton dissipation of same as has been the case over the years with GNPC.
This abuse of resources being held in trust by these corporations at a time the Central Government seems to be in dire need of revenues for its developmental projects cannot be over emphasized and will need to be halted immediately to restore the needed confidence by the poor tax payer who is squeezed every now and then to generate these revenues the government needs.
The priorities of GNPC should be going forward clearly defined by a legislation as the Corporation seems to be gaining notoriety for such acts which usually contravenes the posture of the State and Central Government within the economic context prevailing in Ghana.
For the avoidance of doubt we also seek clarity on the following:
Does the Act and laws governing the operations of GNPC permits GNPC to on its own now finance and compromise other state investigate bodies such as EOCO who are expected to hold persons at the top of such corporations to account in the event of abuse of resources?
These state investigative Agencies such as EOCO who currently are expected to be investigating the board chairman of the very same GNPC and all other potential corrupt practices in such public corporations also enjoys government budgetary allocation and funding and as such could attract private support but another huge state funding by GNPC leaves a lot to be desired and confusion in the minds of right thinking society especially at the time EOCO is expected to investigating some highly placed officials of the said corporation.
Further, does such funding provision for Chieftaincy affairs in the country not constitute a pick and choose agenda which can lead to needless tensions and suspicions knowing very well how delicate the institution of chieftaincy is to ethnic and social matters as already, the chiefs and people of the Western Region of Ghana, where a larger chunk of our oil resources are extracted from are on record to have demanded a percentage share of the oil find but have till date not been given any, neither their roads fixed nor infrastructure improved by the oil money yet GNPC in an apparent show of some perceived biases is sponsoring other traditional areas in Northern and Eastern Regions of the Country by way of festivals and to also go green?
Will GNPC be in a position to grant all the traditional authorities same or similar funding upon request? if no, what justification will they provide for declining in the event all other traditional authorities now decide to seek their share of the oil cake?
Dispensing such amounts to individuals and private organizations will sure have a certain effect on the economy and central government funding as these monies could have been easily channeled to other very important needs such social amenities provision in deprived communities to ease the pressures on the central government.
The absence of funding to undertake these development projects often force the central government to now resort to imposing heavier taxes which has often lead to increases in fuel prices at the pumps in the petroleum industry.
We believe that the public funds in the care of GNPC should be prudently invested and managed in building a robust upstream petroleum sector such that GNPC can in the very near future hold and maintain some of our oil wells without any foreign oil company taking a larger chunk of the shares of our own resources. And to complement in defraying incessant debts in the energy sector and ultimately relieve ordinary Ghanaians off these huge tax burdens as prevailing today.
We lastly note with deep concerns, that, this rather headless financial decision by the Board of GNPC to among other things, pay funds to EOCO which already enjoys government budgetary allocation could potentially compromise the investigative responsibilities of the state institution and further open the floodgates for all other traditional authorities within the country to also seek their share of the oil money and must be halted immediately forthwith.
Signed.
Duncan Amoah
Executive Secretary
Source: www.energynewsafrica.com