A significant increase was witnessed in the expenditure of the Ghana National Petroleum Commission’s expenditure in 2022.

According to the 2022 annual report of the Public Interest and Accountability Committee, GNPC’s expenditure on various line items, mainly administrative expenditure and GNPC’s capital projects, witnessed significant increases by more than 200 percent.

The report noted that in 2022, GNPC received an amount of US$38,835,537.56 as gas commodity revenue from the Cash Waterfall Mechanism (CWM) which constitutes petroleum revenue.

“This amount was not paid into the PHF,” PIAC noted.

PIAC also raised concerns about GNPC’s funding of projects that are supposed to be funded by the government.

Parts of the report launched on April 20, 2023, noted that “GNPC continues to fund the construction of roads in the Western Corridor Enclave. This constitutes quasi-fiscal expenditure and should be the primary responsibility of the central government and not the NOC. The total expenditure by GNPC on these roads since 2014 is US$124.66 million.”

The usage of JOHL to carry out operations that were not approved in GNPC’s Workplan for 2022.

PIAC listed Explorco cash calls on Springfield, ENI Block 4, etc. – US$5,546,419.12 and SOPCL Decommissioning – US$11,000,000.00 as two of the notable examples of such.

“Total lifting proceeds received by JOHL (a subsidiary of GNPC) for 2022 amounted to US$272,652,208.95. Despite calls by PIAC that revenues of JOHL constitute petroleum revenue and should be paid into the PHF, GNPC disagrees and continues to use the lifting proceeds of JOHL for other expenditures,” PIAC said.

The total expenditure on the Saltpond decommissioning, according to PIAC, amounted to US$26.64 million in 2022. This is US$3.23 million more than the US$23.41 million approved in the 2022 Workplan of GNPC.

Watch the latest edition of BizTech and Biz Headlines below:





SSD/FNOQ