The Ghana National Petroleum Corporation’s (GNPC) capital expenditure of US$1.4billion for the 2023 operational year has been approved by parliament.

The approval paves the way for the Corporation to accomplish its earmarked projects, deemed critical in sustaining activities along the petroleum upstream industry.

The funds are expected to allow GNPC, together with its partners, to perform development and production activities across the Greater Jubilee field; Tweneboa, Enyenra, Ntomme (TEN) fields; and Sankofa Gye Nyame (SGN) fields.

GNPC is also expected to further continue exploration activities in the Voltaian Basin, and continue decommissioning the Saltpond Field alongside its midstream and capital projects.

The projected total expenditure of US$1.4billion against total revenue of US$1.2billion creates a funding gap of US$172.82million.

According to a report by the parliament’s Committee on Mines and Energy, the 2023 work programme of GNPC was approved before the House went on adjournment last Thursday.

In support of GNPC’s plan to source additional finance, it was observed that: “When GNPC operates at full throttle, it will positively affect the entire economy. Given the International Monetary Fund (IMF) bailout strictures, the loans in mind will significantly improve GNPC’s activities”.

However, the support for sourcing additional finance by the Mines and Energy Committee was given on the premise that the Corporation complies with the constitutional imperative to route through parliament the intended loan facilities, per Article 181 Section 3 of the Constitution.

The Committee urged GNPC to take immediate steps to transfer its shares in the offshore company Jubilee Oil Holdings Limited (JOHL) to its subsidiary company, GNPC Explorco.

The Committee’s work is in line with the Petroleum Revenue Management Act (PRMA), Act 815 as amended, which among others enjoins parliament each year to approve the national oil company’s programme of activities.

Performance of GNPC in 2022

During the 2022 operational year, the Corporation together with its partners made some progress in its petroleum business – including drilling a water injector (J58-W) to support oil production; drilling operation wells on J60-P and J59-W1; and completing operations on J59-W1 at the Jubilee field.

Also, it acquired and processed 1265.68-line kilometres (km) of data in the Northern Sector in respect of the Voltaian Basin Project, and signed a contract with the contractor of the Saltpond Field Decommissioning project among others.

Under its gas business, GNPC resolved land disputes at the Tema City Gas Project Site and executed a deed of transfer agreement; and completed Front-End-Engineering (FEED) studies on the Tema City Gas Project.

On its capital projects for the 2022 operational year, it completed 97 percent of civil and structural work at the Takoradi Operational Head Office and refurbished the Corporation’s current Head Office (Petroleum House) among others.

Outlook for 2023

Greater Jubilee Field: GNPC, and its partners, regarding production activities on the Greater Jubilee Field are expected to among others undertake six liftings, drill three wells, complete three ongoing wells and work on one existing well.

Also, FPSO Kwame Nkrumah is planned to be shut down to allow for the execution of critical operations and maintenance activities; to install subsea and subsurface equipment; and continue with the well maturation exercise and reservoir engineering studies.

Meanwhile, other planned activities are expected to be carried out on the Tweneboa-Enyenra-Ntomme (TEN) and Sankofa Gye-Nyame (SGN) fields, drilling wells and oil-lifts within the operational year.

GNPC plans to complete the acquisition of 1,640 square kilometres (sq. km) of new 3D seismic data and process 480 sq. km of 3D seismic data from the GNPC Block 1 Project – Tano Basin.

On the Ghana Central Basin, Block 1 – Saltpond, GNPC intends to complete the process for acquiring an authorisation from the Minister for Energy, a process that started in 2022.

The Corporation also plans to continue funding the construction of gas enclave roads in the Western Region, in line with the request made by the Ministry of Finance in 2015. A total amount of US$20million has been allocated to support the project in 2023.

Furthermore, some US$3million has been allocated by GNPC to support the Ghana Petroleum Hub Development Corporation in 2023. The project is expected to be completed by 2030 and includes four oil refineries, two oil jetties, storage tanks for crude oil and two petrochemical plants.