Petroleum House, Tema 23rd June, 2016: Recent news stemming from the PIAC Annual Report alleging that GNPC overspent on its 2015 budget are incorrect. GNPC actually underspent its budget for 2015, approved by Parliament.
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. Meanwhile, compared to our budgeted expenditure of $291.90 million, our actual expenditure of $190.01m represented a 35% underspend.
It is as a result of prudent financial management that we were able to fulfil 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. This includes 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.
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 judgement is 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 are 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.