Energy

GNPC receives US$269.76m in crude oil proceeds, down 13.42% from 2022

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Ghana’s state-owned oil company, GNPC, received $269.76m in crude oil proceeds in 2023, a 13.42% decline from the previous year.

While the company’s efforts to recover longstanding debts from BOST are commendable, concerns persist about high development and production costs in the TEN field.

The breakdown of receipts reveals a significant disparity between Level A and Level B, with the former receiving $148.63m and the latter receiving $121.13m. This raises questions about the allocation of resources and the efficiency of GNPC’s operations.

Furthermore, the outstanding debt of $5m from ECG-BG Related Charges, which has been pending since 2015, is a concern that needs to be addressed urgently.

The Committee’s recommendation to ECG to settle this debt and other outstanding payments to GNPC is a step in the right direction.

However, the most pressing issue remains the high development and production costs in the TEN field, which have resulted in low production levels. The comparison with SGN, where production is higher despite no drilling, is particularly striking.

The recommendation to GRA and the Petroleum Commission to intensify audits of development and production costs is crucial to ensuring that GNPC operates efficiently and effectively.

Overall, while GNPC has made some progress in recovering debts, the company still faces significant challenges that need to be addressed to ensure that Ghana’s oil resources are managed effectively for the benefit of all citizens.

By Benson Afful

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