The Public Interest and Accountability Committee (PIAC) has warned that if the government fails to aid the Ghana National Petroleum Corporation beyond 2026, as required by the Petroleum Revenue Management Act, the Corporation may not be able to survive without it.
According to the PRMA, the NOC will be funded for 15 years after commercial crude oil production begins, after which it will no longer receive funding from the Petroleum Holding Fund. This means that after 2026, GNPC will no longer be funded by the PHF.
“One way for GNPC to be more resourceful, financially, while promoting autonomy and flexibility, is for the government to desist from imposing additional responsibilities and obligations on the Corporation”, it disclosed in a report titled “The Role of GNPC in the Upstream Petroleum Industry: Challenges and Prospects”.
According to the report, the GNPC can also ensure secured funds by communicating and collaborating with the state and other stakeholders, such as regulators, investors, customers, employees, suppliers, and communities, to align their expectations and interests, as well as secure their support and participation.
“While at this, the Corporation also needs to advocate for and influence the policies and regulations that affect their transition, and to demonstrate their contribution and value to society and the economy. It is therefore critical that the Corporation revises its strategy with this condition in mind while conducting its operations”, it pointed out.
Source: Energy Ghana