News Guide Africa

Tag: oil and gas

  • Govt inaugurates new GNPC Board to drive energy sector growth

    The Minister for Energy and Green Transition, John Abdulai Jinapor, has inaugurated the newly constituted Board of Directors of the Ghana National Petroleum Corporation (GNPC), urging them to revitalize the corporation and steer it to a more sustainable and productive future.

    Speaking at the ceremony, Jinapor underscored the pivotal role of GNPC in Ghana’s petroleum sector, describing it as a national asset critical to the country’s economic growth and energy security.

    “GNPC is not just another state-owned institution. It is the flagship entity in Ghana’s upstream oil and gas industry. Through prudent investments and partnerships, it contributes directly to national development and ensures the country’s energy security,” the Minister stated.

    He emphasized the need for visionary leadership and a proactive board capable of navigating the complex dynamics of the petroleum landscape. He challenged the board to uphold the principles of transparency, accountability, and strategic oversight in guiding GNPC through both its current challenges and emerging opportunities.

    “I urge you to provide strong, strategic leadership, support the government’s efforts to expand GNPC’s operational capacity, particularly through its subsidiary, Explorco,” he added. The Minister also announced the government’s intention to review the GNPC Act, which was passed in 1983, to reflect current industry realities and global best practices.

    “As a government, we want to comprehensively review and enhance the GNPC Act to meet modern standards. Oil production has declined in recent years, and our current reserves are a concern to us. However, we’ve received encouraging signals from supermajors, and this is a critical moment to reposition GNPC for the future.”

    Jinapor expressed confidence in the board’s ability to deliver transformative leadership and secure a brighter energy future for Ghana.

    Chairman of the new board, Prof. Joseph Oteng-Adjei, expressed gratitude to President John Dramani Mahama for the appointment and pledged to lead a results-driven board.

    “We thank His Excellency the President for the trust reposed in us to reset GNPC. This is a team of diverse professionals, and we are committed to addressing the challenges within the sector. We will seek guidance from the Ministry whenever necessary, and work together to move GNPC forward,” he said.

    Members of the GNPC Board are as follows:

    Prof. Joseph Oteng-Adjei – Chairman

    Mr. Kwame Ntow Amoah – Acting CEO

    Hon. Hajia Zuwera Mohammed Ibrahim – MP

    Hon. Seidu Alhassan Alajor – MP

    Mr. Mawutor Agbavitor

    Mr. Kwame Jantuah, Esq.

    Mr. Andani Yakubu Abdulai (Yoo-Naa)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Gov’t committed to develop Afina-1X as it holds substantial gas amidst unitization withdrawal

    Caption: Government commits to developing Afina-1X, highlighting its substantial gas potential amidst unitization withdrawal.

     

     

    Adnan Adams Mohammed

     

    Government of Ghana has withdrawn the compulsory unitization directives imposed on ENI Ghana and Springfield in relation to the Afina-1X Discovery and the Sankofa Cenomanian Oil Fields.

     

    This follows President John Mahama’s earlier instructions given to the minister to withdraw the Unitization Directives a fortnight ago during ENI’s President visit at the Jubilee House and further consultations and dialogue with relevant stakeholders.

     

    The Minister of Energy and Green Transition in a statement issued last week indicated that government will explore options for coordinated development within and near the WCTP 2 contract area and continue to support Springfield as an Indigenous Ghanaian Exploration & Production Operator to commercialize the Afina discovery which has proven to have potential to add to Ghana’s reserves of oil and gas. However, the withdrawal of the Directives is without prejudice to the power of the Minister to issue new directives where necessary for the equitable and efficient development of Ghana’s petroleum resources.

     

    “It is also note-worthy that the appraisal of the Afina discovery has revealed the potential for substantial gas resources which would enhance Ghana’s energy security and sustainability”, John Abdulai Jinapor said in the statement.

     

    “The government will work with Springfield and other contractors nearby to monetize these gas resources in an expeditious manner.”

     

    Meanwhile, ENI Ghana has welcomed the decision of the Minister to withdraw the Unitization Directives in relation to the Sankofa oil field issued in 2020.

     

    ENI has further indicated that in line with the Government’s objectives, it remains committed to leverage its portfolio of innovative projects, seizing new opportunities both in the traditional and transition energy sector, while strengthening domestic energy security and sustainability.

     

    Consequently, the government reiterates its commitment to maintaining a conducive environment for investments in the upstream petroleum sector while ensuring compliance with the legal and regulatory framework governing the industry.

     

    The withdrawal decision of the Minister follows a thorough review of the Arbitral Award referenced SCC Arbitration U2021/114 (ENI & Vitol v. Ghana & GNPC) dated 8th July 2024, and the legal opinion provided by the Attorney General and Minister of Justice.

     

    While the Ministry acknowledges the Tribunal’s findings that while the issuance of the Directives breached the Petroleum Agreement due to the specific circumstances of their implementation, the concept of unitisation itself was not deemed inherently unlawful.

     

    “This provides Ghana with the flexibility to determine the most appropriate course of action in the national interest”, the minister noted.

     

    Currently, the Petroleum Commission is evaluating the appraisal report of the Afina 1X well as the government believes that the Afina field has the potential for a future unitization or a development on its own. Government has confidence in Afina’s potential as a future unitized field or a tie back to an existing infrastructure for development.

     

    Although, government acknowledges that the Tama field, which is on the Springfield block, holds 1.2 TCF of gas and can greatly contribute to the country’s energy security. It encourages both ENI & Springfield to keep the door open for negotiations to determine an amicable and commercially optimal solution.

    The decision is expected to assuage the worries of international oil companies, many of whom saw the unitization directive as a form of oil nationalism by Ghana since it effectively assigned a large proportion of ENI’s proven reserves to locally owned Springfield before the latter had met international standards in proving that its own discovery is as large as it claims.

     

    The government remains open to dialogue with its partners aimed at charting the best way forward in the sustainable exploitation of its natural resource endowments.

     

     

     

     

  • Deloitte Survey: Emissions Levy to impact investment decisions in oil & gas sector

     

    Deloitte

     

    A recent survey by Deloitte has revealed that businesses in Ghana’s upstream oil and gas industry expect their investment decisions, particularly in waste management, to be influenced by the introduction of the emissions levy.

     

    The levy, which was introduced in the 2024 National Budget under the Emissions Act 1112, imposes a tax on carbon dioxide equivalent emissions across several sectors, including oil and gas, construction, manufacturing, mining, and electricity generation.

     

    According to the survey, 40% of respondents indicated that the emissions levy would drive their investments towards cleaner technologies.

     

    Awareness of the Ghana Revenue Authority’s levy is also high, with 65% of businesses indicating they are familiar with the policy.

     

     

    When asked about the importance of environmental issues, respondents gave an average rating of 4.18.

     

    Waste management was identified as a top priority, with 65% of companies focusing on it, while 42% are prioritising renewable energy use.

     

    Although 56% of respondents are aware of the benefits of reducing their carbon footprint to claim emissions credits, only 36% reported familiarity with their own company’s specific carbon footprint.

     

     

    The survey also revealed that nearly all respondents (98%) believe it is crucial for companies to publicly disclose their environmental, social, and governance (ESG) practices.

     

    This emphasis on transparency is highlighted by an average rating of 4.22, underscoring the importance businesses place on revealing their environmental and social impacts.