Revise 41-year-old GNPC law-PIAC
According to the Committee, the Ghana National Petroleum Corporation Law, 1983 (PNDCL 64), is no longer fit for the Corporation’s operations today as well as the nation’s thriving energy sector.
The Public Interest and Accountability Committee (PIAC) is concerned about the continuous use of the over 41-year-old law that established the Ghana National Petroleum Corporation (GNPC) and thus calls for its revision.
According to the Committee, the Ghana National Petroleum Corporation Law, 1983 (PNDCL 64), is no longer fit for the Corporation’s operations today as well as the nation’s thriving energy sector.
A paper published by PIAC, notes further that a revision of the legislation will enhance efficiency and bring Ghana’s sector operation to par with international standards.
PIAC argues that PNDCL 64 was passed at the time the nation had not commenced any petroleum activities and also when the GNPC was merely being used as a Special Purpose Vehicle (SPV) for prospecting the economic viability of the sector.
Today, however, Ghana has three production fields (Jubilee, TEN, and Sankofa) in addition to the upcoming Jubilee Southeast and several other offshore and onshore explorations.
As such, PIAC wants a review of the law to enhance the GNPC’s core business as well as enable it to diversify into new energy sectors to leverage existing capabilities.
The report also touches on another very important area, which is the GNPC’s time-limited funding from the Petroleum Holding Fund (PHF) and the delay in its release, thus urging the GNPC to strategize to ensure financial sustainability.
Moreover, the PIAC report commented on the burdened balance sheet of the GNPC, and the influence of politics on its governance structure, urging that failure to review the age-long law has the likelihood of impeding the nation’s ability to maximize its hydrocarbon resources.
