Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

GNPC denies overspending its 2015 budget

  • SOURCE: | Editor
  • Alex Mould

    The Ghana National Petroleum Corporation (GNPC) has dismissed reports that a Public Interest and Accountability Committee (PIAC) annual report cited it overspent its 2015 budget.

    It was reported that GNPC’s budget allocation for 2015 was a little over $126 million, but the company spent $190,470,000.

    However, in a statement released by the Corporation, it said, “GNPC actually underspent its budget for 2015, approved by Parliament.”

    “Our forecasted revenue was $228.05 million and our actual revenue was $126.86 million. This shortfall was driven by the global fall in crude oil prices,” it added.

    Comparing its budgeted expenditure of $291.90 million, the Corporation said the actual expenditure of $190.01 million represented a 35 percent underspend.

    Below is the statement

    ————————————————————————————————————————————

    GNPC DID NOT OVERSPEND 2015 BUDGET

    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 to bring in a 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 ensure we secure the expected outcome for Ghana.  The increases in costs are a result of required increased activity in 2015.

    Source: http://www.myjoyonline.com/business/2016/June-23rd/gnpc-denies-overspending-its-2015-budget.php

     

     

    Share this article

    Leave a reply

    Personality of the Month
    Poll

    Do you think the President should fund the free SHS with oil revenue?

    Follow Us Online
    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Events Calendar
    << Jul 2018 >>
    MTWTFSS
    25 26 27 28 29 30 1
    2 3 4 5 6 7 8
    9 10 11 12 13 14 15
    16 17 18 19 20 21 22
    23 24 25 26 27 28 29
    30 31 1 2 3 4 5
    Twitter Activity Stream
     

    Partners We are proud to be associated with:

    Skip to toolbar