The Ghana National Petroleum Corporation (GNPC) is facing criticism for its failure to establish a reserve fund to finance its long-term operations, as required by the Petroleum Act. Despite receiving 55% of the Carried and Participating Interests (CAPI) to fund its operational expenditures, the corporation has not set aside funds to support its operations after the 15-year timeline expiration.
The allocation of petroleum revenue to the GNPC is expected to halt in 2026, following its implementation in 2011. This has raised concerns about the corporation’s ability to fund its operations in the future. Technical Advisor on the Public Interests and Accountability Committee (PIAC), Richard Elimah, emphasized the need for the GNPC to establish a reserve fund, stating that “when the government then decides not to fund them, how are they going to fund their operations?”.
Furthermore, the PIAC has revealed that 10 international oil companies (IOCs) owe the government over $2.6 million in surface rental fees. Four of these companies have already exited the country without paying their debts. The committee is recommending that the government takes immediate steps to recover the outstanding amounts and ensures that companies pay their fees during the course of production.
Ruth Abla ADJORLOLO
