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GNPC Accounts for Oil Revenue

  • SOURCE: | qwesa2big
  • The Ghana  National  Petroleum  Corporation (GNPC) has described  as  completely inaccurate reports by  the media  that it  does not render  account  to the  State for  oil revenues among others.

    Reacting  to the allegations  in  a press release issued by its  Corporation Affairs  Departments  recently  GNPC  said  it accounted to Parliament for its  annual  budget allocations from  the  Jubilee Oilfield  revenue through the  Ministry of Energy and  Ministry of Finance  and Economic Planning as  required by the Petroleum Revenue Management Act,2011 (Act 815).

    It recalled that Parliament in 2011 allocated US$207.96 million representing 47 percent of the country’s Petroleum Revenues to neither it nor its operations.

    “US$132,484,815 (or 63.7 percent) went  to repay  part  of the Jubilee partners  to pay  for our US$165.8 million  share of field development costs incurred since 2008.

    US$30,315,185 FOR 14.6 percent) went towards the acquisition processing and interpretation of 2,612km of 3D Seismic Data for the Southwest Deep 2008.

    “US $28,119,624 (or 14.6  percent) was used in fabrication and installation of 14kilometres of deep water pipeline as part the  Natural  Gas  Infrastructure  Project;

    US$7,661475(or 3.7 percent) went  to  staff costs while  US$9,383,204 (or 4.5 percent) went  towards general operational and administrative expenditure.”

    It  added that  such receipts  and expenditures  were  captured  in  detail in its 2011 financial statements  currently undergoing external  audit.

    “ our  2011  external audit  is behind schedule because it  took  us   some  time  to work  through some of the accounting policy impacts  of the  2011 Petroleum  Revenue Management Act- and  not   because we  are  reluctant  to account for these  monies , Once  the audit  is  concluded we will circulate  our accounts  as required  by law”.

    It  added the GNPC  was  audited  by  the  Auditor-General every b year   and  that its audited accounts  were submitted to all relevant  government  agencies including the  Ghana Revenue Authority (GRA ) in accordance with  Article 187 of the Constitution    and Section  12  of the Ghana National Petroleum Law, 1983( PNDC Law 64).

    “It  is completely  incorrect to allege the GNPC withholds  revenue from  government . This reflects  misunderstanding of the workings of  the PRMA,”  it  indicated.

    The  practice has been  that GNPC does  not directly retain any revenues from the participating interest in  Jubilee production.

    Rather  GNPC does  not directly  retain any revenues  from the  participating interest in Jubilee production.

    Rather  , GNPC  hands  over 100 percent  of the gross revenues  to the State.

    “ The  state  then cedes  such  funds as Parliament considers necessary  to  cover  GNPC hands  over 100 percent  of the gross revenues to the state.”

    “The State then cedes such funds as Parliamentary considers necessary to cover GNPC’s share of development and production costs, annual administrative costs and its long-term capital needs”

    In additional to the foregoing, it said GNPC has no discretion over dividend payments all the revenues were fully under State control.

    “ The  ceded funds  are not   subject  to dividend  payments  because this would mean the GNPC would  not have  the resources required to execute  projects Parliament and the Executive  would  have approved.”


    The  Ghanaian  Observer


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