An audit and accounting firm, pwc Ghana, has been appointed by the government as transaction advisor to help in the transfer of its interest in the Ghana National Gas Company (GNGC) to the Ghana National Petroleum Corporation (GNPC).
According to a statement signed by the Minister of Finance, Mr Seth Terkper, the move would “consolidate the upstream and midstream gas sub-sector under a single institution to ensure efficiency, increased value creation and sustainable national development outcomes”.
pwc will also “assist GNPC with the successful and effective integration of GNGC”.
The appointment of a transaction advisor follows the approval by the government of the takeover of GNGC by GNPC.
In his 2015 Budget presented in Parliament last November, Mr Terkper said “the consolidation of GNPC and GNGC will make it possible to enhance a more integrated management and continue financing of projects in the oil and gas enclave immediately”.
He further stated that the consolidation would also “ease the conditions that investors impose for the national gas aggregator and start financing projects in the oil-and-gas enclave immediately”.
The GNPC recently indicated plans to secure a $700 million loan to support its exploratory activities to which the Minority has kicked against.
But in support of GNPC’s move, Mr Terkper said in his budget presentation, “I would like to emphasise that this loan is a GNPC loan and not a central government loan. The cost of borrowing at around five per cent is highly competitive
In addition, GNPC plans to use between US$200 million and $300 million as part of measures to provide adequate financial security for the OCTP gas project.
Source: Daily Graphic