GNPC Goes Commercial

Ghana’s state-run firm GNPC is being groomed to assume a commercial role in the country’s oil and gas sector. The firm will now begin functioning like an international oil company, engaging in exploration and development of oil fields.

GNPC will no longer be responsible for regulation of the petroleum sector or the licensing of exploration blocks; these activities will now fall under the purview of the newly-created Petroleum Commission. The switch in responsibilities is stipulated by Act 821 which established the Petroleum Commission.

According to Act 821, the Petroleum Commission shall among other things, "receive applications and issue permits for specific petroleum activities as required under petroleum laws and regulations."

Ghana’s new Minister of Energy and Petroleum Emmanuel Armah Buah, during his vetting process said “The law is clear; GNPC is to focus on operations and build its capacity as an operator and discover more oil for Ghana. That is GNPC's goal. I am very happy that their own strategic plan focuses on making sure that they build that capacity and to venture into exploration; and I believe that you see the strategic alliances GNPC is making among others. I think this it is in a good direction.”

GNPC, he added, has no role when it comes to regulation: “The law makes it clear it is the Petroleum commission that is in charge of regulation. The Ministry of Energy and the Minister will be in charge of policy. If I am given the nod, this is clearly what will be happening. If the GNPC has even played any role at all, it has been in an advisory capacity to the minister.”

Source; Petroleum Africa