GNPC to go eco-friendly in exploiting resources - CEO

Chief Executive Officer (CEO) of the Ghana National Petroleum Corporation (GNPC), Opoku-Ahweneeh Danquah, has assured that his outfit will explore a middle-ground for exploiting the country’s natural resources in an eco-friendly and effective manner, in partnership with other African national oil companies (NOCs).

At the meeting of heads of NOCs and energy ministers of member-countries of the African Petroleum Producers’ Organisation (APPO) in Nigeria (Abuja), the CEO of GNPC said the energy transition is inevitable, but even the most developed countries still rely heavily on fossil fuels and are rethinking the pace at which the transition should take place.

“There is a middle-ground that allows developing countries to exploit their natural resources in an eco-friendly and more effective manner. GNPC is going to work hand-in-hand with other African NOCs to find the middle-ground,” Mr. Danquah said.

Since the 2015 Paris Agreement, there has been a global divestment movement that has already seen trillions of dollars in capital move from fossil fuels toward financing low-carbon sectors instead.

With this movement, Africa risks having over 125 billion barrels of proven oil and over 500 trillion standard cubic feet of proven gas reserves declared stranded assets.

The significant level of divestment requires African countries to re-strategise in order to contend with challenges posed to the continent by the global paradigm shift from fossil fuels to renewables.

Traditional financiers of oil and gas projects in Africa – namely the international oil companies (IOCs), international financial institutions and foreign governments – are determined to limit financing oil and gas projects.

Addressing the CEOs from across the African Petroleum Producers’ Organisation (APPO) member-countries, the President of APPO, Diamantino Pedro Azevedo, emphasised the need for African countries to reconsider their strategies amid the threat.

“The reform from APPA to APPO was undertaken with a view to preparing the organisation to more effectively deal with imminent challenges that the global paradigm shift from fossil fuels to renewable energies pose to the oil and gas industry in Africa,” Mr. Azevedo said.

According to the president, this has also informed the Ministerial Council’s decision to commission a study on the oil and gas industry’s future in Africa given the reality of energy transition.

Available data from Statista suggest that as of March 2022, crude oil production capacity in Ghana stood at 173,000 barrels per day. The volume was below that measured in October 2020, when the country’s capacity reached 186,000 barrels per day.

Since March 2020, the volume of crude oil produced in Ghana has followed a downward trend. Nonetheless, oil production in the country reached 173,000 and barrels per day in 2020.

Oil Revenue

In January 2021, revenue from oil covered 0.9 percent of the country’s Gross Domestic Product (GDP); and this reached zero and 0.9 percent in May and June 2021 respectively.

In real oil monetary inflow, the country accumulated around GH¢512.7million in January 2021, equivalent of US$83 million; while in May and June 2021, roughly no value and GH¢620million equal to US$ 100.4million, respectively, were attained by the nation.