Gov’t makes over US$50m savings on GNPC head office

Boakye Agyarko

Minister for Energy, Boakye Agyarko, has indicated that government managed to scale-down the cost for construction of the Ghana National Petroleum Corporation (GNPC) head office from an initial US$76m to US$20m.

By negotiating the cost from US$76m to US$20m, government has now been able to make a US$56million saving on construction of the head office building.

“When we came in, there was a funding proposal on the table for a GNPC headquarters that was projected to cost US$76m. We thought it was a ridiculous amount, and so GNPC was instructed to look at the project again.

“What we have been able to do is to scale-down the project and also commit US$20m to the it. Obviously, at the end of the project we estimate US$20m,” he told B&FT in an interview at Parliament, after adoption of the GNPC’s 2018 Programme of Activities.

The head office construction, which is yet to commence, falls under GNPC’s non-petroleum capital projects; and according to the report of the ‘Select Committee on Mines and Energy’ on the 2018 Programme of Activities of the Ghana National Petroleum Corporation, they will in 2018 continue their efforts to secure a permanent office.

In this regard, an amount of US$20m has been budgeted toward the Head Office project. The total estimated cost of the office is still being determined, and it will be made available after the detailed design work is completed.

The report also stated that, in line with the GNPC’s decision to move its operational office to Sekondi-Takoradi, the Committee noted a provision of US$10m has been made in the 2018 budget toward construction of the office.

Within the outlook for 2018 is exploration and appraisal projects, including the Voltaian Basin project: the Corporation intends to intensify its efforts at discovering oil in commercial quantities in the Voltaian Basin.

In this respect, the Corporation will acquire 600 Line Kilometres of 2D seismic data; process 600 Line Kilometres of seismic data; complete a geochemistry data planning report; produce satellite imagery report.

Others are: Petroleum Development and Production Project; Greater Jubilee Field Development and Production. The Corporation will execute the Plan of Development of the Greater Jubilee Full Field Development (GJFFD) and continue with implementation of the FPSO Turret Remediation Project(TRP).

Tweneboa-Enyenra-Ntomme (TEN) Development and Production: the ITLOS having ruled in favour of Ghana in the Maritime Boundary Dispute between Ghana and Ivory Coast on 23rd September 2017, the Corporation intends to continue with its development programme at the TEN field this year. The Corporation will drill and complete two development wells, and continue its reservoir surveillance and management of the field as well as its maintenance operations of the FPSO.

Total production from the TEN field for 2018 is expected to be 20MMbbls of oil and 10.95 Bcf of gas export. This translates to expected average daily oil production 55,000 barrels and average daily gas export of 30MMScf.

The Ghana Group is expected to make four liftings from the field. The total amount budgeted for the Corporation’s contribution toward the TEN Project in 2018 is US$91.15m.

The report also reveals that other midstream and other projects such as the Tema and Takoradi projects, Maritime Boundary Secretariat, Ammonia Plant, Gas Evacuation Enclave Roads and Prestea Sankofa Gold Limited are all expected to be worked on this year.

Leave a Reply