Posted: Wednesday 21st May 2014 at 22:41 pm

Restructure Ghana Gas – ACEP


Dr George Sipa-Yankey, CEO, Ghana Gas

The Africa Centre for Energy Policy (ACEP) has called for the restructuring of the Ghana National Gas Company (GNGC) because of the seeming lack of transparency in the activities of the company which government has failed to decisively act on, especially in matters of gas development.

The policy think tank, in its May 2014 Public Interest Report, said the situation was beginning to cast doubt in the minds of International Oil Companies (IOCs) about the Government’s determination to apply the gas to benefit the people of Ghana.

‘The indecision and personal interest, which caused the protracted delays in the development of Jubilee gas is being repeated with the development of Sankofa Gas, which is forecast to have more gas than Jubilee. The Sankofa JV Partners announced to Government two years ago about their readiness to develop and commercialize the gas in line with the Petroleum Agreement and to date Government has not been able to make a decision for development to start.

‘There is a general view among oil and gas players in and outside Ghana that the current managers of the country’s oil and gas are working for their personal interest against the national interest and they are worried the oil discovery could become a curse rather than a blessing. The Deputy Chief of Staff is part of the Presidency and should not be serving on boards of state-owned entities. It creates difficulties for the sector Minister in the supervision of Ghana Gas,’ the report stated.

It additionally called for increased oversight at the highest level of Government in activities of Ghana Gas, adding that that will promote good corporate governance and public accountability of the company, which is being funded with tax payers’ money.

‘Ghana Gas should be put under Parliamentary scrutiny to make them more accountable. In the short to medium term, the company should be put under GNPC as its subsidiary and be supported to become an independent company in the long-term. Thus, the Board of Ghana Gas should be dissolved whilst management is integrated into GNPC, which originally had responsibility for gas commercialization in Ghana.’

Also, it said during the Institute of Economic Affairs (IEA)’s Presidential Debate in 2012, President John Mahama promised to undertake a technical audit of Ghana Gas but that too has not been forthcoming.

‘The President must disclose the status of the said audit and the extent to which efforts have been made to address the problems.’

BY Samuel Boadi
 

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