GNPC downplays negative effects of dwindling oil prices

General News of Friday, 30 January 2015


Alex Mould Clean

The Ghana National Petroleum Corporation (GNPC) says dwindling crude oil prices will have little effect on its operations.

Global prices of crude oil has gone down by a little over 60 percent from the middle of 2014 to date, resulting in some oil companies cutting down on their exploration activities while others, like Schlumberger are cutting down their workforce around the world.

There were fears this will affect GNPC badly especially when it comes to works on new oil wells in Ghana.

But Chief Executive of GNPC Alex Mould says the national oil and gas entity could even rather benefit from the situation despite the current developments on the world market.

$700 million loan in by February

Meanwhile GNPC is set to use part of the $700 million loan to finance developments in oil and gas projects off West Cape Three Points by ENI and VITOL.

The corporation recently managed to secure the loan despite efforts by some members of Parliament to stop them.

The MPs argued that the loan should have come to the house for approval. But GNPC maintained it does not need approval from Parliament to secure the loan.

Its Chief Executive Alex Mould says they should start accessing the funds in the next few weeks.

“This money would be directed towards the ENI development. We are paying for the pipeline and offshore receiving facility (ORF) which cost about 500 million dollars. The first trunch of the loan would be given to the developers ENI in a few weeks time”, said GNPC boss, Alex Mould.