Business News of Friday, 23 March 2018
Ghana’s oil sector will suffer a major setback if industry players and the government do not decide on a single module to run the oil industry.
This is the assertion of the Minister for Energy, Boakye Agyarko.
According to him, the non-existence of a single module to define allocation of funds to the Ghana National Petroleum Corporation (GNPC) have ignited questions on the expenditure pattern of the GNPC.
His comments also come on the back of evaluation on the sector, ten years after oil discovery in the country.
He spoke at the Ghana Economic Outlook and Business Strategy Conference, 2018.
In an interview with Citi Business News, Mr. Agyarko said it is imperative for stakeholders to agree on a module to grow for the industry.
“This nation ought to start a debate on what we want out of the country’s national oil company, there is not a single module for a national oil company so as a nation, we have to look at our circumstances and decide what we want our national oil company to do,” he remarked.
He explained that the absence of a module has led to misunderstandings in the allocation of funds to the GNPC in the running its operations.
Some observers in the oil and gas industry have questioned why the GNPC will operate both as a regulator and a player in the oil field.
They add that the GNPC also engages in oil exploration while it has oversight responsibility in the industry.
“When I appeared before the Parliamentary Select Committee on Mines and Energy there were complains that too much money is given to the GNPC. But the question is, is too much money to do what, if you are giving them 400 million dollars as an exploration company then you are not giving them anything but if you are giving them 400 million dollars as an asset manager then maybe you are giving them too much money but until we answer that question how will we know,” he queried.
Mr. Agyarko stressed, “It is not for one person to determine so what we have to do is to begin a national dialogue on what we want this institution to be”.