Business News of Thursday, 31 May 2018
The Ghana National Petroleum Corporation (GNPC) has signed a 12-year agreement with Rosneft, for the supply of natural gas to Ghana.
The signing took place on the sidelines of the 26th St. Petersburg International Economic Forum, St. Petersburg, Russia.
GNPC Board Chairman, Frederick Blay, signed on behalf of GNPC, with Igor Ivanovich Sechin, Chief Executive Officer and Chairman of the Management Board of Rosneft, signing for his company.
The supply contract is a hybrid Liquefied Natural Gas (LNG)/Gas supply agreement, where Rosneft delivers LNG to a regasification terminal located at the Tema Port, to be processed, and the gas delivered to GNPC at the existing Tema metering station.
The gas delivered by Rosneft, in the volume of ca. 1.7 mmtpa (or 250 mmscf per day) will provide a competitive and secure source of fuel, supplying 25% of Ghana’s overall power generating capacity.
Access to LNG places Ghana at the centre of West Africa’s rapidly growing energy market, providing opportunities to create jobs and build local capacity.
GNPC and Rosneft have also agreed to cooperate in the development of opportunities in the upstream and downstream sectors. Rosneft is an established upstream operator.
The GNPC Chairman expressed the hope that “this large transaction will stimulate further opportunities for investment between the two countries, both within the oil and gas sector and beyond. We hope that, through this strong cooperation, Ghana can also act as a gateway for Russian investment within the wider West African region.”
Mr. Sechin noted that “The signed documents open a new stage in the development of cooperation between Russia and the Republic of Ghana,” adding, “Ghana has placed itself among dynamically developing world economies with the energy demand growing year on year
Also present in St Petersburg were the Deputy Minister of Energy, Dr. Mohamed Amin Adam, the Ghanaian Ambassador to Russia, Oheneba Dr. Lesley Akyaa Opoku-Ware and another member of the GNPC board, Ogyeahohoo Yaw Gyebi II.
Also in attendance were some members of the GNPC Management Team including Joseph Dadzie, General Manager, Commercial; Matilda Ohene, General Manager Administration and Board Secretary; Dr. Patrick Ofori, Manager Sustainability; Legal Manager, Adwoa Wiafe; and Principal Legal Counsel Louisa Amoako-Quaicoe.
It is recalled that in September 2017, GNPC entered into a gas sales and purchase agreement (“GSA”) with Gazprom. Due to a corporate restructuring, Gazprom’s supply obligations under the GSA, have been assumed by Rosneft, an affiliate.
“We are happy to be working with Rosneft on this LNG transaction and already the two parties are looking at greater cooperation and partnership in the upstream sector,” the CEO of GNPC, Dr. K. K. Sarpong, had remarked at the end of the Tema LNG negotiations.
Rosneft and Gazprom are both majority owned by the government of the Russian Federation. Other significant shareholders in Rosneft include BP and Qatar Investment Authority.
The Ghana National Petroleum Corporation (GNPC) is Ghana’s National Oil Company (NOC), established in 1983 by PNDC Law 64, to undertake the exploration, development, production and disposal of petroleum. It leads Ghana’s search for adequate and reliable supply of petroleum products. GNPC started operations in 1985.
The Corporation is an anchor partner in all upstream operations and currently has stakes in 17 Petroleum Blocks and is the Operator of the Voltaian Basin. GNPC is also the National Gas Aggregator.
Rosneft is the world’s largest listed energy company by production and reserves. Rosneft’s daily production in 2017 was 4 million barrels of oil a day. Rosneft’s international portfolio of assets covers more than 30 countries across every part of the energy sector, from exploration through to retail stores.