The Ghana National Petroleum Corporation (GNPC) has rejected reports from the IMANI Africa and the Africa Center for Energy Policy (ACEP), indicating the Corporation could cost Ghana between US$5 billion and US$6 billion.

According to the two companies, the GNPC's current arrangement with Genser Energy Holdings, a US-based Ghanaian-owned energy company, would lead to financial loss to the state.

GNPC, however, disagrees, stating that the figures quoted by ACEP and Imani to represent programmed losses are in fact budgeted deficits.

GNPC further stated that what it presents to Parliament in its annual Work Program is what the Corporation intends to spend on its activities and the sources of funding for such projects, and the means of financing the forecasted deficit, if any.

"It is based on these mis-represented figures that ACEP and Imani draw their conclusion that GNPC’s operations raise significant debt concerns, and that cumulatively, the Corporation’s actions could cost Ghana between US$5 billion and US$6 billion. These conclusions cannot be any further from the truth," a document from GNPC sighted by The Independent Ghana read.

"The two organizations make basic errors, in their inability to distinguish between deficit financing and profit/loss," the Corporation added.

According to GNPC, it remains a perennial loss-making organisation that has made a loss in only one year, i.e. 2020.

In 2020, GNPC made a loss of USD163.392 million. The company has blamed this on the COVID-19 pandemic which wreaked havoc on many economies.

"The years 2020 and 2021 particularly were difficult years for GNPC, and most other companies, due to the Covid-19 pandemic. Ghana does not manage its price risk unlike many other E&P companies. As such, we are particularly hit when extraneous circumstances like the Covid-19 pandemic affect both oil prices and production levels," it explained.

Meanwhile, GNPC has entreated Imani and ACEP to reach out to the Corporation on any matter they need clarification to,

"GNPC is transparent and ready to provide any information to ACEP and Imani. Despite all GNPC’s contributions to the development and well-being of the nation, the Corporation is yet to hear a single positive or uplifting statement from Imani and ACEP," it said.

GNPC believes such errors would not have been made by the two institutions should they have reached out.

Source: The Independent Ghana