Home / News / GNPC seeking to assign oil interest to company registered in tax haven Cayman Islands – ACEP

GNPC seeking to assign oil interest to company registered in tax haven Cayman Islands – ACEP

The African Center for Energy Policy (ACEP) is charging that the Ghana National Petroleum Corporation (GNPC) is trying to allot an interest in a portion of Ghana’s oil squares to Jubilee Oil Holdings, an organization enrolled in the Cayman Islands.

ACEP claims its checks have uncovered that this organization is enrolled with Dr K. K. Sarpong, CEO of the GNPC and Freddie Blay, Board Chairman of GNPC as chiefs.

These charges were evened out by ACEP’s Policy Lead for Petroleum and Conventional Energy, Kodzo Yaotse, at a news gathering.

The supposed exchange connects with GNPC’s mission to obtain 7% Commercial Interest in the squares.

GNPC in 2021 declared maneuvers to secure the said interest, adding that it will be moved to GNPC’s auxiliary, the GNPC Exploration and Production Company (GNPC Explorco).

ACEP anyway asserts it has found that GNPC rather plans to relegate the interests to Jubilee Oil Holdings.

“ACEP’s hunt has not yet determined useful proprietors of Jubilee Oil Holdings. It is critical to take note of that the portrayal of the CEO and Board Chair of GNPC, with their names in the General Registry of Cayman Islands, isn’t sufficient evidence that GNPC is the proprietor of the Jubilee Oil Holdings.

Notwithstanding, without even a trace of proof on investors of Jubilee Oil Holding, we continue with the supposition that GNPC claims the organization.

While the Corporation has not given public data on the essential embodiment of this methodology, the informal clarification got by ACEP shows that the Corporation expects to utilize the seaward organization to take care of the advances for the obtaining before the interest returns to Explorco,” Mr Yaotse said.

ACEP is likewise addressing how some $199 million GNPC needs to back the procurement will be acquired.

“Without true data on the financing choices from GNPC, theories are overflowing. In October 2021, Africa Intelligence announced that GRA, likewise the Finance Ministry, expects to loan the assessment settlement sum from the Oxy exchange to GNPC to counterbalance the procurement cost of the 7% interest with no response to the Petroleum Revenue Management Act (PRMA), Act 815 as revised.

The PRMA, since its beginning, has experienced numerous responsibility challenges. Yet, for any income to be hampered external the express directs of the law, will be the last nail in the final resting place of the Act, a point of reference that will subvert the actual presence of the Act.

There is no individual, organization or authority dressed with the ability to proper oil income outside the PRMA, regardless of whether the demonstration can be advocated as fundamental,

Should Finance Ministry Lend to GNPC?

The response is a basic no. In the current monetary setting of exorbitant loan costs and the frail essential equilibrium of the country, a more ideal and creative way to deal with financing the 7% interest is required.

ACEP likes that GNPC is penniless, and its frail monetary position opens it to a significant expense of capital.

In any case, considering that the Jubilee and TEN fields are delivering resources, they could be utilized, particularly through financially sound accomplices to back the procurement. Any level of investment funds through imaginative methodologies is superior to utilizing charge income required for the public spending plan in a grave period.

Acquiring by the Finance Ministry at a greater expense for GNPC won’t mirror the troublesome picture on income painted in the 2022 financial plan,” he said.

GNPC and government are yet to remark on these claims.

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