CEO of GNPC, Mr. O – A Danquah on Wednesday 17th August, 2022 was a discussant at the launch of the Ghana Upstream Petroleum Chamber 2022 report at the Marriot hotel in Accra. Other panelist at the program were Mr. Joe Mensah who is the SVP and Head of Ghana Business at Kosmos Energy and Mr. Baluri Kassim Bukari – Local Content and Sustainability Manager at ENI – Ghana.
The panel discussed key topics regarding incentivizing exploration with attractive fiscal terms, expediting the appraisal to development process and optimizing domestic gas utilisation in the context of the energy transition. Speaking, on the subject, of what constitutes attractive fiscal terms and what needs to be done, Mr. Danquah indicated that every strategic investor has a price, hence there is the need to look at what the investor wants so we can design bespoke fiscal rates to suit that particular investor. He cited the current exploration strategy of Ghana and GNPC where 4% royalty rate goes for a block in ultra – deep waters compared to 10% in deep waters and 12.5% in shallow waters as an innovative favorable fiscal term that will encourage deep – water exploration.
On the issue of ways to expedite action in the development to appraisal process, Mr. Danquah called on players in the industry to explore ways to reduce delays in the designing and approval processes in Petroleum Agreements. He told the gathering that GNPC has been building capacity in critical facets of the petroleum industry and this can be seen in the role the Corporation staff plays in keys areas of the sector. The competences gained has helped to reduce delays in some of the processes involved in development and appraisal of work in the industry. He said “Today the time for working and approving Petroleum Agreements has become shorter than before and this is due to the continuous capacity building and investments the Corporation has done in the sector”.
On ways to optimize gas utilization and the role gas plays in Ghana, Mr. Danquah called for an increase in domestic demand of the product. He said that GNPC’s work in the Voltaian Basin shows prospects of more gas and so we must look at options to make use of it. He told the meeting that GNPC’s goal is to push for more gas and the Corporation is working with its partners to achieve that.
Sharing his thoughts on Energy Transition, Mr. Danquah stressed that it must be well thought through so that its introduction would not disrupt the gains made in the sector. He was hopeful that GNPC’s goal to make Ghana self sufficient in its energy needs will be achieved.
Other dignitaries who spoke at the event were the Deputy Minister of Energy Mr. William Owuraku Aidoo (representing the Minister of Energy) and the Minister of Public Sector Hon. Joseph Cudjoe.