Ghana to develop home-grown strategy to extract fossil fuel

Ghana will develop a home-grown strategy to extract fossil fuel, Mr Ken Ofori-Atta, the Minister of Finance, has said on Thursday.

He noted that given the prevailing sentiments around energy transition, there was a strong possibility that the country could be left with stranded assets hence the need to accelerate exploration activities.

Mr Ofori-Atta who said this when presenting a mid-year budget review, stated that the COVID-19 pandemic had amplified the campaign for a transition away from fossil fuels.

He said Ghana National Petroleum Commission (GNPC) had started looking at opportunities for its subsidiary, GNPC Explorco, to acquire such assets and become an operator in its own right to ensure the expeditious development of the nation’s hydrocarbon resources.

Mr Ofori-Atta said the new strategy might require an amendment or revision of the Petroleum Revenue Management Act to allow GNPC to enter into some Reserve-Based Lending transactions to be able to generate the required financing to consummate the acquisitions and to finance the exploration and development of such fields without having to rely on government funding.

He said GNPC had already identified some major potential acquisition targets of offshore blocks towards that venture and entered into discussions with the shareholders to acquire a controlling equity stake to eventually become an operator through Explorco.

The Finance Minister said as per the law, the agreements, once concluded would be presented to Parliament.

Source: GNA