Ghana national oil company to take over state gas firm

 

Ghana's state oil company can take over the much-smaller national gas firm under a deal approved by the government, Finance Minister Seth Terkper said on Wednesday during the annual budget.

The deal will bring Ghana National Petroleum Corporation (GNPC) finance to a Ghana Gas pipeline and processing facility that transports gas from the offshore Jubilee oilfield onshore for domestic use, according to a senior GNPC official.

The $750-million Atuabo gas facility in western Ghana is crucial to easing an energy shortage that has contributed to a slowing of the economy and the advent of domestic gas will also boost government revenue, Terkper told parliament.

GNPC will create a subsidiary company to manage Atuabo, said the official, who gave no details of the cost of the takeover.

GNPC is a 13.6 percent stakeholder in Jubilee and has a strategic goal of becoming an independent oil operator. It is in talks with commodities trader Trafigura and several banks over a $700 million five-year loan.