According to the Minister, one of the processes is to make sure that the CEO of GNPC is a board member of Ghana Gas and that there were some legal processes that needed to be done.
Meanwhile, a news report published by B$FT quoted the Minister as explaining that “GNPC by law is the company that is interfacing in buying all the gas produced offshore. Ghana Gas is the one processing all the gas. Do we want GNPC to negotiate one gas agreement, get Ghana Gas to negotiate another and create some weak link in the process?”
The Minister also beveled that Ghana Gas can benefit with a strong balance sheet of GNPC as we go forward, and “I believe it is good for Ghana.”
The GNPC is Ghana’s National Oil Company (NOC), established in 1983 by PNDC Law 64 to support government’s objective of providing adequate and reliable supply of petroleum products, and reducing the country’s dependence on crude oil imports through developing the country’s own petroleum resources.
Chief Executive Officer of the GNPC Alex Mould earlier said, “The acquisition process is ongoing. The shareholder — Ghana government — and GNPC have signed an agreement and agreed the sale. What is left to complete the takeover is more of an administrative registration issue at the Registrar-General’s. As soon as government decides to do that, we will consummate the transaction. But in terms of the agreement, we signed it long ago.
“My understanding is that it is a Cabinet decision — which has been passed, so we are just waiting for it to happen and it could happen any day from now,” he said.
Meanwhile, the decision to cede management and operations of the gas processing company to the GNPC has been acrimonious, with the Board of Ghana National Gas Company challenging the decision in what many considered as a power-play.
After several boardroom meetings and banters, government through the Ministry of Energy and Petroleum announced in December last year that it has executed the legal instrument assigning its entire shareholding in GNGC to GNPC, making the GNPC sole shareholder of GNGC with full control.
Mr. Mould explained that the GNPC is yet to take over Ghana National Gas, contrary to speculations amid criticism that the takeover idea is the result of GNPC’s lobbying, and added that the decision to bring Ghana Gas under GNPC, though not a proposition of the corporation, is a sensible one.