As GNPC take over GNGC, what is the fate of Sipa Yankey?

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The Ghana National Gas Company is to be taken over by the Ghana National Petroleum Corporation (GNPC), Finance Minister Seth Terkper has announced.

Dr. Sipa Yankey
Dr. Sipa Yankey

?The consolidation of GNPC and GNGC will make it possible to enhance a more integrated management and continue financing of projects in the oil and gas enclave immediately,? Mr Terkper emphasised when he presented government?s financial statement for 2015 to Parliament Wednesday.

He further explained that the takeover will make it possible to ease the conditions that investors present for the national gas aggregator and start financing projects in the oil-and-gas enclave.

The GNPC recently indicated plans to secure a $700 million loan to support its exploratory activities.

The Minority in Parliament have argued that the loan agreement was an international transaction which should have gone to Parliament for approval. But the GNPC has parried those arguments, insisting it has the backing of the law.

Supporting the corporation?s argument, Seth Terkper said, ?I would like to emphasise that this loan is a GNPC loan and not a central government loan. The cost of borrowing at around 5 percent is highly competitive. The uses, as outlined by GNPC, are very clear and compelling, both commercially and strategically. The facility, together with GNPC?s other resources, will be used to support such investment needs as the pipeline and receiving facility in the Offshore Cape Three Points Project (OCTP), which GNPC will finance with US$493 million out of the loan?proceeds, to provide a significant boost to monetizing Ghana?s natural gas.?

?Similarly, the US$36 million to US$45?million investment to link the Tweneboa natural gas to the Jubilee FPSO will enable cheaper processing of the gas by the Atuabo Plant,? the Minister told Parliament.

In addition, GNPC plans to use between US$200 million and US$300 million to provide adequate financial security for the OCTP gas project.?

According to him, the $700 million loan facility ?is expected to be as much a game changer as the?investment of about US$1.0 billion in our first gas infrastructure. These are?all critical to our long-term national energy security.?

He said, ?It is in this vein that Government has approved the takeover of the Ghana National Gas Company Limited (GNGC) by GNPC to create a gas subsidiary for the latter.?

? Myjoyonline

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