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GNPC denies overspending 2015 budget

A report by the Public Interest and Accountability Committee (PIAC) accused GNPC of overspending its annual budget by about 64 million dollars in 2015.

A report by the Public Interest and Accountability Committee (PIAC) accused GNPC of overspending its annual budget by about 64 million dollars in 2015,
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A report by the Public Interest and Accountability Committee (PIAC) accused GNPC of overspending its annual budget by about 64 million dollars in 2015.But in a press statement Thursday, GNPC said it underspent its budget for 2015.

"Recent news stemming from the PIAC Annual Report alleging that GNPC overspent on its 2015 budget are incorrect," the statement noted. "GNPC actually underspent its budget for 2015, approved by Parliament."

"Our forecast revenue was $228.05m and our actual revenue was $126.86m. This shortfall was driven by the global fall in crude oil prices. Irrespective of this fall in prices, we were contractually obligated to meet our share of costs in the Jubilee Field."

"Meanwhile, compared to our budgeted expenditure of $291.90 million, our actual expenditure of $190.01m represented a 35% underspend," the statement added.

The statement said GNPC applied prudent financial management in other to fulfil its contractual obligations despite slump in revenue.

"This is what enabled GNPC to make critical sector interventions, to ensure the smooth movement of gas to power plants, in order to stabilise the supply of power for industrial and domestic use," the statement added.

The interventions, the statement said, includes the provision of road infrastructure in the oil and gas enclave in the Western Region, the guarantee that enabled Karpowership to bring in a power plant to alleviate load shedding, and meeting our obligations as a Joint Venture partner in the Saltpond Offshore Producing Company.

GNPC also defended spending 1.81 million dollars on the maritime boundary dispute between Ghana and Ivory Coast.

"The issues emanating from the Maritime Boundary dispute with Cote D’Ivoire could have a major impact on the entire oil and gas industry in Ghana if the eventual judgement is not in Ghana’s favour.

"Ghana has a strong case at the arbitration and so we have to ensure that we make the necessary representations ensure we secure the expected outcome for Ghana. The increases in costs are a result of required increased activity in 2015," the statement concluded.

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