GNPC seeks funding to operate independently

oilblock-africaGhana National Petroleum Corporation (GNPC) is seeking US$1bn to become an independent operator, according to a report

Reuters reported that GNPC is in talks with Dutch commodities trader Trafigura and banks for a US$700mn five-year loan at 4.43 per cent to fund its oil and gas projects.

GNPC is state-owned and a major player in Ghana’s oil exports, but said its need to boost capital cannot be met entirely through public sources.

“GNPC has to be prudent and build up capital for its growth. This is normal commercial practice. No serious company lives from year to year,” Reuters quoted the company as saying.

GNPC added that the loan deal would be funded through its mandated share of national oil export revenue rather than using oil as collateral. The deal would be Trafigura’s first in Ghana. Founded in 1993 Trafigura Beheer BV is the world’s third largest private oil and metals trader after Vitol and Glencore Xstrata.

GNPC is also in talks with Offshore Cape Three Points (OCTP) partners for a US$493mn gas pipeline and receiving facility.

Ghana discovered oil in 2007 and began production in 2011. The country is reportedly on course to produce around 105,000 bpd in 2014 from its offshore Jubilee field. It expects US$15bn to US$20bn in oil investment over the next decade.


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