Q) Who we are?
A) Ghana National Petroleum Corporation (GNPC) was established in 1983 and started operations in 1985 to support the Government's objective of providing adequate and reliable supply of petroleum products and reducing the country's dependence on crude oil imports through the development of the country's own petroleum resources.
In addition to the functions of petroleum exploration, development, production and disposal activities, the Corporation took over the assets, liabilities and functions of the then Petroleum Department and assumed responsibility for the importation of Crude Oil and Petroleum products to meet national demand.
Q) Who appoints GNPC’s Managing Director?
A) The President of the Republic of Ghana.
Q) What are the distinct roles played by GNPC, the Petroleum Commission (PC) and the Ministry of Energy and Petroleum (MoEP) in the Upstream Petroleum Sector?
A) GNPC is Ghana's national oil company mandated to explore on its own or partner all contractors in the exploration and production of petroleum in Ghana. The PC regulates, manages and coordinates the activities of all upstream operators including GNPC. The function of the MoEP is to formulate, implement, monitor and evaluate energy sector policies. Both GNPC and PC are Agencies under the MoEP.
Q) What does the E&P Law say about ownership of Petroleum Resources discovered within Ghana?
A) Petroleum resources existing in its natural state within Ghana are the property of the republic of Ghana and held in trust by the government on behalf of the people of Ghana (Ghana Constitution Article 257 (6); PNDC Law 84, Section 1.1)
Q) What is petroleum?
A) It refers to crude oil and natural gas or simply oil and gas. These are mixtures of hydrocarbons which are molecules, in various shapes and sizes of hydrogen and carbon atoms found in the small, connected pore spaces of some underground rock formations. Hydrocarbon’ is the term used to describe any organic compound consisting only of carbon and hydrogen.
Q) How is hydrocarbon (Petroleum) formed?
A) Hydrocarbon is derived from the decomposition of organic matter, algae and bacteria trapped and preserved in sedimentary deposits. Burial of these deposits and the corresponding increase in heat and pressure 'cooks' the organic matter.
This breaks down the complex hydrogen and carbon molecules and converts them into solid, liquid or gaseous hydrocarbons known as fossil fuels.
Q) What are oil and gas reserves?
A) It is the estimated volumes of recoverable oil and gas within the petroleum reservoir. A reserve is classified as proved, probable or possible depending on the likelihood that the estimated volumes of oil and gas can be economically produced i.e.: (oil is found in commercial quantities).
Q) What are the various Phases of Upstream operations?
A) There are five interlinked Phases:
- The exploration stage begins the search for oil with seismic surveys or other geophysical surveys. An exploratory well may be drilled to confirm the presence of hydrocarbons.
- When a discovery is made, the next step is the appraisal stage to ascertain the characteristics (size, structure and quality etc.) of the discovery and to determine whether or not the discovery is commercially viable. Appraisal wells are drilled at this stage.
- Once commerciality is declared, the next stage is the development stage. A development technology and strategy has to be decided upon by all stakeholders to exploit the field in the most efficient way. Development wells are drilled at this stage.
- The production stage involves the production of oil, gas and water from the reservoir.
- The final stage in the cycle is the abandonment stage. At this stage the field is no longer profitable and is decommissioned. It involves plugging of wells, removal of well equipment, production tanks and other subsea installations.
Q) What is the Government of Ghana's stake in the Jubilee Field?
A) 13.64% (i.e. 10% carried interest and 3.64% additional interest)
Q) Can Tema Oil Refinery refine Jubilee Crude?
A) Yes. The quality of Jubilee Crude Oil meets the processing requirements/parameters of the Tema Oil Refinery.
Q) Why is the Jubilee oil not being refined by Tema Oil Refinery (TOR)? Why don’t we channel the resources to bring TOR to a better status?
A) GNPC has not sold any parcel of the Jubilee crude oil to TOR for a number of reasons
- The terms for the sale of Jubilee crude oil is purely on commercial basis and is at prevailing market rate, and GNPC is ready to sell the Jubilee crude oil to any buyer that meets the terms of the sale contract.
- GNPC parcel size from the Jubilee Field is normally 950,000 (+/-5%) bbls which requires a Letter of Credit (LC) of about $ 110,000,000 which should be due in 30 days. However TOR, most often only raise an LC of up to about $ 60,000,000 due for 90 days for about 500,000 bbls.
Q) What are the main application requirements for a Master’s Degree programme for the GNPC Oil and Gas Learning Foundation?
A) Applicant for Master's degree must:
- Be a citizen of Ghana.
- Ideally have a minimum of Second Class Upper Division, Bachelor's Degree.
- Secure admission into a recognized University in the host;
- Not be a current beneficiary of scholarship administered by another institution
- Not more than 35 years old;
- Demonstrate Commitment to return (if programme is undertaken outside Ghana) to Ghana upon completion of the course to contribute to national development
- Have successfully completed the National Service Programme;
- Show documentary evidence of continuing enrolment in the academic Programme. This will be required from the Registrar of beneficiary's University during the tenure of the programme.
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