eight hundred and ninety thousand United States dollars (US$60,890,000), the Petroleum Project cost amounting to six million, seven hundred and two thousand, three hundred and seventy-eight United States dollars (US$6,702,378.00) and the remainder of sixteen million, six hundred and forty-five thousand, three hundred and sixty-nine United States dollars (U$16,645,369) expended on employee compensation, Bank of Ghana charges, administration costs, capital expenses and general expenditure.
The projects undertaken during the year included the South Deepwater Tano, the Voltaian Basin Project, North and South Tano, the Hess Block and Ultra Deep Water Keta. Other activities were reservoir characterisation, ICT upgrade and expansion, research and technology centre, Organisation Development Project and Maritime Boundary Special Projects.
Project execution challenges
The Committee observed that the GNPC was unable to implement its entire approved work programme for 2013 due to factors beyond the control of the Corporation. Amount of one hundred and sixty-three million, six hundred and twenty-seven thousand, two hundred and seventy (US$163,627,270.00) was found to be outstanding as at the end of September,
Officials of the GNPC explained that the continuous injection of gas into the MH4 Reservoir Unit resulted in high pressure, making it impossible for the execution of scheduled activities. In the circumstances, all further operations had to be postponed to 2014 for implemen- tation.
The GNPC's budget request for the 2014 fiscal year
For its activities for the year 2014, the GNPC requested for the sum of three hundred and thirty-four million, one hundred and seven thousand and ninety- three United States dollars (US¢334,
Out of the total request, the amount of one hundred and eighteen million, eight hundred and fifty-nine thousand, seven hundred and eighty-one United States dollars (US$118,859,781.00) has been budgeted to meet Jubilee Equity Financing Cost, the TEN and the Offshore Cape Three Points (Sankofa-GyeNyame) development costs. An amount of US$156,345,887 has been set aside to meet petroleum costs, such as the South DeepwaterTano, the Voltaian Basin and the Ultra Deepwater Keta projects. Capital projects amounting to US$35,554,667 is also part of the request.
The remainder of twenty-three million, three hundred and forty-six thousand, seven hundred and fifty eight United States dollars US$23,346,758 is projected to cover general expenditure of the Corporation which includes adminis- trative, capital, personal emoluments and other incidental costs.
The request of the GNPC is to be financed from its share of projected revenue from the Jubilee Field. The projected amount for 2014 is US$192,610,004.
Construction of office modern accom- modation
The Committee noted that the GNPC has budgeted for the sum of twenty-two million, two hundred and sixty-six thousand, six hundred and sixty-seven United States dollars (US$22,266,667.00) which has been earmarked by the GNPC for the construction of a modern office accommodation. The amount also includes
the re-development of the Corporation's landed property. The Committee was informed that the project is in line with the Corporation's strategic goal of attaining the status of a sole operator of petroleum blocks in seven years and a world class operator within the next fifteen years.
On its part, the Committee urged the GNPC to ensure timely construction of the facility, to make savings on possible rental charges.
Bank of Ghana's transfer charges
The Committee noted with concern that, a whopping sum of one million, nine hundred and sixty thousand, and nine hundred and sixty-one United States dollars (US$1,960,961.00) was retained by the Bank of Ghana (BoG) as transfer charges in respect of transactions involving five liftings undertaken for the GNPC. Officials of the Corporation informed the Committee that the charges were unilaterally imposed by the BoG without any recourse to the Corporation.
They, however, indicated that the issue has been raised at the Ministerial level for redress. The Committee considered the amount to be on the high side and recommended expedited action on the negotiations to reach mutually acceptable fees.
The Committee has duly scrutinised the 2014 draft estimates of the Ministry of Energy and Petroleum and is of the view that the request is justified with regard to the important programmes to be implemented in the year 2014.
It, therefore, wishes to recommend to the House, to adopt its Report on the draft estimates and to approve the sum of one billion, three hundred and forty million, nine hundred and eight thousand, five hundred and fifteen Ghana cedis (GH¢1,340,908,515.00) for the activities of the Ministry of Energy and Petroleum for the 2014 fiscal year.
Ranking Member (Mr Kobina T. Hammond): Mr Speaker, I rise to support the Motion and in doing so, I propose to make a few contributions of my own.
Mr Speaker, some of us have --