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Minority warns govt over plans to collateralize TEN oil field for $431m loan

TEN oil field

The Minority in Parliament has urgently called for a halt to the government’s plans to utilize proceeds from the TEN oil field as collateral for a $431 million loan facility from LITASCO.

The Minority asserts that this arrangement is illegal and expresses concerns that the TEN oil field would be required to produce a minimum of 3.8 million barrels of crude oil each year for LITASCO as part of the loan agreement.

Speaking to Journalists on Wednesday, September 20, John Jinapor, the Ranking Member on the Mines and Energy Committee, highlighted that despite Parliament’s rejection of the Ghana National Petroleum Corporation’s (GNPC) request to secure the loan until the terms and conditions of the agreement were provided, the presidency has directed GNPC to seek board approval for the loan without parliamentary consent.

“To our utmost shock, the minority side has become aware that the presidency is using coercive force to compel the GNPC to proceed and execute this loan agreement without parliamentary approval,” Jinapor said, adding “This is unconstitutional, this is unlawful and this is a blatant disregard to the directive and resolution of Parliament.”

The Minority also commended the board members of GNPC who have kicked against the loan agreement. According to Jinapor, the bold move by the GNPC board must be encouraged.

He warned that the move would amount to an unconstitutionality if GNPC goes ahead with the loan agreement without parliamentary agreement.

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