GNPC Must Undergo Strategic Reforms

– In the face of global energy transitions – PIAC

By Isaac AIDOO, Accra

AS Ghana edges closer to 2026, a pivotal year for its National Oil Company (NOC), the Ghana National Petroleum Corporation (GNPC), the call for strategic reforms is gaining momentum.

Technical Manager at the Public Interest and Accountability Committee (PIAC), Mr. Mark Agyeman, has urged a significant reorientation of GNPC’s mandate, particularly in the face of global energy transitions toward cleaner and renewable energy sources.

In an interview, Mr. Agyeman stressed the need for GNPC to redefine its role as it prepares to operate independently of state funding.

The Petroleum Revenue Management Act (PRMA) mandates that from 2026, GNPC should no longer receive financing from the Petroleum Holding Fund (PHF), marking a critical shift in the corporation’s operations.

“By 2026, GNPC should be able to stand on its own feet, both technically and financially, to pursue its mandate,” he said, underscoring the importance of this milestone for the future of Ghana’s energy sector.

However, Mr. Agyeman expressed concerns about GNPC’s readiness to meet this target, citing operational challenges that could hinder progress. A major issue is the delayed disbursement of funds from the PHF, which has created cash flow issues for GNPC.

Additionally, significant debt owed by the government, nearly a billion dollars according to PIAC reports, has exacerbated the corporation’s financial constraints.

“GNPC has been burdened with providing loans to state-owned enterprises, such as the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG), and these debts have yet to be settled. This situation strains GNPC’s ability to meet its operational targets,” Mr. Agyeman noted.

He also highlighted that a fundamental overhaul of the legislative framework governing GNPC is crucial. The PNDC Law 64, enacted in 1983, outlines the corporation’s functions but has remained largely unchanged despite the shifting landscape of the global oil and gas industry.

“The law has not been updated in over 40 years, and that’s a significant issue. The industry has evolved, and GNPC must evolve with it,” Mr. Agyeman stated. He further explained that GNPC’s ability to remain competitive and drive growth in the modern energy environment depends on this legislative review.

Updating the legal framework would enable GNPC to adapt to the changing energy landscape, where fossil fuels are gradually being phased out in favor of more sustainable energy sources.

The PIAC Technical Manager also emphasized the need for GNPC to play a leading role in Ghana’s broader energy transition. As the world moves towards reducing carbon emissions and diversifying energy sources, GNPC must actively invest in renewable energy projects, such as solar and wind power, while maximizing the value of Ghana’s petroleum resources.

“GNPC has the opportunity to invest in alternative energy sources while still ensuring that Ghana’s oil and gas resources are developed responsibly and sustainably. This will require a shift in focus and a commitment to diversification.”

Mr. Agyeman proposed that GNPC must not only focus on upstream oil exploration and production but should also expand its portfolio to cover the entire petroleum value chain, from refining to downstream activities.

This expansion, he argued, would not only bolster GNPC’s financial independence but would also enhance its role in the energy transition by creating jobs, promoting local content, and increasing Ghana’s energy security.

“We need GNPC to be a fully integrated energy company, participating in every stage of the petroleum value chain, while also developing the capacity to support renewable energy initiatives.”

A key component of GNPC’s future success, according to Mr. Agyeman, lies in strengthening its governance framework. He recommended the appointment of independent directors to the GNPC board to depoliticize the corporation and ensure that decision-making is driven by commercial and strategic considerations.

“We need a governance structure that allows GNPC to push back against politically motivated demands. When GNPC is forced to provide loans to other state entities, it undermines its financial stability. Independent governance will help the corporation focus on its core mandate.”

He also called for transparency in GNPC’s operations, urging the corporation to enhance its accountability mechanisms, especially as it transitions toward financial independence. He warned that without strong oversight, GNPC could fall short of its goals for 2026 and beyond.

“GNPC must operate transparently to gain public trust and ensure that it is using its resources efficiently. Stronger accountability will help GNPC navigate the challenges ahead.”

With 2026 approaching, the stakes are high for GNPC. Mr. Agyeman’s recommendations underscore the urgent need for the corporation to adopt a forward-thinking approach that not only ensures its financial and technical independence but also positions it as a key player in Ghana’s sustainable energy future.

“The energy landscape is changing rapidly, and GNPC must be prepared. By 2026, we expect GNPC to be a leader in the energy sector, driving not only oil and gas exploration but also Ghana’s transition to renewable energy,” he concluded. As GNPC moves towards this crucial milestone, the steps it takes today will determine its ability to thrive in a rapidly evolving energy world — one where sustainability, diversification, and financial independence will be paramount.