CSOs Budget Forum urges immediate halt to $620m GNPC-LITASCO debt arrangement

The CSOs Budget Forum is advocating for the immediate cessation of the $620 million debt arrangement between Lukoil International Trading and Supply Company (LITASCO) and the Ghana National Petroleum Corporation (GNPC).

The call for the cessation of the debt arrangement aims to prevent the securitization of Jubilee Oil Holdings Limited (JOHL) assets against the aforementioned debt refinancing, a move also contested by the Minority in Parliament.

The GNPC’s 2023 work-plan, submitted to Parliament, revealed intentions to refinance the LITASCO SA loan facility, incorporating bank guarantees. In the plan submitted to parliament, GNPC, among others, indicated its intentions to arrange a ‘pre-export financing facility’ of up to $500 million and a bank guarantee of $120 million.

In a press briefing on November 9, 2023, the CSOs Forum Budget emphasized the need for transparency and accountability by urging the government to bring JOHL assets under the operation of the Petroleum Revenue Management Act (PRMA). This move is seen as essential to ensure the proper oversight of JOHL’s operations.

Jubilee Oil Holdings Limited, a GNPC subsidiary acquired through a $164 million share purchase agreement in 2021, has become a focal point of contention.

The Minority in Parliament alleges that JOHL’s revenues are being utilized as a ‘slush fund’ for unapproved business activities by the GNPC, raising concerns about transparency and parliamentary oversight.

The Minority’s apprehension extends to the recent debt arrangement between LITASCO and GNPC, involving JOHL assets, which they claim has been shrouded in secrecy.

Energy Minister Mathew Opoku-Prempeh has, however, refuted these claims, leading to heightened scrutiny of the manner in which JOHL assets are held and managed.

norvanreports understands that the $620m refinancing debt amount has been revised downwards by the Finance Ministry, the new amount however remains undisclosed by the Finance Ministry.