The Public Interest and Accountability Committee (PIAC) has warned against the continuous shift of state loan obligations onto the books of Explorco, a subsidiary of the Ghana National Petroleum Corporation (GNPC), warning it could cripple the unit's long-term viability.
In its 2024 Annual Report on the management and use of petroleum revenues, PIAC revealed that debts initially borne by GNPC on behalf of the state-particularly guarantees related to Karpowership and Litasco energy deals-are now being transferred to GNPC Explorco, the Corporation's commercial wing. "There is a worrying development where some loan obligations, initially borne by GNPC on behalf of the State in respect of Karpowership and Litasco guarantees, are being offloaded to GNPC Explorco," the report stated.
PIAC warned that the move could severely impact Explorco's ability to function as an independent, commercially viable entity capable of sustaining GNPC operations once petroleum revenue disbursements from the Petroleum Holding Fund (PHF) cease. "This will potentially saddle Explorco with debt and defeat its purpose as a solely commercial wing of GNPC," PIAC noted.
GNPC Explorco was established to manage GNPC's commercial interests in upstream petroleum activities, with the goal of making it self-sustaining and financially independent of public funds.
