GNPC must birth more subsidiaries to survive odds – PIAC

Technical Manager at the Public Interest Accountability Committee (PIAC), Mr. Mark Agyeman has emphasized the importance of Ghana’s National Oil Company, the Ghana National Petroleum Corporation (GNPC), diversifying its operations to ensure its continued survival.

According to Mr. Agyeman, GNPC should adopt a strategy of breaking into more subsidiaries, following the model of its Explorco subsidiary, and investing in renewable energy.

In an interview with The New Finder, Mr. Agyeman highlighted the significance of GNPC becoming a stand-alone operator and leveraging the current ‘energy transition’ regime to diversify its portfolio.

 By investing in renewable energy and expanding its operations beyond traditional oil and gas ventures, GNPC can adapt to evolving market trends and secure its long-term viability in the energy sector.

“For us at PIAC, when we think will help GNPC sail through this transition period is for the GNPC through its subsidiarisation to diversify its portfolio where one subsidiary can focus on renewable energy, aa Explorco is focusing on petroleum exploration, then it will gradually be diversifying away from fossil fuels,” Mr Agyeman explained.

The Corporation could expand into renewable energy, such as solar, wind, hydro, and biofuels, as well as other low-carbon or carbon-neutral technologies, such as hydrogen, carbon capture and storage, and electric vehicles.

This Mr Agyeman maintained will allow GNPC leverage its existing capabilities and resources, such as engineering and project management skills, access to capital, and land and infrastructure assets, while also creating new revenue streams and markets, and enhancing its Environmental, Social and Governance (ESG) performance and reputation.

For PIAC, The provision of integrated energy solutions to customers, such as electricity generation and distribution, energy efficiency and management, and energy trading and marketing, were some of the ventures a review of the law establishing GNPC could open the Corporation to.