The $700 million loan deal contracted by the Ghana National Petroleum Corporation (GNPC) from Dutch commodities trader, Trafigura,is likely to be reviewed downward – after a slump in oil prices, reports says.

The Chief Executive Officer of GNPC, Alex Mould, has said “We have seen prices come down and we have reevaluated the funds we need for the intended projects.”

The reevaluation is expected to see the loan reduced to between $350 million and $400 million.

According to Mr Mould, the original loan deal in 2014 was based on oil prices of $110 per barrel.

The loan courted controversy after three Members of Parliament – Dr Anthony Akoto Osei (Old Tafo), Samuel Atta Akyea (Abuakwa South) and Dr Matthew Opoku Prempeh (Manhyia South) – accused the state oil company of by-passing Parliament before going ahead with negotiations for the loan.

Subsequently, they dragged GNPC to court in a suit that was eventually thrown out.

The prices have shrunk to below $50 per barrel.

Ghana currently produces about 100,000 barrels of oil per day from the Jubilee Fields with the Tweneboah-Enyera-Ntomme (TEN) Field expected to add to the production upon completion.

Source: BFT