SALTPOND FIELD STALLED AGAIN: GNPC STILL PAYING FOR A DEAD ASSET
Saltpond Field, Ghana’s pioneering offshore oil site, has once again seen its decommissioning plans grind to a halt. Production ended in 2016, yet the Ghana National Petroleum Corporation (GNPC) continues to pay crew salaries for a field that no longer produces oil.
| Saltpond Oilfield Platform |
The situation has sparked renewed debate over accountability, fiscal responsibility, and the management of Ghana’s petroleum legacy. Discovered in the 1970s, Saltpond Field was once a symbol of Ghana’s energy ambitions. But after decades of modest output, production ceased nearly ten years ago. Decommissioning was expected to follow swiftly, but according to the Public Interest and Accountability Committee (PIAC) 2025 Annual Report, contractual hurdles, regulatory bottlenecks, and cost verification requirements have repeatedly stalled progress.
The decommissioning process is complex: it involves plugging wells, dismantling offshore platforms, rehabilitating the site, and monitoring environmental impacts. Each stage requires international contractors, technical expertise, and regulatory clearance. Yet despite years of planning, Saltpond remains untouched, a rusting reminder of bureaucratic inertia. GNPC insists that retaining crew is necessary to maintain safety standards and ensure compliance with environmental regulations.
Staff presence, the corporation argues, prevents hazards and keeps the site ready for eventual dismantling. Crew members also serve as a buffer between the offshore facility and local fishing communities, who have long complained about restricted access to waters near the field. Critics, however, see this as wasteful spending. “We are paying for a dead field,” one civil society observer noted, pointing to the drain on public funds that could support active projects like Jubilee or TEN.
The payments, they argue, reflect poor prioritization and a lack of transparency in GNPC’s operations. The stalled decommissioning has significant financial consequences. Salaries, maintenance costs, and regulatory compliance expenses continue to weigh on GNPC’s budget. Civil society groups, including PIAC, have repeatedly flagged the lack of accountability in Saltpond’s management. Funds tied up in Saltpond could otherwise support exploration in new blocks or bolster Ghana’s energy transition initiatives.
Beyond finances, the issue raises broader governance questions. Why has GNPC failed to resolve contractual disputes? Why has regulatory approval taken so long? And why are taxpayers footing the bill for a project that delivers no returns? These questions highlight systemic weaknesses in Ghana’s petroleum oversight framework. Prolonged delays increase the risk of structural degradation offshore, which could pose environmental hazards. The continued expenditure erodes public trust in GNPC’s stewardship of national resources.
With elections approaching, Saltpond may become a flashpoint in debates over energy governance and fiscal responsibility. Saltpond Field has become more than just an idle oil site; it is now a test case for Ghana’s ability to manage legacy assets transparently and efficiently. Until decommissioning resumes, taxpayers will keep footing the bill for a crew guarding a field that no longer produces a stark reminder of the cost of bureaucratic inertia.
Source: PIAC 2025 Annual Report
Firuzie James. Researcher, Black Gold Bulletin
BLACK GOLD BULLETIN...
...where oil minds unite
Comments
Post a Comment