Revenues accruing to Ghana from oil lifting increased by 11 percent in the second half of 2020.
Crude Oil lifted from the Fifth SGN Field; Sixteenth TEN; Fifty-Fifth Jubilee; Fifty-Sixth Jubilee; Seventeenth TEN; Sixth SGN Field; and Fifty-Seventh Jubilee fields amounted to US$ 261.0 million in H2 compared to receipts of US$235.28 million in H1, 2020.
Other receipts from the second half of 2020 including corporate tax and surface rentals amounted to US$ 95.3 million. A total of US$ 95 million was received as corporate tax from Kosmos, Anadarko, Tullow, and Petro Sa in the second half of the year 2020.
In total, US$ 356.3 million was received from crude oil-related activities in the second half of 2020, according to the Ghana Petroleum Funds Report for Second Half-Year Ended December 31, 2020.
Despite recording declines as a result of low demand in last year, crude oil prices have begun to pick up gradually globally. A report by Fitch Solutions noted that Ghana’s oil reserves are left with about 2.5 billion barrels more to be produced if new oil discoveries are not found. This represents about 86% of the total oil reserves.
Fitch Solutions noted that about 400 million barrels of oil have so far been produced from the Jubilee and TEN fields since the country began oil production in the year 2011.
According to the Petroleum Holding Fund and Ghana’s Petroleum Accounts at the New York Federal Reserve, Ghana has secured $6.5 billion in revenue since it started earning from the commercial production of crude oil in April 2011.
Ghana’s earnings come from the country’s share of crude exports and taxes, rental charges, and other payments made by the oil exploration firms operating in the country’s oil fields. This points to the fact that the country could raise substantial revenues from oil if well managed despite fluctuation in oil prices, but also face the risk of depletion.
The recent report from the Bank of Ghana shows that the Fifth SGN Field raked in a total of US$30.6 billion, a total of US$36.0 billion from the Sixteenth TEN, and US$41.6 million from the Fifty-Fifth Jubilee fields.
Also, proceeds from the Fifty-Sixth Jubilee, Seventeenth TEN, Sixth SGN Field, and Fifty-Seventh Jubilee in the second half of the year 2020 amounted to US$39.7 million, US$38.9 million, 36. 7million, and US$37.5 million respectively.
This publication outlines crude oil liftings of Ghana and the allocation to the Ghana Petroleum Funds in line with Section 28 Of The Petroleum Revenue Management Act, 2011 (Act 815).
Part of the proceeds was allocated to the Ghana Petroleum Funds. The Funds comprises the Petroleum Holding Fund (PHF) and the Ghana Petroleum Funds (GPFs) which were established by the Petroleum Revenue Management Act, 2011 (Act 815) and Act 893 as amended.
Of the amount realized in the second half of the year 2020, a total of US$28.2 million was transferred into the Ghana Heritage Fund whilst US$65.8 billion went into the Ghana Stabilization Fund.
However, total net income realized to petroleum funds in H2 2020 reduced to US$8.93 million to close the year from US$10.76 million same periods in the year 2019.
This represents a decline of approximately 17 percent year-on-year and is likely attributable to the global crises and economic hardships wrought by the coronavirus pandemic.
The Ghana Stabilization Fund contributed 10% or US$0.88 million to total net income compared to US$1.43 million in H1 2020 whilst GHF contributed 90% or US$8.05 million compared to US$8.57 million in H1 2020.
