Government is assuring that it will ensure the Petroleum Development Hub Corporation will be operational this year.
In the 2021 financial budget presented on behalf of the Finance Minister by the Majority group leader, Osei Kyei Mensah Bonsu, he disclosed that preparatory activities are been continued.
“In 2021, we will ensure the set up and operationalisation of the Petroleum Hub Development Corporation. Preparatory activities such as the conduct of a strategic environmental assessment, spatial planning and land acquisition activities towards the development of the Hub will be continued.”
Touching on total crude production achieved in 2020, the budget states, production from the three fields totalled 66.93 million barrels. Translating to an average daily oil production of 182,860.13 barrels.
Additionally, a total of 88,530.61 million standard cubic feet (MMscf) gas was delivered for power generation and non-power gas users. Translating to average daily gas export of 241.89 MMscf
Furthermore, the government says it will continue the negotiation of Petroleum Agreements. And also monitor activities on the Jubilee, TEN and SGN fields.
Also, there’s the expectation for production projection from the three producing fields in 2021 to yield a total of 57.3 million barrels of oil and 93.07 billion standard cubic feet of export gas. At a daily average of 156,986 barrels of oil and 254,986.30 million standard cubic feet of gas respectively.
Increase in Petroleum Products
Also, fuel consumer might witness an increase in the prices of petroleum products as the Energy Sector Recovery Levy (ESRL) has also been reviewed. This, the government says it’s due to the difficulties faced by the economy arising from higher excess capacity payments.
The reviewed energy sector recovery levy will result in a charge of 20 pesewas per litre of diesel and petrol.
“Despite substantial progress made by the Government, there’s the need to find additional resources to cover the excess capacity charges. That have resulted from the Power Purchase Agreements (PPAs) signed by the previous government which required payments for capacity charges even when the plants involved were idle or unutilised.
“Mr. Speaker, it has become very necessary for Government to consider a review of the energy sector levies. The Energy Sector Recovery Levy of 20 pesewas per litre on petrol and diesel under the ESLA, I hereby submit to this House for approval.”
Despite the review, government is also introducing another levy on petroleum prices. As it has proposed a Sanitation and Pollution Levy (SPL) of 10 pesewas on the price per litre of petrol and diesel under the Energy Sector Levies Act (ESLA).
The two levies will cause a 5.7% increase in petroleum prices.
“Mr. Speaker, I should note that on the basis of existing world crude oil prices. The implementation of the two proposed levies for sanitation and pollution as well as to pay for excess capacity charges. This would result in a 5.7% increase in petroleum prices at the pump.”
