US$31.22 billion Generated From Three Oil Fields in 10 years – PIAC report

The Public Interest Accountability Committee (PIAC) has issued an assessment report on Ghana’s petroleum revenue management spanning a 10-year period.

According to key findings from the report, an amount of US$31.22 billion in value has been generated from three producing oil fields between 2011 and 2022.

PIAC’s report which was released on March 1, 2022 said the generation comprises both entitlements due to the contracting parties and the Ghana Group.

The Ghana Group, according to PIAC earned US$6.55 billion in total petroleum receipts between 2011 and 2020.

“The achieved selling prices of the Ghana Group’s crude entitlement was closely aligned to traded Brent prices, reflecting a continuous and commendable effort to generate value for the country. The Ghana Group has earned US$6.55 billion in total petroleum receipts between 2011 and 2020, equivalent to (9.97% of 2020 GDP),” portions of PIAC’s report read.

Regarding the breakdown of petroleum receipts by fiscal instrument, PIAC said it discovered that Carried and Participating Interest (CAPI) has by far generated the highest share for Ghana, accounting for 58 percent or US$3.81 billion of the total US$6.55 billion revenue earned.

“This is followed by royalties at 25 percent (US$1.64 billion) and then corporate income tax at 17% or US$1.08 billion,” it added. On the allocation of petroleum revenue inflows, PIAC said the Annual Budget Funding Amount (ABFA) received the highest amount of US$2.6 billion (40%) over the period. This is followed by Ghana National Petroleum Corporation (GNPC) receiving US$2.0 billion (30%) while the Ghana Stabilisation Fund (GSF) received US$1.39 billion (21%) of total revenues.

In addition, PIAC said the Ghana Heritage Fund (GHF) received US$586 million (9%) of the total allocation. “These allocations are broadly consistent with the Petroleum Revenue Management Act as amended,” PIAC pointed out.

PIAC was first established in 2011 by Section 51 of the Petroleum Revenue Management Act, 2011 (Act 815) as amended and inaugurated to serve as an independent statutory body mandated to promote transparency and accountability in the management of petroleum revenues in Ghana.