Ghana Earns 33% Less Income from Crude Oil Proceeds

Receipts from crude oil liftings (CAPI and Royalties) in Ghana amounted to $690,282,530.89 in 2023 ascompared with U$1,036,800,383.96 in 2022, representing a decrease of 33.4%, the PIAC has reported.The country’s state owned Public Interest a Accountability Committee says in its latest report that the revenue decline can be attributed to an interplay of lower production volumes and relatively lowerinternational crude oil prices.

“The average achieved price by GNPC on behalf of the Ghana Group for the three producing fields decreased by 26.2% from $105.746 per barrel (/bbl) in 2022 to $78.067/bbl in 2023”, the PIAC eplained.The Ghana Revenue Authority (GRA) is required under Section 3 of the Petroleum Revenue Management Act, 2011 (Act 815) to assess, collect, and account for petroleum revenue due Ghana derived from defined sources.

These revenues are paid directly into the Petroleum Holding Fund (PHF) by the 15th day of theensuing month by the entities obliged to make the payment. “For 2023, a total of $1,062,323,419.12 accrued to the PHF from Royalties, Carried and Participating Interest (CAPI), Corporate Income Taxes (CIT), Surface Rentals, and income earned on the PHF, compared to US$1,428,760,076.93 in 2022.“ This represents a 25.65% decrease from the 2022 figure”.