A reduced demand for oil leading to surplus quantities worldwide has resulted in oil prices falling by 50%.
Government should take a cue from our partners, and do more to protect our selling price in the oil market.
Tullow has hedged (price-protected) 60% of its 2020 crude oil production at $57 and 40% of its 2021 oil production at $53.
Kosmos has also hedged a large portion of its 2020/21 production at $50/bbl.
And Ghana??
– caught pants down without an oil price risk management policy or strategy in place.
– forced to trade at market price (currently about $20), resulting in a loss of over 50% of anticipated revenue this year (c $600m) due to failure to protect our sale price.
We are exposed, and completely at the mercy of daily market price changes.
Note: Brent Oil – the benchmark Ghana sells at, is currently trading at around $20 a barrel and is projected to average at $30 in 2020.