But accountability remains elusive
BETWEEN August 2011 and June 2018, Ghana has raked in $4,458.59 billion from its petroleum revenues, Business Finder’s checks from available data from the Ministry of Finance have revealed.
The amount comprises total lifting proceeds and other income distributed to The Annual Budget Funding Amount (ABFA), Ghana National Petroleum Corporation (GNPC), Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF) from inception to the end of June 2018.
The ABFA has within the period received a total of US$1,760.46 billion representing 39 per cent of the total revenue while the GNPC has received a total amount of US$1,382.17 billion equivalent to 31 per cent of total revenue.
The GSFand the GHF have each received an amount of US$927.39 million (21 percent) and US$388.37 million (9 percent) respectively.
Petroleum production in Ghana was up by 82 per cent in 2017 compared to 2016. Average daily production of crude oil from the Jubilee Field was 89,726 bopd compared to 73,995 bopd in 2016.
The TEN Field had its first full year of production, realising an average of 56,034 bopd. First oil was pumped from the SGN Field in May 2017, with an annualised daily average of 14,947 bopd.
Ghana thus reversed the falling production volumes of 2015 and 2016 which were 102,498 bopd and 88,489 bopd respectively, with daily production of 160,707 in 2017.
Yields on Petroleum Funds
Total return on investment of the Ghana Heritage Fund (GHF) year to date (YTD), (first half of 2018) was -0.90%. The three year annualised return (3Y (A)) of GHF was 1.49% whiles the five year annualised return (5Y (A)) was 12.23%.
The poor yields on the funds are attributable to the rise in yields of the US Treasury, a phenomenon which adversely affected the marked to market performance of the GHF due to its sensitivity to changes in the interest rate.
According to the 2017 report of the Public Interest and Accountability Committee (PIAC), revenue accruing to the Petroleum Holding Fund (PHF) increased.
PIAC found out that total amount received into the PHF for 2017 was US$539.83 million, 36 per cent more than the 2016 figure of US$396.17 million.
“The increase in revenues is explained by the higher production volumes and improved crude prices in 2017,” the report said.
Accountability continues to elude management, use of revenues
Unhappy with way the country’s petroleum revenues are applied, industry experts and civil society organisations have called for the auditing of all oil funded projects within the seven year period.
Source: Isaac Aidoo || The Finder