US$350 million paid into Petroleum Holding Fund - PIAC

A total petroleum receipt of US$350 million has been paid into the country’s Petroleum Holding Fund (PHF) for the first half of 2021 compared with US$322.5 million for the same period in 2020.

This represents an increase of 8.6 percent in petroleum revenues accrued to the state in the first half of 2021 relative to the amount raised in the same period last year.

The PHF is established under the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), as the designated public fund at the Bank of Ghana to receive and disburse petroleum revenue due the country.

Of the total receipts, Carried and Participating Interest (CAPI), contributed the largest part of US$229 million (65.5 percent), Royalty yielded US$63 million (18.06 percent).

Corporate Income Tax (CIT) proceeds were $56million (16.25 percent); Surface Rentals contributed 0.2 percent of the revenues translating into US$697,977 and PHF Income from Overnight Interest contributed US$1,368.

This was contained in the semi-annual report on the management and use of petroleum revenues for January to June 2021 released by the Public Interest and Accountability Committee (PIAC) yesterday.

The PRMA outlines revenue streams including the aforementioned ones as gross receipts into the PHF and mandates the Ghana Revenue Authority (GRA) to assess, collect, and account for petroleum revenue from these sources.

The report said about US$172.8 million received from crude oil lifting from the Jubilee Field was paid into the PHF for the period, compared to US$65million for the same period in 2020, indicating a 162.38 percent increase in petroleum earnings.

It said the revenue accrued for the period was made up of receipts from Jubilee Field’s 58th Lifting on 14th December 2020, 59th Lifting on March 6, 2021, and 60th Lifting on April 27, 2021.

In the first half of the year, it said, $58 million was paid into the PHF by the Ghana Group from the TEN Field as compared to US$110,249,774.78 in the same period in 2020, representing a 47.2 percent decline in revenues.

The amount was derived from only one lifting (18th lifting) during the period.

During the period, the report said $61.6 million raised from the TEN Field lifting was paid into the PHF as against $59 million paid into the PHF in the same period last year.

In the first half of 2021 compared to the same period in 2020, it indicated that there was sustained but relatively low production in the country’s three offshore producing Fields.

A total of 27.76 million barrels of oil was produced, down from the 2020 half-year production of 34.23 million barrels, representing an 18.91 percent reduction.

“However, with a significant recovery of oil prices above pre-pandemic values, revenue forecasts for the half-year have improved compared to the forecast of the same period in 2020”, it said.

The report said there was no payment in respect of raw gas supplied during the period, even though GNPC sent an invoiced amount of US$112,582,316.04 to GNGC.