Ghana makes $464m from oil in first half 2018

Despite continued challenges with information sharing and documentation regarding payments in the oil sector, in the first half of the year 2018, Ghana made a total of $463,569,064.38 in petroleum revenue, according to the latest report of the Public Interest and Accountability Committee (PIAC). The Committee is mandated by law to monitor oil revenue and expenditure and report to the citizens.

The amount it reports, was paid into the Petroleum Holding Fund (PHF) for the period.

For the period under review, PIAC indicated that Carried Interest yielded the most revenue of $168,575,887.49 being 43 per cent of total revenues, followed by Royalties, $151,754,754.45 representing 39 per cent and Additional Participating Interest of $69,685,300.69 representing 18 per cent.

“Other revenues from Surface Rentals, Corporate Income Tax, and Interest Income accounted for $73,553,119.72 being 16 per cent of the total,” it said.

It notes further that an amount of $203,102,174.08 was deposited into the PHF from the Jubilee proceeds, $134,567,820.03 from the TEN Field and $63,030,602.08 from the Sankofa Gye-Nyame (SGN) Field.

The PHF, it added, received $372,511.72 in Surface Rentals from seven companies and $72,422,752.49 million for Corporate Income Tax. Undistributed funds in the PHF earned interest of $757,855.51.

“In respect of payment of surface rentals, PIAC said, one Asem Sabastian Klenam was captured in the Bank of Ghana (BoG) 2018 Semi-annual Report as having paid $47,200 in April 2018. PIAC’s checks revealed that the said amount was the surface rentals assessed for Ecoatlantic Ghana Ltd/Petrogulf. This is an indication that there is still some challenge with respect to information sharing on the documentation of payments by Ghana Revenue Authority (GRA) and BoG,” it said.

The report found that for the period under review, Ghana National Gas Company (GNGC’s) indebtedness to Ghana National Petroleum Corporation stood at $45,170,192.14, with an outstanding opening balance of $230,315,198.37 bringing the total indebtedness to $275,485,390.51.

Cumulatively, receivables due Ghana Gas as at June 2018 stood at $873,767,914.87 (including interest charges for the period January to June 2018), the report said.

“Between January and June 2018, GNGC sold processed gas with total invoice value of $160,648,513.18. This amount comprised expected revenue from the sale of Lean Gas ($137,248,841.58), representing 86 per cent, expected revenue from LPG, $19,723,641.34 (12 per cent) and condensates, $3,676,030.26 (2 per cent).

Even though GNGC received $46,342,944.10 as proceeds from gas revenues, it made no payment to GNPC in respect of gas supplied, for which reason no gas receipts were realised in the PHF. The GNGC explained that it used the realised revenues to cover its operational cost,” PIAC said.

By Emmanuel K. Dogbevi
Copyright ©2018 by Creative Imaginations Publicity
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