Benchmark crude oil revenue for 2022 pegged at $1 billion
Benchmark crude oil revenue for the year 2022 has been estimated to be $1,006.1 million by the Minister for Finance, Ken Ofori-Atta.
The projected benchmark oil revenue by the Minister for Finance is based on a crude oil benchmark price and output of $61.23 [up from the projected benchmark price of $54.75 in 2021] and 59.51 million barrels (163,044 barrels of crude oil per day) for the year 2022.
For the year 2023, 2024, and 2025, the projected benchmark oil revenue are; $1,033.2 million; $1,060.7 million; and $1,017.2 million respectively.
Presenting the 2022 Budget Statement on the floor of Parliament on Wednesday, November 17, 2021, Mr Ofori-Atta noted the projected benchmark crude oil revenue is made up of Royalties of $206.5 million, Carried and Participating Interest of $537.6 million, Corporate Income Tax of $261.1 million and Surface Rentals of $0.92 million.
According to the Finance Minister, of the projected $1,006.1 million oil revenue, a total of $326.98 million will be ceded to the GNPC for its equity financing cost of $236.71 million and net Carried and Participating Interest of also $103.67 million.
Of the remaining $679.2 million revenue, a sum of $475.4 million will be allocated to the Annual Budget Funding Amount (ABFA) to support the implementation of the 2022 Budget, while the Ghana Petroleum Funds (GPFs) will receive $203.75 million.
The GPFs oil receipts will be distributed between the Ghana Stabilisation Fund ($142.6 million) and the Ghana Heritage Fund ($61.1 million).
Projected benchmark revenue for 2021
Government’s projected petroleum revenue for 2021 is $885.7 million, with the revenue made up of Royalties ($201 million), Carried and Participating Interest ($524.9 million), Corporate Income Tax ($158.5 million) and Surface Rentals ($1.3 million).
Projected benchmark crude oil output for 2021 according to the 2021 budget is 57.30 million barrels representing a fall in the production of some 9.6 million barrels of oil from 2020’s oil output of 66.93 million barrels.
Per the 2021 semi-annual report by the Public Interest and Accountability Committee (PIAC), total oil revenue attained for the first half of 2021 amounted to $350 million.
2020 oil revenue and allocations
Total petroleum receipts for 2020 amounted to $666.4 million (Ghs 3.8 billion) due to the decline in global oil prices impacted by the Covid-19 and a fall from the target of $1.5 billion set by government at the beginning of the 2020 fiscal year.
Presenting the 2021 budget, Mr Kyei Mensa-Bonsu, noted receipts from crude oil production were allocated based on the provisions of the Public Revenue Management Act (PRMA).
The GNPC was allocated a total of $198.6 million, made up of equity financing cost of $154.8 million and its share of the net Carried and Participating Interest of $43.8 million.
The Annual Budget Funding Amount (ABFA) received a total of $273.4 million while the Ghana Petroleum Funds (GPFs) received $166.6 million.
The Ghana Petroleum Funds were distributed to the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF) in the ratio of 7:3, consistent with the PRMA. Thus, the GSF received $116.6 million while the GHF received $49.9 million.
