Ghana’s total crude oil production for 2020 fell to 66.9 million barrels.
Compared to a total production of 71.4 million barrels for 2019, this represents a fall in crude oil production by some 4.5 million barrels of oil.
Presenting the 2021 Budget Statement themed Completion, Consolidation and Continuation on the floor of Parliament, Minister for Parliamentary Affairs and Caretaker Finance Minister, Osei Kyei Mensa-Bonsu, stated the Ghana National Petroleum Corporation (GNPC) as of December 2020, had lifted twelve parcels of crude oil on behalf of government and transported some 88 billion standard cubic feet of gas to the Ghana National Gas Company (GNGC).
With regards to oil revenues, 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.
According to Mr Kyei Mensa-Bonsu, 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.
Speaking further, Mr Kyei Mensa-Bonsu posited that government’s projected petroleum revenue for 2021 is $885.7 million, adding the projected revenue will be 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).
