PIAC Report Reveals $74.9 Million in Crude Oil Proceeds Uncollected by GNPC Explorco Since June Lifting
A total of $74.9 million in crude oil liftings by GNPC Explorco is yet to be realized, according to the 2024 semi-annual petroleum report by the Public Interest and Accountability Committee (PIAC).
Per the report, the crude oil lifting was made by the National Oil Company subsidiary in June this year.
“A lifting worth US$74,916,669.91 was made by Explorco in June 2024, but receipts are yet to be realized as of the end of the period under review,” noted the report.
Explorco currently holds the seven (7) percent additional commercial interest in the Jubilee and TEN fields acquired by GNPC in April 2021 from Occidental Petroleum (Anadarko WCTP Company) in respect of the Company’s DWT/WCTP assets.
According to the GNPC, the interest of Jubilee Oil Holdings Limited (JOHL) has officially been ceded to GNPC Explorco.
On October 18, 2023, Explorco’s re-registration at the Office of the Registrar of Companies (ORC) was completed and the relevant certificates were issued.
The transfer of JOHL’s interests in DWT and WCTP to Explorco was approved by the Minister of Energy in November 2023.
Meanwhile, Ghana’s oil revenue has surged to $840 million in the first half of 2024, marking a 36% increase compared to $540 million during the same period in 2023, according to the latest Petroleum Holding Fund report released by the Bank of Ghana.
The significant increase in revenue is attributed to higher proceeds from various sources:
– Oil Liftings: Contributed $470 million from six oil fields.
– Corporate Tax: Generated $350 million.
– Surface Rentals: Accounted for $580,000.
– Interest on Petroleum Fund: Yielded $7 million.
The Bank of Ghana, in accordance with section 28 of the Petroleum Revenue Management Act, 2011 (Act 815), allocated $91 million to the Ghana Stabilization Fund and $39 million to the Ghana Heritage Fund, totaling approximately $130 million.
The report underscores Ghana’s growing prowess in the petroleum sector, highlighting the country’s effective management and strategic allocation of its oil revenues.
As mandated by law, the Bank of Ghana remains responsible for the receipt and disbursement of petroleum revenues, ensuring transparency and accountability in the sector.
With the extractive sector showing promising signs and consumer spending remaining robust with GDP growth rate for 2024 projected to be 4.3% by Fitch Solutions, the outlook for Ghana’s economy continues to brighten, further bolstered by these substantial increases in oil revenue.
