Gov’t receives $840M in petroleum revenue for half-year; It is the highest since production began in 2010

Petroleum revenue accruing to the government in a half-year, has hit the highest since Ghana started production in 2010.

According to data from the 2024 Semi-Annual Report of the Public Interest and Accountability Committee (PIAC), petroleum receipts for the half year increased by 55.6% from US$540.46 million in the 2023 half-year to US$840.77 million over the same period in 2024.

Crude oil also increased from 22.45 million barrels in the first half of 2023 to 25.86 million barrels in the same period this year, a growth of 10.7 per cent compared to a decline of 13.2 per cent in the previous period.

Factors
The major increase in revenue has been attributed to increased production over the period, especially with the coming on stream of the Jubilee South East (JSE) project.

On Wednesday, November 6, PIAC shared its 2024 first half-year findings.

The chairman of PIAC, Constantine Kudzedzi, said that if the developments in the sector continue, the revenue increase is expected to continue. “Looking at the half-year development, if we continue that way there is a likelihood that the overall performance of the year would be better,“ he said.

He added: “Oil production fluctuates. We have started with 30,000 [barrels] per day. All things being equal, we can increase, depending on the quantity of oil available to produce.”

Reverse fund
Mr Kudzedzi disclosed that the Ghana National Petroleum Corporation (GNPC) is yet to establish a reserve fund, which is a requirement outlined in Section 18 of the related Provisional National Defence Council law (PNDCL 64).

The reserve fund, he explained, is crucial for covering anticipated expenditures in GNPC’s long-term plan, especially considering that petroleum revenue allocations for Level B expenditures might be discontinued in 2026, as stipulated in the Petroleum Revenue Management Act (PRMA).

Outstanding surface rentals
Mr Kudzedzi urged the Ghana Revenue Authority (GRA) to take immediate steps to recover outstanding surface rentals and also ensure that surface rentals assessed are paid into the Petroleum Holding Fund (PHF) not later than February 28 each year, as provided for in Regulation 5(1)(b) of LI 2381.

“The committee urges the Ministry of Finance to demonstrate the essence of prioritisation of the Industrialisation Priority Area by consistently committing disbursement of the ABFA to the priority area,” he said.