The shortfall in production compared to the target was mainly due to production difficulties experienced in the Jubilee fields, Mr. Seth Terkper, Ghana’s Minister of Finance has announced in Accra on Tuesday in Accra
Presenting the national budget for the 2013 to Parliament, Mr. Terkper said the total volume of crude oil lifted in 2011 amounted to 24,451,452 barrels.
Of this amount, the Ghana National Petroleum Commission (GNPC) on behalf of the State, lifted 3,930,189 barrels through four liftings which realized a total revenue of US$444.12 million (GH¢690.26 million).
He said the total oil receipts of US$ 444.12 million (GH¢690.26 million) comprises Royalties of US$122.94 million (GH¢191.08 million) and the State‘s Carried and Participating Interest of US$321.18 (GH¢499.19 million) were recorded within the period.
Total oil revenue received in 2011 was allocated to the various allowable sources in accordance with the Petroleum Revenue Management Act, 2011 (Act 815), he said.
The Finance Minister said of the total petroleum receipts of US$444.12 million (GH¢690.26 million) an amount of US$207.96 million (GH¢323.47 million) was transferred to GNPC, of which Equity Financing Cost was US$132.48 million (GH¢206.33 million) and GNPC‘s 40 per cent share of net Carried and Participating Interest was US$75.48 million (GH¢117.14 million) in line with Section 7 of Act 815.
Mr. Tekper said the Benchmark Revenue which represents the petroleum receipts distributed to the Annual Budget Funding Amount (ABFA) and the Ghana Petroleum Funds (GPFs), amounted to US$236.16 (GH¢366.79 million).
He said of the Benchmark Revenue, an amount of US$166.96 million (GH¢261.54 million) was transferred into the Consolidated Fund as ABFA and the remaining US$69.21 million (GH¢105.25 million) was transferred to the GPFs.
Of the amount transferred to the GPFs, the Ghana Stabilization Fund (GSF) received US$54.81 million (GH¢83.35 million) and the Ghana Heritage Fund (GHF) received US$14.40 million (GH¢21.91 million) in that order.
Mr. Terkper explained that the ABFA is the annual allocation to the Budget from the petroleum receipts in accordance with Section 21(1) of the PRMA; the ABFA is part of the National Budget and is regarded as part of the Consolidated Funds.
“Hence, its use is subject to the same budgetary processes that are necessary to ensure efficient allocation, responsible use and effective monitoring of expenditure. In addition, Section 21(4) requires that a minimum of 70 per cent of the ABFA be used for public investment expenditures”, he said.
The Finance Minister announced that, in 2011, ABFA received a total allocation of US$166.96 million (GH¢261.54 million) against a budget of US$430.94 million (GH¢646.41 million).
“The big deviation of the actual ABFA from its target was due mainly to non-realization of the projected corporate tax receipts”, Mr. Terkper explained.
Mr. Terkper stated that the fiscal year 2012 experienced an improvement in production of crude oil amidst initial production difficulties in the first two quarters of the year.
The total volume of crude oil produced in 2012 was 26,351,278 barrels representing an increase of 8.9 per cent over the 2011 production levels while the GNPC lifted crude oil five times on behalf of the State amounting to 4,931,034 barrels yielding US$541.07 million (GH¢978.27 million).
The Finance Minister said, of the total oil receipts of US$541.07 million (GH¢978.27 million), Royalties amounted to US$150.64 million (GH¢272.37 million) and the remaining US$390.43 million (GH¢705.91 million) represented the State‘s Carried and Participating Interest.
Other sources of petroleum receipts amounted to US$552,418 (GH¢1,044,290) comprising Surface Rentals of US$448,225 (GH¢847,324) and Royalties from Saltpond Offshore Producing Company Limited (SOPCL) of US$104,193 (GH¢196,967), he said.
Get the latest news and updates on Ghana’s oil and gas value chain by following Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.