In 2015, oil prices fell by as much as 35 per cent on the international market.
In 2014, Ghana earned $978.017 million from the production of 37.201 million barrels of oil, while in 2013, it generated $846.7 million from the production of 35.5 million barrels.
Oil revenue accruing to Ghana in 2012 amounted to $541.6 million from the export of 26.3 million barrels, as against $444.1 million from the production of 24.1 million barrels in 2011.
Distribution of oil revenue
The Finance and Administration Manager of the Public Interest and Accountability Committee (PIAC), Mr Isaac Dwamena, who made this known at a forum in Accra yesterday, said oil production started in the latter part of 2010 and 1,181,088 barrels were produced.
The forum was organised to brief the members of the Accra Metropolitan Assembly (AMA) on how revenue from oil was spent.
In his presentation, Mr Dwamena explained that in 2015, revenue from oil formed five per cent of the total government revenue; in 2014 it formed 10 per cent; 2013, eight per cent; 2012, six per cent and 2011, seven per cent.
Explaining how petroleum revenue was distributed under the Petroleum Management Act (PMA), he said it was divided into the Annual Budget Funding Amount (ABFA), Ghana Heritage Fund (GHF), Ghana Stabilisation Fund (GSF) and Ghana National Petroleum Corporation (GNPC).
The ABFA received 40 per cent, he said, while the GHF received nine per cent, with the GSF getting 21 per cent and the GNPC receiving 30 per cent.
Between 2011 and 2015, he said, the ABFA received $1.42 billion; the GHF, $249.92 million; the GSF, $604.35 million and the GNPC, $968.8 million.
He said while the GHF was for future generations and managed by the Bank of Ghana, it was to cushion the budget when there was a drop in oil prices or when the country’s oil resource was exhausted.
Justifying the GNPC’s 30 per cent share in the total revenue, Mr Dwamena said the GNPC reinvested some of its funds back into oil production and embarked on research for onshore oil discovery and capacity building.
Regarding the priority areas where the revenue from oil production was used, he explained that 12 areas had been selected, out of which the government selected four areas for development for three years.
Outlining some of the sectors that had benefitted from the oil revenue, he mentioned road/highway projects, GH¢745.009 million; water resources, works and housing, GH¢72,156 million; educational infrastructure, GH¢70,214 million; transport infrastructure, GH¢105,066 million, and agricultural modernisation, GH¢328,784 million.
A former Chairman of PIAC, Major Daniel Ablorh–Quarcoo, in his remarks, said petroleum revenue needed to be limited to few projects to enable the citizenry to appreciate its use better.
He said using the revenue to tackle many national problems at the same time had weakened the potential impact on the socio-economic development of Ghana.
In their suggestions, most of the participants urged the government to invest the oil revenue in the railway sector to facilitate trade and movement.
The PIAC is established under Section 51 of the Petroleum Revenue Management Act (Act 815) with the objectives of monitoring and evaluating compliance with the act by the government and other relevant institutions in the management and use of petroleum revenue, providing a platform for public debate on spending prospects of petroleum revenues, in line with development priorities, among other things.